REAL THREADNEEDLE DYNAMIC RETURN: total belief of the fund boss who puts money where his mouth is

Security network: Toby Nangle avoids investing in municipal offices, which can be hit by Brexit, favoring the counties

Security network: Toby Nangle avoids investing in municipal offices, which can be hit by Brexit, favoring the counties

Security network: Toby Nangle avoids investing in municipal offices, which can be hit by Brexit, favoring the counties

Global stocks have had some fantastic years and investors have been generously rewarded for taking the risk of placing cash in volatile stock markets.

Those of a more nervous disposition who opted for "total return funds", which aim to protect capital in turbulent times while offering the potential for growth, have not been generously rewarded.

Being "a bit greedy and fearful", in the words of Toby Nangle, manager of the Threadneedle Dynamic Real Return fund, means accepting that returns will not trigger the lights.

The total return funds aim to spread the risk by investing in other first class funds. This means that they can benefit from the skills of experts in certain sectors without having to spend so much money on their own specialists and research.

The result is that the charges tend to be higher, since investors pay the fees of the underlying funds, as well as the principal ones.

Nangle solves this by selecting primarily from a basket of internal funds managed by hundreds of colleagues with experience in the Columbia Threadneedle group.

Jason Hollands, of the Tilney corridor, says: "While the predominant use of own funds instead of the best-of-class funds has limitations, the advantage is that the manager can do this very profitably. and Columbia Threadneedle has a wide range of competencies. & # 39;

Nangle says that the advantage of funds like yours is that they "soften the bumps in the road". at the same time they provide positive returns.

About 15 percent of the fund is invested in Japan, while only 5 percent in the United Kingdom

About 15 percent of the fund is invested in Japan, while only 5 percent in the United Kingdom

About 15 percent of the fund is invested in Japan, while only 5 percent in the United Kingdom

Its fund has an annual inflation target plus four percentage points and has achieved it during the five years since its launch.

To fulfill the objective, Nangle says that each holding must "win its place." He expects investments in Japan to contribute strongly. Just under 15 percent of the fund is invested there. On the contrary, only 5% is in the "weak" market of the United Kingdom, and EE. UU You can not see it

Nangle says: "It's not because it's a horrible place, but growth driven by tax cuts already has a price in the market. In the United States, when profits grew 55 percent in the last five years, in the same period Japan's earnings have doubled and we believe they will be even stronger. In addition, the Japanese market is cheaper in relative terms than the United States. "

Nangle says: We want to avoid big bright blocks of city offices that could be hit by Brexit & # 39;

Nangle says: We want to avoid big bright blocks of city offices that could be hit by Brexit & # 39;

Nangle says: We want to avoid big bright blocks of city offices that could be hit by Brexit & # 39;

At the least glamorous end of its portfolio are corporate bonds at a lower date, whose yields of 2.5 percent still outperform cash. That modest "cornerstone" income adds to a 5% more lucrative return on commercial property, through the Threadneedle UK Property Authorized Investment fund.

This has a wide range of income generating properties, such as offices and warehouses in cities with markets throughout the United Kingdom. Nangle says: "We want to avoid big city office blocks that could be hit by Brexit."

Nangle has a strong enough belief in his fund's strategy that he puts his money where his mouth is. He says: & # 39; All my own money and the Isas of my children are in it & # 39;

Juliet Schooling Last agent of Chelsea Financial Services says: "This fund has met its performance objectives and, in general, it did well."

Hollands in Tilney also likes the background. He says: "It has been on our shopping list for three years and has shown constant returns, with low levels of volatility.

"Unlike many rivals in the sector, it does not depend on derivatives and short sales to achieve its objectives, instead it invests in a wide range of asset classes and sectors, and actively moves. between these depending on the administrator's vision of opportunities and risks. "

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