How We Calculate and Report Performance

Last update - 13 June 2023 By Rivkin

Key questions and answers relating to how we calculate and report performance.

Where should clients refer to for their individual returns? 

Clients should always refer to their individual accounts and platform for returns relating to their portfolios.

What is the performance methodology for the Rivkin Investment Portfolios?  

Bloomberg’s Total Return function is used to calculate the return for each stock held in the portfolio over the course of the month. This includes any capital changes, like stock splits and consolidations, and any dividends received for the month. Each stock is assigned an equal percentage of the portfolio. For instance, in portfolios with ten stocks, each stock is weighted at 10%, and for those with 14 stocks, each stock is weighted at 7.14%.

The Rivkin Investment Portfolio which use this methodology includes ASX Blue Chips, ASX Income, ASX Growth, US Growth, and US Long/Short.

How is the entry and exit price for a stock determined? 

The entry price for a stock is the open price from the day the stock entered the portfolio, while the exit price is the close price from the day before the stock exited the portfolio.

How are Investment Portfolio returns calculated? 

Returns account for brokerage, which is calculated as an average and applied as a basis point ‘charge’ per month, based on a client paying 0.1% brokerage per purchase or sale. This is determined by the average number of trades needed to maintain the portfolio and is deducted from returns monthly.

What if the performance figures span longer than one month? 

For performance figures that reference longer than one month, the monthly returns are compounded.

How is the performance for Apex Separately Managed Accounts calculated? 

The change in portfolio value for each model account over the performance reporting period, which is the gross performance before fees. Then, we deduct the management and performance fees during the period, resulting in the net performance.

The calculations for net performance assume that both the management and performance fees are taken at the end of each month, based on the closing values. However, clients may see a difference in the timing of these fees being deducted, typically at the start of each month. Hence, monthly performance may differ due to this timing.

When and how is the performance reported? 

The performance for all retail and Separately Managed Accounts is reported after the end of the calendar month, usually within the first week of the following month. Performance is published via the Rivkin website, and clients are notified via email.

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