Atlantic House Total Return Fund reaches three-year milestone

Annualised returns of 4.6%* since launch and AUM c.£54m*

The Atlantic House Total Return Fund (‘the Fund’) has attained its milestone three-year anniversary. The Fund has grown to more than £53m and delivered an annualised return of 4.59% since launch on 5 December 2018, ahead of the 3.08% IA Targeted Absolute Return sector average and its own target of 4% above cash*.

Managed by the highly experienced team of Tom May, Tom Boyle and Clive Hale, the Fund aims to achieve predictable annualised returns for investors of 4% above the rate of cash over the medium to long-term. It does this by combining inflation protection, credit and defined equity exposure with an innovative long volatility overlay.

To gain its equity exposure, the Fund applies the same process as Atlantic House’s flagship Defined Returns Fund, using derivatives linked to large, liquid global equity indices to produce predictable returns in all but the bleakest markets. Its credit exposure provides stability to the portfolio typically using traditional assets such as short duration investment grade bonds. Further ballast is provided by the Fund’s inflation protection element which typically includes investments such as inflation linked bonds and gold.

The Fund also incorporates a volatility overlay which was added in June 2020. This overlay aims to be a cost-effective means of lessening Fund drawdowns during times of significant market stress, reducing the overall risk of the Fund to less than half that of global equities.

The combination of investments that offer a fixed return and lower equity volatility over time have led to the Fund being likened to a traditional investment grade bond fund.

Tom Boyle, co-manager of the Atlantic House Total Return Fund said, “Wealth managers and advisers are increasingly seeking investment solutions that provide predictable returns with a low correlation to equities and a reduced level of volatility – the characteristics that bonds traditionally offered.”

“The Atlantic House Total Return Fund has been designed to meet this need, aiming to achieve 4% above cash in all but the very worst market conditions. Since its inception three years ago, it has delivered on that objective. In doing so, it has gained the support of a growing investor base. On achieving its important three-year track record, we expect the appeal of the Fund to widen among investment professionals seeking to introduce a level of predictability to their clients’ portfolios.”

* All figures as at 30.11.21. Source for performance: Atlantic House/FE Analytics, total return in GBP.

Past performance does not predict future returns. The value of investments can fall as well as rise and investors may get back less than invested.