fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Atlantic House Defined Returns B GBP

A fund of structured products targeting a 7-8% annual return net of fees.

  • 111.67p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 170.26p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.55%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.65%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 4.10%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 January 2022, fund commentary last updated 17 November 2021

The fund’s aim is to deliver an annualised net return of 7% to 8% over a rolling five-year basis in “anything but the bleakest of market conditions”. The fund’s distribution units aim to pay out 4% a year, payable quarterly. Lead manager Tom May and co-managers Russ Bubley and Jim May seek to do this via an actively managed portfolio of structured products - investments which provide a defined return depending on the performance of global equity indices. The fund invests mainly in UK Government bonds, which the managers combined with derivatives – complex financial products issued by investment banks – to create structured products with the desired equity-linked return profiles.

Fund summary

Sector Specialist
Structure OFFSHORE FUND
Launched November, 2013
Size £1,461m
Yield 4.10%
Charging basis N/A
Dividends paid Feb, May, Aug, Nov

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.55%
Ongoing charges figure 0.65%

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Investment process

The fund managers aim to generate medium to long-term growth by investing in a diversified portfolio of structured investments linked to global equity indices. The team will invest mainly in a mixture of transferable securities and financial derivative instruments. The fund will look to gain exposure both via structured products issued by several counterparties as well as holding a proportion of its assets in gilts which will typically be used to enter into swap agreements with eligible counterparties looking to obtain a desired payoff. The swaps are all linked to major global equity indices, predominantly the FTSE 100 but with a reasonable exposure to the S&P 500 and Eurostoxx 50 which represent the largest firms in the Eurozone. The liquidity of such options is driven by the Futures and Options Markets on these indices. The portfolio typically has a 53% equity market exposure mainly the UK, Europe, and North America, with its main credit risk being to gilts & Cash. Its top 10 holdings typically account for 40% of its asset allocation.

The fund benefits from the expertise and experience of manager Tom May who has been in charge since its launch in 2013. May and his team believe that in flat-to-strong equity markets the fund will achieve the aim of 7% to 8% annualised growth with low volatility. However, investors should be aware that in an environment where markets experience a medium-to-long term significant sustained fall, the fund will act as an equity, without the benefit of dividends, and will display equity-like volatility. In markets which experience a medium-term significant fall, with a long-term full-to-partial recovery, it is likely to achieve its aim though with high volatility. The fund has achieved the targeted 7-8% annualised returns overall since launch, though it did drop sharply in value when equity markets fell in March 2020. This is a good option for those seeking diverse structured product exposure.

Manager research

Average monthly relative returns

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  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%
  • 21/22 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

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About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Key Investor Information - Income

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Key Investor Information - Accumulation

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