A pioneer in the regulated target return space, leading international asset manager Threadneedle Investments (Threadneedle) has today launched the Threadneedle (Lux) Multi Asset Target Alpha Fund managed by Head of Multi Asset Allocation Toby Nangle, with Head of Interest Rates and Currency Matthew Cobon as Deputy Manager.
The fund is a mixed asset absolute return fund offering global exposure across a range of asset classes with the aim of producing positive returns in all market environments. The fund will use active allocation decisions with an unconstrained, high conviction, flexible approach to exploit pricing differences between asset classes whilst seeking to contain downside risks.
The fund will invest in traditional securities like equities, bonds and currencies worldwide and may also gain indirect exposure to commodities, property or other assets through other funds or by using derivatives. It will also have the ability to make use of short selling and leverage. The fund's target return is 3 month USD LIBOR + 5% per annum. The fund also aims to reduce downside risk and control volatility to an absolute target of 6-10% annualised.
The fund will follow Threadneedle's distinctive investment process which has delivered strong, award-winning performance across the range of Threadneedle's funds. It will draw on the resources of the entire Threadneedle investment team, ensuring the portfolio can benefit from its best ideas and reflecting the team's convictions and asset allocation views.
Toby Nangle has 15 years' experience and a proven track record in multi-asset fund management. As Threadneedle's Head of Multi Asset Allocation, he is responsible for managing and co-managing a range of multi-asset portfolios, as well as providing strategic and tactical input to the Threadneedle asset allocation process.
Threadneedle is a substantial player in multi-asset investment with US$47bn assets under management in multi-asset funds and mandates representing nearly 40% of Threadneedle's total assets under management (as at 30 June 2012).
Toby Nangle, Head of Multi Asset Allocation and manager of the Threadneedle (Lux) Multi Asset Target Alpha Fund, said: "Core government bond yields are now so low that there just isn't enough room for them to fall to offer downside protection to a classic 60% equity 40% bond asset allocation. Portfolios need now to be managed more holistically. As the future of the global economy is uncertain, and unconventional measures are being used to manage capital flows, active multi-asset mandates offer ways to explore how to balance risk and return more effectively. The Multi Asset Target Alpha Fund will combine Threadneedle's macro and micro views across asset classes to take full advantage of market inefficiencies with the aim of generating superior risk-adjusted returns."
Campbell Fleming, Global Head of Distribution at Threadneedle, said: "With over 10 years managing target return funds, Threadneedle has a strong reputation and a proven track record for delivering outperformance. The launch of the Threadneedle (Lux) Multi Asset Target Alpha Fund comes in response to increasing investor demand for unconstrained active multi-asset strategies designed to control volatility of returns in a more uncertain market environment. We expect the fund to have broad appeal among international investors looking for capital appreciation and efficient portfolio diversification with reduced volatility."
The fund has been registered for public offer with immediate effect in Austria, France, Germany, Luxembourg, The Netherlands, Spain, Sweden, Switzerland and the UK. Approval is pending in other jurisdictions.
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