194. What do Birkenstock, eBay, recycling and litigation all have in common?
Lucy Isles, co-manager of Baillie Gifford High Yield Bond fund, discusses her investments in the...
75. Finding ‘safe yields’ and why haircuts and holidays might get more expensive
At one point in March, some companies’ shares were valued at less than the cash they held on the balance sheet. Dr Niall O’Connor, manager of the Brooks Macdonald Defensive Capital fund, tells us about these miss-pricings, explains why our haircuts and holidays may get more expensive and, with UK equity dividends forecast to remain low until 2025, highlights where he is finding ‘safe yield’ opportunities to replace this lost income.
Long-term capital growth and protection is the name of the game for the Brooks Macdonald Defensive Capital fund. It aims to deliver positive absolute returns over rolling three-year periods, in a range of market conditions. The types of assets that this fund holds can be a bit complicated—convertible bonds, preference shares, structured notes, bond and loan assets, and discounted assets—but its aim is straightforward.
Read more about Brooks Macdonald Defensive Capital fund
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.
