The two key global investment issues today are:
- Achieving a regular and stable income stream in a low interest rate environment with capital security.
- Elevated risk of major market corrections in a ‘late cycle’ environment of stock market volatility impacting capital returns.
Our solution is to buy equities, always protected to a defined ‘hard’ risk tolerance. The underlying asset and ‘hard’ risk tolerance is varied depending upon the need being addressed.
- Conservative assets: Buy higher yielding ‘blue chip’ stocks/index to a ‘hard’ risk parameter of no capital losses to exceed 2% in a quarter.
- Track record: 8 years of delivering our investment objectives- returns increase with volatility levels.
- Includes a 'tail hedge' buying additional protection for large gains on large market falls
- Growth assets: Buy highly liquid ETF/stocks to a ‘hard’ risk parameter no capital losses to exceed 5% monthly or 10% per quarter.
This innovative Australian approach is highly scalable, highly liquid, transparent in pricing, and the counter party is the relevant stock exchange (addressing credit quality issues).
- The only requirement is highly liquid exchange traded options.
- Addresses a global issue: Can be rolled out across other countries and equity assets.