by
Shelley Racine
Retirement Portfolio Resilience Perspective
Primary Pillar: Retirement Portfolio Construction
Supporting Pillars: Sequencing Risk Awareness • Risk Pricing Discipline
This Corporate Presentation reflects the retirement environment at a time when historically low interest rates focused industry attention on generating retirement income from defensive allocations.
Viewed through today's Retirement Portfolio Resilience Framework, the enduring principle extends beyond income generation. The presentation demonstrates how resilient portfolio construction, embedded downside protection and disciplined risk management can complement long-term growth assets by helping address sequencing risk and reducing dependence on favourable market conditions. Attractive equity income remains an important outcome, while Retirement Portfolio Resilience is the primary portfolio construction objective.
This Corporate Presentation forms part of a broader body of research, educational articles and practical insights organised through the Retirement Portfolio Resilience Framework.
The Fund is a solution for falling interest rates. It is a ‘conservative’ asset allocation with ‘hard’ protection always in place with a 9 year track record of no quarterly NAV draw-downs exceeding 3%, regular equity income (5.2% pa past 12 months from ASX20 dividends), and returns increasing with volatility levels (includes a tail hedge for large gains on large market falls.)
The Gyrostat Absolute Return Income Equity Fund has increased 7.09% over the past 12 months, outperforming the RBA cash rate by 5.11%. The Funds objective is to deliver regular and stable equity income (by passing through ASX 20 dividends) at a minimum of the BBSW 90 + 3% with capital security and growth. The Fund buys and holds ASX 20 shares with lowest cost protection always in place with upside. During June 2019 there was very little market volatility - there was a small reduction in NAV of -0.42% consistent with the Funds guidance.
The Fund is well positioned to benefit from any uplift in market volatility, which is consistent with 'late cycle' market conditions.
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