Fixed IncomeMay 16 2017

Threadneedle considers capping £1.5bn fund

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Threadneedle considers capping £1.5bn fund

Columbia Threadneedle is considering the use of further capacity constraints on Barrie Whitman's Credit Opportunities fund as assets approach €1.8bn (£1.5bn).

The firm said a growth in assets within the portfolio, which can take long and short positions in both high yield and investment grade credit, has prompted the monitoring of flows with a view to potentially applying further constraints.

The fund house ceased marketing activity on Mr Whitman's fund three years ago.

"Our priority is always to protect the interests of existing investors. Over the past three years we have stopped marketing activity and declined to pitch for new clients in order to manage inflows in to the fund," said Gary Collins, head of wholesale, Emea,

"We are now monitoring new flows with the potential to apply further measures to limit demand if necessary, to ensure the investment integrity of the product is retained for existing clients.”

According to FE Analytics the fund, which sits in the IA Targeted Absolute Return sector, has returned 6.1 per cent over three years.