Royal Crest Defined Return Assets Fund

Predictability by design: combines UK government bonds with defined-return strategies linked to major equity indices, actively managed to deliver consistent outcomes across the market cycle.

Defined

Return profiles set at outset

6 years

Typical structure term, with annual observations

Major indices

FTSE 100, S&P 500 and similar

Daily

Fund dealing and pricing

How the fund works

The fund holds a portfolio of UK government bonds alongside derivative strategies whose payoffs are defined in advance and linked to the level of major, liquid equity indices such as the FTSE 100 and S&P 500.

Each strategy typically runs up to six years with annual observation dates: if the reference index is at or above its trigger level on an observation date, the strategy delivers its defined return. The structures are built to produce positive outcomes in flat and even moderately falling markets — only sustained, severe falls threaten the defined return.

Unlike fixed-term structured products, the strategies sit inside a daily-dealing fund and are actively managed: the team recycles positions as market conditions change rather than passively waiting out each term.

Returns you can map

Payoff profiles are defined at the outset, so investors know what conditions deliver what outcome.

Resilience in flat markets

Positive returns don't require rising markets — structures pay in sideways and moderately down scenarios.

Active, liquid implementation

Daily-dealing fund format with ongoing management, not a locked-in structured product.

Key risks

Capital is at risk: severe and sustained market falls can breach protection barriers and produce losses.
The fund is exposed to the creditworthiness of derivative counterparties; a counterparty failure could cause losses.
Defined returns apply to the strategies, not the fund price, which will fluctuate daily with markets and rates.

Charges

Entry charge: None
Ongoing charges (OCF): 0.85%
Exit charge: None
Performance fee: None

Full details are set out in the brochure, terms & conditions and key information documents, available from the team on request.

Frequently asked questions

What does “defined return” actually mean?

Each strategy's payoff is agreed at the outset: a set return if the reference index is at or above a set level on an observation date. The conditions, not the market's mood, determine the outcome.

What happens in a market crash?

Structures carry substantial downside barriers — typically requiring falls of more than a third, sustained over the term, before capital is impaired. Severe crashes can therefore still cause losses.

How is this different from a structured product?

Investors get the same defined payoffs but inside a diversified, daily-dealing fund — no fixed maturity, no single counterparty, and active management of the book.

Who manages the strategy?

Our liquid alternatives team, which combines decades of derivatives structuring and portfolio management experience across investment banks and asset managers.