Key Takeaways
- • Downing launches MGTS Downing Active Defined Return Assets Fund, the first offering from its newly established Liquid Alternatives team, targeting 7% to 10%+ annual returns with positive performance in all markets except sustained equity declines exceeding 35% over a six-year minimum horizon.
- • The fund employs a hybrid strategy combining systematic derivative strategies with active management, utilizing UK Government bonds and large-cap equity index options to deliver predictable, liquid returns with an equity-like risk profile.
- • Investment team includes four senior financial executives: Tony Stenning (former BlackRock senior roles and CEO of Atlantic House Group), Russell Catley (founder and former CEO of Atlantic House Group), Huw Price (former Executive Director at Santander Asset Management), and Paul Adams (former Head of Cash Equities and Derivatives Sales at Royal Bank of Canada), collectively bringing over 125 years of sector experience.
- • Target audience includes institutional investors, Discretionary Fund Managers, IFAs, and sophisticated individual investors seeking a diversified portfolio building block that combines liquid investments with predictable return generation and downside protection.
Summary
Downing has launched the MGTS Downing Active Defined Return Assets Fund, representing the first product from its newly created Liquid Alternatives team. The fund is positioned as an actively managed liquid alternatives offering designed to deliver consistent, predictable returns across varying market conditions, with a stated target of 7% to 10%+ per annum and positive returns in all markets except during sustained equity market declines exceeding 35%, measured over a minimum six-year investment period.
The fund's investment approach combines systematic derivative strategies with active management, creating a hybrid framework that bridges traditional active management with quantitatively-driven liquid derivatives tactics. The portfolio construction prioritizes UK Government bonds and large-cap equity index options, both of which provide significant scalability and strong liquidity characteristics—critical attributes for institutional-grade alternative investments. This structure aims to deliver an equity-like risk profile while securing returns through a diversified fixed-income base, positioning the fund as a potential portfolio diversifier with lower correlation to traditional asset classes.
The Liquid Alternatives team behind the fund brings substantial institutional pedigree. Tony Stenning previously held senior positions at BlackRock and most recently served as CEO of Atlantic House Group. Russell Catley founded Atlantic House Group and served as its CEO. Huw Price was an Executive Director at Santander Asset Management, and Paul Adams previously headed Cash Equities and Derivatives Sales at Royal Bank of Canada. Collectively, the team represents over 125 years of combined experience in financial services and investment management, lending institutional credibility to the launch.
The fund targets a broad institutional investor base including institutional investors, Discretionary Fund Managers (DFMs), Independent Financial Advisers (IFAs), and sophisticated individual investors. It is positioned as a compelling building block for multi-asset portfolio construction, offering investors a means to incorporate consistent, predictable return streams within diversified portfolios while managing downside risk exposure during normal market environments.
The fund's investment approach combines systematic derivative strategies with active management, creating a hybrid framework that bridges traditional active management with quantitatively-driven liquid derivatives tactics. The portfolio construction prioritizes UK Government bonds and large-cap equity index options, both of which provide significant scalability and strong liquidity characteristics—critical attributes for institutional-grade alternative investments. This structure aims to deliver an equity-like risk profile while securing returns through a diversified fixed-income base, positioning the fund as a potential portfolio diversifier with lower correlation to traditional asset classes.
The Liquid Alternatives team behind the fund brings substantial institutional pedigree. Tony Stenning previously held senior positions at BlackRock and most recently served as CEO of Atlantic House Group. Russell Catley founded Atlantic House Group and served as its CEO. Huw Price was an Executive Director at Santander Asset Management, and Paul Adams previously headed Cash Equities and Derivatives Sales at Royal Bank of Canada. Collectively, the team represents over 125 years of combined experience in financial services and investment management, lending institutional credibility to the launch.
The fund targets a broad institutional investor base including institutional investors, Discretionary Fund Managers (DFMs), Independent Financial Advisers (IFAs), and sophisticated individual investors. It is positioned as a compelling building block for multi-asset portfolio construction, offering investors a means to incorporate consistent, predictable return streams within diversified portfolios while managing downside risk exposure during normal market environments.
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