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At a glance
Index
EONIA
Launch date
Jun 2008
Fund size
€3.9m
Fund currency
EUR
OEICs
Fund Managers
Quentin Fitzsimmons
Download fund sheet >
Target Return Core
The Target Return Core Fund uses the full flexibility afforded by UCITS III to aim for low volatility, "cash-plus" returns in all market conditions. Designed along similar lines to our successful Target Return Fund which was launched in April 2006, the Fund is built on a foundation of short-dated high grade bonds and uses derivative strategies to augment this return with incremental alpha from diverse sources. It is designed for conservative investors and aims to deliver EONIA plus 150bps target return.
You can find out more by using the tabs below.
Graph as at 12 noon: 31st March 2012
- Euro-denominated with EONIA plus 150bps target.
- Managed by Quentin Fitzsimmons.
- Money market portfolio provides foundation of low volatility returns.
- Derivative overlay adds alpha through a variety of strategies.
- Sits alongside the Target Return Fund as a more conservative investment.
Fund aim
The investment objective of the Target Return Core Fund is to achieve a total positive return in Euro in all market conditions.
| Fund Manager | Quentin Fitzsimmons |
| Inception | 9 June 2008 |
| Fund Currency | EUR |
| Index |
EONIA 3 Month Deposit Rate |
| Benchmark Sector |
Offshore territories Absolute Return EUR |
| Share Class | Accumulation only |
| Retail | Institutional | |
| Annual fee |
0.40% plus 20% performance fee |
0.25% plus 20% performance fee |
| Initial fee | 3% | 0% |
| Minimum investment |
Initial: EUR 2,500 Subsequent: EUR 750 |
Initial: EUR 750,000 Subsequent: EUR 40,000 |
Fund Codes
| Retail | Institutional | |
| ISIN | GB00B39H1091 | GB00B39H0F70 |
| Sedol | B39H109 | B39H0F7 |
| MEDIX | ADCRNE | ADCINE |
The fund employs a range of strategies to add alpha. These include:
- Directional positions, designed to benefit
from absolute moves in markets
Example: long call options on Fed Funds futures, reflecting bearish views on the US economy and below consensus interest rate expectations - Relative value trades, to exploit moves
between bond classes
Example: short high yield bonds to benefit from rising yields against a risk-averse market background - Investments made to profit from changes in the shape of
yield curves
Example: overweight position in short-dated bonds vs short position in longer-dated issues to make money from steepening yield curves - Currency positions based on our analysis of
foreign exchange trends divisas
Example: long euro vs Icelandic krona to gain from expected strengthening in the former versus the latter
By using derivatives, the fund can target opportunities with great precision, ensuring that the portfolio optimally reflects the team's views at all times.
Risk is constantly monitored and understood, and the diverse range of views expressed provides further risk control by limiting the fund's dependence on a single theme.
Note: the example strategies mentioned above are illustrative only and may not reflect current positioning.
- Quentin Fitzsimmons
Quentin Fitzsimmons is an Executive Director and Head of Government Bonds & Foreign Exchange at Threadneedle. He has significant experience and a strong track record in managing third party institutional fixed income client mandates for over 10 years, encompassing the full range of economic and market conditions.
Quentin began his career in 1991 at Sun Life Assurance Company of Canada, where he progressed to senior investment analyst before moving to the Equitable Life Assurance Society in 1994 as senior portfolio manager. He then joined F&C (formerly Foreign & Colonial) Investment Management in 1999 and became director of fixed interest (UK bonds) before joining Threadneedle in September 2003.
Today, Quentin is responsible for managing a variety of institutional and retail fixed income portfolios and has been a key contributor to the successful development of Threadneedle's absolute return franchise, leading the team and playing a pivotal role in gathering assets. He is also a member of the firm's Asset Allocation Committee and chairs the monthly Economic Background meeting. As such, his is one of the significant voices that shapes Threadneedle's overall investment thinking and strategy.
Quentin graduated in 1989 from the University of Bristol with a first class honours degree in economics and economic history. He is also a Member of the Society of Business Economists and has gained professional investment qualifications via the IIMR.
Fund Factsheet
View our Target Return Core Fund Factsheet. more >