Investments  

Threadneedle launch OEIC bond fund

Threadneedle launch OEIC bond fund

Threadneedle Investments is to launch the Threadneedle Global Opportunities Bond Fund, an OEIC version of its Threadneedle (Lux) Global Opportunities Bond Fund, subject to FCA approval, Gary Collins, head of EMEA sales wholesale has announced.

The new fund will mirror the €253.5m fund which launched in 2011, and will be available to retail investors through advisers and platforms.

Mr Collins said: “Following client interest and demand we have seen for the fund, we are excited to be launching the OEIC version. Investors remain faced with the challenge of seeking returns in an ultra-low-yield environment without exposing themselves to undue levels of risk.”

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Key features:

The fund will invest in:

• Emerging market government bonds.

• Investment-grade and high-yield corporate bonds.

• Asset-backed securities, currencies and fixed-income derivatives.

• AMC is 0.65 per cent.

• Minimum investment is £2,000.

• Aiming for a target return of cash +4.5 per cent.

The fund will be co-managed by Jim Cielinski, head of fixed income, and Martin Harvey, fixed income fund manager.

IFA VERDICT

Jason Butler, senior partner at London-based Bloomsbury Private Wealth, said: “It is nothing special. It is too expensive and sounds like it is actively managed, so would be lots of risk. Why use emerging market bonds? If you are using bonds to dampen volatility you want wholegrain.”