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Threadneedle European Corporate Bond Fund
Alasdair Ross
For Professional Investors
November 2016
Contents
Section 1Columbia Threadneedle Investments Overview
Section 2Strategy and Team
Section 3Philosophy and Process
Section 4
2
Positioning and Performance
Appendix
Section 1
Columbia Threadneedle Investments Overview
Ameriprise Financial Inc. Overview of business lines
4
Key facts
Group AUM of €700 billion1
A Fortune 500 company
S&P rating of A; Moody’s A3
No.31 largest global asset manager2
No.13 largest manager of long-term U.S. mutual funds3
No.4 largest retail manager in
the UK4
Financial Advisory Insurance & Annuities Asset Management
Source: Ameriprise Financial Inc. as of 30 June 2016, unless otherw ise stated.
1 Group AUM represents total assets under management and administration for all Ameriprise companies combined.
2 Source: IPE ‘The Top 400 Asset Managers’ 2016 listing, based on Columbia and Threadneedle assets as at 31 December 2015.
3 Source: Investment Company Institute (ICI). Based on Columbia Funds assets excluding money market funds as at 31 May 2016.
4 Source: UK Investment Association Ranking. Based on Threadneedle Funds assets as at 31 January 2016.
Columbia Threadneedle Investments
5
All data is for the Columbia and Threadneedle group of companies as at 30 June 2016.
1 AUM includes externally managed funds under administration as w ell as all assets managed on a discretionary or non-discretionary basis by the entities in the Columbia and Threadneedle group of
companies.
An established global asset management group
AUM of €415.2 billion
Offices in 19 countries
Over 450 investment professionals and over 2,000
people
Focus is active management of client assets
Offers a broad spectrum of capabilities
Equities
Fixed Income
Alternatives
Asset Allocation
Investment Solutions
Part of Ameriprise Financial, Inc.
Assets under management1
AUM – institutional vs. wholesale
Alternatives7%
Equities51%
Fixed Income42%
Wholesale59%
Institutional41%
Our fixed income credentials
6
Fixed income sectors
Source: Columbia Threadneedle Investments, as at 30 June 2016, includes externally managed funds under administration.
A leader in fixed income
€174.3 billion across all portfolios
Product development focused on innovation and
client solutions
Deep resource
Team has complementary strengths covering all
major fixed income markets
Supported by dedicated risk management team and
substantial operational resources
Culture of collaboration and communication
Entire team participates in idea generation,
discussion and debate to produce sharper insights
and trade ideas
180 dedicated fixed income professionals working
closely together across the globe
Inv estment Grade Corporates
18.5%
Core/Core Plus
19.7%
High Yield9.4%Bank Loans
4.1%
Municipal12.5%
Short Duration/Stable Value
6.1%
Liquidity /Money Market
4.7%
Emerging Markets0.8%
Liability Driv en2.7%
Absolute Return0.9%
Strategic Bonds2.0%
Mortgages/Structured Assets
9.5%
Gov ernment8.0%
Other Owned Assets
1.1%
Investment philosophy
We believe that we can deliver strong
risk-adjusted returns for our clients through:
An active approach that takes advantage of market inefficiencies
Our global perspective advantage – the combination of macro and micro insights
The appropriate allocation of risk
7
There is no guarantee that the investment objective w ill be achieved or that return expectations w ill be met.
Columbia Threadneedle Investments‘Best performing fund group over the last decade’1
8
Key findings
Columbia Threadneedle Investments was the best
performing fund group in a recent study by FE Trustnet1
Columbia Threadneedle Investments has the highest
proportion of outperforming active funds over 10 years
Demonstrates the benefits of our truly active and team-
based approach
Testifies to the skill of our investment professionals across
a wide range of market conditions
1 Source: Alex Paget, FE Trustnet, as at 13 November 2015. Past performance is not a guide to future returns. To read the full article, visit www.columbiathreadneedle.com/trustnet
The research conducted by FE Trustnet focused on actively managed funds w ithin the Investment Association (IA) universe w ith a 10-year performance track record and measured outperformance of
the funds compared to their stated benchmark or an appropriate comparator. Where funds did not have a stated benchmark, the most comparable index w as used for equity funds and the relevant IA
sector average used for bond funds and funds w ithin the IA Mixed Investment Shares and IA Flexible sectors. Funds w ithin the IA Specialist and IA Unclassif ied sectors that do not have a benchmark
or an easily comparable index w ere excluded from the study, along w ith all funds in the IA Targeted Absolute Return sector and direct commercial property funds.
