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World Bee Day: supporting pollinators through responsible land 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.
Animals and plants provide the foundations for human life - from food and fresh water to medicines and healthy ecosystems. But these systems only function when the delicate balance between species is maintained. Pollinators, especially bees, play a central role in this balance. Their work enables crops, wildflowers and entire habitats to thrive.
As managers of a broad portfolio of renewable energy sites, Downing has a duty of care to the land we steward and the species that depend on it. In recognition of World Bee Day, we want to show how our land management practices support pollinators across the UK and the Nordics.
World Bee Day, held annually on 20 May, raises awareness of the threats pollinators face, including habitat loss, climate change and pollution. This year's theme, "Bee Together for People and the Planet", highlights the importance of collaborative action.
Enhancing land for pollinators across our sites
Our approach to land management aims to create environments where pollinators can flourish. We currently host honeybees on several of our sites in collaboration with local beekeepers, supporting local enterprise and engagement. Beekeeping has deep cultural roots - World Bee Day itself marks the birthday of Anton Janša, a pioneer of modern beekeeping from Slovenia, where the practice has a long and respected tradition.
Our approach to land management aims to create environments where pollinators can flourish.
Hosting beehives brings multiple benefits:
Supporting local beekeepers and community engagement
Enabling multi-use land on solar farms
Producing local honey which normally has a lower environmental footprint
Encouraging public awareness of pollinators
Balancing the needs of wild pollinators
While honeybees are valuable, wild pollinators, such as bumblebees and solitary bees, are also incredibly important in maintaining a healthy ecosystem. They are essential for ecosystem resilience and depend entirely on the availability of diverse forage and nesting habitats.
To support wild and domestic pollinators, we take a varied and site-specific approach to land management.
Across our solar portfolio, we support a wide range of pollinator-friendly species. Classic open-flower meadow plants such as oxeye daisy, rough hawkbit and cat's-ear provide easy access to nectar and pollen for many bee species. We also host bird's-foot trefoils and lesser trefoil, which are among the most valuable wild plants for bees. These legumes offer high-quality nectar and protein-rich pollen and are used extensively by bumblebees and solitary bees throughout the season, helping to ensure continuous forage from early spring to late summer.
Hibernacula at one of our solar sites.
We have also established hibernacula on several of our solar sites. These purpose-built structures - typically made from logs, stones, soil and deadwood - create stable, insulated micro-habitats where insects can overwinter safely. For bees and other pollinators, hibernacula provide essential refuge during colder months, supporting species such as queen bumblebees, solitary bees, butterflies, beetles and other beneficial invertebrates. By offering both forage and overwintering habitat, we help to ensure that pollinator populations can survive, recover and thrive year after year.
Working with the Bumblebee Conservation Trust
As part of our ambition to continuously improve biodiversity outcomes, Downing Renewable Developments (DRD) is now working with the Bumblebee Conservation Trust, a science-led charity founded in 2006 to address the alarming decline of wild bumblebee populations in the UK.
The Trust's work includes:
Habitat creation and restoration
Scientific research and species monitoring
Community engagement and education
Policy advocacy to protect pollinators
Their mission aligns closely with several UN Sustainable Development Goals, including SDGs 2, 11, 12, 13, 15 and 17.
Wild meadow at one of our solar sites
Through this cooperation, DRD will prioritise:
Expanding wildflower planting and flower-rich habitat creation
Providing suitable nesting and overwintering habitats
Using flagship sites to pilot and scale pollinator-friendly practices
This partnership will help shape our long-term strategy for pollinator-friendly land management across the portfolio.
Nordic land management strategies
We have committed to an ongoing programme of ecological site surveys to support UN SDG 15: Life on Land, this includes the land we own in Sweden. These surveys help us identify important species and habitats across our land and opportunities to enhance habitats, protect species and strengthen pollinator networks.
The information provided in these reports has led us to partner with a local biologist in western Sweden, who has now installed over 30 wildlife boxes and insect hotels across our sites. These structures offer nesting, shelter and overwintering opportunities for a wide range of species helping to strengthen local biodiversity and support resilient pollinator communities. By combining ecological expertise with our land management ambitions, we are creating habitats that benefit both wild pollinators and the wider ecosystems they sustain.
The open areas of the land provide flowering herbs and plants which acts as a food source for the pollinators of the area, supporting a variety of species that contribute to healthy pollination systems.
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