Columbia Threadneedle  

Columbia Threadneedle unveils global absolute return strategy

Columbia Threadneedle unveils global absolute return strategy

Columbia Threadneedle Investments has launched the Threadneedle (Lux) Global Investment Grade Credit Opportunities fund.  

The strategy, which will be managed by Alasdair Ross and Ryan Staszewski, will emulate the investment approach taken in the firm’s Credit Opportunities offering.

Mr Ross is head of investment-grade credit EMEA, and one of the portfolio managers responsible for the Threadneedle Credit Opportunities fund. 

Mr Staszewski is a senior investment-grade portfolio manager based in London, and is one of the lead managers on Columbia Threadneedle’s UK and European Strategic bond portfolios.

The Lux fund is an active, absolute return credit strategy that aims to deliver positive cash-plus returns by investing primarily in the best opportunities in global investment-grade markets.

The company said the launch of this product was timely given the current economic and credit cycles.

With a long-short approach and a global research and management framework, Columbia Threadneedle claimed the fund would provide the team with the flexibility to apply their global credit investment skills and it aims to deliver strong risk-adjusted returns irrespective of the direction of the market.

Mr Staszewski, said: “The investment team of analysts and portfolio managers work together in a collaborative and interactive environment that allows the best ideas to emerge. 

“Our global investment-grade research team of 13 is resourced to provide a balance between detailed due diligence of issuers and a clear vision of market and industry sector trends. 

“With considerable average industry experience, these analysts have developed expertise though a number of economic and credit cycles.”

Provider view

Columbia Threadneedle’s Alasdair Ross said: “Our approach to managing credit strategies is grounded in intensive fundamental research and has enabled the team to generate attractive risk-adjusted returns through the cycle. 

“This is validated by a long and successful track record of producing strong risk-adjusted returns in traditional long-only and absolute return credit strategies. 

“The investment-grade section of the Threadneedle Credit Opportunities fund has delivered more than half of this fund’s performance since its inception over eight years ago.” 

Adviser view

Kusal Ariyawansa, chartered wealth manager and branch principal at Appleton Gerrard, said: “Absolute or target return strategies can have their uses. The danger with a cash-plus target is the near certainty of there being only one winner – and it isn’t the investor.

“With absolute return, an adviser can delegate more – strategically as well as asset management. 

“But there is a danger in relying on the fund manager marketing especially at a higher cost. 

“For example, several years ago a famous fund house promoted its absolute return strategy, which was Libor plus an annual management charge and a performance fee on top of that. 

“Net of all costs and inflation, the investor was guaranteed to make a loss. It is one the worst proposals I have seen to date.”