Retirement Portfolio Resilience Perspective
Primary Pillar: Retirement Portfolio Construction
Supporting Pillars: Sequencing Risk Awareness • Risk Pricing Discipline
This article examines the growing need for retirement-focused portfolio construction as Australia's Retirement Income Covenant highlighted the lack of suitable investment solutions for retirees.
It explains how embedded downside protection, disciplined risk management and resilient portfolio construction can provide an alternative to traditional approaches that rely primarily on diversification and favourable market conditions. Although written before the Retirement Portfolio Resilience Framework was formally articulated, the article demonstrates many of the principles that would later define Gyrostat's philosophy of helping investors remain financially and emotionally invested throughout their retirement journey, regardless of the path markets take.
This article forms part of a broader body of research, educational articles and practical insights organised through the Retirement Portfolio Resilience Framework.
While the previous Federal Government's Retirement Income Covenant is having little impact in providing more product offerings for retirees from the finance industry, one Australian fintech company has bucked this trend.
“The Gyrostat offering utilises global best practice risk management that has protection always in place. The protection is not ‘set and forget’ and is adjusted with market moves. The Fund has a track record of returns increasing with volatility. Returns are generated in rising and falling markets, meaning they are non-correlated with the market.” says founder and CEO Craig Racine.
The Class A units have increased 20.96% for the 12 months to 31 October 2022, with the Fund’s Class B leveraged units have increased 26.77% over the same period. (top 2 absolute return funds in Australia for the 12 months to 30 October 2022. Source: FE Analytics)
