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Breaking barriers: Empowering women leaders in investment management
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Downing launches new actively managed liquid alternatives fund aiming to deliver 7% to 10%+ per annum and positive returns in most markets. The new MGTS Downing Active Defined Return Assets Fund (‘Active Defined Returns’, the ‘Fund’), is the first fund from its new Liquid Alternatives team.
The Fund is aimed at institutional investors, Discretionary Fund Managers, IFAs and advised sophisticated individual investors, and will primarily consist of UK Government bonds and large-cap equity index options, which provide significant scalability and strong liquidity. It 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. Collectively, the team has over 125 years of experience and sector knowledge, and includes 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.
The Fund offers investors a compelling building block for multi-asset portfolios, aiming to add consistent and predictable returns, typically secured with a portfolio of UK Government bonds. The unique proposition includes a hybrid approach of using systematic derivative strategies and active management, combining liquid investments with predictable returns, and an equity like risk profile.
Investment strategy: Maximising the probability of delivering predictable defined returns across the economic cycle.
Systematic Liquid Derivatives: Systematic, derivative strategies optimise the equity risk-return profile. The Fund uses rules-based derivative strategies linked to the most liquid, large-cap global equity indices (i.e. FTSE100, S&P500) with the aim of harvesting well-proven consistent returns across a wide corridor of market conditions.
Strong security: The Fund will hold a high-quality portfolio of assets as secure collateral – typically UK Government bonds.
Active benefits: At times, rules-based, passive derivative strategies can underperform when markets move strongly – this is when specialist active management can add incremental gains by monitoring and monetising positions and applying active risk management.
Key benefits
Increased consistency and predictability of returns: Positive returns in all markets except for a sustained equity market fall of more than 35% over at least six years.
Diversification of risk: The Fund’s risk components are diversified across large, liquid equity indices, observation levels and counterparties. Secured with high-quality assets – typically UK Government bonds.
Active management: Our experienced team will actively manage the Fund and its investments to optimise risk and reward for investors.
Russell Catley, Head of Retail, Liquid Alternatives at Downing, said: “Put simply, we focus your investment risk on the probability of receiving the returns you need, not those you don’t. We target the highest probability of delivering 7% to 10%+ per annum with active management adding material incremental gains. We believe that we are building the next evolution of the proven success of Defined Returns funds
The Downing team isseeing strong demand from clients looking for alternatives to large-cap equity funds which are becoming concentrated in technology stocks, or alternatives to UK equity income funds and illiquid alternatives.”
Tony Stenning, Head of Liquid Alternatives at Downing, said: “The launch of our Active Defined Return Assets Fund is a significant milestone in the ambitious build-out of our new Liquid Alternatives strategies. It is a solution-focused fund that should deliver stable high single or low double-digit returns across a wide spectrum of equity market conditions, except for a persistent multi-year bear market. The Fund is designed to enhance balanced portfolios by providing consistent, predictable returns and is suitable for accumulation or drawdown.
“We aim to deliver a unique combination of proven systematic derivative strategies and specialist active management, and we are doing so at a very compelling fee level, below our closest competitors and in line with active ETFs.”
How the Fund is expected to perform in different markets
In bullish markets: UK Government bonds secure the capital, and the equity index options deliver a predictable 7-10%+ return per annum – giving up some less likely upside.
In neutral markets and normal market corrections: UK Government bonds secure the capital, and the index options deliver a predictable 7-10%+ return per annum.
In a sustained sell-off: if markets fall more than the cover to capital loss and do not recover for six years. Then capital is eroded 1:1 in line with the worst performing index.
The average Cover to Capital Loss is targeted at 35%: the average cover to capital loss represents the average level the Global indices within the Fund could fall before capital is at risk.
Fund key risks
Performance: Capital is at risk. Investors may not get back the full amount invested.
Liquidity: Access to capital is always subject to liquidity.
Counterparty risk: Other parties could default on the contractual obligations.
Fund Structure
UK regulated OEIC fund structure, fully UCITS compliant
Daily dealing, at published NAV
Minimum investment: £100,000
SRRI: 6 out of 7
Depositary: Bank of New York
Authorised corporate Director (‘ACD’): Margetts Fund Management Ltd.
I share-class: SEDOL: BM8J604 / ISIN: GB00BM8J6044
F share-class: SEDOL: BM8J615 / ISIN: GB00BM8J6150
Risk warning: Opinions expressed represent the views of the fund manager at the time of publication, are subject to change, and should not be interpreted as investment advice. Please refer to the latest full Prospectus and KIID before investing; your attention is drawn to the risk, fees and taxation factors contained therein. Please note that past performance is not a reliable indicator of future results. Capital is at risk. Investments and the income derived from them can fall as well as rise and investors may not get back the full amount invested. Investments in this fund should be held for the long term.
Important notice: This document is intended for professional investors and has been approved as a financial promotion in line with Section 21 of the FSMA by Downing LLP (“Downing”). This document is for information only and does not form part of a direct offer or invitation to purchase, subscribe for or dispose of securities and no reliance should be placed on it. Downing does not offer investment or tax advice or make recommendations regarding investments. Downing is a trading name of Downing LLP. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference No. 545025). Registered in England and Wales (No. OC341575). Registered Office: 10 Lower Thames Street, London EC3R 6AF.
