Nangle departed Barings to join Threadneedle under CIO Mark Burgess, who co-manages the firm’s fettered range of multi-asset funds with Alex Lyle.
The Sicav is a mixed asset absolute return fund which has the aim of producing positive returns in all market environments. Specifically its annual target return is 3-month dollar Libor plus 5%. An additional aim is to reduce downside risk and control volatility to an absolute target of 6% to 10% per year.
Threadneedle’s head of interest rates and currency Matthew Cobon is deputy manager on the fund and the resources of the whole investment team will be drawn upon to ensure its best ideas and convictions are implemented.
Multi-asset expertise
The company already manages $47bn in multi-asset funds and these mandates represent nearly 40% of its total AUM (as at end of June).
Minimum investment into the fund is £2,000 in the retail share class and £100,000 in the institutional share class.
The retail AMC is 1.35% with a 15% performance fee levied over a hurdle rate of three-month dollar Libor + 1.5% with a high water market. Meanwhile, the institutional share class comes in at an AMC of 0.65% with the same performance fee criteria.
Nangle said he no longer believed core government bond yields could offer investors downside protection, as they do not have enough room to fall. For this reason, he said the classic 60% equity, 40% bond asset allocation no longer cut it.
“Portfolios now need to be managed more holistically. As the future of the global economy is uncertain, and unconventional measures are being used to manage capital flows, active multi-asset mandates offer ways to explore how to balance risk and return more effectively.
“The Multi Asset Target Alpha Fund will combine Threadneedle’s macro and micro views across asset classes to take full advantage of market inefficiencies with the aim of generating superior risk-adjusted returns,” he added.
