Retirement Portfolio Resilience Perspective
Primary Pillar: Risk Pricing Discipline
Supporting Pillars: Retirement Portfolio Construction • Behavioural Survivability
This article introduces the concept of protecting investment portfolios against significant market declines and explains why downside protection can play an important role in long-term retirement portfolio construction.
Viewed through today's Retirement Portfolio Resilience Framework, the enduring principle extends beyond downside protection itself. The article reflects Gyrostat's long-standing philosophy that resilient portfolio construction should reduce dependence on favourable market conditions by combining long-term growth assets with complementary protection strategies that help investors remain financially and emotionally invested throughout retirement. While the examples reflect the market environment of the time, the underlying philosophy remains central to Retirement Portfolio Resilience.
This article forms part of a broader body of research, educational articles and practical insights organised through the Retirement Portfolio Resilience Framework.
Gyrostat Downside Protection Australian Equities Fund
History shows us that equities worth $1 M today are likely to see $300,000 - $500,000 wiped off its market value in a period of less than 12 months, and take 12-17 years to get back to previous levels. You can protect yourself.
Major market falls are a regular and hazardous feature of the investment cycle – 10 times in the past 90 years losses of 30% or more within a year, often much quicker, have occurred.