As we celebrate International Women’s Day, we are proud to align with this year’s theme, #GiveToGain, by sharing the advice and thoughts of some of the women in our Executive Committee. At Downing, we recognise the importance of gender diversity in finance and remain committed to fostering an industry where women thrive and lead.
In this insight, we share the thoughts and advice of Judith MacKenzie, Head of Downing Fund Managers and Shruit Patel, Head of People. The duo have built notable careers in the investment industry, highlighting different roles and routes to leadership. They provide valuable insights on career progression, share strategies to inspire the next generation of women leaders, and explore what other positive changes they would like to see from the investment management industry.
1. FTSE Women Leaders data shows that 36% of leadership roles in the FTSE 350 are held by women. However, appointment rates remain closer to 30%. What distinct skills, experiences or approaches do you think women bring into leadership roles and how do these benefit organisations?
Judith MacKenzie:
“I try not to think of it as men versus women or any other gender definition - having people of diverse backgrounds is the most refreshing thing to have around the Board room table, especially when it comes with diversity of education, wealth, and experience. That is the priority for me when I look at a Board. Different views, which are put forward in a respectful way and are channelled by the Chair really make the difference in a Board room. Women certainly help that - mainly because there have been so few of us at the table over the years.”
2. You each bring different career paths and perspectives within the investment management sector. What is something you consciously give as a leader? What is your biggest strength?
Shruti Patel:
“I would say my defining quality as a leader is authenticity. I don’t try to be anything I’m not; I’m clear on my strengths and confident in seeking support where needed. In my role, it’s essential to consider issues from multiple perspectives and advocate from a place of genuine understanding. I balance empathy with resilience, and that combination has been fundamental to my effectiveness and success throughout my career.”
3. Conversations around leadership often focus on whether a woman can “have it all”. How do you maintain a successful and sustainable career and what do you think organisations need to do better to support women into long-term leadership positions?
Shruti:
“I can only speak from my own experience, but I genuinelydidn’t appreciate the full rollercoaster of becoming a parent while holding asenior leadership role until I was living it. I recognise that, compared withmany others – especially pre-Covid – I have the benefit of genuine flexibilityand I’ve been able to remain in a senior position. Some days it feels likeeverything is working, and on other days it feels incredibly challenging.
What I’ve learned is that both work and home, move inseasons, and the key is finding the best balance you can at any given moment,supported by a system that works for you. Adaptability and resilience becomeessential – you have to be willing to adjust, reprioritise and accept thatperfection isn’t the goal.
For women returning from maternity leave, helping themestablish clear boundaries and non-negotiables is incredibly important. Everysituation is unique, but consistent, thoughtful support from leaders makes thebiggest difference. For that reason, I believe organisations need to invest farmore in equipping managers with the right training, guidance and confidence tosupport women in senior roles through these transitions. When leaders know howto respond practically and empathetically, without projecting from their ownexperience, it has a profound impact on whether women can sustain long-termcareers in leadership.”
4. Over the years, you have seen the workplace evolve. What have been the greatest gains you have experienced and what more do leaders need to push for within the financial industry?
Shruti:
"Covid was a gamechanger for HR and really propelled the function into the spotlight, showcasing the breadth of strategic value and the depth of support HR brings in driving organisational high performance. Before that, the impact of HR often depended on having a senior advocate at the table; now the function is recognised as a critical leadership voice in its own right – valued for its expertise, data-driven insight and its ability to shape sustainable people and culture strategies.
Looking ahead, I would love to see more leaders pushing for genuinely sustainable cultures where performance is not achieved at the expense of wellbeing. Many financial services organisations still carry an “always-on” reputation, and if we’re honest, as leaders we’ve all contributed to that at times because no one wants to be the person who appears to be doing less. Shifting this requires real leadership courage: modelling boundaries, reinforcing healthy norms, and showing that excellence and wellbeing are not mutually exclusive. Sustainable cultures don’t just protect people – they improve long-term performance, retention and trust.”
Judith added:
“I think we need to keep pushing for the same. Although Downing has a good ratio of women in senior leadership, if I look around at other companies in our sector, it’s pretty woeful. So, it is our responsibility to be the 'thought leaders' on this and demonstrate and shout about our successes, I love what the Property team have been doing in holding Women in Property 'drinks'. I do it in a small way with younger women in fund management but its inspired me to do something more formal. Watch out for an event coming to the Green Room very soon!”
5. What is one piece of support, advice or opportunity that made a defining difference in your career and how do you now try to pass that on?
Judith:
“I can't just give one bit of advice, so instead, here are a couple:
It is also ok to fail, (I am an expert at that). Lick your wounds and try again a different way.
Look for support from those that show even a chink of light to offer help or advice... use every bit of help you can get. People do tend to be very generous with their time if you ask them.”
Shruti:
“I’ve come to realise that you can’t be everything to everyone, and you don’t need to be. You keep evolving, and what works brilliantly in one season of life or work won’t always work in the next. The most important thing is to show up as a real human being – be present, be kind, and make genuine connections whenever you can.”
Continuing the drive forward
At Downing, we encourage this year’s #GiveToGain theme of International Women's Day by fostering an environment where knowledge, mentorship, and opportunity drive meaningful change. By promoting education and increasing visibility for women in finance, we can inspire the next generation of female leaders and build a more inclusive industry for the women of today and the leaders of tomorrow.
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