Threadneedle has launched a fund for head of multi-asset allocation Toby Nangle, targeting equity-like returns with less volatility.
The Threadneedle Dynamic Real Return fund takes a ‘go anywhere’ approach and can invest in direct investments, derivatives, exchange traded funds and in-house Threadneedle funds.
It targets a return of 4 per cent above the UK consumer prices index over a three to five-year investment horizon and aims for volatility of up to only two-thirds that of equities over the cycle.
The fund can have a maximum weighting of 100 per cent in bonds and cash, up to 75 per cent in equities, 20 per cent in property, 20 per cent in commodities and 10 per cent in alternatives.
Nangle says: “As the future of the global economy remains uncertain, and unconventional measures are being used to manage liquidity, active multi-asset products can offer investors a more effective way to balance risk and return than traditional equity/bond funds.”
Nangle will be supported by head of managed funds Alex Lyle and the firm’s asset allocation strategy group. The group comprises chief investment officer Mark Burgess, head of equities Leigh Harrison, head of fixed income Jim Cielinski, head of global equities William Davies and head of currency Matt Cobon, as well as Nangle and Lyle.
Consilium Financial Planning managing director Kevin Morgan says: “It is quite often the team behind a fund manager that leads performance. Threadneedle’s team approach seems to be the right way of going about it.”