Fund manager Maya Bhandari said it has been designed to deliver equity-like returns of 4% above European inflation over a three-to-five-year investment period with less than two-thirds the volatility.
She said the fund’s asset allocation will be varied to exploit pricing differences between asset classes, while seeking to control volatility in changing market conditions.
“With the Euro Dynamic Real Return Fund, our goal is to deliver consistent performance, even in times of market volatility. Rather than constrain our opportunity set, each position needs to earn its way into the portfolio from a return and risk perspective,” Bhandari said.
“Multi-asset investing is central to what we do.”
Initially registered in Luxembourg, the fund it intended for distribution across other markets (Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and Switzerland) pending regulatory approval in each country.
Bhandari joined Columbia Threadneedle in 2014 and is a member of the firm’s Emea Asset Allocation Strategy Group.
She is the lead manager on the Threadneedle (Lux) Global Asset Allocation and Threadneedle (Lux) Global Multi-Asset Income funds.
“The fund uses the same, tried and tested collaborative investment process used in our other multi-asset funds,” Bhandari said.