Brooks Macdonald is an independent, publicly listed company that specialises in providing investment management services in the UK and internationally. The company, which was founded in 1991 and began trading on AIM in 2005, has discretionary funds under management (FUM) of of £13.1 billion as at 31 December 2019.

Through its core divisions, Brooks Macdonald offers a range of investment management services and advice to individuals, pension funds, institutions, charities and trusts. The company also provides offshore fund management and administration services and acts as fund manager to regulated OEICs, providing specialist funds in the property and absolute return sectors and managing property assets on behalf of these funds and other clients.

The company has offices across the UK and the Channel Islands including London, East Anglia, Guernsey, Hampshire, Jersey, Leamington Spa, Leeds, Manchester, Scotland, Taunton, Tunbridge Wells and Wales.

Main featuresThe Fund has a long-only investment style, so holdings and performance are both easy to understand and explain.

Holdings provide either good short-term �xed

returns (autocalls, preference shares, specialist lending funds) or

defensive optionality (convertibles and discounted assets).

Investments are biased towards high seniority as well as

high cover ratios (i.e. assets well in excess of debt).

Holdings are well diversi�ed by asset type and in

underlying exposures, both by asset class and geographically.

High cover ratios and diversi�cation lead to naturally lower volatility than investing

in equity markets.

Assets are selected to give good yields and

attractive risk/return reward characteristics to provide

steady performance in all

market environments. The Fund has top quartile

sector performance and risk adjusted returns over 3 and 5

years.

Defensive Capital Fund: Reasons to recommend

Awards & ratings

Past performance is not a reliable indicator of future results.

Fund overviewThe Fund is designed to provide investors with an opportunity to attain the low volatility of bonds while maintaining exposure to potential equity upsides. The Fund aims to achieve long-term capital growth that is independent of equity market performance. It accomplishes this by investing in a range of defensive assets – investments that are generally lower risk and less volatile than equities, and do not rely on market growth to achieve returns – such as preference shares, convertible bonds and structured products.

Diversi�cationbene�ts

Strong long-termperformancetrack record

Low ongoingcharge and no

performance fee

Defensiveassets

Proveninvestment

process

Why choose DCF?

Key facts:

Defensive Capital Fund: Reasons to recommend

• Launch date / converted to UK OEIC: 21.12.06 /29.03.10

• IA Sector: IA Targeted Absolute Return

• ISIN / SEDOL (Class A): GB00B61MR835 / B61MR83

• Ongoing charge (Class A): 0.80%

How to investThe Fund is available via a number of platforms and directly from Investment Fund Services Limited (IFSL), the Authorised Corporate Director.

Platform availability:Aegon, AJ Bell, Allfunds, Alliance Trust, Ascentric, Aviva, AXA Wealth Elevate, Cofunds, Fidelity, Hargreaves Lansdown, Hubwise, James Hay, Moventum, Novia Financial, Novia Global, Nucleus, Old Mutual Wealth (Skandia), Old Mutual International, Pointon York SIPP Solutions, Standard Life, Transact, Zurich, 7im.

The Fund can be held within a range of investment wrappers, including:

Management team

Niall O’Connor Fund Manager

Niall joined Brooks Macdonald in 2013. He has 20 years of investment experience, many of which were in senior investment management roles.

This includes leading the development of a range of complex derivative pricing and risk models for Independent Risk Monitoring.

Niall has a PhD in Theoretical Physics and an MA and BA in Physics, all from Cambridge University.

Defensive Capital Fund: Reasons to recommend

Simon PinnerDiscretionary Sales Director

E: Simon.Pinner@brooksmacdonald.com

M: 07551 150 539

www.brooksmacdonald.com

Listed above are some suggested reasons why you might consider recommending the Brooks Macdonald Defensive Capital Fund to your clients. It is important to ensure that the fund is suitable for your client before recommendation. Please note that this document does not intend to give advice. Any words used in the recommendation of the Brooks Macdonald Defensive Capital Fund should conform to your own compliance policies.

• Self Invested Personal Pensions (SIPPs)

• Small Self Administered Pension Schemes (SSASs)

• Individual trusts and charity accounts

• Onshore/offshore bond accounts

• Individual Savings Accounts (ISAs)

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Defensive Capital Fund: Reasons to recommend

Glossary of investment terms

autocall A type of structured note which is usually linked to the performance of one of more underlying equity indices.

convertible A security which can be converted into a different security when specific triggers (often price- or time-dependent) are activated or specific conditions are met. Examples include a convertible bond, which may be “converted” into a specified number of shares, or convertible preference shares, which may be converted into a specified number of common shares.

optionality A term used to describe securities with high potential for gains and limited risk of loss.

preference share A share that pays a fixed dividend, the payment of which takes priority over that of a common share.

Important information

Investors should be aware that the price of investments and the income from them can go down as well as up and that neither is guaranteed. Investors may not get back the amount invested. Past performance is not a reliable indicator of future results. Changes in rates of exchange may have an adverse effect on the value of an investment. Changes in interest rates may impact the value of fixed interest investments within the fund.

The value of your investment may be impacted if the issuers of underlying fixed interest holdings default, or market perception of their credit risk changes. There are additional risks associated with investments in emerging or developing markets.

This document and the information contained herein is confidential and has been prepared and is intended for use on a confidential basis solely by licensed financial advisers. It may not be reproduced, redistributed or passed on to any other persons or published in whole or in part for any purpose. The funds to which this document refers are not registered for distribution to retail investors outside the United Kingdom. This document does not constitute an offer or invitation to the public to subscribe for or purchase any interest and accordingly no facilities for participation by the public are being made available pursuant to this document. Nothing in this document implies any representation, recommendation or advice (including investment advice) of any kind by Brooks Macdonald Asset Management Limited, its management, employees or affiliates with respect to its content. Brooks Macdonald is a trading name of Brooks Macdonald Group plc used by various companies in the Brooks Macdonald group of companies.

Investment Fund Services Limited (IFSL) is the Authorised Corporate Director of the IFSL Brooks Macdonald Fund. IFSL is registered in England No. 06110770 and is authorised and regulated by the Financial Conduct Authority. Registered office: Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Copies of the Prospectus and Key Investor Information Documents are available from www.ifslfunds.com or can be requested as a paper copy by calling 0808 178 9321 or writing to IFSL, Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP.

Brooks Macdonald Group plc is registered in England No 4402058. Registered office: 21 Lombard Street London EC3V 9AH. The Defensive Capital Fund is provided by Brooks Macdonald Asset Management Limited. Brooks Macdonald Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No 3417519. Registered office: 21 Lombard Street London EC3V 9AH.