Strategy
Growth
Australia

Separately Managed Accounts – ASX Income

5 Aug 2021
By
In June 2019, Perpetual and Mainstream started using Rivkin Portfolios in their Separately Managed Account (SMA) offering that gives investors the opportunity to follow our proven strategies. Rivkin runs four portfolios that are offered through the SMA platform. Each portfolio is designed for a different investor type ranging from growth to defensive. Here you can find more information on our ASX Income Portfolio.

Portfolio Overview

The ASX Income portfolio will source investments from ASX listed securities. The portfolio has meaningful exposure to large-cap high dividend-paying stocks, and as such aims to generate returns from both capital growth and dividend income. Our suggested investment horizon is three to four years.

Description# of StocksInvestment UniverseMinimum Rec. Time FrameMinimum Investment AmountStandard Risk Measure
Diversified portfolio holding ASX Income stocks, ETFs and Event trades0-50ASX 200 & ETFs3-4 years40,000 AUD6- High

Table 1: Summary of ASX Income Portfolio

Investment Approach

The ASX Income portfolio is predominately comprised of two underlying strategies, being our Bluechip and Events strategies. We also invest in a small number of ETFs, covering asset classes such as gold and bonds in order to provide a balanced investment portfolio.

The BlueChips strategy sources investments from stocks within the S&P/ASX50 only, meaning it is limited to the 50 largest stocks by market capitalisation. The strategy is loosely based on the ‘Dogs of the Dow’ strategy which gained a loyal following in the US due to its solid and consistent returns. The strategy sources the top 10 companies, based on their trailing 12-month dividend yield, with the aim of investing in large established companies that due to their high dividend, are either paying out considerable amounts of cash or whose share price may be currently suppressed. In order to avoid ‘value traps’, we exclude companies with a dividend yield above 10%.

The ASX Events strategy has been a mainstay of the Rivkin advice offering for over 20 years and has proved very popular due to its low-risk market-neutral approach. The strategy participates in corporate actions such as takeovers, where we aim to make small, low-risk arbitrages. While takeover arbitrage is the bread and butter of the strategy, we will also participate in other corporate actions such as company spin-offs, share buybacks, and rights issues. Irrespective of the corporate action, the common theme is that the potential return is not linked to the general movement in the share market.

Portfolio Management

The BlueChips portion is assessed on a monthly basis, with changes made only if required. Typically, this will occur six to eight times a year on average. Event style trades are entered into as opportunities arise, with such positions typically being held for two to four months in duration.

Current Portfolio

BlueChips Events/ETFs
ANZ APD
APA BIN
AZJ CWNHB
BHP DTS
COL DVN
DXS ISD
MPL MAI
RIO RHP
SGP VOC
TLS VTH

Portfolio Performance

This SMA product has been running live since June 2019. However, Rivkin modified its SMA portfolio offering from 1 of July 2021, therefore results will be reported on a monthly basis from that date.

Performance Month Calendar Year  Since Inception (12 June 2019)
ASX Income 0.96% 13.97% 12.43%

*Past performance is not indicative of future performance. The results in this table are after brokerage and fees.

Please click here to check the performance of our previous SMA strategies/portfolios from June 2019 to June 2021.

Features of Separately Managed Account

  • Choose from four professionally constructed portfolios depending on your needs
  • All portfolio management is taken care of for you
  • Access Rivkin’s systematic strategies that have proven themselves in live trading in our retail advice product
  • Obtain institutional brokerage rates that are not typically available to individual investors
  • Execution is performed using algorithms that spread trading out across the day to obtain a fair price
  • No upfront cost – management fees are deducted from your account on a monthly basis

For a complete list of risks and costs involved with Mainstream Separately Managed Accounts please refer to the Book 2 of the Product Disclosure Statement. This PDS has been prepared and issued by The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235150)

Please click here or request the PDS to understand the full risks and cost of the product before making a 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.

This PDS has been prepared and issued by The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235150) as the responsible entity and the issuer of units in the Mainstream Separately Managed Account. 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.

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. 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.

PERPETUAL BEING THE ISSUER AND RESPONSIBLE ENTITY UNDER The Trust Company (RE Services) Limited (Perpetual, Responsible Entity, RE, we, us or our), part of the Perpetual Group ABN 45 003 278 831 AFSL No 235150

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