Columbia Threadneedle launches European short maturity high yield fund

Ridhima Sharma
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Columbia Threadneedle launches European short maturity high yield fund

Columbia Threadneedle Investments has launched total return short maturity high yield strategy - Threadneedle (Lux) European Short-Term High Yield Bond fund.

The fund will follow the investment approach of the successful European High Yield Bond fund with a focus on shorter maturity bonds. Roman Gaiser, Columbia Threadneedle's head of High Yield Portfolio Management EMEA, will co-manage the fund with Gareth Simmons, supported by the European High Yield Team.

Both Gaiser and Simmons are co-managers of the European High Yield Bond fund.

The Threadneedle (Lux) European Short-Term High Yield Bond fund is a bottom-up, total return credit strategy that is agnostic to a market index and aims to deliver income, with some capital appreciation, by investing primarily in short maturity European High Yield Credit.

Roman Gaiser, head of High Yield Portfolio Management, EMEA, at Columbia Threadneedle Investments, said: "Our approach to managing credit strategies is grounded in intensive fundamental research that allows the team to measure the risk on an absolute basis. The fund focuses on a bond's maturity rather than duration when managing risk. This removes the unpredictability of duration extension risk, giving this fund lower interest rate sensitivity than a standard high yield bond fund."

Initially registered in Luxembourg, the new strategy is intended for distribution across other markets (Austria, Belgium, Finland, France, Germany, Italy, the Netherlands, Singapore, Spain, Sweden, Switzerland and the UK) pending regulatory approval in each country.