Royston Capital

12/09/2022

Beware the Bear Market Rally:
In mid-June equity markets found a reason to rally. Softer than expected CPI and falling oil prices took some of the heat out of the inflation reading. Such rallies, while welcome, should be met with caution. Inflation remains high, employment remains strong, spending remains strong, corporate and consumer sentiment has remained strong. Higher interest rates will be required to turn the tide of economic data. Beware the bear market rally.

In mid-June equity markets found a reason to rally. Softer than expected CPI and falling oil prices took some of the heat out of the inflation reading. Such rallies, while welcome, should be met with caution. Inflation remains high, employment remains strong, spending remains strong, corporate and c...

15/08/2021

Winning in Reporting season:

It has been a good start to the financial year for Royston Capital model portfolios with Core Australian Equities outperforming the ASX200 Accumulation index, and the Interest-Bearing Securities portfolio being nominated for the fourth year in a row for the Institute of Managed Accounts awards. In terms of economics, it’s more of the same, increased vaccinations leads to economic reopening with central bank support.

It has been a good start to the financial year for Royston Capital model portfolios with Core Australian Equities outperforming the ASX200 Accumulation index, and the Interest-Bearing Securities portfolio being nominated for the fourth year in a row for the Institute of Managed Accounts awards. In t...

15/06/2021

Economic Update - "Economic Dislocations"

In May we spoke about inflation and this month we will speak about it yet again. No doubt that the world’s economies continue to recover from the pandemic. Most economists are upgrading US GDP growth forecasts Australian’s GDP growth for Q1 was a healthy 1.8%. The strength of the recovery has ca...

16/04/2021

Portfolio Performance:
We are very pleased with the latest quarterly portfolio performance update. You will notice that we have included both Environmental - Social - Governance (ESG) and Carbon Risk metrics for our portfolios. We are especially pleased with the "Low Carbon" designation for the Interest-Bearing Securities Portfolio by Morningstar. This is an exciting new addition to the portfolio analysis. We can now tailor individual investment mandates for specific ESG and Carbon Risk metrics.

16/04/2021

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.

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 o...

11/03/2021

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 valuations 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.

With a swathe of good news coming from a variety of economic indicators we have seen global equity markets continue to rise. The vaccine rollout continues to be a focus for investment markets despite the patchy and limited rollout to date. Global economic activity looks certain to continue to recove...

19/02/2021

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.

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 thei...

19/01/2021

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

28/12/2020

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 fastest 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.

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....

12/10/2020

Pleased to provide our quarterly portfolio performance report. Australian Equities outperformed the S&P ASX200 Accumulation index by 6.65% for the 12 months to 30 September.

12/10/2020

"Fiscal Policy has arrived"

Extraordinary times lead to extraordinary outcomes. This year is certainly extraordinary and marks the long-awaited return of fiscal policy as evidenced by the sheer size of the budget deficit and increase in government debt outlined in the 2020-21 Commonwealth Budget. Most notably it marks a shift away from years of budget repair to a ‘pro-growth’ agenda. Investors should take confidence from what is a clear plan to materially reduce unemployment from current levels, bolster the recovery via a suite of business incentives and ultimately lift the economy out of recession.

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05/10/2020

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/