Royston Capital in Melbourne, Victoria, Australia | Financial planner

Royston Capital

Locality: Melbourne, Victoria, Australia

Phone: +61 3 8648 3186

Address: Level 6, 111 Collins Street 3000 Melbourne, VIC, Australia

Website: http://www.roystoncapital.com.au

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24.01.2022 "The Chase for Yield": In recent months we have seen two high profile listed hybrids come to market, Westpac Capital Notes 5 (WBCPH) and CommBank PERLS X Capital Notes (CBAPG). Both of these were oversubscribed however we felt that their offer for yield was insufficient for us to participate. There are many factors to consider when investing for yield, and when you are seeking more yield you have three choices; i) extend tenor, ii) move down the credit quality spectrum; and iii) move down the capital structure. In the case for WBCPH and CBAPG (and other recent IPOs), the tenor has been extended to seven years or more, without the necessary pick up in margin over the 90-day Bank Bill Swap Rate. To understand this, we set the scene below and explain why we didnt participate in the offer.

22.01.2022 In January we saw US President Joe Biden sworn in as expected. As seems to be the tradition, Biden started his first week by righting the wrongs of his predecessor and by signing papers inside a stack of black folders. Successive presidents seem to want to make pile of black folders larger than their predecessors to make them look like they are doing more or to make them seem more important than the previous president. Surely this would be easier and faster with Adobe Sign or DocuSign although perhaps not as dramatic. There is some real meaning behind all the signatures such as, increased corporate taxes and a return to climate policy.

22.01.2022 Global economic growth continues to gather pace. Recent economic readings in advanced economies were mostly stronger, the US is starting to run into capacity constraints. The US-China trade war continues to ramp up, all-be-it in the lead up to US mid-term elections. Interest rates are rising and there is potential for an emerging markets crisis.

22.01.2022 There is no denying it, economic growth continued its upward trajectory last month. Leading economic indicators continue to point to strength through 2018 with inflation remaining benign. Easy monetary policy is slowly coming to an end with the US Federal Reserve now firmly in a tightening cycle and Europe removing the words further easing from its policy statement at its recent meeting. In Australia the Reserve Bank has retained the ultra-low 1.5% rate and is likely to do so for the remainder of 2018 yet setting the scene for a rate hike. Global economic growth seems likely to gather pace helping to lift the Australian economy, only an increased urgency from the US Federal Reserve to tighten monetary policy could derail this.

20.01.2022 Here is our latest economic update - Geopolitical tensions take center stage, by Jennifer Mead. Its a great update. For those who would like to delve further into the current geopolitics you will be fascinated by an article published in The Economist way back in 1998! https://www.economist.com///a-geopolitical-detective-story

19.01.2022 I am very pleased with the 30 June Model Portfolio Performance report. The Royston Capital Core Australian Equities Fund outperformed the S&P ASX200 Accumulation Index by a staggering 9.87% for FY20. An indicative balanced portfolio returned 2.69% gross for FY20. This is an excellent result in light of the COVID-19 pandemic. Speak to your Financial Adviser today about access the Royston Capital investment portfolio for your investment or superannuation accounts. #covid19 #familyoffice #superannuation #investment #financialadvice #SMSF

18.01.2022 Royston Capital is delighted to have been named as a finalist in the 2020 ifa Excellence Awards. The ifa Excellence Awards showcase excellence of both individuals and firms which are leading the way across the independent financial advisory service industry nationally. Royston Capital has been shortlisted for a remarkable 4 awards: Client Servicing Company of the Year, Self-Licensed Firm of the year, Client Servicing Individual of the year (Chris Boag), and Client Outcome of ...the year. https://roystoncapital.com.au/2020-ifa-excellence-awards/ See more

18.01.2022 At the end of 2018, and more evident now, was a change in momentum in the global economy. This change was particularly evident in Europe and it was also evident in China. Growth in international trading volumes has been faltering in response to the US initiated tariff war. While the US and China are starting to talk about how to end the trade war, the longer it takes to find an agreement the greater the downside risk to global growth prospects.

