Tavistock Investment PLC (LON:TAVI) has said its two protected UCITS funds have proved themselves during the current market volatility caused by the coronavirus pandemic.
Trading results for the year to March will be in line with market expectations, said the fund manager, with the highlight the performance of the two ACUMEN protected funds.
These funds were designed specifically to shield investors from sudden and sustained falls in market values and come with guaranteed protection up to 90% of each fund's highest ever asset value.
These funds fell by less than 5% and 3%, respectively, between January and March said Tavistock, a period when the FTSE 100 dropped 24%.
One of the funds, ACUMEN Capital Protection Portfolio, this week was offering a maximum potential loss of only 3.6% of the initial investment going forward, it added.
Even so, Tavistock has taken measures to limit the impact of the coronavirus restrictions, which it expects to have a detrimental effect on this year's performance overall.
No dividend will be paid and a comprehensive strategic review is underway of its costs that will include the carrying value of intangible assets.
Guidance for the year to 31 March 2021 has also been dropped.
Brian Raven, Tavistock's chief executive said in a statement: “Market turbulence is far from over and a potentially very deep recession lies ahead. A great many clients, particularly the less well off, cannot afford to risk further significant losses to savings or pension pots.
“These clients need security, ahead of investment upside potential. I believe that Tavistock's ACUMEN Protection Portfolios offer a safe haven solution for these cautious investors in these very difficult times.”