Change your profile from a 
At a glance
Index
EURIBOR 3 Month Deposit Rate
Launch date
Apr 2006
Fund size
€317.0m
Fund currency
EUR
OEICs
Fund Managers
Quentin Fitzsimmons
Matthew Cobon
Download fund sheet >
Target Return
The Target Return Fund uses the full flexibility afforded by UCITS III to aim for a total positive return over a period of 18-24 months across all market conditions.
The fund utilises the best ideas from across our fixed income investment team. Built on a foundation of short dated, high grade bond portfolio for liquidity and stability, the portfolio uses derivative strategies to augment the return with incremental alpha from diverse sources.
You can find out more about the strategies used by selecting the tabs below.
Ratings:
Graph as at 12 noon: 31st March 2012
- Flagship European absolute return product.
- Euro-denominated with Euribor plus 300bp target over the medium term (18-24 months).
- Managed by Quentin Fitzsimmons.
- Short dated, high grade bond portfolio for liquidity and stability.
- Derivative overlay adds alpha through a variety of strategies.
Fund aim
The Fund aim is to achieve a total positive return in euros in all market conditions through exposure to the global bond markets. The Fund will invest primarily in derivatives, cash and near cash, fixed interest securities, index linked securities, money market instruments and deposits. At times the portfolio may be concentrated in any one or a combination of such assets. The manager may take long and short positions through derivatives in such issues. Where securities are non-euro denominated they may be hedged into euros. The Fund targets an outperformance of 3 Month Euribor plus 300 bps gross of charges and tax over the medium term (18-24 months).
| Fund Manager | Quentin Fitzsimmons |
| Inception | 3 April 2006 |
| Fund Currency | EUR |
| Index Euribor | 3 months deposit rate |
| Benchmark | Sector Offshore territories Absolute Return EUR |
| Share Class | Gross accumulation only |
| Retail | Institutional | |
| Annual fee | 1.25% | 0.65% |
| 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 | GB00B104JL25 | GB00B104JD41 |
| Sedol | B104JL2 | B104JD4 |
| MEDIX | ADTREE | ADTIEE |
| Swiss Valoren | 2509331 | - |
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. - Matthew Cobon
Fund Factsheet
View our Target Return Fund Factsheet. more >
The Target Return Fund is available via your bank or asset manager or via:
If you need more information about the availability of the Target Return Fund, please call us on +31(20) 301 2101.