Columbia Threadneedle is closely watching flows into its Credit Opportunities fund, and considering further measures to limit demand, amid soaring assets under management (AUM).
The firm said they have stopped pitching the fund to new clients and are looking at applying further limits to halt flows, such as a soft closure, after AUM climbed from £819m in April 2016 to £1.5bn as at the end of April.
Managed by Barrie Whitman, the fund takes long/short positions across both investment grade and high yield credit while aiming to deliver absolute returns.
Over the past year to 15 May, the fund has returned 4.4% compared to the IA Targeted Absolute Return sector average of 3.9%, according to FE.
Gary Collins, head of wholesale, EMEA, at Columbia Threadneedle said: "The low growth, low interest rate environment, combined with fund manager Whitman's excellent track record in delivering risk adjusted returns, has led to continued strong demand for this strategy.
"Our priority is always to protect the interests of existing investors. We are now monitoring new flows with the potential to apply further measures to limit demand if necessary to ensure the investment integrity of the product is retained for existing clients."
Last year, Investment Week revealed the firm was monitoring flows into its UK Absolute Alpha fund which had seen its AUM jump from £373m to £988m in a year. However, the fund's AUM has since dropped to £683m.
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