Executive Summary
- Falling interest rates are highlighting the limited range of investments that deliver a regular and stable income stream with capital security.
- Equity protected funds provide a risk managed exposure to growth assets. There are many financial products being marketed on the basis of risk mitigation. However, protection at all times is rarely in place.
- Advances in investment risk management enable cost effective protection to always be in place for a ‘hard’ defined risk parameter (say no more than 3% capital at risk).
- The Gyrostat Absolute Return Income Equity Fund is a conservative fund with ‘hard’ protection always in place, a 9 year track record of no quarterly NAV draw-downs exceeding 3%, regular equity income, and demonstrated returns increasing with volatility levels. (with tail hedge in place for large gains on large market falls).