17.01.2022 Island Life: I think I can safely say that 2020 did not go as originally planned. 2019 had seen equity markets rise and was one of the best performing years in decades. I noted on many occasions that valuations were stretched, resulting in overweight cash positions for many portfolios in the lead up to 2020. It was frustrating, but no one was expecting 2020 to turn out the way it did. Several records were broken in 2020, new market peaks were achieved early in the year; the f...astest bear market in history in March, followed by the fastest time to a bull market; and we are rounding out the year with an exceptionally strong November and new all-time highs being registered in US markets. 2020 was a year of challenges that often tested our patience but, as I reiterated at our Smart Investor Market Update in early December, those who can stick to their long-term investment strategy were ultimately relived and rewarded by staying invested and prudently deploying cash that had built up during 2019. Follow the link to read more.

17.01.2022 Subdued optimism may sound like an oxymoron, but it is where we find ourselves this month. Despite the ongoing Brexit impasse and an escalation in the China/US trade war, the global economy and our own continues to deliver levels of growth that are turning key economic indicators more positive. The most important and pervasive of these in terms of impact is employment. Unemployment in most of the worlds largest economies is falling. In the USA in April unemployment fell t...o 3.6% (down from 3.8% in March) falling to its lowest level since 1969. This is the lowest unemployment level in 50 years in the worlds largest economy. This statistic deserved more attention than it received. In Australia unemployment stood at 5% for April, the same as March and along with underemployment still appears to be firmly trending downwards. More importantly the tightening labour market is finally starting to translate into real wage growth in the USA, Europe, Japan and Australia. The Australian Bureau of Statistics wage price growth index suggests the growth in real wages bottomed in 2018 after almost a decade of decline. See more

17.01.2022 Economic Update - The Recovery Continues With a swathe of good news coming from a variety of economic indicators we have seen global equity markets continue to rise. The vaccine roll out continues to be a focus for investment markets despite the patchy and limited roll out to date. Global economic activity looks certain to continue to recover during 2021 and 2022 providing markets and policy makers plenty to consider. A strengthening world economy is supportive of equity valu...ations but is a negative for bonds and other fixed rate income investments where the prospect of higher inflation has caused bond managers to fret. Regardless, GDP and many other metrics are all pointing in the right direction and we are seeing a ‘V’ shaped recovery. As the recovery continues, we will see some of last year’s dislocations in investment markets re balance throughout the year. https://roystoncapital.com.au/economic-update-the-recovery/ See more

17.01.2022 June 2020 Economic Update - "An Economic Winter is Unfolding" The good news continues to be our outstanding performance in containing the virus, the ongoing removal of restrictions and a clear pathway back to normality at least in the things that matter most. While the size of gatherings allowed in private and public spaces varies from State to State we can now see family and friends and travel intrastate. The long weekend in most States last weekend saw an uplift in spirits and enthusiasm as so many took to the road to celebrate the end of lockdown and support domestic tourism and regional Australia.

15.01.2022 We are pleased to announce that Royston Capital has been nominated for the second year running as a finalist in the Institute of Managed Account Professionals (IMAP) annual awards. Last year we were a finalist in the Other Asset Class category for our Interest-Bearing Securities Portfolio. This year we are very excited to report that we are finalist in three categories! Our Interest-Bearing Securities Portfolio is a finalist in the Fixed Interest category, International Fun...d-of-Funds is a finalist in the International Equities category, and Royston Capital is finalist in the Licensee Managed Account category for our investment philosophy and approach to Managed Accounts. The IMAP Awards are about recognising best in class for Managed Account Licensees, Innovators and Investment providers. The Awards are selected by a panel of experienced investment professionals. They understand the portfolio construction and investment selection process through their experience on investment committees, in running managed accounts and fund portfolios and through their hands-on involvement in the development of managed account portfolios.

