Leading international investment manager Threadneedle Investments (Threadneedle) announces the launch of the Threadneedle (Lux) Global Multi Asset Income Fund (the Fund or SICAV) with immediate effect. The Fund combines two of Threadneedle’s core investment capabilities: asset allocation and income.

Managed by Toby Nangle, Threadneedle’s Head of Multi-Asset Allocation, the SICAV is focused on income generation, targeting an income level of 5%. To be able to target this income in the current investment environment, the Fund uses derivatives to enhance the anticipated yield. It is expected that this portfolio will be less volatile than a pure equity portfolio.

The investment approach of the Fund enables the manager to invest directly across asset classes, principally in global equities and bonds. The Fund may also invest up to 10% in other Threadneedle funds and uses derivatives for investment purposes and hedging, including the generation of additional income. The Fund draws on the scale and diversity of Threadneedle’s wider investment platform and sophisticated risk management framework.

Toby Nangle, Head of Multi-Asset Allocation and manager of the Fund, said: “This Fund offers investors the opportunity to receive a regular, targeted level of income from a range of assets. With investors looking for a degree of certainty around the level of income they receive from their investments, we aim to offer an appealing solution to these investors who are also concerned with the control of volatility. We aim to do this through our active asset allocation and risk management processes.”

Gary Collins, Head of EMEA Wholesale distribution at Threadneedle, said: “Threadneedle has a strong asset allocation heritage, with around €52 billion [1] - 44% of assets under management - in some form of asset allocation mandate. Our income investment capability is very well known in the industry with a top performing product range. The combination of these two capabilities represents the blueprint behind our successful investment philosophy – working across asset classes and using the knowledge of our whole investment team to gain a perspective advantage and deliver the outcome desired by our clients.”

Toby Nangle has 17 years’ investment experience and a proven track record in multi-asset fund management. As Threadneedle’s Head of Multi-Asset Allocation, he is responsible for managing and co-managing a range of multi-asset portfolios, as well as providing strategic and tactical input to the Threadneedle asset allocation process.