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 April 2021
Following several weeks of sideways trading throughout February and March, equities markets continued their broader uptrend in April, with the main indices both in Australian and the US producing solid returns. The ASX200 Accumulation Index gained 3.5% in April, while in the US, the S&P500 and Nasdaq100 rallied 5.2% and 5.9% respectively.
Investor sentiment continues to be supported by improving economic data, notably in the United States and Australia, as well as Europe to a lesser extent. Risk-on sentiment has also been buoyed by an announcement from the Biden administration of the proposed US$1.8 trillion American Families Plan spending package, which as the name suggests, focuses on more direct support to families, in addition to the already proposed infrastructure spending package. This fiscal stimulus is providing strong tailwinds for both the materials and financial sectors through firmer commodity prices and higher yields while a rotation away from higher growth technology shares is ongoing. Still, financial conditions remain highly accommodative and central bankers have pledged their ongoing support for easy monetary policy, viewing recent gains in both inflation and unemployment as still someway from their goals.
Notably in the U.S. March non-farm payrolls jumped 918k vs an expected gain of just 660K, although the number of employed remains approximately 8m below pre-pandemic levels. GDP growth for the first quarter also showed the economy is on track to grow at a 6.4% annualised rate in 2021. In Australia, while the labour market is improving, evident with the unemployment rate in March dropping to 5.6% and 70.7k jobs added for the month, wage growth remains subdued, and with inflation rising below forecast at 1.1% year-on-year in the first quarter of 2021. As a result, the Reserve Bank of Australia has committed to continuing easy policy despite raising its economic projections for 2021 with the July 2021 meeting in focus for a potential expansion of the central banks current bond buying program.
Looking now at the performance of the Rivkin SMA strategies, of which there are six individual strategies. Of the three strategies which are focused on ASX listed stocks, the ASX Momentum and ASX Income strategies were the standout performers, gaining 7.99% and 7.32% respectively, while the ASX Value strategy closed the month 2.19% higher. With the ASX Momentum strategy, Mineral Resources (MIN) was the top performing stock, gaining 25.6% for the month, thanks to a strong iron ore environment, while Afterpay (APT), who had been one of the better performing stocks from this portfolio over the past nine months or so, was sold mid-month locking in a solid profit. Within ASX Income, the Events component of the portfolio remains very active and has enjoyed some great success throughout April. Increased bids for Mainstream (MAI), Redflex (RDF) and Vitalharvest Freehold Trust (VTH) kept the good run going, with MAI being a highlight after seeing a bidding war push the profit to almost 120% within only a few weeks. The environment remains conducive to corporate activity, and we hope to see bidding tension emerge with our other holdings in the strategy. Lastly, while the ASX Value portfolio was higher for the month, gains in Pro Medicus (PME, +14.2%) and Hub24 (HUB, +7.2%), were offset by losses in Blackmores (BKL, -17.2%) and IDP Education (IEL, -4.9%).
In the US, the US Momentum Strategy gained 3.49% after fees, while the US Value strategy finished the month of April 1.58% higher. For Momentum, there was a large spread of returns for the month, with Moderna (MRNA, +36.6%) and Capital One Financial (COF, +17.2%) at the top, while Peloton (PTON, -12.5%) and Ford (F, -5.8%) were the worst performers for the month. For US Value, the standout performer was UPS (+19.9).
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.
*Past performance is not indicative of future performance
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.
