Retirement Portfolio Resilience Perspective
Primary Pillar: Risk Pricing Discipline
Supporting Pillars: Retirement Portfolio Construction • Resilience Across Market Environments
This edition of Gyrations examines investment risk through the relationship between market conditions, the pricing of protection and long-term portfolio construction rather than relying solely on market forecasts.
Viewed through today's Retirement Portfolio Resilience Framework, the enduring principle is that resilient portfolios are constructed by combining long-term growth assets with appropriately priced protection that reduces dependence on favourable market conditions. While the publication reflects the investment environment of its time, it demonstrates an early expression of Gyrostat's philosophy that disciplined portfolio construction should be guided by the pricing of risk rather than the prediction of future market movements.
This publication forms part of Gyrostat's historical research archive documenting the evolution of the Retirement Portfolio Resilience Framework.
Our feature article in Gyrations details why financial markets underestimate risk.
Geopolitical and macro developments indicate volatility is likely to rise from historically low levels. To prepare, conservative asset allocations are typically increased. Traditional conservative assets (cash, short term bonds, fixed term deposits) offer no capital growth potential. Our fund is a conservative asset that combines protection, returns and income.
The Gyrations risk model considers the implications of geopolitical, macro-economic and company valuations on investment risk. Increased volatility is often experienced around key data releases relating to interest rates, growth, inflation rates and key political events.
Our report details the investment landscape (in pictures) with dates of key upcoming data releases.
