Atlantic House renames total return fund to ‘better reflect’ asset allocation

Now renamed Atlantic House Balanced Return

Tom May
Tom May

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Derivatives-based investment manager Atlantic House Investments has renamed its Atlantic House Total Return fund to “better reflect” the portfolio’s asset allocation.

Now named Atlantic House Balanced Return fund, the £40.7m mandate has a 60% exposure to equity indices and a 40% allocation to fixed income, which it holds via liquid derivatives. It also has an alternatives ‘crash protection’ overlay applied to its equity proportion, with the aim of minimising drawdowns during market downturns.

The name change aims to make the fund’s underlying strategy more transparent for investors, according to the firm.

See also: Atlantic House hires Credit Suisse fund manager Valeriu Trufas

While Atlantic House Balanced Return resides in the IA Targeted Absolute Return sector, it uses the IA Mixed Investment 20-60% sector as its benchmark as the firm believes this is most appropriate. Given the product invests in equities through derivatives, it does not meet the criteria to join the sector.

Tom May, chief executive officer of Atlantic House Investments and co-manager of the fund, said: “The Atlantic House Balanced Return fund is for professional advisers seeking a multi-asset portfolio that offers consistency for their clients. Utilising defined return investments, the fund is designed to secure more predictable returns from equity markets across diverse market conditions. It strategically positions itself to capitalise on opportunities in both rising and falling bond markets.

“This combination not only offers reliable diversification from bonds but also presents the potential for a lower risk of capital loss compared to a direct investment in these assets. Given this structure, we felt that the fund’s new name offers a more accurate description of the investment outcome investors might expect.”

Over three years, Atlantic House Balanced Return has gained 8.6% compared to the IA Mixed Investment 20-60% sector’s average total return of 1.5%. It is also up 20.2% over five years, outperforming the sector average by 5.2 percentage points, according to data from FE Fundinfo.

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