‘We fundamentally believe that markets are inefficient and an active approach can benefit investors over the long
term both in terms of risk and return, and our track record attests to this…
… in today’s low-growth, low-return world a truly active approach will be required to search out the opportunities
that can generate strong future performance.’
Mark Burgess, Chief Investment Officer, EMEA
Name % outperformers No. of funds
Columbia Threadneedle 79.06% 42
Jupiter 75.00% 24
Invesco Perpetual 71.42% 35
L&G 66.67% 18
Newton 66.67% 18
Schroder 64.51% 62
Baillie Gifford 63.16% 19
Fidelity 57.78% 45
M&G 54.83% 31
Aviva 50.00% 16
Henderson 50.00% 42
Source: FE Analytics, as at 13 November 2015.
Section 2
Strategy and Team
Investment philosophy
10
There is no guarantee that an investment objective w ill be achieved or that return expectations w ill be met. Diversif ication does not assure a profit or protect against loss.
Given solid fundamental credit insights, a reasonable time horizon, and the ability to withstand short-term
volatility, we believe credit opportunities in the investment grade corporate bond market can be exploited to achieve attractive risk-adjusted returns.
Key tenets
High quality independent
credit research
We employ a bottom-up approach to investment grade credit research. A highly experienced staff of
credit research professionals utilizes a proprietary process which results in a deep understanding of
issuer and industry dynamics
Team based culture
We foster a collaborative and interactive environment that allows the Team’s best investment ideas to
emerge. Portfolio managers and credit analysts work together on investment decision-making and
portfolio construction, and are evaluated as a team based on client portfolio requirements
Downside risk
management
A framework of quantitative risk controls and qualitative risk assessments seeks to minimize portfolio
relative volatility. Strict issuer concentration limits minimize potential credit losses. Additionally, well-
diversified portfolios generate multiple sources of potential alpha granting us the confidence and
patience to allow credit ideas to come to fruition
Why Columbia Threadneedle Investments for
European Corporate?
11
Source: Columbia Threadneedle Investments, 30 September 2016.
Past performance is not a guide to future performance. There is no guarantee that an investment objective w ill be achieved or that return expectations w ill be met. Diversif ication does not assure a
profit or protect against loss.
A deep and stable team of experienced professionals responsible for over €32 billion equivalent in
investment grade corporate bond assets as of June 2016.
Rigorous, independent, bottom-up
fundamental credit research and a constant focus on downside risk management
Returns profile dominated by Issuer and
Security selection
Disciplined and repeatable scorecard based
investment process
Risk positions sized to scorecard conviction
Excellent long term track record
Investment Grade Credit Team
12
Source: Columbia Threadneedle Investments, as at 30 September 2016.
Investment Grade
Portfolio Management TeamInvestment Grade Research Team
Alasdair Ross, CFA, Head of IG, EMEA
Simon Bond, Senior Portfolio Manager
Tammie Chan, Senior Portfolio Manager
John Hampton, Senior Portfolio Manager
Ryan Staszewski, CFA, Portfolio Manager
Sarah Kendrick, Senior Trader
James Phillips, Senior Portfolio Manager
Assistant
………………………………………………………….
David Oliphant, Executive Director Fixed Income
Ben Myrtle, Client Portfolio Analyst
Jonathan Pitkanen, Head of Investment Grade
Credit Research, EMEA & Asia
Industrials, Insurance
Arabella Duckworth, Senior Analyst
Retail, Consumer
Guillaume Langellier, CFA, Senior Analyst
ABS & Property
Paul Smillie, Senior Analyst
Banks
Sharon Vieten, Senior Analyst
Utilities & Infrastructures
Yi Ming Oh, Analyst
Asian IG Corporates
Todd Czachor, CFA, Senior Analyst
Head of U.S. Investment Grade Research
Energy
Dori Aleksandrowicz, Senior Analyst
Financials
Ben Bassett, CFA, Senior Analyst
Metals and Mining, Chemicals
Jeff Cicirelli, CFA, Senior Analyst
Insurance, Healthcare/Pharmaceuticals
John Dawson, CFA, Senior Analyst
Retail, Consumer
Nate Liddle, Senior Analyst
Media, Technology, Cable, Telecom
David Morgan, CFA, Senior Analyst
Conglomerates, Transportation,
Aerospace/Defense
Willow Piersol, CFA, Senior Analyst
