International asset manager Threadneedle Investments (Threadneedle) has launched the Columbia Threadneedle SICAV-SIF Absolute Commodities Fund. It will aim to target a 10-15% return on an annualised basis, net of fees, on a long term investment horizon.
This Non-UCITS fund is being launched in response to client appetite for an actively managed absolute return product, which capitalises on the investment approach of Threadneedle’s Commodities team.
Threadneedle launched its first commodities strategy in 2010 and currently manages in excess of USD1bn¹ .The Columbia Threadneedle SICAV-SIF Absolute Commodities Fund will be managed by Nicolas Robin, who joined Threadneedle in 2010 and has over 12 years’ experience in long/short commodities and index trading. He co-manages the USD1bn Threadneedle (Lux) Enhanced Commodities Fund with David Donora. Since launch, the Threadneedle (Lux) Enhanced Commodities Fund returned 33.2% compared to the index return of 10.8%². Nicolas Robin, Fund Manager, said: “This new fund will have the same strategies successfully implemented in the Threadneedle (Lux) Enhanced Commodities Fund, but will be an unconstrained, high conviction absolute return fund with more flexibility to implement our views on the commodity markets. We believe that through the analysis of fundamental and structural elements, we can deliver positive returns in all market cycles.”
Gary Collins, Head of UK Distribution at Threadneedle, says: “Our clients have indicated a great appetite for a product designed to produce absolute returns which are de-correlated from commodity markets and other asset classes. With over 11 years managing absolute return funds, Threadneedle has a strong reputation and a proven track record for delivering outperformance. This is an exciting time for us to leverage our commodities expertise to deliver absolute returns for our clients.”
The fund has been approved by the CSSF (Commission de Surveillance du Secteur Financier) and is for qualified and professional investors only and not available to retail investors.
Columbia is the US-based fellow asset management subsidiary of Ameriprise.