Mainstream Separately Managed Accounts allow clients to follow Rivkin’s proven investment strategies without having to trade themselves. Our four portfolio options have been designed to suit various different investor goals.

Monthly Update September 2020

Equity markets, both in Australia and the US, corrected lower throughout the month of September, with the ASX 200 Accumulation Index declining 3.7%, while the S&P500 in the US lost 3.80% for the month. For both equity indices, September was the first negative month since March, and follows five months of positive gains as equity markets recover from the pandemic induced decline between February and March. Markets remain rather sensitive to the US political landscape, with the Presidential election now less than one month away. This was evident late on Friday when President Trump confirmed he had tested positive to Covid-19, which led to a sharp sell-off into the close for the ASX. More so, wrangling between the Republicans and Democrats over the next round of fiscal stimulus has come to a standstill, with the size and details of the next package now expected to be confirmed after the election results are known. This will no doubt delay the economic recovery currently underway. In Australia, Treasurer Josh Frydenberg delivered the 2021 Federal budget in Parliament on Tuesday night, which has been largely well received. Cuts to personal income tax, originally scheduled for 2022, will now be backdated to July 2021, and will provide an additional $12 billion to Australian taxpayers. In additional, asset write-offs and a large infrastructure spend will aim to boost investment.

Rivkin offers six different underlying strategies on the Mainstream SMA platform, which we combine into four recommended portfolios.  Two of these, ‘Smart Growth’ and ‘Defensive Income’, are focused on ASX investments. During September, although both portfolios declined in value, both held up better than the broader market, with Smart Growth declining 2.05%, while Defensive Income declined 0.71%, both net of fees. The third of our suggested portfolios, ‘Global Growth’, which has approximately 60% weighting to US equities was the top performer, gaining 0.79% for the month, while Capital Stable declined 0.69%. The Global Growth strategy was aided by a weaker Australian dollar, which declined by 2.9% for September.

At the strategy level, it was the US strategies which were the better performers in September, with US Momentum gaining 2.86%, while US Value gained 2.53%.  From the US Momentum strategy, Zoom Media Communications (ZM) was the standout performer, gaining 44.6%, while Pinduoduo (PDD) and Tesla (TSLA), were the biggest detractors, declining by 16.6% and 13.9% respectively for September. The three ASX stock strategies were all lower for September, led by ASX Momentum which declined by 2.46%, while ASX Value declined 1.65% and ASX Income declined 0.47%. The capital stable portfolio declined by 0.69%, with both the Australian dollar gold price and US equities declining over the course of the month, while bonds were higher.

Looking to the month ahead, we would not be surprised to see an uptick in volatility throughout October, as we head towards the US election in early November. Nevertheless, it is important at times like this to maintain a longer-term investment focus, as we believe that any sell off in equities as a result of the political cycle will inevitably be short-lived.

All performance data presented in this document relates only to the start date of the SMA portfolios on June 12, 2019. The performance below refers to the model portfolios, net of fees, which, while providing an accurate representation, will not match exactly everyone’s account. Please use the investor portal or call us to check your account-specific performance.

*Past performance is not indicative of future performance

The above table shows the returns of each portfolio over various time periods after brokerage, management and performance fees. Individual account performance may vary from the results above due to a number of factors including, but not limited to, rounding, small variations in stock weightings and account start date.

Please log in to your Mainstream Account to have the most accurate picture of your accounts performance.

The table below presents performance on a monthly basis for each of the portfolio options. Again, results in this table are after brokerage and fees.

Returns for June represent performance from the launch date of 12 June 2019 to the end of month.

*Past performance is not indicative of future performance

Rivkin also offers its original investment strategies on the SMA platform. The table below shows the returns of these strategies.

Note: All returns in this document are net of fees, 1.5% management fee (1% for capital Stable); and 10% performance fee where applicable with high watermark ( 5% for capital stable) for the complete list of the fees please refer to the PDS issued by The Trust Company (RE Services) Limited a part of the Perpetual Group.

**5.0% for Capital Stable

*1.0% for Capital Stable

This product PDS is issued by The Trust Company (RE Services) Limited a part of the Perpetual Group, ABN 45 003 278 831,AFSL No 235150.
Please search our website or request the PDS to understand full risks and costs of the product before taking decision to invest in it.

All opinions and estimates constitute judgments of Rivkin and are subject to change without notice. These statements should therefore not be relied upon as an accurate representation or prediction as to any future matters.

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Past performance is not indicative of future performance.

Important Notice:

Performance data shown represents past performance. Past performance is not a guarantee of future performance. Investing and trading carry financial risk, when judging performance please consider the different types of investments and levels of risk associated.

All information and data on this post are provided in good faith and are believed to be accurate and reliable at the time of publication. However, the returns shown in this post might differ from yours due to various reasons such as the time you have entered the market and the amount invested. If you are seeking for clarification, please contact us on 1300 748 546.