Threadneedle Investments has launched a global corporate bond fund for Citywire A-rated manager Alasdair Ross, the asset manager has announced.
The Threadneedle (Lux) Global Corporate Bond fund will operate on a total return basis investing across a range of bond sectors.
It will primarily focus on diversified investment grade bonds, money market instruments and cash, either directly or indirectly through derivatives.
The fund may invest up to one third of its assets in debt securities other than investment grade corporates including, but not limited to, government and high yield bonds.
Commenting on the launch, Ross said: ‘In a low-yield environment, exposure to corporate credit can provide an effective way for investors to preserve capital and generate income whilst diversifying their portfolio away from the volatility of equity markets.’
‘The fund aims to generate positive return over and above the market return through active management of issuer selection, industry exposure and fixed income asset allocation.’
Ross will be supported on the fund by the collective efforts of 15 investment analysts, who are spread across Threadneedle and Columbia Management offices in London, Boston, Minneapolis and Singapore.
It will follow a three-pronged investment process, which combines issuer selection with top down industry and asset allocation insights.
The fund’s benchmark is the Barclays Capital Global Aggregate Corporates Index hedged to US Dollars and the fund’s performance target is +150 to 175 bps over the index (gross) over rolling three-year periods.
The fund is initially registered in Luxembourg but Threadneedle said it has plans to expand its distribution to the UK, Austria, Belgium, France, Germany, Italy, the Netherlands, Portugal, Singapore, Spain, Switzerland and Sweden.
This is pending the respective regulatory approval/notification in each country.