Gyrostat has an innovative risk managed investment approach.
It can be applied to the following issues:
What are you doing to generate strong returns in volatile markets with your defensive assets?
The Gyrostat Absolute Return Income Equity Fund is in it's 8th year - it combines returns, income and protection. Returns over 34% with regular income distributions at BBSW90 + 3% and no quarterly NAV decline exceeding 2%.
What are you doing to prepare for market falls?
The Gyrostat Downside Protection Australian Equities Fund is designed to increase in value with ASX200 market falls, particularly large market falls, whilst not capping your upside should the markets rise.
Progression of investment risk management
There have been significant advances in risk management approaches for conservative investors. Each level reduces the downside variability of investment capital with complementary return characteristics.
By combining these three levels conservative investors can protect and grow capital with reliable income through the complete investment cycle.
The variety of risk management approaches have complementary risk and return characteristics through the investment cycle.
- Level 1: Asset allocation: Income and growth assets
- Level 2: Protection sometimes in place using predictive risk management overlay - additional growth asset benchmark equity index
- Level 3: Protection always in place, the Gyrostat approach - stable and rising absolute returns with regular income. Benchmark BBSW90 + 3% pa
By adding our fund to a conservative portfolio we complement level 1 and level 2 approaches. In particular:-
i) Volatile markets provide more profit opportunities to participate in share price upside and protect on share price falls
ii) Gyrostat always has additional downside protection in place in case of large market falls
Our solution – protection always in place with upside return potential
With protection always in place we complement short term bonds and bench-marked against the absolute return bank bill swap rate BBSW90. Our expected returns vary with the stage of the investment cycle with capital growth in trending and volatile markets, as this provides the opportunity to re-set protection levels and lowers the costs.
Traditionally protecting your portfolio was expensive. Gyrostat has overcome this issue by actively managing ASX options, utilising proprietary software and taking advantage of reduced broker costs due to deregulation. We are always fully invested in blue chip high yielding shares and insure downside with lowest cost alternatives on the ASX.
Gyrostat three step investment approach
Super impose a 'hockey stick' pay off at all times on a share price chart, moving the protection level on market moves.
- Buy and hold blue chip shares with protection on the Australian Stock Exchange
- Set the amount of protectionto always participate in the upside with minimal capital at risk
- Re-set the protection level on market moves - if the share price rises increasing protection level, on falls reduce protection level
Business Model "How we invest"
Unit Trust
Investors purchase units in “Gyrostat Capital Stability Income Fund”.
The fund net income is dividends and franking credits less expenses and the cost of protection.
Stock Market ASX
The fund simultaneously buys stock and enters ASX options market
Stocks are “buy and hold” to generate dividends and franking credits
Options Market ASX
For hedging risk only we use calls and put options to grow your investment when markets rise, and protect your investment when markets fall.
Daily management to restore risk-return profile from market movements
Technology & Deregulation
Software continuously monitors price movements to identify “least cost” alternatives to restore risk-return pay-off from market moves.
Deregulation enables low cost transactions