Source: Morningstar. Past performance is not a guide to future performance. The value of your investments and any income from them is not guaranteed and may go down as well as up. You may not get back full amount investment. Please be aware that Threadneedle does not offer investment advice. This tool allows the user to create and analyse fund performance over user defined periods which may be shorter than recommended. Please remember investing in funds should be seen as a medium to long term strategy. This tool is not suitable for use with retail investors. Fund performance compared against IMA peer group. The Investment Management Associated (IMA) is the trade body representing the UK investment management industry.
Fund Objective and Policy
The aim of the Fund is to provide a positive real rate of return
above inflation (defined as the Consumer Price Index) over the
medium to long term and to provide a positive return over a three
year time period, notwithstanding market conditions.
The Fund invests in shares of companies and bonds (which are
similar to a loan and pay a fixed or variable interest rate) issued
by companies and governments, money market instruments, cash,
currencies, property and commodities worldwide. Commodities are
physical materials such as oil, food and metals. The Fund
makes active investment decisions and may vary exposure to or at
times choose not to invest in some of the types of investments
The Fund invests directly in these assets, through regulated or
unregulated funds, or by using derivatives. Derivatives are
sophisticated investment instruments linked to the rise and fall of
the price of other assets.
Key selling points
- Targeting positive real returns - the Fund
targets CPI + 4% (gross of fees) over a three to five year
investment horizon, in line with the long-run real return of
- Volatility-controlled approach - the Fund
targets equity like returns with around two-thirds the volatility.
Multi-asset investing can provide attractive positive returns
whilst helping to keep volatility in check.
- Global investment - long only, unleveraged
investment approach across five broad asset classes - equities,
fixed income, commodities, property, cash and alternative
- Dynamic Allocation - timely shifts in asset
allocation as risks and opportunities change and can vary
significantly to reflect Threadneedle's asset allocation
- Unconstrained and actively managed - the Fund
will invest mainly in other Threadneedle funds but has the ability
to invest in ETFs, Government Bonds and derivatives with no
benchmark or asset allocation restrictions.
- Experienced manager and team - managed by Toby
Nangle who is supported by the experienced Threadneedle Multi-Asset
team with access to the Asset Allocation team.
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. Market risk - The value of
investments can fall as well as rise and investors might not get
back the sum originally invested. Currency risk -
Where investments are made in assets that are denominated in
multiple currencies, changes in exchange rates may affect the value
of the investments. Investor currency risk - Where
investments in the fund are in currencies other than your own,
changes in exchange rates may affect the value of your investments.
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 either refused
to pay or was unable to pay or 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.
Valuation risk - The fund's assets may sometimes
be difficult to value objectively and the actual value may not be
recognised until assets are sold. Investment derivatives
risk - The Investment Policy of the fund allows it to
invest materially in derivatives. Volatility risk
- The fund may exhibit significant price volatility.
The Asset Allocation Strategy group uses the output from
Threadneedle'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 and risk
preferences. The Multi-asset investment team is then responsible
for portfolio construction within an overall risk budget, together
with on-going risk monitoring to ensure a portfolio's investment
returns are in line with pre-defined objectives.
Investment process overview
Our independent risk management team supports and enhances the
portfolio manager's decision-making by conducting stress testing to
evaluate the potential impact of extreme market shifts and identify
sensitive market exposures. This is in addition to the team's own
portfolio risk analysis, which includes pre and post trade
compliance monitoring, stop-loss limits, portfolio modelling and
mandate limit verification. It is this rigour, underpinning
the investment process that allows the team to invest with