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At a glance
Index
Citigroup GBP 1 Month Eurodeposit Index
Launch date
Apr 2009
Fund size
£292.2m
Fund currency
GBP
OEICs
Fund Managers
Barrie Whitman
Michael Poole
Alasdair Ross
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Credit Opportunities
Threadneedle has carved a strong reputation in absolute return investing as one of the pioneers of using fixed income to generate positive returns across all market conditions. We were also at the forefront of innovation in credit products when we established our dedicated high yield team and subsequently launched a fund investing strategically across high yield and investment grade markets - the Threadneedle Strategic Bond Fund. The Threadneedle Credit Opportunities Fund leverages the company's credit expertise to complement our existing suite of macro-driven absolute return products, aiming for a similar level of performance but creating alpha primarily through the team's bottom-up credit views. The Fund aims to deliver a return of 350bps over its cash benchmark (Citigroup Sterling I Month Eurodeposit Index) over the medium term (18-24 month investment horizon). This means the portfolio is also likely to generate a return greater than zero over a 12 month period. The Fund does not offer any form of guarantee with respect to investment performance and no form of capital protection applies. Discover more about the fund by viewing the tabs below:
Graph as at 12 noon: 31st March 2012
- The Fund aims to deliver a return of 350bps over its cash benchmark (Citigroup Sterling I Month Eurodeposit Index) over the medium term (18-24 month investment horizon). This means the portfolio is also likely to generate a return greater than zero over a 12 month period. The Fund does not offer any form of guarantee with respect to investment performance and no form of capital protection applies.
- Part of Threadneedle's suite of fixed income absolute return products - sitting alongside the £600m+ Absolute Return Bond Fund
- The portfolio focuses on opportunities in the high yield and investment grade credit markets and has the flexibility to move into other fixed income markets depending on the prevailing market conditions.
- The Fund makes full use of UCITS III powers and aims to generate returns from both rising and falling fixed income markets.
- We manage more than £20 billion* in fixed income and money market assets with expertise across the credit spectrum: from sovereign debt to high yield. We were also one of the pioneers of fixed income absolute return investing for the retail market launching the Absolute Return Bond Fund in October 2005.
- Experienced management team - lead manager Barrie Whitman is Head of High Yield Investing and he is supported by Alasdair Ross, Investment Grade Credit Manager and Michael Poole, High Yield Manager
| Fund manager | Barrie Whitman (Lead Fund Manager), Alasdair Ross
(Investment Grade Fund Manager) and Michael Poole (High Yield Fund
Manager) |
| Launch Date | April 2009 |
| Index |
Citigroup Sterling 1 Month Eurodeposit Index |
| IMA Sector |
Absolute Return |
| Annual charge |
1.25% |
| Minimum investment | £2,000 |
| ISIN | GB00B4STTD29 |
| Sedol | B4STTD2 |
| Bloomberg | THCORNA LN |
The Threadneedle Credit Opportunities Fund targets a return of the 1-month Euro Deposit Rate plus 350 basis points (gross of charges and tax) per annum over the medium term (18-24 months). The Fund will focus on opportunities within the high yield and investment grade markets, but can also exploit opportunities that arise within other areas of the credit market.
Sources of alpha
Investments will be made across a wide range of credit instruments, including corporate bonds and derivative contracts. In terms of primary investment strategies, the Fund can hold outright long and short positions, as well as pair trades (long one issuer versus short another), basis trades (long physical versus a short in the equivalent derivative contract or vice versa) and capital structure arbitrage trades.
The Fund's UCITS III powers give it the potential to generate positive returns when markets are rising as well as falling via its ability to employ short positions (outright and hedges), as well as the ability to allocate to cash.
Under UCITS III regulations the Fund can also employ leverage under strict regulatory limits. The extent to which this allowance is used will depend upon current positioning, market conditions and the number of high conviction positions held.
Ultimately the Fund seeks to exploit absolute and relative value opportunities across asset classes, at the corporate level and within individual company's balance sheets.
- Barrie Whitman
Barrie Whitman joined Threadneedle in 1999 as Head of High Yield. He manages the Threadneedle High Yield Bond, European High Yield Bond and Strategic Bond Funds as well as a number of institutional mandates. He is also Lead Manager of the Threadneedle Credit Opportunities Fund.
Barrie began his investment career in 1987 at United Bank of Kuwait as a credit analyst specialising in high yield bond investment. In 1990 he became a high yield fund manager and, in 1996, CIO for High Yield Investments. He then moved to Standard Bank London in 1997 as Head of European High Yield and Distressed Debt.
Barrie graduated in 1982 with a BSc in Economics and Accounting from Hull University and qualified as a Chartered Accountant in 1986. He is a member of the Institute of Chartered Accounts in England and Wales. - Michael Poole
- Alasdair Ross
