Columbia Threadneedle: European short maturity high yield fund registered in the Netherlands

Columbia Threadneedle: European short maturity high yield fund registered in the Netherlands

High Yield
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Columbia Threadneedle Investments, a leading global asset management group, has launched a new, total return short maturity high yield strategy - the Threadneedle (Lux) European Short-Term High Yield Bond Fund (the Fund). The Fund, approved by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg in July, has now been registered for distribution in The Netherlands. The Fund follows the investment approach of the successful European High Yield Bond Fund[1] with a focus on shorter maturity[2] bonds. Roman Gaiser, Columbia Threadneedle’s Head of High Yield Portfolio Management EMEA, co-manages the Fund with Gareth Simmons, supported by the European High Yield Team. Gareth is a high yield portfolio manager and investment analyst. Both Roman Gaiser and Gareth Simmons are co-managers of the European High Yield Bond fund.



[1] The reference to the Threadneedle European High Yield Bond Fund is for illustrative purposes only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services. This fund may not be available in all jurisdictions. 

[2] At least 80% of NAV with final maturity 4 years or less.  Fund Duration target: Average of 1.5 to 1.8 years, with duration limit of 2.5 years.

The Threadneedle (Lux) European Short-Term High Yield Bond Fund is a bottom-up, total return credit strategy that is agnostic to a market index and aims to deliver income, with some capital appreciation, by investing primarily in short maturity European High Yield Credit.

Roman Gaiser, Head of High Yield Portfolio Management, EMEA, at Columbia Threadneedle Investments, said: “Our approach to managing credit strategies is grounded in intensive fundamental research that allows the team to measure the risk on an absolute basis. The Fund focuses on a bond’s maturity rather than duration when managing risk. This removes the unpredictability of duration extension risk, giving this Fund lower interest rate sensitivity than a standard high yield bond fund.”

Gary Collins, Head of Wholesale Distribution, EMEA & Latin America, commented: “The launch of this short maturity high yield fund is timely given where we are in the economic and credit cycles.  Columbia Threadneedle is a global fixed income manager with a strong credit specialisation. Our clients value our ability to deliver consistent, sustainable returns, via a full range of fixed income solutions. Our growing focus on integration of responsible investment and ESG factors into our investment research is one example of how we look to be at the forefront of investment opportunities. Our 155 fixed income professionals manage over €150 billion and have an average of 18 years of experience.  Roman and Gareth’s new fund is the next iteration of our European high yield offering.  Their strong credit investment skills, combined with a disciplined risk management focus, aims to deliver robust risk-adjusted returns irrespective of market direction.  The Fund complements the firm’s credit strategies and will help us to continue to deliver solutions for our clients.”