Strategy
Growth
Australia

Separately Managed Accounts – Capital Stable

4 Aug 2020
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In June 2019, Perpetual and Mainstream started using Rivkin Portfolio's 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 Capital Stable Portfolio.

Capital Stable

This portfolio is a low volatility portfolio that aims to achieve a return of 4% above the Reserve Bank cash rate. It is perfect for investors who want modest return with lower risk than the broader stock market.

Description# of StocksInvestment UniverseMinimum Rec. Time Frame
Portfolio of four Exchange Traded Funds to provide a stable return with low volatility4ASX Listed ETFs1 years

Table 1: Summary of Capital Stable Portfolio

The Capital Stable portfolio holds four Exchange Traded Funds that have been selected due to their low correlation with each other. What this means is that the overall portfolio produces return with a very low level of day to day fluctuation in the portfolio value. This is perfect for investors who don’t have a high tolerance for risk.

PORTFOLIO PERFORMANCE

The SMA product has been running live since June 2019 and therefore results for the Capital Stable portfolio within this structure go back to this date. The table below shows monthly returns for this portfolio after all fees and brokerage. Returns for June represent performance from the launch date of 12 June to the end of the month.

Jan (%)Feb (%)Mar (%)Apr (%)May (%)Jun (%)Jul (%)Aug (%)Sep (%)Oct (%)Nov (%)Dec (%)Total (%)
20191.532.082.52-0.57-0.811.47-0.445.87
20203.82-0.24-0.571.74-0.09-0.571.795.94

Table 2a: Monthly Returns of Capital Stable portfolio in the SMA structure

The Capital Stable portfolio has been running as a Live strategy by Rivkin Asset Management for its wholesale clients. This means we have live performance data for an actual account going back to September 2017. The table below shows the monthly returns of an account following the Capital Stable portfolio.

Jan (%)Feb (%)Mar (%)Apr (%)May (%)Jun (%)Jul (%)Aug (%)Sep (%)Oct (%)Nov (%)Dec (%)Total (%)
20170.211.821.55-0.812.78
20180.290.63-0.061.050.250.25-0.091.93-0.18-0.33-0.910.963.82
20191.242.050.491.330.045.24

Table 2b: Monthly Returns of Capital Stable portfolio compiled from Rivkin’s Wholesale Low Volatility product returns

Furthermore, extensive back-testing has been used to determine the portfolio performance over a longer time period. Back-testing is the process whereby an investment strategy is simulated over historical stock market data to determine how a strategy would have performed if it had been run over that time. A summary of the Capital Stable portfolio characteristics and back-tested data is presented in the table below.

Investment UniverseASX Listed Exchange Traded Funds (ETFs)
Number of Holdings4
Expected Average Annual Return5%
Volatility Relative to ASX 200 Index0.07
Probability of negative return in any 12-month period3%

Table 3: Backtested statistics for Capital Stable portfolio 

 Neither the Investment Manager or the Responsible Entity guarantees the performance of any fund or the return of an investor’s capital

Features of a 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 complete list of risks and costs involved with Mainstream Separetly 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.

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 into account when structuring its model portfolios.

 

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.

Rivkin does not ever provide financial advice. Please consider your own circumstances before purchasing any of our products or acting on our general advice, for any Rivkin product or recommendation.

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