Threadneedle Pensions Multi Asset Fund
The Multi Asset Fund is suitable for those investors seeking equity like returns in a less volatile manner through a Fund that has hard wired broad diversification limits. The Fund does this by setting broad parameters around equities, fixed income and alternatives. The Multi Asset Team is responsible for the overall portfolio construction, being guided by the Asset Allocation Strategy Group. A group consisting of nine senior investors in the firm including representatives from the Multi Asset Team.
Reasons to invest
Hard-wired diversification:
The strategy has maximum and minimum asset class holdings, that have been developed via scenario testing to achieve equity like returns over the longer term.
Active management:
The strategy is actively managed within its strategic asset allocation parameters and is actively managed at the security level.
Diversified sources of return:
The strategy looks to take advantage of three sources of return; asset allocation, investment themes a stock selection
Investment approach
The Asset Allocation Strategy Group uses the output from Columbia Threadneedle Investment’s three main research groups to formulate its macroeconomic and thematic views, and defines the investment environment used to build multi asset portfolios. This is combined with a valuation framework across all asset classes, and is used by the group to determine its preferred asset allocation.
Key Facts
Target | To achieve a level of income with the prospect of capital growth over the medium to long term | Volatility | Lower volatility than an equity only portfolio, approximately two-thirds the volatility of equities |
|---|---|---|---|
Neutral Allocation | Equity 40% | Launch Date | 10/1/2007 |
Fixed income 30% | |||
Alternatives 30% | |||
Asset Allocation Limits | Equity 30-50% | Implementation | Primarily through internal strategies |
Fixed income 20-40% | |||
Alternatives 20-40% | |||
Sources of Return | Asset Allocation and Stock Selection | Lead Portfolio Manager | Alex Lyle |
Structure | UK Life company | Leverage | Long only, unlevered |
Liquidity | Daily | Ongoing Charges Figure (OCF) | 35 bps |
Insights
The US under the new President: four good years or four bad?
Lifestyling: the Achilles heel in DC pensions
Will trade wars end the Equity Bull market?
Key risks
Investment in Funds: The Investment Policy allows the fund to invest principally in units of other collective investment schemes. Investors should consider the investment policy and asset composition in the underlying funds when assessing their portfolio exposure.
No Capital Guarantee: Positive returns are not guaranteed and no form of capital protection applies.
Issuer Risk: The Fund invests in securities whose value would be significantly affected if the issuer refused, was unable to or was perceived to be unable to pay.
Liquidity Risk: The Fund invests in securities whose value would be significantly affected if the issuer refused, was unable to or was perceived to be unable to pay.
Interest Rate Risk: Changes in interest rates are likely to affect the fund’s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa.
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About Us
Millions of people around the world rely on Columbia Threadneedle Investments to manage their money. We look after investments for individual investors, financial advisers and wealth managers, as well as insurance firms, pension funds and other institutions.
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As a leading global asset management group, Columbia Threadneedle Investments aims to deliver positive outcomes that meet the needs of our stakeholders and we commit to always act responsibly, transparently and in the best interests of those who trust us to manage their investments.