15.01.2022 Your SMSF investment strategy is critical to for performance. #investment #assetallocation #trustee #SMSF

14.01.2022 June 2018 Economic Update June 2018 is shaping up to be pivotal month in both global economics and geopolitical issues. Trump has brought North Korea to the negotiating table, and while global economic growth is softening post 2017 highs we are seeing two major central banks continue to unwind QE and increase interest rates. A broadening trade war remains a risk to global growth but we are yet to see any real escalation in the skirmish between the US and China. Geopolitical t...ension has eased this month and it drew me back to a comment from the September 2017 Market Update where I noted: A key risk to the global economy is that of the rising tension between the US and North Korea. As Gideon Rachman of the Financial Times said in his AFR article, Miscalculation could lead to a Korean war, 5 Sept 2017 These risks would be difficult to manage even with rational, experienced leaders in power. But the key decision makers are a 71-year-old businessman with a volcanic temper and no relevant experience, and a 33-year-old dictator, surrounded by frightened sycophants.

14.01.2022 Model Portfolio Performance Reports are now available on our website.

12.01.2022 Australia and Australians are emerging from hibernation. The early positive signs on the number of infections and infection rates outlined last month have continued. As a nation we have been one of the most successful at flattening the curve and containing the spread of COVID-19. We have through a combination of good management, good luck and possibly our status as an island continent earned the title yet again of the lucky country. On May 8th Prime Minister Scott Morris...on outlined a three-stage plan for the nation to reopen for business with the potential for most restrictions to be lifted by the end of July provided the containment success continues. The intention is to have almost all businesses up and running by July end, unrestricted intra and interstate travel, gatherings of up to 100 people and potentially unrestricted air travel between Australia and New Zealand. See more

12.01.2022 While 2020 was a difficult year in more ways than one, I am pleased that our model portfolios continued to shine.

12.01.2022 September 2017 Model Portfolio Performance Proceed to our website for more information.

12.01.2022 Take a look at our latest model portfolio performance report. Our Interest-Bearing Security Portfolio has returned 9.03% for the year and 9.38%pa over 3 years! This portfolio is available on Macquarie Wrap and an SMA. #macquarie #macquariewrap #sma #fixedincome #investment http://roystoncapital.com.au//ModelPortfolioPerformanceRep

12.01.2022 The global economic expansion continues to truck along although there are conflicting signs of strength and weakness. The expansion has become more dependent on the US economy which should be enough to support further equity gains. Rising political risks, particularly a trade war, is now the single biggest risk to continuing global economic growth along with the prospect of rising inflation and interest rates. In Australia, signs are promising as the pace of business activity picks up.

12.01.2022 During the month of May Chris Boag and Victor Yeung were interviewed by Alan Kohler. The focus of the interview is our Australian REIT and Infrastructure portfolio that is available to wholesale clients. You can access a podcast of the interview and a free 7 day trial of Alans subscription only website (The Constant Investor) by clicking on the link below. I hope you enjoy the podcast.

11.01.2022 October 2019 Economic Update "Syncing Downwards" In our increasingly interconnected and globalised world no country is immune from a trade and currency war between the worlds two largest economies. This month we find ourselves in a global synchronised downturn. Tensions in several the worlds hot spots eased this month but the economic and political tensions across the US and China trade war and Brexit did not. Consensus forecasts amongst economists is for global growth to continue its downward trend in the December quarter before bottoming sometime in the first half of 2020 at an annualised rate of around 2-2.2%. This assumes a reasonable and orderly resolution to both Brexit and the trade war.

