2019 08 16 incept perform graph and features

Executive summary:

  • Many clients, particularly retirees are worried about the consequences of another significant market correction.
  • The consensus view is that markets are now ‘late cycle’.  Most major corrections occur within 8 years, we are now at year 12, the longest on record is 13 years.
  • The Financial System Inquiry outlined desirable product features to specifically address sequencing risk – to combine protection, returns and regular income through all stages of the investment cycle (including large market falls.)
  • The protection element is reflected in the Funds maximum NAV capital draw-down.  In the case of the Gyrostat Absolute Return Income Equity Fund this has been limited to – 2.2% in any circumstances since our inception in December 2010.
  • Pro-active investors and their advisors can address sequencing risk by an asset allocation from unprotected growth assets to the Gyrostat Absolute Return Income Equity Fund (a conservative asset – alternative defensive and generate higher returns in more volatile ‘late cycle’ market conditions.)

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