fund
Threadneedle Dynamic Real Return S
A relatively unconstrained multi asset fund seeking to deliver returns of inflation + 3% to 4% with 2/3rds the volatility of equities.
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131.73p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.40%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.50%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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1.40%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
An index unconstrained, long only multi asset portfolio built to deliver an inflation +4% total return target over the medium term and at least a positive return over a 3 year period. To achieve this objective the fund invests mainly across internal Threadneedle Funds, passive vehicles and some direct securities, derivative instruments are not extensively used. As a group Threadneedle offer a broad range of competently run mandates, with very few performance outliers, all Threadneedle funds are accessed through a gross of fees share class, a single AMC is then applied at the overall fund level. Targeted Absolute Return funds do not guarantee a positive return and you could get back less than you invested, much like any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products.
Fund summary
| Sector | Targeted Absolute Return |
| Structure | UNIT TRUST |
| Launched | May, 2015 |
| Size | £2,285m |
| Yield | 1.40% |
| Charging basis | Income |
| Dividends paid | Acc units only |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.40% |
| Ongoing charges figure | 0.50% |
Allocation
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Investment process
A long-only, unlevered fund that seeks to achieve its investment objective through dynamic asset allocation and underlying fund / security selection. In the main the fund invests via internal Threadneedle funds, supplemented by passive vehicles, direct holdings and derivatives. Derivatives can be used for long-only exposure and efficient portfolio management only, they will not be used to create short exposure. Direct security exposure is more evident in government bonds. There is no pre-set allocation target for country or sector weightings. The fund’s positioning is shaped by macro and thematic output from the Threadneedle Asset Allocation Strategy Group (which includes the co-heads from the Multi Asset Team). These views are in turn combined with an assessment of market valuations to determine the preferred asset-allocation / risk preferences for the fund. It aims to achieve its performance objective with a volatility budget of 2/3rds of equity. As part of this process some asset constraints are applied: equity 0-75%, bonds and cash 0-100%, property 0-20%, commodities 0-20, alternatives 0-10%.
A very competitively priced, asset class unconstrained, fettered fund of funds option from a leading UK based investment house.
Manager research
Average monthly relative returns
- 16/17 0.59%
- 17/18 0.54%
- 18/19 -0.52%
- 19/20 0.77%
- 20/21 0.63%
Bestinvest MRI
- 3 years 0.29%
- 5 years 0.40%
- Career 0.38%
- 3 years 82.90%
- 5 years 97.30%
- Career 98.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Toby Nangle
Nangle joined Threadneedle in 2012 and is currently Global Co-Head of Asset Allocation and Head of Multi-Asset, EMEA with responsibility for managing a range of multi-asset portfolios, as well as providing input to the company’s asset allocation process. Previously he worked at Baring Asset Management, initially in the fixed income team and subsequently as Director of the Multi-Asset Group. He holds degrees in History and International Relations from the University of Cambridge.
Track record
Toby Nangle has 6.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.38%. During the worst period of relative performance (from December 2019 - March 2020) there was a decline of 10% relative to the index. The worst absolute loss has been 10%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 99%.
Periods of worst performance
| Absolute | -10.00% (December 2019 - March 2020) |
| Relative | -10.00% (December 2019 - March 2020) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 31 May 2020
| 15.2% | Threadneedle Sterling Short-Dated Corporate Bond Fund |
| 8.8% | Hm Treasury United Kingdom Dmo 2% Gilt 22/07/20 Gbp0.01 |
| 8.5% | Hm Treasury United Kingdom Dmo 1.5% Gilt 22/01/21 Gbp0.01 |
| 7.8% | Threadneedle Japan Fund |
| 6.6% | S&P500 Emini Fut Jun20 |
| 5.8% | Threadneedle Sterling Corporate Bond Fund |
| 4.2% | Threadneedle Asia Fund |
| 3.1% | Threadneedle (Lux) Enhanced Commodities Aeh Eur |
| 2.7% | Threadneedle Uk Ina Gbp |
| 2.7% | Threadneedle Uk Property Authorised Investment Fund |
| Source: Trustnet |
Portfolio
Exposure is predominantly through Threadneedle funds, supplemented by passive vehicles and some direct securities.
Constraints
Equities 0-75%, bonds and cash 0-100%, property 0-20%, commodities 0-20, alternatives 0-10%.
Key Investor Information