10.01.2022 Debunking the Active, Passive Investment Debate As equity markets around the world extend into an exceptionally long 9 year bull market the debate of Active versus Passive investment rages louder than ever before. This is not a new debate, it is decades old and there is no shortage of commentary, opinion, white papers and expert views, all you need to do is type in a google search and you will find piles of it. But is this even the right debate to be having? So, are you good ...enough at picking stocks to beat the market? Is your asset manager good enough? More and more people are choosing to simply invest and get a market return, shunning high fee fund managers for low cost passive or index managers. And why not? US Billionaire and world famous investor Warren Buffet thinks we should all stick with low cost index funds. Proceed to our website to find out more. See more

10.01.2022 As 2018 ends, the worlds biggest economies continue to show signs of growth yet equity markets continue to roil in the uncertainty surrounding the growth outlook. This disconnect between evidence of growth, growth prospects, and equity markets concerns on weaker growth ahead relates to views that a range of issues could undermine growth. The issues include; increasing international trade tensions, high debt levels, and risk the US Federal Reserve raises rates too aggressively. While there are risks to the global economic growth outlook, the risk of this growth being derailed in the near term seems comparatively small.

10.01.2022 February Market Update 2018: There is no need to be concerned (about investment markets) or to make knee jerk decisions but instead now is a time to reflect, stay the course and seek long term investment opportunity, this is a correction, not a bear market. http://www.roystoncapital.com.au/monthly-market/

09.01.2022 October 2017 Market Update The global economy has continued to improve and influence financial market performance through September. and early October. Labour markets have tightened and above trend growth is expected in a number of economies, although uncertainties remain such as the geopolitical tensions epitomised by rouge nation North Korea. Growth in China is being supported by increased spending on infrastructure and property construction, with high levels of debt contin...uing to present a medium-term risk. Investors actively sought out opportunities outside of the US, yet US markets still reached records highs. Japans Nikkei and Germanys DAX were standout performers rising 3.6% and 6.4% respectively. Britains FTSE was lower with uncertainties around Brexit weighing on sentiment and Australian ASX200 was down 0.6% as doubts crept in over Chinas appetite for our commodities, the AUD$ continued to levitate and political policy vacuum restrains growth. See more

09.01.2022 Last month (Glass half full) was the most pessimistic that we have been for a while about the global economy, but we are over it now. Last month we indicated that the slowdown may be temporary as central banks paused monetary policy and governments actioned fiscal policy expansion in response to slowing GDP. BREXIT, US/China trade war and tariffs are all factors in the current economic slowdown. It seems however that we can forget about near-term recession fears despite the...se factors and a temporary inversion of the yield curve. Many asset classes have done well for the calendar year to date. Equities have recovered from the late 2018 sell off. It has not however been broad based, income securities like property and infrastructure have been in strong demand as have high growth tech companies as bond yields have fallen, mining companies have also done well as iron ore prices spiked with supply disruptions. While a recession may not be imminent, a likely scenario is for GDP growth to muddle along at a slower than previously expected pace. The issue for companies may be how to grow profits in a slower growing economy.

09.01.2022 The global economy grew strongly in 2018, although there was a noticeable slowdown in the second half of the year. The pace of growth has continued to moderate in February. Key indicators such as labour market conditions remain strong in the US and in Australia, providing hope that the current slowdown will be temporary. Central banks have moved to put monetary policy on hold which has spurred investment markets higher while investment markets also believe there will be a US/China trade deal.

09.01.2022 Very pleased with the Dec 2019 Qtr performance report.

08.01.2022 As 2017 draws to a close we reflect on a year that has surpassed our expectations, we also gaze into the crystal ball to see what 2018 might bring. Royston Capital

08.01.2022 April Market Update: Throughout the Month of March the global economy continued to grow. Economic data released during the month had a slightly softer tone compared with previous months but continues to signal robust economic growth. The Us Federal Reserve (Fed) raised rates as expected and the Reserve Bank of Australia kept rates on hold as expected. Optimism for US economic growth prospects have been dampened by President Trumps announcement of tariffs on goods from China. China has off course retaliated. The situation could escalate to a trade war of which the consequences could extend to weaker global growth and higher inflation. While Australia seems to have been spared so far, it will inevitably suffer from weaker global growth if a trade war were to begin.

08.01.2022 Royston Capital Investment Committee member, Victor Yeung, recently wrote about the impact COVID-19 is having on commercial property markets from his vantage point in Hong Kong. Mr Yeung also provides some insight into what impacts we may see when economies recover.

