Returns in rising and falling markets 15 year track record of no quarterly downside > 3%
Many investors misunderstand what is required in portfolio construction to structure a portfolio to meet lower risk investor needs.
Diversification requires assets that do not correlate with each other to be effective. Multiple managers with similar strategies and returns correlated with the market does not maximise diversification benefits.
Gyrostat Class A and Class B returns are non correlated with the Australian market. This increases portfolio diversification with absolute returns in a wider range of market scenarios.
Gyrostat Class A performance compared with worst 5 quarters from the ASX accumulation index (since Fund inception December 2010)
| Period | ASX accumulation return | Gyrostat Class A return |
|---|---|---|
| Apr - Jun 2022 | -11.90% | +8.70% |
| Jan - Mar 2020 | -23.10% | +9.22% |
| Oct - Dec 2018 | -8.24% | +4.18% |
| Jul - Sep 2015 | -6.58% | -0.26% |
| Jul - Sep 2011 | -8.17% | +1.29% |
There are 3 steps in our risk management investment approach:
Buy ASX20 stocks and index with protection at the stock specific level
Set protection with risk management overlay
Re-set protection risk managed overlay with market moves
Gyrostat Class A and Class B are designed for investors who want financial peace of mind irrespective of stock market outcomes. This is a key objective for many in retirement planning.
Gyrostat Risk Managed Equity Fund Classes A & B have downside protection always in place, regular income, with returns in rising and falling markets including large market falls.
Our Class A flagship fund has 3 key features:
Lower risk than ASX 200 (source: FE Analytics)
15-year track record no quarterly losses > 3%, 4 Yr max qtr loss -1.26%
A track record of increasing in value on major market falls
Absolute returns with a track record of increasing with market volatility
The leveraged Class B Units have a focus on greater returns and less risk protection.
These returns are non correlated with the market providing portfolio diversification benefits such as lower risk, higher risk-adjusted returns, and reduced exposure to market shocks.
Class A: Absolute return income equity
Target returns: 6-8% pa in trending markets> 8% in changing markets
Target Income: BBSW3M +3% pa paidquarterly (Currently 7.31% pa)
Class Inception: 10 December 2010
| As at 30 Apr 2026 | 3M | 1 Yr p.a. | 2 Yr p.a. | 3 Yr p.a. |
|---|---|---|---|---|
| Class A | 1.83% | 8.13% | 8.92% | 7.82% |
| BBSW 3M + 3% | 1.73% | 6.96% | 7.27% | 7.31% |
| Excess Returns | 0.10% | 1.17% | 1.65% | 0.51% |
Class B: Leveraged absolute return income equity
Target returns: Minimum BBSW3M + 6%
Target Income: BBSW3M +6% pa paidquarterly (Currently 10.31% pa)
Class Inception: 13 April 2021
| As at 30 Apr 2026 | 3M | 1 Yr p.a. | 2 Yr p.a. | 3 Yr p.a. |
|---|---|---|---|---|
| Class B | 2.56% | 9.58% | 9.77% | 9.59% |
| BBSW 3M + 3% | 1.73% | 6.95% | 7.27% | 7.31% |
| Excess Returns | 0.83% | 2.63% | 2.50% | 2.28% |
Portfolios are typically constructed using static allocations, assuming that diversification across asset classes will provide protection in all environments.
In practice, this approach relies heavily on correlations that often break down during periods of market stress, leaving portfolios exposed when protection is most needed.
Markets move through distinct phases — falling, volatile, stable, and rising — and each phase presents different risks to investor outcomes.
For investors in retirement, this becomes critical. Large market declines, particularly early in retirement, can have a lasting impact due to sequence of returns risk.
Gyrostat addresses this by structuring portfolios for different market environments, rather than relying on prediction.
The strategy is designed to:
This is achieved through a risk-managed equity approach with protection always in place, designed to respond differently across market phases.
Unlike traditional approaches that depend on forecasting or correlation, Gyrostat is built to operate across:
Designed for investors where the timing of returns matters most, particularly in retirement.
Class A is structured to:
It has demonstrated the ability to perform favourably during major market declines and periods of volatility, where traditional portfolios are most exposed.
Designed to provide broader participation across market conditions while maintaining a structured level of protection.
Class B aims to:
This makes it suitable as a core allocation where both growth and risk management are required.
Rather than selecting a single strategy, portfolios can be constructed using both Class A and Class B to align with investor objectives and market conditions.
Together, they provide a more balanced and resilient portfolio structure across all market scenarios.
This reflects a shift from traditional asset allocation toward a more dynamic, risk-aware framework focused on outcomes, not predictions.
Investment Manager: Gyrostat Capital Management Advisers Pty Ltd
Please contact Michael Baker of Wayfarer Investment Partners on 0439 276 484.
