Threadneedle (Lux) Global Multi Asset Income Fund

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A dynamically managed multi asset fund that targets an annual income of 5% by investing directly in equity and fixed income securities, then supplementing the income using a covered call option.¹

¹ Please note that the performance target may not be attained. The performance target is gross of fees.

Reasons to inveset

Proven capability in income generation

The fund benefits from the established income capabilities and skill sets of our equity and fixed income teams to target an attractive 5% yield.

Experienced multi asset team

The portfolio manager is supported by more than 20 investment experts, including an eightstrong Asset Allocation Strategy Group. The team is able to draw on the wider investment platform for macro insights, information and propriety research.

Risk awareness

Diversification is embedded into the construction process, with a focus on providing strong risk-adjusted total returns. The ability to ‘look through’ a portfolio facilitates best-in-class portfolio risk management.

Key facts

Fund inception date:
18 September 2012

Asset class weightings:
Equities: 40-60%
Fixed income: 40-60%

Holdings:
The portfolio mainly invests in direct investments, derivatives, ETFs and in-house funds

Investment approach

The Asset Allocation Strategy Group uses the output from three proprietary research groups to formulate its macroeconomic and thematic views, and defines the investment environment used to build asset allocation portfolios. This is combined with a valuation framework across all asset classes, and is used by the group to determine its preferred asset allocation and risk preferences, whilst prioritising the fund’s income objective.

The security selection within both equity and fixed income is designed to generate income to achieve the 5% income objective. The natural income that is generated through the allocation to equities and fixed income is then supplemented with a covered call strategy to enhance its yield. The fund is actively managed at the overall portfolio level, as well as within each asset class.

Share classes available

Share	Class	Curr	Tax	AMC	Entry charge	Min Inv.	Launch	ISIN	SEDOL	BBID	WKN/Valor/CUSIP	Hedged
AU	Acc	USD	Gross	1,25%	5,00%	2.500	18-09-12	LU0640488648	—	TMATAAU LX	A1J9G4	No
AEH	Acc	EUR	Gross	1,25%	5,00%	2.500	18-09-12	LU0640488994	—	TMATAEH LX	A1J9G5	Yes
ZGH	Acc	GBP	Gross	0,75%	5,00%	1.000.000	16-10-12	LU0815284970	—	—	—	Yes
AEC	Inc	EUR	Gross	1,25%	5,00%	2.500	04-11-14	LU1102542534	BQ3BGC5	TMATAEC LX	A12AB2	Yes
ZEC	Inc	EUR	Gross	0,75%	5,00%	1.500.000	25-04-17	LU1132616415	BSD9CH0	TMATZEC LX	A12EET	Yes
AUP	Inc	USD	Gross	1,25%	5,00%	2.500	15-10-13	LU1297908904	BYVYBP0	THGMAUP LX	A140RF	No
AEP	Inc	EUR	Gross	1,25%	5,00%	2.500	15-10-13	LU1297909035	BYVYBQ1	THGMAEP LX	A140RG	No
AE	Acc	EUR	Gross	1,25%	5,00%	2.500	17-07-12	LU1298174530	BYVYBS3	—	—	No
ZEH	Acc	EUR	Gross	0,75%	5,00%	1.500.000	25-04-17	LU0957818882	BYPZPW4	THGMZEH LX	A2DM9H	Yes
ZU	Acc	USD	Gross	0,75%	5,00%	1.500.000	25-04-17	LU0957818536	BYPZPV3	THGMAZU LX	A2DM9G	No
ZE	Acc	EUR	Gross	0,75%	5,00%	1.500.000	12-07-17	LU1642712183	BYVX9B9	—	—	No

Documents

PDF

Prospectus

KIID

Fund Manager

No data was found

Key Risks

Investment risk

The value of investments can fall as well as rise and investors might not get back the sum originally invested.

Issuer risk

The Fund invests in securities whose value would be significantly affected if the issuer refused, was unable to or was perceived to be unable to pay.

Liquidity risk

The fund holds assets which could prove difficult to sell. The fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities.

Inflation risk

Most bond and cash funds offer limited capital growth potential and an income that is not linked to inflation. Inflation is likely to affect the value of capital and income over time.

Interest rate risk

Changes in interest rates are likely to affect the fund’s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa.

Valuation risk

The fund’s as sets may sometimes be difficult to value objectively and the actual value may not be recognised until assets are sold.

Investment in derivatives

The Investment Policy of the fund allows it to invest materially in derivatives.

Leverage risk

Leverage amplifies the effect that a change in the price of an investment has on the fund’s value. As such, leverage can enhance returns to investors but can also increase losses, including losses in excess of the amount invested.

Volatility risk

The fund may exhibit significant price volatility.

Currency risk

Where investments are in assets that are denominated in multiple currencies, or currencies other than your own, changes in exchange rates may affect the value of the investments.

Important Information

For internal use by Professional and/or Qualified Investors only (not to be used with or passed on to retail clients). Past performance is not a guide to future performance. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. Threadneedle (Lux) is an investment company with variable capital (Société d’investissement à capital variable, or “”SICAV””) formed under the laws of the Grand Duchy of Luxembourg. The SICAV issues, redeems and exchanges shares of different classes. The management company of the SICAV is Threadneedle Management Luxembourg S.A, which is advised by Threadneedle Asset Management Ltd. and/or selected sub-advisors. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services.

“Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports and the applicable terms & conditions. Please refer to the ‘Risk Factors’ section of the Prospectus for all risks applicable to investing in any fund and specifically this Fund. Documents other than KIIDs are available in English, French, German, Portuguese, Italian, Spanish and Dutch (no Dutch Prospectus). KIIDs are available in local languages. Documents can be obtained free of charge on request by writing to the management company at 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg, from International Financial Data Services (Luxembourg) S.A. at 47, avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg, from www.columbiathreadneedle.com and/or from Belgium: CACEIS Belgium S.A., avenue du Port 86 C b 320, 1000 Brussels.

The mention of any specific shares or bonds should not be taken as a recommendation to deal. The fund characteristics described above are internal guidelines (rather than limits and controls). They do not form part of the fund’s objective and policy and are subject to change without notice in the future.The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.

Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Societes (Luxembourg), Registered No. B 110242 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.