Investment risk management – absolute return alternative for conservative investors
There have been significant advances in risk management approaches for conservative investors.
The variety of risk management approaches have different risk and return characteristics through the complete investment cycle.
- “Phase 1” was the traditional risk management approach - varying the allocation of ‘income’ and ‘growth’ assets.
- “Phase 2” has seen additional ‘growth’ asset risk management approaches with protection sometimes in place through a predictive risk management overlay.
- “Phase 3”, the Gyrostat approach, is a complement to Phase 2 approaches with protection always in place. We are used in place of short term bonds as we deliver higher income and capital growth through the investment cycle (in trending and more volatile markets including large market falls.).
By combining these approaches, the gap in the market for conservative investors to benefit from more volatile markets, including large market falls, can be addressed.