Aubrey Defensive Income Strategy
Total Net Assets
Aubrey Defensive Income is a diversified, macro-driven strategy. The aim is to provide a yield of more than 3% with compounding income and growth in capital value over the medium term, with volatility risk between 30-50% of equity markets.
The Strategy considers assets from a universe that is defensive, high quality, liquid and straightforward and selects assets for attractive compounding returns or value with multiple drivers and catalysts. The manager seeks to add value through active management of positions and overall tactical positioning.
The Strategy features a multi-award-winning manager with wide experience of both conventional and alternative assets and a long history of attractive low volatility returns. The manager is currently focused on defensive assets that can provide attractive returns matching one of the following opportunity sets:
- Cashflow Returns – High cashflow receipts that are not dependent on market growth, are shorter term, protected or have longer term inflation protection.
- Discounted Assets – Equity and property assets at attractive discounts to asset value. Combining investment trust, investment company and holding company opportunities.
- Equity Quality & Value – Equity assets demonstrating high levels of quality in combination with attractive valuation, designated Equity QV below. Some may have additional hedging qualities and thus designated Equity HQV.
- Hedging Assets – Alternatives and assets with reasonable investment profiles and specific characteristics that may benefit in the event of potential risk events for wider markets.
The objective of the Strategy is to provide a balance of capital growth and income over the medium term (at least 3 years). The Strategy is actively managed and will invest in a diversified mixture of assets comprising equities, fixed interest securities and alternative investments.
The Strategy invests in both defensive asset classes, such as bonds and in less defensive asset classes, such as equities. When investing in less defensive asset classes, the Investment Manager seeks exposure to assets that display defensive characteristics and uses various metrics to determine defensive characteristics across the range of less defensive asset classes, primarily pricing, quality and correlation metrics, as well as assets that also have potential to hedge against one or more risks.
Aubrey launched the Aubrey Citadel Fund, a UK OEIC defensive fund, in September 2022. A founder share class offer is available until the fund reaches £40m of assets under management. For more information on the Fund please contact the sales team at firstname.lastname@example.org.
UK domiciled OEIC Fund
Years at Aubrey
Jon joined Aubrey as Investment Manager and Director in July 2020 where he leads the Defensive Income Strategy.
Prior to this, Jon had a 28-year career at Brooks Macdonald where he had been one of the founding directors. Throughout that time, he developed innovative and attractive investment management strategies, building the business from scratch until he left in October 2019 when it had 500 employees and £13bn FUM. During his time at Brooks Macdonald, he launched and managed the Defensive Capital Fund and by the time of his departure, had grown that to £700m, winning several awards including the 2019 Lipper Award for the Absolute Return sector.