Threadneedle has launched a multi-asset absolute return fund for head of multi-asset allocation Toby Nangle.
The Luxembourg-domiciled Multi-Asset Target Alpha fund aims to produce positive returns in all market environments and its target return is three-month USD Libor plus 5 per cent annualised over a 24 to 36-month period.
The fund will invest in traditional securities like equities, bonds and global currencies and may also gain indirect exposure to commodities, property or other assets through other funds or by using derivatives. It can also use short-selling and leverage.
The fund aims to reduce downside risk and control volatility to an absolute target of 6 to 10 per cent annualised.
There is an annual management charge for retail investors of 1.35 per cent, with a 15 per cent performance fee over a hurdle rate of three-month USD Libor plus 1.5 per cent.
The fund is the seventh in the Luxembourg domiciled absolute return range.
The deputy manager on the fund is head of interest rates and currency Matthew Cobon.
Nangle says: “As the future of the global economy is uncertain and unconventional measures are being used to manage capital flows, active multi-asset mandates offer ways to explore how to balance risk and return more effectively.”