Safe yield is what investors want says Niall O’Connor of Brooks Macdonald Defensive Capital


Yield and where to find it is going to be an even more important consideration for investors going forward says Niall O’Connor, manager of the Brooks Macdonald Defensive Capital Fund. A long-only, £600mln fund, O’Connor says it has performed very well recently having invested heavily in the middle of March at the bottom of the COVID-19 sell-off. UK ten-year bonds yield 0.1%, he says, while even three years out equities only have a forecast 3% yield. That is why, he says, the fund has been looking at special situations such as smaller REITs. While there is uncertainty over what office life will look like going forward, some of the share price falls among the REITS were disproportionate, he says. Safe yield is what people want he adds, and some of the REITs offer that.

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