Retirement Portfolio Resilience Perspective
Primary Pillar: Retirement Portfolio Construction
Supporting Pillars: Risk Pricing Discipline • Resilience Across Market Environments
This article examines alternative approaches to portfolio construction and explores how disciplined risk management can strengthen long-term investment outcomes across changing market environments.
Viewed through today's Retirement Portfolio Resilience Framework, the enduring principle is that resilient portfolio construction should complement long-term growth assets through embedded downside protection and disciplined risk management, helping investors reduce dependence on favourable market conditions. The article reflects Gyrostat's continuing 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.
The two key global investment issues today are:
- Achieving a regular and stable income stream in a low interest rate environment with capital security – “defensive” assets.
- Elevated risk of major market corrections in a ‘late cycle’ environment of stock market volatility impacting capital returns – “growth” assets.
Our solution is to buy equities, always protected to a defined ‘hard’ risk tolerance. The underlying asset and ‘hard’ risk tolerance is varied depending upon the need being addressed.
Risk managed investing is particularly important during high PE periods/later stage bull markets. The risk of a major correction is elevated - we are now in the longest bull market since WW2. Most large correction occurs within 8 years, we are now at year 12, with the longest on record 13 years.
Opportunities
- Absolute Return Income Equity Fund - combines income, returns, protection at ‘hard’ 3% quarterly
- Investment mandates - Domestic
- Investment mandates – International
- Partner for growth index fund
