leadf
logo-loader
viewTavistock Investments PLC

Tavistock Investments makes profitable start as protection funds provide strength

“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

Tavistock Investments PLC -

Tavistock Investments PLC (LON:TAVI) shares surged on Wednesday as the asset manager reported a strong performance from its protection portfolios for the first two months of its financial year.

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.

   --Adds shares--

Quick facts: Tavistock Investments PLC

Price: 1.45 GBX

AIM:TAVI
Market: AIM
Market Cap: £8.81 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Tavistock Investments PLC named herein, including the promotion by the Company of Tavistock Investments PLC in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Tavistock Investments CEO very optimistic on year ahead as first quarter...

Tavistock Investments PLC's (LON:TAVI) Brian Raven tells Proactive the fund management group increased assets under management for the sixth year running in the period to end-March 2020. Funds under management had risen by 6% to £1bn in the period while underlying profits jumped 24% over the...

on 24/7/20

2 min read