Gyrostat June 2016 Performance Report
Review of investment performance – delivering higher income while always protecting and growing capital
Since our inception in December 2010 there have been 4 broad investment cycles.
- Dec10 - Sep11: Large stock falls. Gyrostat total return 8%
- Sep 11 - Apr15: Large market rises. Gyrostat total return 18%
- Apr15 - Feb16: Large market falls, ASX20 ‘blue chips’ far greater falls. Gyrostat total return -2%
- Feb16 - Jun16: Rising stock market volatility. Gyrostat total return 3.5%
These are ideal conditions for Gyrostat with falling interest rates and rising market volatility as demonstrated by our recent 3.5% 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.
Our returns are considerably higher than cash, with no downside ever exceeding 2%. In December 2010 the cash rate was 5% and has steadily fallen to historical lows where it is widely expected to stay for an extended period.
During 2016 we distributed income at 5.3% 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.