Tavistock Investments PLC Trading Update (0917J)
08 Aprile 2020 - 08:00AM
UK Regulatory
TIDMTAVI
RNS Number : 0917J
Tavistock Investments PLC
08 April 2020
Tavistock Investments Plc
("Tavistock" or the "Company")
Trading Update
8(th) April 2020
The Company is pleased to advise that its trading result for the
year ended 31 March 2020 is expected to be in line with the
market's expectation for continued growth in reported EBITDA.
One particular highlight of the year has been the superb
performance of the Company's new range of protected UCITS funds.
They were designed specifically to shield clients from the
potentially disastrous consequences of sudden and sustained falls
in market values, offering investors an alternative, more prudent
approach to medium to long term investing.
The ACUMEN Capital Protection Portfolio and the ACUMEN ESG
Protection Portfolio provide a guaranteed level of protection for
investors equivalent to 90% of each fund's highest ever value (Net
Asset Value or NAV). These guarantees are contractually
underwritten by Morgan Stanley & Co International Plc.
By way of illustration, between 1(st) January and 31(st) March
2020, the FTSE fell 24%. By contrast, these two protected funds
fell by less than 5% and 3% respectively.
As of Monday, an investment made in the ACUMEN Capital
Protection Portfolio risked a maximum potential loss of only 3.6%
of the initial investment, whilst still benefiting from the 90%
high watermark guarantee going forward.
However, the COVID-19 pandemic has caused commercial conditions
to become extremely challenging. It is inevitable that adverse
economic and market performance, together with the commercial
consequences of social distancing and the Government imposed
lock-down, will combine to have a detrimental effect on the
Company's performance in the new financial year. The impact of the
pandemic will be felt for some considerable time, potentially
through several iterations, and at the moment it is impossible to
accurately assess the consequences.
In light of this uncertainty, the Board has adopted a number of
measures to protect profitability and ensure that the business
emerges from the current crises in the best working order. No
dividend will be paid at the present time and a comprehensive
strategic review is also being undertaken with a view to removing
cost from the business. This exercise will encompass a pragmatic
impairment review of the carrying value of intangible assets on the
Company's Balance Sheet.
Every member of the executive team has volunteered to waive a
significant proportion of their income, with immediate effect, so
that everyone in the business understands that we will deal with
the challenges ahead together.
Pending stability in the financial markets, the Company has
withdrawn its guidance for market expectation in the year to 31
March 2021.
Brian Raven, the Company's Chief Executive, said:
"The key measure of leadership is how well it performs under
difficult circumstances. Tavistock is led by a strong, experienced
and unified team who have clearly demonstrated their commitment to
the business and its staff.
We continue to look after the financial advice needs of our tens
of thousands of underlying clients, and to manage their assets in
our customary active, efficient and disciplined manner.
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. Whilst the funds primary purpose is to
protect the downside, they will also be automatically, but
gradually, reinvested from cash into higher risk assets, as market
volatility reduces."
Ends
Enquiries
Tavistock Investments Plc Tel: 01753 867000
Oliver Cooke
Brian Raven
Arden Partners Plc Tel: 020 7614 5900
Paul Shackleton
Allenby Capital Limited Tel: 020 3328 5656
Nick Naylor
Nick Athanas
Vested Tel: 020 3890 8118
Elspeth Rothwell
(Mobile): 07811 375 998
Amelia Graham
(Mobile): 07393 477 057
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END
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April 08, 2020 02:00 ET (06:00 GMT)
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