Threadneedle to broaden scope of managed fund range

Threadneedle is to alter its managed funds’ investment policy by allowing managers to make more defensive plays and invest more heavily in its long/short offerings.

As of 1 October, the firm's six fettered funds will be able to invest up to 20% of their portfolios in Threadneedle funds that use derivatives for investment purposes.

Threadneedle said the changes will give managers greater flexibility, for example allowing them to turn more defensive in cautious markets by making larger allocations to its absolute return funds.

Threadneedle's range of fettered funds includes a trio of offerings managed by Alex Lyle (pictured) and CIO Mark Burgess: the £865m Equity & Bond, £632m Global Equity & Bond and £232m Global Equity funds.

The range also features Quentin Fitzsimmons' £287m Defensive Equity & Bond and £132m Defensive funds as well as Richard Colwell's £97m Managed Income fund.

The changes will allow the managers to invest more in the Threadneedle UK Extended Alpha, American Extended Alpha, Global Extended Alpha, UK Absolute Alpha, Absolute Return Bond, Target Return, Target Return Core, Credit Opportunities and Strategic Bond funds.

The managed funds could previously invest in these funds on a limited basis.