Threadneedle UK Absolute Alpha Fund reaches $100M milestone
The Threadneedle UK Absolute Alpha Fund, has delivered top quartile returns over one year and since its launch on 1 October 2010, and has now reached over $100m in assets, testament to the success and strength of Threadneedle's absolute return strategies in turbulent markets.
The Threadneedle UK Absolute Alpha Fund is a UCITS UK equity long/short fund which aims to generate the majority of performance from stock selection. The Fund returned 8.8% since inception compared to 3 month GBP Libor return of 1.3% and the FTSE100 return of 6.8%.
Gary Collins, Head of UK Wholesale, said: "Funds that deliver positive returns regardless of market conditions are in strong demand as a result of equity markets remaining highly volatile and global economies continuing to deliver uncertainty. We anticipated a strong response from investors when we launched this fund and we are delighted to have reached this important milestone. Threadneedle is one of the longest-standing providers of long/short capabilities in the regulated space and this is an exciting time for us to continue to leverage our expertise in delivering absolute returns for our clients."
Mark Westwood, Co-manager of the Threadneedle UK Absolute Alpha fund, said: "The economic environment has been difficult to say the least. But the Threadneedle UK Absolute Alpha Fund is positioned perfectly to make the most of opportunities as they arise in the market. With this fund, Chris and I can take positions in companies we think will outperform as well as those we believe might struggle in order to generate alpha for our clients."
Chris Kinder, Co-manager of the Threadneedle UK Absolute Alpha fund, added: "This is an important milestone which puts the Threadneedle UK Absolute Alpha Fund firmly on the map. Together with the support of our 12 strong UK equities team, we continue to deliver positive returns for our clients by taking full advantage of the opportunities in both the long and short portfolios."
Threadneedle has £2.4bn AUM in UCITS funds, across a broad range of products and strategies. The Fund aims to achieve a positive return, irrespective of market conditions, over the long term by primarily investing in UK-based equity securities and equity-related derivatives. The Fund's exposure to any equities may be gained through long and synthetic short positions. Chris and Mark believe that the stock market is influenced by short-term factors which create opportunities for investors with a contrarian stance and a focus on long-term business valuations.