London-based investment manager Downing has launched the new MGTS Downing Active Defined Return Assets Fund, aimed at institutional investors, discretionary fund managers, IFAs, and advised sophisticated individual investors.

According to a recent release, it will primarily consist of UK Government bonds and large-cap equity index options, and aims to deliver 7% to 10%+ per annum and positive returns in all markets except for a sustained equity market fall (generally more than 35%), over a period of at least six years.

The Fund is the first to be launched by the new Liquid Alternatives Team established by Downing, which counts Tony Stenning, who held senior roles at BlackRock and most recently was CEO of Atlantic House Group; Russell Catley, Founder and also a former CEO of Atlantic House Group; Huw Price, a former Executive Director at Santander Asset Management, and Paul Adams, former Head of Cash Equities and Derivatives Sales, Royal Bank of Canada, among its members.

The Fund offers investors a “building block” for multi-asset portfolios, aiming to add consistent and predictable returns, typically secured with a portfolio of UK Government bonds. This includes a hybrid approach of using systematic derivative strategies and active management, combining liquid investments with predictable returns, and an equity-like risk profile.