Threadneedle Investments has launched the Threadneedle (Lux) Global Multi Asset Income Fund with immediate effect.
Managed by Toby Nangle, Threadneedle’s head of Multi-Asset Allocation, the Sicav is focused on income generation, targeting an income level of 5%. To be able to target this income in the current investment environment, the fund uses derivatives to enhance the anticipated yield. It is expected that this portfolio will be less volatile than a pure equity portfolio, Threadneedle said.
Nangle has 17 years’ investment 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.
The fund was previously launched with an absolute return investment strategy, but the company recently decided to revamp it betting on “Threadneedle’s core investment capabilities: asset allocation and income,” the company said.
It is now available in Austria, France, Germany, Italy, Luxembourg, Netherlands, Spain, Sweden and Switzerland.
“The investment approach of the fund enables the manager to invest directly across asset classes, principally in global equities and bonds. The fund may also invest up to 10% in other Threadneedle funds and uses derivatives for investment purposes and hedging, including the generation of additional income. It draws on the scale and diversity of Threadneedle’s wider investment platform and sophisticated risk management framework,” the company said.
Toby Nangle, head of Multi-Asset Allocation and manager of the Fund, said: “This fund offers investors the opportunity to receive a regular, targeted level of income from a range of assets. With investors looking for a degree of certainty around the level of income they receive from their investments, we aim to offer an appealing solution to these investors who are also concerned with the control of volatility. We aim to do this through our active asset allocation and risk management processes.”
Gary Collins, head of EMEA Wholesale distribution at Threadneedle, said: “Threadneedle has a strong asset allocation heritage, with around €52bn – 44% of assets under management – in some form of asset allocation mandate. Our income investment capability is very well known in the industry with a top performing product range.
“The combination of these two capabilities represents the blueprint behind our successful investment philosophy – working across asset classes and using the knowledge of our whole investment team to gain a perspective advantage and deliver the outcome desired by our clients.”