Threadneedle launches American Absolute Alpha Fund

First Equity fund in Absolute Return Range

Threadneedle announces the launch of the Threadneedle (Lux) American Absolute Alpha Fund, reinforcing the company’s absolute return fund range which has attracted total AUM of US$3bn*. The fund is a SICAV under UCITS III regulation, which gives fund manager Stephen Moore increased flexibility in strategy and fund positioning.

 

Stephen Moore lead manages the American Crescendo Fund, a North American equity long/short fund, and was actively involved in the development of the American Extended Alpha Fund, Threadneedle’s first UCITS III 130/30 fund which he has managed with great success since its launch in 2007.

 

We believe this is an exciting time to be launching this offering in a small universe of absolute return American equity funds. Threadneedle has more than nine years’ experience in single strategy hedge funds and one of the largest US Equity teams by assets in London, managing over $9.5bn* in assets. Stephen Moore has proven long/short and UCITS III experience and has built a track record of adding alpha under different market conditions, supported by a solid operational infrastructure and independent risk analysis. Our US equities team also draws on the support of 118 investment professionals across all asset classes and regions, all on one floor.

 

Campbell Fleming, Head of Distribution at Threadneedle, said: “Threadneedle has a proven track record for delivering performance via absolute return funds, and we believe that this fund will leverage our existing resources and experience to the next stage of development for absolute return. We have spoken extensively to our clients and they have indicated a great appetite for a product that will open up the US investment world in this form.”

 

The American Absolute Alpha Fund will utilise the same process and resources as the Threadneedle American Crescendo Fund. The portfolio will primarily take long and short positions in North American equities and will generate the majority of performance from stock selection.

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Notes to Editors:

*As at 31 March 2010

The American Absolute Alpha Portfolio seeks to achieve an absolute. The Portfolio will principally invest in equity securities and equity related derivative contracts of corporate issuers headquartered in North America or exercising a predominant part of their activity in North America. Secondarily, the Portfolio may invest in securities and derivatives of corporate issuers from outside North America.

 

The Portfolio will take long positions in publicly traded equity securities. Short positions (and possibly long positions) will be taken by the use of financial derivative instruments to include, but not limited to, equity swaps, total return swaps, and futures and options related to individual equity securities, related to exchange traded funds and/or related to indices. Hedging may also be achieved through the purchase of exchange traded funds.

 

The Portfolio uses financial derivative instruments and forward transactions for both efficient portfolio management and investment purposes. The investment strategy includes the synthetic short sales of securities, which creates an exposure equivalent to selling securities not physically owned by the Portfolio at the time. The Portfolio will profit if the value of these securities fall, however, if the value of these securities increase, it will have a negative impact on the Portfolio. The use of derivatives may also create leverage in the Portfolio. Leverage has the effect of increasing the magnitude of any profits compared to if there were no leverage, however, it will also increase the level of any loss. This Portfolio is suitable for investors who seek capital appreciation, a return driven principally by long and short investment decisions, have a high risk tolerance; and have a long term investment time horizon.

 

Other funds in Threadneedle’s Absolute Return range include:

• Threadneedle Absolute Return Bond Fund
• Threadneedle Target Return Fund
• Threadneede (Lux) Target Return Fund (US$)
• Threadneedle Target Return Core Fund
• Threadneedle Credit Opportunities Fund

 

For further comment please contact:

Christian Trixl, Head Switzerland

christian.trixl@threadneedle.com

Peter Ritler, Senior Relationship Manager

peter.ritler@threadneedle.com

Andrea Hofer, Regional Marketing & Sales Manager

andrea.hofer@threadneedle.com

 

Threadneedle Offices:

Dreikönigstrasse 31a

8002 Zürich

phone +41 44 208 3737

 

14 rue du Rhône

1204 Genève phone

+41 22 819 1727

www.threadneedle.ch

 

About Threadneedle

Threadneedle was founded in 1994. It actively manages £64bn* of assets providing investment solutions for pension schemes, insurers, private investors, corporations, mutual funds and affiliate group companies. (US$97bn, €71.8bn). Source: Threadneedle, as at 31.03.10. Threadneedle has investment expertise across equities, bonds, property and hedge funds with over 140 talented investment professionals. As a truly international asset manager, Threadneedle reaches customers in over 80 countries and its distribution reaches across four continents. For more information, visit www.threadneedle.com Threadneedle is the international investment platform and subsidiary for Ameriprise Financial, a leading US financial planning and services company with more than 12,000 financial advisors and registered representatives that provides solutions for clients' asset accumulation, income management and insurance protection needs. Ameriprise Financial was formerly known as the American Express Financial Corporation. It is an independent, publicly traded company (NYSE: AMP). For more information, visit www.ameriprise.com.

 

Disclaimer

Issued by Threadneedle Asset Management Limited. Registered in England and Wales, No. 573204, 60 St Mary Axe, London EC3A 8JQ. Authorised and regulated in the UK by the Financial Services Authority. Threadneedle is a brand name, and both the Threadneedle name and logo are trademarks or registered trademarks of the Threadneedle group of companies. The research and analysis included in this document has been produced by Threadneedle for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice.