Columbia Threadneedle debuts active European credit fund with 30% high-yield leeway
What's the deal? Columbia Threadneedle InvestmentsDealroom has a profile for this one. Try Dealroom → has launched CT (Lux) European Corporate Bond Plus, an actively managed European credit strategy. It targets a mix of income and capital appreciation through fundamental analysis of corporate bonds.
How it works: The fund invests mainly in euro-denominated investment-grade corporate bonds from European companies or firms with significant European operations. It can allocate up to 30% to high-yield securities when risk-adjusted opportunities arise.
It was created by converting the existing CT (Lux) European Strategic Bond fund. Its benchmark is the iBoxx Euro Corporate Bond Index, and it is classified as an Article 8 fund under the EU Sustainable Finance Disclosure Regulation (SFDR).
Who runs it? Portfolio manager Christopher Hult leads the strategy, combining bottom-up issuer and security selection with dynamic allocation between investment-grade and high-yield credit.
Why now? The launch responds to investor demand for a credit strategy able to hunt across a wider opportunity set. "Investors continue to find the total return offered by European corporate bonds attractive," Hult said (translated from Spanish).
He added that tighter credit spreads make "rigorous credit research and disciplined portfolio construction increasingly important."
The signal: The fund lands amid a broader push into active fixed income, with rivals rolling out similar credit and bond products. Columbia Threadneedle is betting that flexibility to move between investment-grade and high-yield can differentiate returns as spreads narrow.
Read more: bolsamania.com
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