The AIM-listed company said it has continued to trade profitably during the coronavirus lockdown, having moved all staff to working from home, made cost reductions and made some use of the government’s furlough scheme.
The ACUMEN Protection Portfolios are UCITS funds that are designed specifically to algorithmically shield clients from sharp and sustained falls in financial markets.
Tavistock’s newest fund, the ACUMEN ESG Protection Portfolio, has seen its net asset value decline less than 1% since launch in early December.
The protection level is set at 90% of its NAV's highest ever value, with the algorithm automatically moving out of investment assets into cash as volatility increases when markets fall, and back out of cash as volatility decreases when markets recover.
“The performance of the ACUMEN Protection Portfolios has been exceptional, underpinning the profitability of the group's investment management business,” said chief executive Brian Raven.
“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.”
He said he has been encouraged by the uptake of protection funds.
“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 shares shot up 28% to 1.79p in early trading on Wednesday.