07.01.2022 "Going Viral" Last month we were cautiously optimistic about the prospects for stronger global and domestic economic growth in 2020 after the disruption caused by Brexit and the trade war in 2019. This was predicated on the assumption that the recently discovered Coronavirus outbreak in China like its predecessor SARS would be quickly contained. The economic impact would be minor, and it would be limited to the first quarter of calendar 2020.

06.01.2022 Pleased to announce that Royston Capital has been shortlisted as a finalist in the inaugural Institute of Managed Accounts Awards. Winners will be announced on the 1st of August.

06.01.2022 We started 2020 on an optimistic note. Two issues impacted global growth and confidence in 2019, the US China trade war and Brexit. The signing of the phase one trade agreement between the US and China on January 15th and the UK election outcome signalling an end to the Brexit impasse has provided a long overdue confidence boost to the global economy and greater consensus around the forecast for stronger global growth in 2020.

06.01.2022 September 2018 Economic Update The global Economic expansion continues to march forwards with a number of advanced economies growing at above-trend rates. Unemployment rates are also low. Downside risks remain, particularly the US-China trade war and high USD$ debt exposure of some emerging market economies. The US economy remains one of the strongest performing and this looks set to continue while China growth has slowed a little. Globally, inflation remains low, although it is increasing in some countries as labour markets tighten.

04.01.2022 Royston Capital SMAs now available on Macquarie Wrap. Royston Capital has been happily working away on its model portfolios for over five years now. Our family office style, investment philosophy and high conviction approach has served investors well. Pleasingly we have now launched selected portfolios as a retail SMA on Macquarie Wrap. Current portfolio performance is available on our website.... Speak to your financial adviser today about investing like a family office.

03.01.2022 Economic update - Economies firmly in expansion mode In our last economic update, we noted that the economic recovery continues. It’s time now to stop using the term ‘recovery’ when referring to the Australian economy. The domestic economy, and other economies, are now simply in expansion mode supported by ultra-low interest rates and lashings of fiscal stimulus. As with last month’s update, we continue to see good news after good news from a full range of economic indicators..., none more important than employment. The March 2021 labour survey was a solid report confirming that momentum in the labour market was already strong when JobKeeper expired. It’s becoming more feasible that we could see unemployment at 5% or below by the end of 2021. Follow the link to our website for the full report. https://roystoncapital.com.au/economic-update-economies-fi/

03.01.2022 November Economic Update "We need to talk about banks" Banks have been the mainstay of most Australian equity portfolios over the last thirty years, and rightly so. Since the deregulation of our financial system in the early 1980s followed by the privatisation of the Commonwealth bank in 1991, the major banks have powered to the top 10 of our listed companies and stayed there. Our major banks have held four of the top six positions by market capitalisation in our market for almost three decades. The rankings of our top four banks have changed but they are all still there. The Commonwealth Bank has been the best performer and today is Australias largest company by market capitalisation. #roystoncapital #banks #bankingroyalcommission #investment #economicupdate

01.01.2022 2019 has been a great year for investors with all asset classes delivering returns well above long term averages. For the year to November 30th Australian equities are up by 26% and International equities by 23.6%. Both our market and the US market are pulling back from record highs as I write but returns for calendar year 2019, even with a pullback will be well above long term averages and the highest for a decade. Listed property has also had a stellar year with the Australian A-REITS (Real Estate Investment Trusts) delivering a 12 month return to November 30th of 27% and Global REITS 16.6%. #roystoncapital

01.01.2022 We are in the midst of a global pandemic. It is the blackest of black swan events. Conservatively over 1.3 million have been infected globally with more than 70,000 deaths. Infection rates globally continue to rise. In Australia the Governments response has been to go hard and go early. The first mandatory measures were introduced on March 15th and in less than two weeks we have moved from bans on gatherings of more than 500 people to bans on indoor and outdoor gatherings of more than 2 people. Overseas travel is banned, and QLD, WA and Tasmania have closed their borders.