Tenax was launched in 2007, when a private client of Church House Investments sold his business and needed a safe place for £10 million. Having taken risk throughout his working life to accumulate his wealth, his objective was the long-term preservation of his capital with avoidance of the worst excesses of financial market volatility.
The bedrock of the Tenax Absolute Return Strategies Fund Investment Process is a sound methodology, based on the company’s long-standing investment philosophy of risk management being the key to performance. The methodology combines a multi-asset framework derived from historically successful precedents, with robust risk controls.
Idea generation is derived from tactical asset allocation, in turn leading to bottom-up, valuation-driven portfolio construction. It is a process that combines intuitive fund management skills with long-held, proven investment principles, and at its core is a constant awareness of the aims, objectives and risk tolerances of the Fund’s investors.
Why invest in this Fund?
Although long-term preservation of capital may not be an attribute sought by portfolio managers blending different investment styles, they do value the Fund’s low volatility of returns as a contribution to reducing portfolio drawdowns and lowering volatility in their model portfolios.
The Fund is widely used as an investment for SIPPs in drawdown, either as a stand-alone solution or as part of a drawdown portfolio. The very low volatility (low sequence of returns risk) coupled with an annualised return since launch of approximately 5% make the Fund particularly suitable for this.
The Fund is an attractive alternative to cash and bonds during a prolonged period of low interest rates.