UK-based Atlantic House Group has brought its rules-based investment approach to Australia to assist investors who are looking for a more predictable return from their equities portfolio.
“We are taking a different approach at Atlantic House. Instead of trying to pretend we know the future, we focus on the more manageable and more realistic goal of making that future just a little bit less uncertain. We build investment products acknowledging that whilst we don’t know where the market is going, we are able to say with a high level of confidence how our investments will behave in a variety of different market conditions,” said Tom May, Chief Executive & Investment Officer, Atlantic House Group.
Andrew Lakeman, Atlantic House, comments further:
“With equity markets continuing their upward trajectory (and the UK treading water) many of the fund investments matured, with 11% of the fund maturing in June.
“The majority of these investments had annual coupons of 7%. The fund is taking advantage of higher interest rates and replacing these investments with coupons of ~9.5% and more downside protection.
“The future yield of the fund therefore continues to increase. Half of the fund has now matured this year. With forward expectations of interest rates looking like they will remain at elevated levels, the funds looks to leverage this environment and aim to replace maturing trades with more attractive ones.”
As the fund achieves that equity exposure through derivatives, Atlantic House Group is able to precisely target specific levels of risk and return harnessing the equity risk premium.
Atlantic House uses a derivative pricing model to better predict how the fund is likely to perform over various timeframes and various market movements. This predictability we believe is one of the fund’s most compelling benefits providing transparency around likely performance in helping investors make more informed investment decisions.
The chart below shows the accuracy of these predictions by comparing the actual one year rolling performance of the fund with the one year rolling performance of the fund as predicted by models based on the actual market moves since the fund launched.
Long-term predictability
The Fund’s actual NAV return is compared to the NAV return predicted in the chart below as per the Fund’s Forward Looking Scenario Analysis:
MEDIA ENQUIRIES
Damien Hatfield
Co-Founder & Head of Distribution
Mantis Funds
Sydney
damien.hatfield@mantisfunds.com
0400 560 240
Andrew Lakeman
Co-Founder & Head of Australia Atlantic House
Sydney
andrew.lakeman@atlantichousegroup.com
www.atlantichousegroup.com
0439 090 137
About Atlantic House – Australia
Andy Lakeman moved to Sydney in 2014 as his Australian-born wife wanted to move home. For five years he managed the distribution team and attended Board meetings with regular trips back to London. Covid 19 put a stop to the travel and Atlantic House revisited the idea of entering the Australian market. Early conversations with local consultants confirmed our thoughts that Australia, like UK, was a suitable market. Particularly, Baby Boomers with investable assets that would consider genuine retirement solutions to deal with sequencing risk and market volatility.
About Atlantic House – UK
Atlantic House Group Limited was set up to offer clients an independent solution for accessing institutional structured investments. Using a wide range of investment banking counterparties, investments were delivered via MTNs, SPVs or Funds and the investment solutions were as simple or complicated as the mandate / client required.
Overall FUM is $A 4.28 billion.
The Fund Management entity (Atlantic House) was set up in 2012 due to client demand. Platform access and time pressures meant a typical client wanted a managed solution in a fund wrapper for one of the most popular and successful strategies (The Autocallable). As the business has grown, Atlantic House Group (AHG) have added to the Fund range and taken mandates according to client need, not based on a marketing strategy.
About Mantis Funds
Mantis Funds was launched in 2020 by industry veterans Damien Hatfield, Timothy Cheung, David Gray and Mark Paton. Mantis helps its boutique alternative investment managers deliver alpha to end-investors through its integrated distribution and operations platform. As at December 2022, Mantis has fifteen boutique partners spanning a range of actively managed strategies and asset classes who collectively manage more than $30 billion.
Disclaimer: The material contained in this communication is general information only and has been prepared by Mantis Funds Pty Ltd (“Mantis”) a Corporate Authorised Representative of Mantis Financial Group (“MFG”), AFSL 492452. It is not intended to take the place of professional advice and you should not act on any information made in this communication without first consulting your investment advisor in order to ascertain whether the information is appropriate, having regard to your investment objectives, financial situation and particular needs. Nothing in this communication shall be construed as a solicitation to buy or sell a security or to engage in or refrain from engaging in any transaction. Mantis believe that the information contained herein is correct at the time of compilation. However, Mantis provide no representation or warranty that it is accurate, complete, reliable or up to date, nor does Mantis, or MFG accept any obligation to correct or update the opinions (if any) in it. The opinions (if any) expressed are subject to change without notice. Mantis and MFG do not accept any liability whatsoever for any direct indirect, consequential or other loss arising from any use of the material contained in this communication. This communication may refer to the past performance of a person, entity or financial product. Past performance is not a reliable indicator of future performance. Investors should obtain the relevant product disclosure statement before making a decision about whether to invest in this product.