Retirement Portfolio Resilience Perspective
Primary Pillar: Risk Pricing Discipline
Supporting Pillars: Retirement Portfolio Construction • Resilience Across Market Environments
This historical newsletter discusses how prevailing market conditions influenced the attractiveness of risk-managed equity portfolio construction and explains the relationship between interest rates, market volatility and the pricing of protection.
Viewed through today's Retirement Portfolio Resilience Framework, the enduring contribution of this publication is its recognition that portfolio construction should adapt to changing market environments while remaining anchored to disciplined commercial capital allocation. Although the investment commentary reflects the market conditions of 2016, the underlying philosophy of assessing the pricing of risk, designing resilient portfolio architectures and reducing dependence on favourable market conditions remains central to the evolution of Retirement Portfolio Resilience.
This historical newsletter forms part of Gyrostat's research archive documenting the evolution of the Retirement Portfolio Resilience Framework.
Our investors typically move maturing term deposits to our Fund, as we deliver higher income while always protecting and growing our investors’ capital.
We have a 3 step investment approach:-
1. Buy and hold blue chip shares with insurance on the Australian Stock Exchange
2. Technology enables our software systems to choose the lowest cost insurance from the many alternatives. The amount of insurance is set to always participate in the upside with minimal capital at risk.
3. On market moves we re-set the insurance level. If the share price rises, we buy more to 'lock in' the gains, on falls we sell some that is no longer required.
We have a 5½ year track record of compounded returns of 33% since our inception, considerable higher than cash, with 22 consecutive quarters of no losses exceeding 2%.
