Unlike cash or term deposits, the instruments included in our Income Strategy are considered complex as they comprise ASX-listed hybrid securities. These are securities issued by companies who seek to borrow money from retail and wholesale investors. Unlike a normal equity listing where investors own a piece of a company, hybrid securities have both debt and equity characteristics whereby investors receive a dividend payment, usually based on current interest rates, and are entitled to receive the face value of the hybrid back on its maturity date. The issuers of these securities can range considerably in terms of their quality, and the instruments themselves differ in their characteristics. This is where our analysis adds value. By analysing the quality of these instruments, we aim to structure a diversified strategy of high-income securities that can offer significant rates of return. Our Income Strategy is made up of approximately seven securities and does not include any fully-paid shares. These holdings usually consist of securities issued by ASX 200 companies across multiple sectors.
Despite trading on the ASX, this portfolio holds hybrid securities rather than fully-paid ordinary shares, and have some similarities to corporate bonds. The investments pay a known dividend at a rate tied to a benchmark interest rate. The primary risk in holding these over the long term is that the issuing company becomes insolvent. The current average dividend yield of the portfolio is 5-6%.
*Performance prior to 2013 is calculated by simulating a performance profile based on the return and volatility characteristics of the live performance post 2013 **Past performance is no guarantee to future performance. ^Rivkin advise you not to rely solely on back tested data or statistics in order to make any trading decisions. We suggest you contact our relationship managers to arrange access to our live membership site on trial basis. Here you will be able to view all actual historical trading recommendations (and results) provided to clients over the last 20 years which can be used to inform your own assessment of the potential returns based on your individual situation.
The income portfolio trades very infrequently because each of the holdings is a long-term investment. Holdings are usually only liquidated when they are redeemed by the issuing company.
*Performance prior to 2013 is calculated by simulating a performance profile based on the return and volatility characteristics of the live performance post 2013 **Past performance is no guarantee to future performance
|Item||ASX Value||ASX Blue Chips||ASX Momentum||ASX Income||ASX Event||US Momentum||US Value||US Long/Short||FX & Liquid Market|
|Average No. of Trades Per Year||29||19||24||2||10||48||46||36||120|
|% Positive Months||68%||66%||67%||74%||89%||60%||61%||59%||59%|
|Average Monthly Return||1.38%||0.97%||2.12%||0.22%||0.12%||1.59%||1.24%||1.09%||1.02%|
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