Financials
Mary Titler, CFA, Senior Analyst
Utilities
18 years average experience 16 years average experience
9 Professionals 15 Research Professionals
Global fixed income resources
Investment Grade U.S. High Yield Emerging Markets U.S. Investment Grade U.S. High Yield Rates & Currency Core/Core Plus U.S. Investment Grade
Todd Czachor, CFA Brett Kaufman, CFA Corporates Tom Murphy, CFA Jennifer Ponce de Leon Matt Cobon Carl Pappo, CFA Kevin Lema
Dori Aleksandrow icz Matthew Corbett, CFA Ryan Burke, CAIA Tim Doubek, CFA Brian Lavin, CFA Alex Batten, CFA Alan Erickson, CFA Gregory Meisenger
Ben Bassett, CFA Daniel DeYoung Patti McConachie Royce Wilson, CFA Mark Van Holland, CFA Dave Chappell Mary Werler, CFA Dylan Minert
Jeffrey Cicirelli, CFA Julie Grey, CFA, CPA Xiong Wei Poh Gregg Syverson, CFA, CPA Jason Sittko, CFA Adrian Hilton Stephen Sheehan, CFA William Peishoff
John Daw son, CFA Rich Gross, CFA Shannon Rinehart, CFA David Janssen Andrew Donnelly
Nathaniel Liddle Kris Keller, CFA Rates & Currency Matt Steiger European High Yield Matthew Rees, CFA Elena Rozina U.S. High Yield
David Morgan, CFA Jim MacMiller Ed Al-Hussainy Barrie Whitman Alessandro Tarello, CFA Liability Driven Investing David Greavu
Willow Piersol, CFA Brian New man, CFA, CPA Alexandre Christensen European Investment Michael Poole Frank Salem, CFA Michael Roberts, CFA
Mary Titler, CFA Spencer Sutclif fe Mindaugas Lepeska Grade David Backhouse Emerging Markets Karl Chang, CFA Andrea First
Jonathan Pitkanen Jason Weinberg, CFA Sabrina Wong Alasdair Ross, CFA Jim Carlen, CFA Timothy Brannon
Arabella Duckw orth Brandon Jankow ski Simon Bond Leveraged Debt Henry Stipp Jason Thinh Le U.S. Rates
Guillaume Langellier, CFA Ted Nerison, CFA Tammie Chan Lynn Hopton Clifford Lau, CFA Tom Egan William Finan
Sharon Vieten Tony Pederson U.S. Structured Assets Ryan Staszew ski, CFA Yvonne Stevens Chris Cooke
Paul Smillie Ryan Osborn, CFA Steve Staver, CPA Farid Kamarudin Inflation-Linked U.S. Structured Products
European High Yield Garritt Conover, CFA, CAIA U.S. Structured Assets Jerry How ard, CFA Zara Kazaryan Orhan Imer, Ph.D., CFA Luke Hagopian, CFA
Municipal Bonds Gianluca Consoli, CFA Mitch Helle-Morrissey, CFA Jason Callan Andrew Gruet Daniel Ruether
Chad Farrington, CFA* Harry Lister Michael Milosch, CFA Tom Heuer, CFA Municipal Bonds Short Duration &
Dan Belcher Gareth Simmons Shaw n Pierce, CFA Bill Lee, CFA James Dearborn Stable Value Strategic Income New Issues
Jeff Kovala Tom Southon Clinton Vilks Chad Farrington, CFA* Leonard Aplet, CFA Gene Tannuzzo, CFA Peter Apostolicas
Danielle Messler Jenny Wong, CFA Real Estate Loans Kimberly Campbell Jason Delanty Gordon Bow ers, CFA
Michael Roye John Dittrich Commodities Paul Fuchs, CFA John Dempsey, CFA Derivatives
Ty Schoback Leveraged Debt Brian Hennen David Donora Brian McGreevy Greg Liechty Client Portfolio Braj Agraw al
Matthew Stephan Steve Columbaro, CFA Jonathan Jablonsky William Amzand Catherine Stienstra John McColley Management Philip McKernan
Elizabeth Ware Angela Jarasunas John McCarthy Nicolas Robin Anders Myhran, CFA Jim McKay, CFA Chris Jorel, CFA
Ben Woo Ashraf Jilani, CFA Mark McMullen Julie Oman David Kennedy Global
Eric Johnson Julene Melquist Ron Stahl, CFA Kris Moreton, CFA Emma Photis
Ron Launsbach, CFA Ryan Krieg Ben Myrtle Mandy Coatsw orth
Matt Pielert Jeffrey Hibbeler, CFA Pamela Hunter Linda Solarek David Oliphant Gabriel Heskin
Mary Schaifer Adam Shakoor Michael Conerly, CFA James Waters Sarah Kendrick
Vessa Tontti, CFA Alexis Addrisi European Money Market Cindy Larke
Carri Dolin Paul Witchalls James Lavey
John Hayes III Mandy Coatsw orth Ian Neville
Allyson McCann Bill Tong
Kim Michalski Nathan Raduns
Brock Mumford Khang Wei Tai
Wendy Norman Paul Witchalls
Deb Vargo
Jennifer Wacker, CFA Municipals
Bruce Warren, CFA Anthony Purcell
Holly Withers, CFA Travis Bates
Philip Carty
Peter Fleming
Margaret Saltalamacchia
Ralph Vezina
Courtney Walsh
Colin Moore
Global Chief Investment Officer
Research Portfolio Management
Global Head of Fixed Income
Trading
Jim Cielinski, CFA
Steve Harasimowicz
Global Head of TradingColin Lundgren, CFA
Head of U.S. Fixed Income
Kirk Moore, CFA
Head of Global Fixed-Income Research
Information as of 8 August 2016. Leaders indicated in bold. Certain team members may be employees of affiliates. * Dual portfolio manager/analyst role.
