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Tavistock Investment - Trading Update

RNS Number : 8456Q
Tavistock Investments PLC
24 June 2020

Tavistock Investments Plc

("Tavistock" or the "Company")

Trading Update

24 June 2020

The Company is pleased to update the market that trading during the first two months of the financial year has been ahead of the Board's expectations. This is due both to the swift action taken to mitigate the impact of COVID-19 and the performance of the Tavistock ACUMEN Protection Portfolios.

Rapid adoption of new technology-based work practices, and implementation of business continuity plans, enabled the entire Group to move to home-based working while cost reductions were made. Voluntary salary waivers by all senior management and the significant majority of other staff, together with use of the Government's furlough scheme, mean the company has continued to trade profitably during lockdown.

The strong performance of Tavistock's ACUMEN Protection Portfolios has contributed significantly to this success. Designed specifically to shield clients from sharp and sustained falls in financial markets, they feature an automated algorithmic safeguard. If markets fall, as volatility increases, the algorithm triggers movement out of investment assets and into cash; when markets recover, as volatility decreases, the reverse is triggered, with cash being gradually reinvested into higher risk assets. These funds perform particularly well when used as a bond substitute within clients' investment portfolios.

The newest fund, the ACUMEN ESG Protection Portfolio, has performed particularly effectively since its launch on 5 December 2019, with its NAV (net asset value) having declined by less than 1%. Morgan Stanley & Co International Plc provides the ESG Protection Portfolio with its protection level, set at 90% of its NAV's highest ever value. This protection enables investors to both limit their downside exposure, and lock in 90% of performance upside.

Brian Raven, Chief Executive, said: "The performance of the ACUMEN Protection Portfolios has been exceptional, underpinning the profitability of the Group's investment management business. Our advisory business has also performed particularly well, stepping up to support clients in these challenging times and to mitigate the adverse effect that the lockdown is having on new business.

I have been enormously encouraged by the way that our entire workforce has risen to the challenges arising from the pandemic and by the widespread adoption of the Protection Portfolios to safeguard clients' personal wealth in these uncertain times.

The COVID-19 crisis triggered the biggest and fastest fall in markets since 1929 and we are now facing the worst recession in hundreds of years. Historically, viral pandemics have come in waves, so our Protection Portfolios seem to be the ideal choice right now, for the many retail clients worried about further, severe market shocks.

The Board maintains its focus on tight financial management and is confident the business will emerge from the current crisis in good shape."



Tavistock Investments Plc

Oliver Cooke

Brian Raven

Tel: 01753 867000


Arden Partners Plc

Paul Shackleton

Tel: 020 7614 5900

Allenby Capital Limited

Nick Naylor

Nick Athanas

Tel: 020 3328 5656


Sophie Paterson

Tel: 07540 496 159





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