Portfolio Management
Growing your wealth through a range of high conviction low turnover portfolios with clear ownership and complete transparency.
Growing your wealth through a range of high conviction low turnover portfolios with clear ownership and complete transparency.
When investing in Australian equities we look for companies that demonstrate real Market Opportunities for Profitable Products or Services with Competitive Advantages and Barriers to Entry. The first elements make a business possible, the last elements make it a good and enduring business; without these, competitors enter to drive costs up and prices down ultimately eroding the company’s competitive advantage.
Other characteristics we seek include:
S&P ASX 200 Accumulation Index
Companies in the S&P ASX 300 Index.
Generally 20-25
The portfolio aims to be fully invested but generally has up to 3% cash at any one time and is otherwise unrestricted.
The Australia REIT and Infrastructure Fund (ARIF) exists as a Managed Discretionary Account under Royston Capital and advised by Admiral Investment. Admiral is an investment manager licensed by the Hong Kong Securities and Futures Commission that focuses in real estate and related investments across Asia Pacific.
The ARIF is a long only mandate that invests in Australian REITs (A-REITs) and Infrastructure Trust. The goal of ARIF is to provide steady dividend income and capital appreciation through time. The portfolio seeks to outperform the S&P ASX 300 A-REIT Index, on a total return basis, through the medium term. ARIF will be denominated in the Australian Dollar and invested in Australian denominated assets. This mandate invests only in listed vehicles that provide liquidity on a daily basis.
REITs and infrastructure trusts are listed instruments to allow investors to gain exposure to the real estate and the infrastructure sectors. Assets in both sectors are characterised by their relatively stable and transparent cash inflow. Real estate and infrastructure are often seen as inflation hedges, providing growth that is inline with or slightly ahead of inflation through time. Their lease or revenue structure also provides protection during weaker markets. REITs have weighted average lease expiry of several years. Infrastructure Trusts are often regulated by the government, but their demand comes from the wider public and is not subject to the rise and fall of any particular industry. Earnings for both sectors are thus predictable and relatively more stable than many alternatives.
Similar to other Australian companies, management teams of A-REITs and Infrastructure Trusts are monitored by the stock market at large. Top management roles are competitive, especially compared to the rest of Asia Pacific. In particular, the annual vote on top management compensation package is seen as a regular referendum on management performance, and every year there are changes in top management.
REITs are also legally required to pay out most of its net income as dividend to qualify for certain tax benefits. While infrastructure trusts are not required by law to pay out dividends, many maintain a respectable yield to stay competitive with REITs and other higher-yield instruments. In Australia, dividend yield in 2015 ranges from 6% to 9%, and tax benefits are available in the form of franking credits.
S&P ASX 300 A – REIT TR Index.
REITs and infrastructure trusts listed on the Australian Stock Exchange.
Generally 12-15. A-REITs will represent between 60 to 80% of the portfolio, and Infrastructure Trust between 15 to 25%. .
The portfolio aims to be fully invested but generally has up to 3% cash at any one time and is otherwise unrestricted.
When investing in interest bearing securities we seek preservation of capital while also seeking attractive income streams. We consider the following variables:
Bloomberg Ausbond Bank Bill Index
Generally 8-12
The portfolio aims to be fully invested but generally has up to 3% cash at any one time and is otherwise unrestricted.
This portfolio has been designed for those with a smaller balance in self-managed superannuation fund, or seeking to address Division 293 tax issues. However, the portfolio can be applied to other investment structures.
This portfolio is based on the Core Australian Equites portfolio. A self-funding installment is used as the alternative to purchasing the ordinary share.
Where there is no self-funding installment an alternative may be selected otherwise the ordinary share is purchased. Self-funding installments are a geared investment and are weighted in the portfolio by its exposure to the ordinary share.
The overall aim of the portfolio is to maximize the use of franking credits, gearing and growth assets to assist those seeking a high growth, low cash flow strategy to grow their wealth.
S&P ASX200 Accumulation Index
Generally the Royston Capital Core Model portfolio with self-funding installment warrants replacing said investments where available.
Generally 20-25
The portfolio aims to be fully invested but generally has up to 3% cash at any one time and is otherwise unrestricted.
Our international equity portfolio employs a Fund of Funds approach and seeks out specialist managers and opportunities not always available to retail investors.
When researching and selecting international fund managers, Royston Capital will seek to review with particular focus on:
The Fund Manager’s position on ethical issues in light of the Royston Capital’s Ethical Stance on investments will be taken into consideration.
The funds we select have a high conviction to their investment strategy and as a result generally hold a maximum of 50 stocks. Each manager in the portfolio has a specific purpose and expertise.
MSCI World ex Aust (Net Div)
The portfolio aims to be fully invested but underlying managers may hold a cash balance for liquidity purposes and investment opportunities.
One of the most effective means of reducing risk is to diversify your portfolio. You can reduce volatility by ensuring that your investment portfolio is not over exposed to any one type of asset class, sector or style.
Effective asset allocation has been proven to be a key determinant of long-term portfolio returns as has the duration of investment.We can offer a diversified portfolio with consolidated reporting. We provide you with a tailored investment mandate based on our discussions about your tolerance to risk and return and your investment objectives.
We construct our diversified portfolios based on three classifications for risk tolerance; low, medium and high risk, and provide three potential portfolio choices depending on your investment requirements.
Our blended portfolios leverage the single asset class portfolios and may also include illiquid assets such as property syndicates, venture capital and private equity and other alternative assets depending on individual needs for diversified investment strategy.
Weighted average of indices in line with the pre-determined asset allocation or CPI + as agreed with you.
Royston Capital investment portfolios and other non-liquid investments such as property syndicates private equity and venture capital.
N/A
As agreed or by the pre-determined asset allocation.
Please contact us to find out more about our current strategic asset allocation view.
Our Portfolio Administration System (P.A.S.) can record and report on all your assets (listed and unlisted) to provide a holistic view of your portfolio.
Importantly, our administration meets AASB GS007 audit requirements and portfolios come with an annual audit certificate that confirms the accuracy of the portfolio reports.
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The Royston Capital Investment Committee ensures investment decisions are consistent, structured and unbiased and that appropriate investment due diligence framework is maintained at all times.
At Royston Capital, we believe that Risk Management of portfolios is critical to the ongoing success and out-performance.
Investment risk is limited by appropriate diversification both within and between asset classes.
Currency risk is managed by appropriate hedging arrangements.
Consideration of ethical investment principles and practices are a critical element in the process for the selection of funds managers where appropriate and will be taken into account as part of the reporting process by Royston Capital.
Our investment philosophy is built around 6 core views:
Where appropriate for clients of Royston Capital, the Committee will endeavour to recommend investment opportunities that provide good financial returns and at the same time respectful of the world in which we live.
Thus the Committee will seek to avoid, within the limits of reasonable feasibility, having client monies invested with any investment manager or in an individual security which has substantial holdings in companies whose principal activity
However, to the generally limited extent that its investment style (and policy) will make possible, the Committee will also seek to have a voice (direct or indirect) in influencing the attitudes and practices of the corporate development and management sector in relation to ethical issues and so will not be absolute in adopting a negative screening strategy.
Click here for further information about our Investment Philosophy.