Launch broadens the Atlantic House outcome focused fund range
Atlantic House Investments, a market leader in defined returns investments, has launched the Atlantic House Global Defined Returns Fund (the Fund). The Fund aims to generate an annualised net return of 8-9% % p.a. over the medium to long-term in all but the bleakest market conditions.
The Fund is an evolution of the firm’s flagship £1.7bn Atlantic House Defined Returns Fund, which has a 10-year track record for delivering defined returns. It utilises the same investment expertise and fund managers but is more global in its exposure, allowing investors access to global indices and portfolios, whilst offering more ambitious returns of 8-9% p.a. In addition, the Fund integrates ESG considerations into its investment process, whilst protecting the delivery of outcomes to clients. The Fund combines a diverse portfolio of simple equity derivative investments linked to the performance of one or more developed market equity indices alongside high-quality investment grade bonds, primarily treasuries.
The fund managers use a rules-based investment approach to take positions in derivative investments, referred to as “defined return investments”, that are linked to the performance of one or more large equity indices. Each defined return investment must deliver its target return even if the indices to which it is linked fall up to 20% and remain at or below that level over the life of the investment (typically six years). Moreover, individual investments will not suffer a loss even if the indices to which they are linked were to fall by up to 25% from their starting levels and remain there until maturity.
By using these defined returns investments, the fund manager can model how the fund is likely to perform in various market scenarios and over different time frames. This level of transparency and greater predictability should appeal to investors who seek greater certainty over their investment outcomes.
The Atlantic House Global Defined Returns Fund is a UCITS fund with daily dealing.
Tom May, Chief Executive & Investment Officer of Atlantic House Group and fund manager of the Global Defined Returns Fundsaid: “The new Atlantic House Global Defined Returns Fund is a natural extension to our fund range. The existing Defined Returns Fund is one of the largest of its kind, with assets of over £1.7bn and a primary equity exposure to the UK large cap market. The Global fund will benefit from having the same investment management team, processes, and approach, but applied to a more global opportunity set. With market volatility set to continue and interest rates increasing, new defined returns investments look particularly compelling.”
