A truly diversified multi-asset approach
Atlantic House Total Return Fund
For investors seeking attractive, long-term returns in today’s unpredictable markets, greater diversification – beyond the traditional mix of equity and fixed income – can provide access to more sources of uncorrelated returns.
As we approach 2 years since the dramatic market moves of March 2020, some investors could be forgiven for wondering whether their portfolios are robust enough to cope if another significant event were to hit markets.
Were there to be another substantial equity market sell-off, it could reveal an inconvenient truth: namely, that multi-asset portfolios may not be as diversified as many investors expected. As you can see from the chart (below), bond yields are at historic lows and their effectiveness to counter equity market corrections in the way they used is a matter of debate.
Furthermore, the negative correlation between equities and bonds is not as strong as it once was. True diversification is about owning assets that move in different directions, particularly when you need them to, and ultimately go up over time. A traditional portfolio of bonds and equities may not provide enough consistent diversification in stressed markets.
Our investment approach on the Atlantic House Total Return Fund is characterised by focusing on four key strategies, each designed to serve a distinct purpose in the portfolio. Together, their combined objective is to deliver a portfolio that provides diversified, predictable returns over time:
From this ‘central’ position, the portfolio is further shaped and refined using proprietary modelling and risk tools, as well as the Fund Managers’ views on macroeconomics, volatility, inflation, valuations, and interest rates.
The four strategies are then blended into an optimal asset allocation, providing diversification, and aiming to deliver its objectives while minimising risk.
A truly diversified multi-asset approach
Atlantic House Total Return Fund
For investors seeking attractive, long-term returns in today’s unpredictable markets, greater diversification – beyond the traditional mix of equity and fixed income – can provide access to more sources of uncorrelated returns.
As we approach 2 years since the dramatic market moves of March 2020, some investors could be forgiven for wondering whether their portfolios are robust enough to cope if another significant event were to hit markets.
Were there to be another substantial equity market sell-off, it could reveal an inconvenient truth: namely, that multi-asset portfolios may not be as diversified as many investors expected. As you can see from the chart (below), bond yields are at historic lows and their effectiveness to counter equity market corrections in the way they used is a matter of debate.
10 YEAR GOVERNMENT YIELDS HAVE FALLEN OVER THE PAST 20 YEARS
Furthermore, the negative correlation between equities and bonds is not as strong as it once was. True diversification is about owning assets that move in different directions, particularly when you need them to, and ultimately go up over time. A traditional portfolio of bonds and equities may not provide enough consistent diversification in stressed markets.
BONDS HAVE NOT ALWAYS OFFERED CONSISTENT EQUITY DIVERSIFICATION
Our investment approach on the Atlantic House Total Return Fund is characterised by focusing on four key strategies, each designed to serve a distinct purpose in the portfolio. Together, their combined objective is to deliver a portfolio that provides diversified, predictable returns over time:
From this ‘central’ position, the portfolio is further shaped and refined using proprietary modelling and risk tools, as well as the Fund Managers’ views on macroeconomics, volatility, inflation, valuations, and interest rates.
The four strategies are then blended into an optimal asset allocation, providing diversification, and aiming to deliver its objectives while minimising risk.
This is a marketing communication. A final investment decision should not be contemplated until the risks, which can be found in the Supplement, the Prospectus and the KIID are fully considered.
Key Risks
This is a marketing communication. A comprehensive list of risk factors is detailed in the Risk Warnings Section of the Prospectus and the Supplement of the Fund and in the relevant key investor information document (KIID) final investment decision should not be contemplated until the risks are fully considered. A copy of the English version of the Supplement, the Prospectus, and any other offering document and the KIID can be viewed at www.atlantichousefm.com and www.geminicapital.ie.
A summary of investor rights associated with an investment in the Fund is available in English at www.gemincapital.ie.
Calculations do not consider credit spread movements of the issuers of the securities. The mark to market of the securities and therefore the NAV of the Fund will decrease as credit spreads widen and vice versa if spreads narrow.
The price of shares and any income from them can go down as well as up and past performance is not a guide to future performance. Investors may not get back the full amount originally invested.
The Fund invests in derivatives for investment purposes, for efficient portfolio management and/ or to protect against exchange risks. Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of a derivative investment to fluctuate and the Fund could lose more than the amount invested. The Fund can invest in high quality government and corporate bonds. All bonds will be rated at least A- by Standard and Poors at outset. If any of the bonds the Fund owns suffer credit events the performance of the Fund could be adversely affected.
A decision may be taken at any time to terminate the arrangements for the marketing of the Fund in any jurisdiction in which it is currently being marketed. Shareholders in affected EEA Member State will be notified of any decision marketing arrangements in advance and will be provided the opportunity to redeem their shareholding in the Company free of any charges or deductions for at least 30 working days from the date of such notification.
Important Information
Source for all data is Atlantic House Investments as of 30 November, unless stated otherwise.
This document is issued by Atlantic House Investments Limited and does not constitute or form part of any offer or invitation to buy or sell shares. It should be read in conjunction with the Fund’s Prospectus, key investor information document (“KIID”) or offering memorandum. Atlantic House Investments Limited is authorised and regulated by the Financial Conduct Authority FRN 931264. Atlantic House Investments Limited is a Private Limited Company registered in England and Wales, registered number 11962808. Registered Office: One Eleven Edmund Street, Birmingham B3 2HJ.
The contents of this document are based upon sources of information believed to be reliable. Atlantic House Investments Limited has taken reasonable care to ensure the information stated is accurate. However, Atlantic House Investments Limited make no representation, guarantee or warranty that it is wholly accurate and complete.
The Atlantic House Total Return Fund is a sub-fund of GemCap Investment Funds (Ireland) plc, an umbrella type open-ended investment company with variable capital, incorporated on 1 June 2010 with limited liability under the laws of Ireland with segregated liability between sub-funds.
GemCap Investment Funds (Ireland) plc is authorised in Ireland by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. No. 352 of 2011) (the “UCITS Regulations”), as amended.
Gemini Capital Management (Ireland) Limited, trading as GemCap, is a limited liability company registered under the registered number 579677 under Irish law pursuant to the Companies Act 2014 which is regulated by the Central Bank of Ireland. Its principal office is at Ground Floor, 118 Rock Road, Booterstown, A94 V0Y, Co. Dublin and its registered office is at 1 WML, Windmill Lane, Dublin 2, D02 F206. GemCap acts as both management company and global distributor to GemCap Investment Funds (Ireland) plc.
GemCap UK Limited (FRN 924419) is an appointed representative of Connexion Capital LLP (FRN 480006), which is authorised and regulated by the Financial Conduct Authority and provides distribution oversight services to GemCap acting as global distributor and is responsible for the oversight of all distribution arrangements for the sub-fund.