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 Smart Growth Portfolio.
Defensive Income
This portfolio focuses on securities that pay dividends. Much of the dividend income is franked which will be available to the investor to offset eligible tax liabilities.
Table 1: Summary of Defensive Income Portfolio
The Defensive Income portfolio selects high dividend paying securities that provide a constant stream of income. The aim is to produce a more stable return than the growth portfolios. The defensive component comes from a sizeable allocation to ASX listed hybrid securities which pay regular dividends and have a relatively stable capital value. Hybrid securities have some features that are similar to bonds and are therefore perfect for providing a stable capital base for the portfolio. Another significant component of the portfolio is access to event driven trades that are based on corporate actions. These trades have been a Rivkin staple for many years and provide the portfolio with a component of low risk returns that are independent from market volatility. The final component of the portfolio is a small allocation to growth stocks that help increase its capital value.
PORTFOLIO PERFORMANCE
The SMA product has been running live since June 2019 and therefore results for the Defensive Income 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.
Table 2a: Monthly Returns of Defensive Income portfolio in the SMA structure
Further historical performance of the Defensive Income portfolio is compiled below from the two main underlying components of the portfolio, the newest of which has been running live in Rivkin’s retail advice product since November 2017. This portfolio also contains a component of Event driven trades which are typically takeovers and other corporate actions. Rivkin has been participating in this type of trade for 20 years and typically targets a very conservative return profile. The data for this component isn’t included in the returns below but the individual trade data for Rivkin’s Event trades can be provided on request. The composite returns (excluding Event trades) are shown in the below table:
Table 2b: Monthly Returns of Defensive Income portfolio compiled from Rivkin’s ASX Blue Chip, ASX Income and ASX Value strategy performances
Features of Separately Managed Accounts
- 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.
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.
