Retirement Portfolio Resilience Perspective
Primary Pillar: Retirement Portfolio Construction
Supporting Pillars: Behavioural Survivability • Risk Pricing Discipline
This historical performance report demonstrates how disciplined portfolio construction sought to deliver resilient investment characteristics through changing market conditions while continuing to educate investors about the underlying philosophy.
Viewed through today's Retirement Portfolio Resilience Framework, the enduring contribution of this publication is that it treats investment outcomes as evidence of an underlying philosophy rather than as the philosophy itself. The report reinforces the principles of disciplined commercial capital allocation, continuous downside protection and long-term participation in growth assets while illustrating how these characteristics contributed to more resilient portfolio construction. The accompanying educational video further reflects Gyrostat's long-standing commitment to teaching ideas through multiple formats, supporting understanding before implementation.
This publication forms part of Gyrostat's foundational educational archive documenting the evolution of the Retirement Portfolio Resilience Framework.
Track record 20 quarters no losses exceeding 2%
We are pleased to report that for the six month period we preserved capital despite substantial falls in the high yielding blue chip stocks in which we invest, and the ASX200.
We have a track record since our inception of 20 consecutive quarters of no investor losses exceeding 2% and compounded returns of 30%.
As a ‘next gen’ income fund we offer capital stability with regular income. At 31 December 2015 we declared a distribution of 2.37 cents per unit. Our minimum distribution is the cash rate + 3% paid semi-annually (currently 5.1% p.a).
Distinctive investment approach
We buy and hold high yielding blue chip stocks in the Australian market and simultaneously enter the ASX options market to hedge risk. We are always fully invested with cost effective protection always in place.
Throughout the investment cycle we preserve capital when markets fall, and make money in rising markets. We have a track record of capturing 30% - 50% of any upside, and protection in place in case of further falls.
When we make gains, we re-set our protection levels so only a small portion of those gains are at risk.
We anticipate increasing levels of stock market volatility during 2016 (both up and down) which is beneficial to our fund.
We remain well placed to deliver better than our funds benchmark returns over the coming 6 months.
You can download our guide on “Income and Capital Stability – how we do it” by clicking here.
Weekly subscriptions
Take action to “lock in” the dividend yields on offer and participate in any stock price recovery. We can now accept investments on a weekly basis at the net asset value at close of business each Friday (and end of the month in the final week). Custodian On 30 October Gyrostat appointed One Investment Group as our external custodian, thus meeting the requirements of larger institutional investors.
Cash rate is at historic lows and is anticipated to stay low for an extended period, while blue-chip stocks have higher yield with recent share price falls.
This presents opportunities for investors seeking yield with downside protection always in place.
We have again preserved capital despite the substantial share price falls experienced in the first week of January. Our net asset value is reported at close of business each Friday at the home page of our web site.
Yours sincerely,
Craig Racine
Click here to download Information Memorandum Click here to download Application Form
