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 March 2021
Equity markets for the most part continued their slow but steady recovery from the March 2020 lows, but with a noticeable divergence between sectors. The ASX200 closed at the end of February at 6790, up roughly 1.5% for the month. In the US, the S&P500 closed at 3973 points (+160 points) which was a new all-time closing high. Technology stocks, however, were flat overall despite a late month rally, after a big sell-off in February.
The theme that accelerated in February continued throughout March, with the rotation from ‘growth’ stocks to ‘value’ stocks. The catalyst for this rotation has been the rapid climb in long-term government bond yields (particularly 10-year yields) as global economic growth expectations have improved and the potential impact that could have on inflation. At least towards the end of March, we have seen a ‘buy the dip’ mentality in these names as the growth stories remain unchanged despite the changing long-term bond yields. Our view remains that inflation is likely to be a short-term phenomenon until we see full employment and sustained wage growth in the US and locally, and the picture for equities, therefore, remains bright with supportive monetary and fiscal environments and rapidly recovering economies.
Looking now to the performance of the Rivkin SMA strategies, of which there are six individual strategies. After the recent switch out of tech names in the Value Strategy, it performed the best out of our SMA Strategies with a return of 3.52%. For the other ASX-focused strategies, the ASX Momentum portfolio fell 0.16%, while ASX Income was up 1.77%. In the US, the US Momentum portfolio declined 7.23%, impacted by its relatively large weight to technology stocks at present, while US Value recorded a strong gain of 8.49%. Lastly, the Low Volatility portfolio gained 0.22%% in March. This portfolio has recently been impacted not only by falling bond prices (bond prices move inverse to bond yields) but also by a weaker gold price, which together make up approximately 50% of the low volatility portfolio. In March this was countered by a resurgent $USD which is responding to higher long-term government bond yields. Based on the historical modelling of the Low Volatility portfolio, drawdowns, which means the decline in portfolio value from the high-water mark, have been limited to a maximum of approximately 10%, which is considerably less than that of equity markets, so the current drawdown we are seeing is nothing out of the ordinary.
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.
