Annual Review 2024
2024 Fund Reviews
Gilty pleasures
Andew Madigan
Head of Client Investment Strategy
"Nearly all investors have been "Gilt-y" of being drawn to the tax-free returns offered by short-dated UK government gilts—and I’ll admit, I’m no exception. "
Short-dated UK government gilts have drawn investors in with their tax-free, risk-free bumper yields. While undeniably appealing, overreliance on them, coupled with the eroding effects of inflation, risks investors falling short of their long-term financial goals. This article explores why investors need equities, bonds, and alternatives to build portfolios capable of achieving superior, inflation-adjusted returns.
Read article >
The Atlantic House
Defined Returns Funds
“Defined Returns Fund continues to deliver on its stated targeted return of 7-8% while maintaining the ability to offer significantly lower drawdowns and volatility compared to equity markets.”
2024 marks the Fund’s 11th anniversary, delivering a steady annualised return of 7.13% since 2013. Year-to-date, the Fund is up 7.12%, providing investors with predictable returns, lower volatility, and smaller drawdowns compared to equities. This review highlights key performance drivers, portfolio activity, and the outlook for 2025.
The Atlantic House
Dynamic Duration
"By leveraging a systematic, data-driven approach, the fund aims to provide a consistent and predictable path to long-term success, offering a differentiated bond-investing solution across various inflationary environments."
The Atlantic House Dynamic Duration Fund has delivered as expected in a challenging inflationary environment, offering strong diversification benefits and adaptive positioning. Our systematic strategy remains well-positioned to deliver outperformance relative to traditional government bond funds across inflationary cycles, achieving long-term success through steady, incremental gains.
Read >
The Atlantic House
Uncorrelated Strategies Fund
"Since launch, the Fund has delivered an annualised total return of 4%, with a correlation of just 0.08 to equities and -0.32 to bonds."
The Atlantic House Uncorrelated Strategies Fund has navigated a challenging year, whilst staying true to its objective of delivering uncorrelated returns. Fund Manager Tom Boyle reflects on the drivers of performance and outlook for the Fund.
Read >
The Atlantic House
Global Defined Returns
“Running for 18 months and although we determine success over a longer time horizon, we are pleased to report that the fund has delivered 8.55% annualised since launch.”
The Global Defined Returns Fund has delivered an annualised return of 8.55% since launch, sitting firmly within its 8-9% target range. Year-to-date, the Fund is up 8% (as of 9 December 2024), achieving this with significantly lower volatility and drawdowns compared to equity markets. This review covers performance, portfolio activity, and the outlook for 2025.
Read >
The Atlantic House
Balanced Return Fund
"The Atlantic House Balanced Return Fund is a multi-asset portfolio that uses a broader investment toolkit to provide greater resilience throughout economic cycles."
The Atlantic House Balanced Return Fund continues to stand out as a differentiated multi-asset solution that addresses the diversification limitations of traditional portfolios. With its evolved risk framework and innovative use of derivatives, the fund aims to offer enhanced diversification, superior risk-adjusted returns, and consistent performance. As we look toward 2025, we remain committed to delivering reliable and robust outcomes for our investors, making this fund an essential consideration for advisers and investors seeking a resilient multi-asset strategy.
Read >
Atlantic House Solutions
"Rates are set to stay higher for longer, which will hopefully mean that we'll be able to continue seeing really good pricing from all of the structures that we do."
Nina MacEwen, Head of Distribution and Alex Hale, Atlantic House Solutions, discuss 2024 performance, the pricing environment and seeking to achieve a return profile with reduced risks.
The inflation whisperer on 2025
"Inflation will be a source of significant uncertainty in portfolios in the years ahead. This in our view only exacerbates the profound importance of multi-asset investors focusing on judicious duration management."
Predicting inflation is challenging due to a vast array of economic, demographic and market factors that affect inflation rates. As we head into 2025, inflation remains uncertain, influenced by wages, policy, and global disruptions. Mark Greenwod, Deputy CIO & Head of Investment Risk at Atlantic House Investments, examines how insights from derivatives markets, can help investors navigate these risks.
Fixed Income
Navigating the fixed income landscape over the past few years has been anything but straightforward...
Equity
It’s easy to be drawn to the "bird in the hand" appeal of the 4–5% yields currently available on...
Alternative
You could argue that with the 10-year rate at 4.5% whether portfolios need an allocation to alternative...
_edited_edited.jpg)
Tom May
CEO & CIO
Welcome to the Atlantic House Investments Annual Review 2024
The past year has been one where we have been reminded again of both the challenge and the opportunity of pursuing predictability in investment management. The challenge is that when equity markets soar, with the United States for example delivering close to a 30% return, it is easy to lose faith in investments that deliver steady and predictable outcomes.
The opportunity is that such unusually strong years also bring their own anxieties. We enter 2025 with much talk of markets at ‘all-time highs’. This can spook anxious investors and lead them to make poor market timing decisions. For us whether markets are rising or falling we retain our belief that the key to helping investors stay invested for the long-term is managing their expectations, offering predictable and definable outcomes that help them plan better for their own futures.
It is gratifying therefore that this has been a year where our range of products have performed in line with our expectations, and we hope those of our clients.
None of us really knows what 2025 will bring. There is more than enough uncertainty in the world to lead us to believe that there will be bumps along the road.
We hope that our focus on relentlessly pursuing predictability will provide you with the tools to meet the moment in 2025 and deliver the outcomes your clients seek.
Thank you to all our clients for your support over the past year and we wish you a happy and prosperous 2025.
CAPITAL AT RISK