Key Takeaways
- • Downing launches MGTS Downing Active Defined Return Assets Fund, a new actively managed liquid alternatives strategy targeting 7% to 10%+ annual returns with positive performance across most market conditions except sustained equity declines exceeding 35%.
- • Fund employs hybrid strategy combining systematic liquid derivatives with active management, utilizing UK Government bonds and large-cap equity index options as primary holdings to deliver predictable, defined returns with strong liquidity and scalability.
- • Liquid Alternatives Team comprises four senior investment professionals with combined 125+ years of experience, including Tony Stenning (former BlackRock executive and Atlantic House Group CEO), Russell Catley (Atlantic House Group founder), Huw Price (ex-Santander Asset Management), and Paul Adams (former RBC Head of Cash Equities and Derivatives Sales).
- • Fund targets institutional investors, Discretionary Fund Managers, IFAs, and sophisticated individual investors, positioning itself as a multi-asset portfolio building block designed to deliver consistent, predictable returns secured by UK Government bonds with equity-like risk profile.
- • Launch represents Downing's strategic expansion into systematic derivative strategies, marking the flagship offering from the newly established Liquid Alternatives Team as of January 2025.
Summary
Downing has launched the MGTS Downing Active Defined Return Assets Fund, the first offering from its newly established Liquid Alternatives Team. The fund represents the wealth manager's strategic entry into systematic derivative strategies and actively managed liquid alternatives, targeting institutional investors, discretionary fund managers, independent financial advisers, and sophisticated individual investors.
The fund aims to deliver 7% to 10%+ per annum with positive returns across most market conditions, with the notable exception of sustained equity market declines exceeding 35% over a minimum six-year investment horizon. Its investment proposition centers on a hybrid approach that combines systematic liquid derivative strategies with active management, utilizing primarily UK Government bonds and large-cap equity index options to maximize liquidity and scalability while maintaining predictable return profiles.
The strategy employs systematic derivative optimization to enhance equity risk-return characteristics while securing the portfolio with government bonds. This dual-layer approach is designed to function as a diversifying building block within multi-asset portfolios, offering a compelling risk-adjusted return profile that bridges liquid investments with defined return expectations and an equity-like risk envelope.
The Liquid Alternatives Team bringing this strategy to market comprises four senior investment professionals with substantial experience across major financial institutions. Tony Stenning, who previously held senior roles at BlackRock and served as CEO of Atlantic House Group, leads the team alongside co-founder Russell Catley, also a former Atlantic House Group CEO. Huw Price, a former Executive Director at Santander Asset Management, and Paul Adams, former Head of Cash Equities and Derivatives Sales at Royal Bank of Canada, complete the senior leadership. Collectively, the team brings over 125 years of combined investment sector experience to the fund's active management and systematic derivative implementation.
The January 2025 launch reflects Downing's strategic diversification into alternative asset structures, positioning the fund as a flagship systematic derivative offering within a broader expansion of its alternatives capabilities.
The fund aims to deliver 7% to 10%+ per annum with positive returns across most market conditions, with the notable exception of sustained equity market declines exceeding 35% over a minimum six-year investment horizon. Its investment proposition centers on a hybrid approach that combines systematic liquid derivative strategies with active management, utilizing primarily UK Government bonds and large-cap equity index options to maximize liquidity and scalability while maintaining predictable return profiles.
The strategy employs systematic derivative optimization to enhance equity risk-return characteristics while securing the portfolio with government bonds. This dual-layer approach is designed to function as a diversifying building block within multi-asset portfolios, offering a compelling risk-adjusted return profile that bridges liquid investments with defined return expectations and an equity-like risk envelope.
The Liquid Alternatives Team bringing this strategy to market comprises four senior investment professionals with substantial experience across major financial institutions. Tony Stenning, who previously held senior roles at BlackRock and served as CEO of Atlantic House Group, leads the team alongside co-founder Russell Catley, also a former Atlantic House Group CEO. Huw Price, a former Executive Director at Santander Asset Management, and Paul Adams, former Head of Cash Equities and Derivatives Sales at Royal Bank of Canada, complete the senior leadership. Collectively, the team brings over 125 years of combined investment sector experience to the fund's active management and systematic derivative implementation.
The January 2025 launch reflects Downing's strategic diversification into alternative asset structures, positioning the fund as a flagship systematic derivative offering within a broader expansion of its alternatives capabilities.
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