Gyrostat July 2016 Performance Report

Cost of protection at near decade lows


During July there was a slight reduction in our unit price to $ 0.87475.  The market value of our protection fell as costs fell to near historical lows.

Whilst this has impacted this month’s performance, it has provided the opportunity to cost effectively extend the protection duration and position us to benefit from any future volatility.

Our investment view is interest rates will stay low for an extended period, and stock market volatility will increase.

These are ideal conditions for Gyrostat with falling interest rates and rising market volatility as demonstrated by our recent 2.8% increase in net asset value.

We form part of the ‘income’ allocation of a portfolio and are suitable for all investors.  Our investors typically move maturing term deposits to our Fund, as we deliver higher income while always protecting and growing our investors’ capital.  

During 2016 we distributed income at 5.6% pa comprising a December and June distribution.  Our investors receive cash and franking credits (or re-invest), with simplicity of annual statements for capital gains as we buy and hold stocks.

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