What we offer?
- Distinctive thinking: Absolute returns and income with protection always in place (dynamic hedging).
- Non correlated returns in rising and falling markets
- Regular quarterly income class A BBSW3M + 3% (currently 6.6% pa; class B BBSW3M +6% (currently 9.6% pa)
- Dynamic hedging risk management: Protection always in place adjusted with market moves (not set and forget).
- Daily liquidity and no locks ins
- Track record of returns increasing with market volatility (‘changing’ markets since Jan 2022)
The Gyrostat Risk Managed Equity Fund offers five unit classes
Each Class has differing risk-return characteristics, but all Classes are based on the ‘dynamic hedging’ risk managed approach with protection always in place. Each class is backed by a Class specific pool of assets and liabilities held on a segregated basis.
With protection always in place we aim to provide alpha excess returns by avoiding large losses through the complete investment cycle.
We offer two absolute return fund classes, non correlated with the stock market.
Class A is our flagship fund. Blue chip shares with protection for retiree income. This is specifically designed to address sequencing risk with a downside tail always in place for gains on large market falls.
Class B is a leveraged version, with a focus on greater returns with less risk protection.
We also offer Gyrostat Risk Managed Australian (class C), Hong Kong (class D), and global (class E) designed to outperform their specific benchmark index over rolling 12 months by avoiding large losses through the complete investment cycle.
Risk management – protection always in place (dynamic hedging)
In today's turbulent financial market, managing investment risk is crucial for ensuring long-term success for equity managed funds. One of the most effective ways to manage risk is dynamic hedging, which involves adjusting the protection positions of a portfolio in real-time based on market changes. This strategy is used by sophisticated fund managers with the systems to continuously monitor market conditions and know how to adjust their portfolios accordingly.
Some of the key benefits of using dynamic hedging are:
1. Real-time risk management: Dynamic hedging allows fund managers to respond quickly to market changes and adjust their portfolio in real-time to minimise potential losses and maximise returns.
2. Improved returns: By continuously monitoring market conditions and adjusting the hedge ratios accordingly, dynamic hedging can help equity managed funds achieve better returns. This is because the hedge ratios are adjusted to minimize the potential impact of market risks on the portfolio.
3. Increased transparency: Dynamic hedging provides fund managers with greater insight into the risks and returns of their portfolios. This increased transparency allows fund managers to make informed decisions and adjust their portfolios, leading to better investment outcomes.
4. Better risk-reward balance: Dynamic hedging enables fund managers to better balance their risk and reward. By adjusting the hedge ratios, fund managers can minimise potential losses while maximising returns, leading to a better risk-reward balance for their portfolio.
Gyrostat uses dynamic hedging to manage the trade-off between returns, income, and protection levels (risk). Our approach has focused on a pre-defined quarterly ‘hard’ risk parameter, and then to maximise returns and income within that constraint. A secondary consideration is the source of returns, in particular the level of correlation with the market. From established finance theory adding non correlated assets is of significant value to the overall portfolio, so the Gyrostat approach has been to generate returns in rising and falling markets, which increase with volatility.
Gyrostat three step dynamic downside protection
Superimpose a 'hockey stick' pay off at all times on a share price chart, moving the protection level on market moves.
- Buy and hold blue chip shares with protection on the Stock Exchange
- Set the amount of protection to always participate in the upside with minimal capital at risk
- Re-set the protection level on market moves - if the share price rises increase the protection level, on falls reduce the protection level