Mantis is pleased to announce that we have partnered with defined return fund pioneers Atlantic House to build and distribute an Australian unit trust feeding into their flagship $A2.99 billion Atlantic House Defined Returns Fund.
In conjunction with Equity Trustees as responsible entity, Atlantic House and Mantis will launch the Atlantic House Defined Returns Fund (the “Fund”) later this quarter. The Fund aims to deliver predictable long-term returns of 7 to 8% per annum in all but the bleakest equity market conditions.
“Volatility and predictability don’t usually go hand in hand. While sophisticated investors broadly understand and accept the risk reward trade-off, the reality is aside from optimising for performance, investors also usually have cash flow requirements that need to be met. To meet these requirements investors need a level of predictability in outcomes and most frequently, this need has been met through fixed income and cash holdings.
What is defined return investing?
Defined return funds access institutional structured product pools to address the investor need in a transparent and efficient manner.
Atlantic House Defined Returns Fund
The Atlantic House Defined Returns Fund aims to deliver predictable, long-term annualised returns of 7%–8% in all but the bleakest market conditions. The Fund aims to deliver its predictable outcomes by investing in derivatives linked to large, liquid equity indices. These derivatives are backed by investment grade sovereign and corporate bonds, predominantly UK gilts, aiming to minimise credit risk.
“Atlantic House are one of the global leaders in defined return investing and we are extremely pleased to partner with them in Australia,” said Damien Hatfield, Co-Founder and Head of Distribution, Mantis Funds.
“When we launched in 2008, it was in response to a simple premise – our clients’ financial goals almost invariably involve a specific target outcome. This outcome is unlikely to change with general volatility in market conditions. At the same time, we do not believe we can predict the future.
“Rather, leveraging our deep experience in the $A7 trillion institutional structured product market, we build portfolios where we focus on the more manageable and realistic goal of making that future just a little bit less uncertain. These investment products are built acknowledging that whilst we don’t know where the market is going, we are able to say with a high level of confidence how they will behave in a variety of different market conditions.
“In the United Kingdom, our product has helped thousands of investors better navigate uncertainty.
“We are very excited to bring our defined return capability to the Australian market,” said Andrew Lakeman, Co-Founder and Head of Australia, Atlantic House.
MEDIA COMMENT
Damien Hatfield
Co-Founder & Head of Distribution
Mantis Funds
Sydney
damien.hatfield@mantisfunds.com
www.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.
In recent years AHG helped clients navigate the QIS (Quantitative Investment Strategies) world as well as invest in these strategies with some of their funds. The skill set we’ve developed in assessing the merit of these strategies as well as ability to execute and monitor them has led to clients looking to use AHG to run mandates for institutional clients.
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.
Mantis is majority owned by its management team while Tribeca Investment Partners are a strategic shareholder.