Aubrey Capital Management has launched a new fund, managed by former Brooks Macdonald founder Jon Gumpel.
SVS Aubrey Citadel is a diversified, tactical, defensive income fund, which aims to provide investors with a yield of 3.2% and compounding growth and income returns.
The fund will invest in equities, bonds and a range of alternative assets, aiming to provide compounding growth and income returns over the medium term, with a risk of between 30-50% of equity markets.
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It will consider assets for the fund from a universe of "defensive, high-quality, liquid and straightforward" assets, while aiming to select firms that are either priced at attractive value or generate attractive compounding returns, with multiple drivers and catalysts.
The fund is similar to the one run by Gumpel in his 15 years at Brooks Macdonald. Gumpel joined Aubrey in 2020 as a director after growing Brooks Macdonald's Defensive Capital fund from £15m to £700m.
Gumpel added that he will make "a significant investment" in the fund to ensure complete alignment with investors.
A founder share class offer is available until the fund reaches £40m of assets under management.
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Gumpel said: "I am delighted to announce that we are now launching the Aubrey Citadel fund to retail and institutional investors. Defensive investors face a range of challenges in today's markets, and we are seeking to provide an attractive defensive and diversified option to help them.
"The fund is focused both on shorter-term protection of capital as well as on longer term-capital maintenance and income growth, to do this at low cost with a full range of conventional and alternative assets, and with scope for additional alpha and diversification from the Aubrey equity engine. I am very excited about fund and pleased with the performance of the strategy to date."
