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Trading and Performance Policy

Last updated: 7 January 2019

Download in PDF Format

ABN: 87 123 290 602

AFS License no: 332 802

 

Rivkin Securities Pty Ltd

Suite 8, 1 Kings Cross Road

Rushcutters Bay NSW 2011

Telephone: +61 2 8302 3650

Facsimile: +61 2 8302 3601

Web: www.rivkin.com.au

 

In order to create alignment between the investment outcomes of Rivkin and its clients, we invest the majority of our money in Rivkin's retail and wholesale investment strategies. In fact, there is not one trade that Rivkin places on its proprietary accounts that has not already been placed on a client account. As a result of this methodology, Rivkin is able to demonstrate 'real' performance results, because we place the same trades and pay the same fees as our clients, giving us the ability advertise honest, net performance figures after all the costs of trading. This type of performance methodology came into effect on 1 April 2013.

In this document you'll find everything you need to know about how Rivkin calculates its performance and puts its money where its mouth is by trading 'alongside' its members.

 

Rivkin performance methodology

 

PHILOSOPHY

Rivkin runs Model Portfolios for members to follow if they wish, one for each of our nine strategies, in such a way that each member can choose their weighting to each strategy.

  1. The first strategy is the ASX Event Strategy which looks to capitalise on specific 'events' that we believe provide a low-risk catalyst from which we can profit in a relatively short period of time. Typical examples are takeovers and buybacks.
  2. The second strategy is the ASX Income Strategy which focuses on those securities that pay a high coupon or dividend. These may be in the form of debt, preference shares or other securities that generally have a relatively high amount of income and relatively limited capital growth.
  3. The third strategy is the ASX Blue Chip Strategy which is a low-maintenance, long-term strategy that invests in the highest yielding blue-chip stocks for 12 months at a time, which has produced significant outperformance since we started using the strategy in 2008.
  4. The fourth strategy is the ASX Momentum Strategy which revolves around selecting the highest momentum stocks, based on price, from the ASX 100 index.
  5. The fifth strategy is the ASX Value strategy which seeks to select the top 10 stocks from the ASX 200 index based on a number of fundamental criteria.
  6. The sixth strategy is the US Momentum strategy which chooses the 10 highest momentum stocks, based on price, from the S&P 500 index.
  7. The seventh strategy is the US Value strategy which selects the 10 best stocks from the S&P 500 index based on a number of fundamental criteria.
  8. The eights strategy is the US Long/Short strategy which seeks to profit from trading opportunities in any direction using both long and short trades. This strategy is designed to produce reduced volatility during weak markets.
  9. The ninth strategy is the FX and Liquid Markets strategy which seeks to profit from trading opportunities on a range of currency pairs as well as some commodities.

The performance of each strategy is tracked through its respective model portfolio. Overall performance of a group of strategies can be produced by combining the performances of each respective model portfolio in the appropriate weights.

IMPLEMENTATION

On 1 April 2013, Rivkin deposited $300,000 cash into a Rivkin Securities stockbroking account, paying retail rates of brokerage. From this point onward, our performance figures that contribute to the track record have been recorded on a 'real' basis, whereby only the net profit and loss (after all costs of trading) is used to attribute Rivkin performance to our advertised statistics. Following the initial account creation, the amounts invested were adjusted at various times as a result of new strategies being added/removed.

Prior to 1 April 2013, Rivkin Local used a theoretical account, recording profits and losses for the trades that members were able to get in and out of, and removing the cost of brokerage from those figures.

We combine these two figures to advertise our long-term track record, which dates back to 1997. It is our aim to one day rely only on actual recorded net profit on our live model account; however, the current period of time we have to calculate the results that come from our live account is not long enough to satisfy what a reasonable prospective member may expect in terms of a time horizon for a track record.