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 Global Growth Portfolio.
This portfolio is a blend of both ASX and US growth strategies. The portfolio allows investors to gain exposure to international companies while still retaining an allocation to ASX stocks. There are good diversification reasons for investing in international stocks.
Table 1: Summary of Global Growth Portfolio
The Global Growth portfolio selects growth stocks that are listed in both Australia and the US. As well as providing stock diversification this strategy also provides country and currency diversification. Many investors have what is called a home country bias which means they tend to overweight assets in their home country. This leads to lower diversification than what they could otherwise achieve. Furthermore, most Australian investors hold all of their assets in Australian dollars which concentrates their risk in that currency. Holding foreign stocks can provide currency diversification which can help reduce volatility.
The SMA product has been running live since June 2019 and therefore results for the Global Growth 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 Global Growth portfolio in the SMA structure
The Live results of the Global Growth portfolio have been calculated from the underlying components of the portfolio, the newest of which has been running live in Rivkin’s retail advice product since June 2018. The effect of currency changes in the US component of the strategy is included in this return data. The composite returns are shown in the below table.
Table 2b: Monthly Returns of Global Growth portfolio compiled from Rivkin’s ASX + US Momentum and ASX + US Value strategy performances
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 Global Growth portfolio characteristics and back-tested data is presented in the table below.
Table 3: Backtested statistics for Global Growth portfolio
Benefits 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
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