Williams de Broe’s Assetmaster team has added Doric Nimrod air two to its cautious fund of funds to diversify the portfolio away from equity market volatility.
Doric Nimrod air two is an investment company providing income to investors by buying and leasing three A380-800 aircraft to airline Emirates. Capital gains will be provided when the aircraft are sold at the end of the 12-year lease.
WDB says the holding will generate an attractive annual income of 9 per cent and will also have little correlation to equities, which is useful for the purposes of diversification.
The multi-manager also points out that there is a rising demand for A380 aircraft and Doric Nimrod’s leasing of the aircraft to Emirates, a borrower with a high covenant, is a plus.
WDB Assetmaster fund manager Andy Parkes says: “The yield from the Doric Nimrod fund gives us the return profile of high yield without the equity correlation. We think it is an exciting investment case and something totally different.”