Threadneedle has added to its Extended Alpha range with the launch of a 130/30 style Global Extended Alpha fund.
The fund will be headed up by global equities fund manager Andrew Holliman (lead manager of the Global Equity fund and deputy on Global Crescendo) and benchmarked against the MSCI All Countries World Index.
Threadneedle says the new addition of ‘130/30 style strategies’ to the range is an extension of its higher alpha, long-only capability which is characterized by a fundamental stock-picking approach.
The strategy allows customers to benefit from all investment insights, both positive and negative, now permitted under the UCITS III Directive.
While the fund is a traditional long-only portfolio of global equities, an additional short position is offset by additional long positions in attractive companies, thereby raising the long exposure.
The overall net exposure to the stock market will therefore remain around 100% with a higher information ratio and a better risk return pay-off versus traditional long portfolios, according to Threadneedle.
The fund is registered in the UK and is currently undergoing registration in other countries.
UK retail investors will see an initial charge of 3.75% with an AMC of 1.5% plus a performance fee of 20% on outperformance with a high water mark (HWM). The HWM refers to the highest level of performance reached by a fund, from which the next performance fee will be calculated. Minimum investment is £2000.IFAonline
'Managed separation update'
The chairman discusses his surprise holiday job
Three months on
Regulator has stepped in