CT Net Zero Transition Euro Buy and Maintain Credit Fund
An actively managed buy and maintain credit strategy with a formal commitment to net zero
The strategy provides exposure to credit markets through bonds that mature over discrete periods. This provides stable income, minimises transaction costs and aligns cash flows with future liabilities. The strategy implements explicit net zero targets with assets being managed under a Net Zero Framework.
Our experience
26+ years
Experience of managing buy and maintain credit
€18bn+
Managed globally in buy and maintain credit*
€41.1bn
AUM in strategies explicitly linked to ESG criteria*
* Source: Columbia Threadneedle Investments, data as at 31 December 2023.
Our approach
1. Fundamental stability of revenues and cashflows:
Our approach to investment grade credit is based on high-quality, bottom-up, issuer research. For buy and maintain, this is tilted towards stability of revenues and cashflows which enable the companies to withstand shock.
2. Team-based approach to investment grade:
A team of over 20 dedicated portfolio managers and analysts, debating issuers, industries and market outlook, results in the best investment decisions for our clients.
3. Downside Risk Management:
We understand that in this asset class we risk our clients’ capital to earn stable cash flows. Downside risk management is the main starting point to managing credit portfolios successfully.
David Dudding
Gestore di Portafoglio
Characteristics
Maturity buckets:
7 years
Maturity buckets:
7 years
Expected return:
Gilts + 1.0% over a full market cycle
Expected return:
Gilts + 1.0% over a full market cycle
Base currency:
EUR
Base currency:
EUR
Launch date:
October 2024
Launch date:
October 2024
Management style:
Maturing Buy and Maintain
Management style:
Maturing Buy and Maintain
ESG style:
ESG Elevated*
ESG style:
ESG Elevated*
Number of issuers:
100–150
Number of issuers:
100–150
Credit rating:
BBB- or above at purchase
Credit rating:
BBB- or above at purchase
Issuer exposure:
AAA: 5%; AA: 3%; A: 2%; BBB: 1.5%; Sub-IG: 1.5%
Issuer exposure:
AAA: 5%; AA: 3%; A: 2%; BBB: 1.5%; Sub-IG: 1.5%
Interest rate exposure:
At least 50% GBP bonds.
Portfolio hedged to EUR
Interest rate exposure:
At least 50% GBP bonds.
Portfolio hedged to EUR
FX:
Hedged to EUR
FX:
Hedged to EUR
Vehicle:
Luxembourg FCP
Vehicle:
Luxembourg FCP
* Source: PRI definition: uses ESG factors to assess the sustainability of companies and countries.
ESG objectives
Implementation of ESG objectives aligned to Article 8 under SFDR*
Carbon emissions reduction aligned to a global Net Zero pathway:
- ‘Top-down’ portfolio emissions reduction in line with a global net zero pathway
- ‘Bottom-up’ assessment of asset alignment and target for at least 70% of portfolio emissions to be aligned or aligning
Elevated standards of sustainability:
- Limit investment in Weapons, Tobacco, Fossil Fuels and Electricity Generation
Enhanced standards of good governance:
- Formal review policy for lowest ESG scores and companies with severe breaches of UN Global Compact Principles
*Article 8 of the Sustainable Finance Disclosure Regulation (SFDR) requires that financial products promote environmental or social characteristics
Meet the team
Andrew Brown is a Portfolio Manager within the Credit team. Andrew joined Columbia Threadneedle through the acquisition of BMO GAM (EMEA) in 2021, having previously been with BMO since 2006. Prior to this, he worked for M&G Investment Management as a Credit Analyst. Andrew holds an MSc in Investment Analysis from the University of Stirling and an MA in Economics from the University of Edinburgh and is an Associate of the CFA Society of the UK.
Rebecca Seabrook is a Portfolio Manager in the Credit team. She joined Columbia Threadneedle through the acquisition of BMO GAM (EMEA) in 2021, having previously been with BMO since 2001. Prior to joining the group, Rebecca worked as a Fund Manager for Rothschild Asset Management and Friends Ivory & Sime, having begun her career with London and Manchester as a Credit Analyst. Rebecca graduated from the University of Wales in 1995 with a BA in Accounting and Finance. She holds the IIMR and is a member of UKSIP.
Richard Ferris is a Client Portfolio Manager in the Investment Solutions team and is responsible for the delivery of investment outcomes to clients. Richard joined Columbia Threadneedle through the acquisition of BMO GAM (EMEA) in 2021, having previously been with BMO since 2015. He joined the group from Mercer, where he had spent five years as a Principal and Investment Consultant. Prior to that he worked in the investment consulting team at PwC for three years and at Friends Provident as senior analyst on their ALM team. Richard is a Fellow of the Institute of Actuaries and has a BSc in Physical Sciences from University College London.
Hear from the team
Our approach
(3:47)
The Fund
(4:24)
Providing you with the right solution
(1:51)
A commitment to net zero
(1:34)
Insights
Endgame – the benefits of ‘buy and maintain’ credit
Exploring credit as an option for defined benefit schemes looking to reduce risk and seeking reliable cashflows.
No Autumn chills for Global Investment Grade Corporate fundamentals
IG valuations remain tight, and the market remains focused on whether this is justified by fundamentals. Our bottom-up company analysis shows profitability remains strong and leverage modest.
Full fund details
Get in touch
If you’d like to find out more about this fund, contact your local sales representative.
Important information:
© Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
This financial promotion is issued for marketing and information purposes only by Columbia Threadneedle Investments in the UK, Ireland, The Netherlands and Germany. The Fund is a sub fund of Columbia Threadneedle (Lux) LDI, a fonds commun de placement, registered in Luxembourg and authorised by the Commission de Surveillance du Secteur Financier (CSSF). English language copies of the Fund’s Prospectus and summarised investor rights can be obtained from Columbia Threadneedle Investments, Cannon Place, 78 Cannon Street, London EC4N 6AG, telephone: Client Services on 0044 (0)20 7011 4444, email: [email protected] or electronically at www.columbiathreadneedle.com. Please read the Prospectus before taking any investment decision. The information provided in the marketing material does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell or otherwise transact in the Funds. The manager has the right to terminate the arrangements made for marketing. In the EEA: Issued by Columbia Threadneedle Netherlands B.V., regulated by the Dutch Authority for the Financial Markets (AFM), registered No. 08068841. In the UK: Issued by Columbia Threadneedle Management Limited, No. 517895, registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.
