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RM Funds, best known for its shareholding in embattled investment trust Home REIT, has won the mandate for the £146.6m Brooks Macdonald Defensive Capital fund.
The Defensive Capital fund, which will be renamed as the RM Defence Capital fund, was launched in 2010.
It is built as an all-weather return fund with low volatility through investing diversified public securities that do not necessarily rely on market growth for positive returns.
The move comes as Brooks Macdonald pivots towards a more simplified business model, focusing on multi-asset investing and financial planning, leaving Defensive Capital no longer a strategic fit.
Niall O’Connor has managed to fund since October 2019, having worked as deputy fund manager for three years prior. He will be joining RM Funds along with his team as part of the transition.
While the fund has delivered positive returns in 12 of the past 14 years, it has struggled somewhat with performance in recent years, dropping sharply during the pandemic and returning only five per cent in the last three years, compared to an IA Targeted Absolute Return index growth of nine per cent.
James Robson, CEO of RM Funds, said: “We’ve long admired DCF for its robust performance and the focus on delivering consistent, lower volatility returns. We are delighted to welcome Dr O’Connor and his team to RM Funds.
“The strategy aligns perfectly with our commitment to alternative investments, and we look forward to leveraging their expertise as we continue to innovate and grow together.”
Brooks Macdonald CEO Designate, Andrea Montague, added: “Brooks Macdonald is pleased to move the Defensive Capital Fund to a specialist platform like RM Funds, where their expertise in diversified investments makes them the right partner for continued success.
“We thank Dr O’Connor and his team for their contributions and wish them all the best for the future.”