Beginning in July, we will be making changes to our investment portfolios listed on the Mainstream SMA platform, with the aim of simplifying our current offering.
The main change will be the reduction in the number of portfolios offered from the current six to just four. Bear in mind, that the reduction in the portfolios will be achieved by combining several of the current portfolios together, as opposed to reducing our investment offering. Below, we outline the rationale for these changes, and what investors will be required to do.
Firstly, a little background. We began offering SMA portfolios on the Mainstream SMA platform two years ago. At the time, to minimise confusion for our current advice members, we largely replicated the strategies that we were offering within our advice reports. Meaning on launch, we offered the following strategies as individual portfolio options, being ASX Momentum, ASX Value, US Momentum, US Value, ASX Income, and Low Volatility. These six were the official portfolios offered, and as such are listed in Book 2 of the Product Disclosure Statement (PDS) for the Mainstream SMA.
Although we listed the individual strategies on the platform, at the same time we encouraged members to invest in more than one, by naming four different ‘smart portfolios’, which combined two or more strategies together. We did this knowing that by combining strategies, members were likely to experience a smoother investment journey. The changes we are making will formalise this approach, by officially combining strategies into a broader portfolio. By officially, we mean that the four new portfolios will replace the original six listed in the PDS.
From the first of July, we will be transitioning to only offering four portfolios on the Mainstream SMA platform, which we have named;
- ASX Growth
- US Growth
- ASX Income
- Low Volatility
ASX Growth: The ASX growth portfolio will source stocks from within the ASX200 and be a combination of stocks generated from our ASX Momentum and ASX Value strategies. Instead of these strategies being listed separately, they will be combined into a single portfolio. The default investment for the ASX Growth portfolio will be to hold the top seven stocks from both the ASX Momentum and ASX Value strategies, meaning a total portfolio holding of 14 stocks. However, we will have the ability to alter this if we believe it is required.
This portfolio is most like the current ‘Smart Growth’ smart portfolio, in that it combines ASX Momentum and ASX Value Stocks. The biggest change will be the reduction in the number of stocks held from 20 to 14. The benefit is that investors wanting a portfolio focused on ASX growth stocks can access this from a single portfolio, which will streamline account management and tax reporting. Click here to learn more
US Growth: This will work the same as the ASX Growth portfolio, in that for US Growth, we will now be combining the US Momentum and US Value strategies together into a single portfolio. This portfolio will only contain US equities sourced from either the Nasdaq100 or S&P100. Like the ASX Growth portfolio, this portfolio will hold the top seven stocks from the respective US Momentum and US Value strategies, meaning a total portfolio of 14 stocks.
This portfolio will allow investors to allocate capital solely to a US only equities portfolio, focused on growth. Click here to learn more
ASX Income: The ASX Income portfolio will hold both individual stocks and ETFs. Individual stocks will be sourced from a combination of our Blue-chips and Events strategies. The Bluechips Strategy focuses on the highest dividend paying stocks from the ASX50, while The Events Strategy participates in corporate actions, such as takeover arbitrage.
This portfolio will hold anywhere from 10 to approximately 18 stocks, depending on the number of event opportunities open at any one time. This portfolio is aimed at investors more focused on income than growth, which will be achieved by holding high dividend-paying stocks from the ASX50. Click here to learn more
Low Volatility: The Low Volatility strategy will remain unchanged, and continue to hold ETFS which provide exposure to the four major asset classes, being equities, gold, cash, and bonds. Click here to learn more
There is no requirement from investors to do anything right away. However, over the coming weeks, we will be reaching out to each of our investors via phone, helping them transition to the new portfolios. If you have any questions, please do not hesitate to call.
If you need any additional clarification, please email us at [email protected]
For a complete list of risks and costs involved with Mainstream Separately Managed Accounts please refer to the Product Disclosure Statement. The PDS for this product 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 cost of the product before taking decision to invest in it.
Important Notice: Please consider your own financial situation before investing in our products. Rivkin does not provide personal financial advice and does not take anyone’s personal financial situation into account when structuring its model portfolios.
Past performance and/or backtesting 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.
The PDS for Mainstream SMA product has been prepared by The Trust Company (ABN 45 003 278 831, AFSL 235150) and issued by The Trust Company (ABN 45 003 278 831, AFSL 235150) as responsible entity and the issuer of units in the Mainstream Separately Managed Accounts. It is general information only and is not intended to provide you with financial advice, and has been prepared without taking into account your objectives, financial situation, or needs. You should consider the product disclosure statement, available on www.rivkin.com.au, prior to making any investment decisions. If you require financial advice that takes into account your personal objectives, financial situation, or needs, you should consult your licensed or authorised financial adviser. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.
