by Shelley Racine
2016 05 16 inceptperform with title

Retirement Portfolio Resilience Perspective

Primary Pillar: Retirement Portfolio Construction

Supporting Pillars: Risk Pricing Discipline • Resilience Across Market Environments

This foundational educational paper examines how structural changes in interest rates and market conditions can alter the effectiveness of traditional portfolio construction and explores alternative approaches to building resilient investment portfolios.

Viewed through today's Retirement Portfolio Resilience Framework, the enduring contribution of this publication is not its analysis of historically low government bond yields, but its recognition that portfolio construction should evolve when traditional investment assumptions no longer hold. Rather than relying solely on conventional income and growth allocations, the paper explores how disciplined commercial capital allocation, appropriately priced protection and resilient portfolio architecture can complement long-term growth assets while reducing dependence on favourable market conditions.

This publication forms part of Gyrostat's foundational educational archive documenting the origins and evolution of the Retirement Portfolio Resilience Framework.

On 16 May 2016 the 10 year Australian Government bond yield fell to its lowest in 141 years with expectations that more cuts to official interest rates are coming.

In our report:  "Risk managed equity funds -  The investment case.  Ideal conditions with falling interest rates and rising market volatility " we outline:
     
- why risk managed equity funds are suitable for all investors
- frequently asked questions on fund characteristics and investment approach
- why compelling opportunities now with falling interest rates and increasing stock market volatility anticipated
 
We buy and hold high yielding blue chip shares in the ASX top 20 and insure downside with lowest cost alternatives (ASX bought put options).
 
Our competitive advantage is the ability to always be fully invested in stocks with a risk-return profile at all times to participate in share price upside with minimal capital at risk, at the stock specific level.
 
We remain well placed to deliver better than our funds benchmark returns over the coming 6 months.

Download PDF for more information