Meeting lower risk investor’s needs including retirees- Australian equity absolute return

Gyrostat class A and class B were designed for lower risk investors who fear seeing large falls in the value of your investments. We are designed for investors who want financial peace of mind irrespective of stock market outcomes.

Stock market falls are a regular and hazardous feature of the stock market cycle. Predicting the timing and size of falls is difficult.

Our approach is to replace a portion of your Australian equities allocation with Gyrostat.

Gyrostat Risk Managed Equity Fund Classes features

Class A & B have downside protection always in place, regular income, with returns in rising and falling markets including large market falls.

Our class A flagship fund has 3 key features:

1. Lower risk than ASX 200 (source: FE Analytics)
   14 year track record no quarterly losses > 3%
2. A track record of increasing in value on major market falls
3. Absolute returns with a track record of increasing with market volatility

The leveraged Class B Units have a focus on greater returns and less risk protection.

These returns are non correlated with the market providing portfolio diversification benefits such as lower risk, higher risk-adjusted returns, and reduced exposure to market shocks.

Lower risk investors – Portfolio construction to reduce risk in case of major stock market falls

Many investors misunderstand what is required in portfolio construction to structure a portfolio to meet lower risk investor needs.

Diversification requires assets that do not correlate with each other to be effective. Multiple managers with similar strategies and returns correlated with the market does not maximise diversification benefits.

Gyrostat returns are non correlated with the Australian market. This increases portfolio diversification with absolute returns in a wider range of market scenarios.

How does Gyrostat construct its Portfolio?

There are 3 steps in our risk management investment approach:

1. Buy ASX20 stocks and index with protection at the stock specific level
2. Set protection with risk management overlay
3. Re-set protection risk managed overlay with market moves