68 Research Professionals 98 Professionals 32 Professionals
Private Portfolios –
Taxable
Private Portfolios –
Municipal
A consistent framework for idea sharing, debate and
research delivery
14
For illustrative purposes only. The mention of any specif ic shares or bonds should not be taken as a recommendation to deal.
Person to person contact lies at the core of our
research sharing, via video conferencing, phone and face to face meetings
Weekly global analyst video conference
Twice monthly industry sector reviews
Recommendations are captured through the
global credit grids
More detailed research is disseminated through our Bloomberg research-sharing portal (right) as
well as through direct correspondence with the firm’s global investment professionals
For every issuer, users have access to a concise thesis statement
Section 3
Philosophy and Process
Investment grade credit investment processEntire investment floor contributes to idea generation
16
Source: Columbia Threadneedle Investments, as at June 2016.
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 w ithout notice in the future.
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Idea generation Implementation Research / debate
Portfolio
Construction
&
Risk
Management
Credit Market Risk
Issuer & Security
Selection
Duration, Curve
& Currency
Asset Class
Allocation Team
Investment Grade Team
Macro Team
Industry & Quality
Selection
70%
Approximate % Risk
for EUR IG Credit
10%
minimal
20%
Investment Grade Team
Credit
Research Process
Credit analysts
Management
Regulation
Capital
structure
Covenant
analysis
Credit
opinion
Credit
analysis
Fundamental credit research process – Issuer levelWhat our analysts consider at company level research
17
Source: Columbia Threadneedle Investments, as at June 2016.
Financial tests
Covenants
Management Intent
Subordination
Collateral
HoldCo vs. OpCo
Currency
History, experience
Incentives
Track record
Shareholder activism
Analyst conviction
Credit thesis
Pricing
Liquidity
Relative Value
Legal protection
Legal burden
Potential changes
Model
Transparency
Industry
Country
Event risk
ESG performance
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Fundamental credit research process – Issuer levelProprietary risk rating system
18
Proprietary internal risk rating system allows analysts to efficiently communicate an issuer’s risk profile
Ratings facilitate cross-industry relative value discussions and help determine portfolio position sizes
Source: Columbia Threadneedle Investments, as at January 2015.
Risk and relative value ratings reflect the Team's internal, proprietary ratings system. There is no guarantee that an investment objective w ill be achieved or that return expectations w ill be met.
Risk rating High-level interpretation Possible credit characteristics
Risk 1
Solid credit quality
Minimal risk of credit deterioration
Stable free cash flow
Industry leader
Defendable niche player
Ample cash flow relative to leverage
Stable regulatory or industry environment
Risk 2
Good credit quality
Moderate risk of credit deterioration
Adequate free cash flow
Defendable market position
Expectation of adequate free cash flow to leverage
Stable regulatory or industry environment
Risk 3
Transitory credit quality
Deterioration or improvement likely
Quality of free cash flow uncertain
Free cash flow to leverage currently not appropriate
Significant possibility of negative event risks
Uncertain market position
Uncertain regulatory or industry environment
Risk 4
Weak credit quality
Having or highly likely to achieve credit quality characteristics
consistent with a below investment grade credit profile
(stable or deteriorating)
Poor quality or lack of free cash flow
High leverage relative to free cash flow
Extraordinary measures needed to maintain credit quality
Limited or uncertain liquidity
Difficult regulatory or industry environment
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Credit investment processCredit grids: Industry and quality inputs
19
Source: Columbia Threadneedle Investments, as at 1 January 2012. Scale: -2 (max underw eight) to +2 (max overweight).
Credit
ResearchGrid
Structural
issues
Valuation
assessment
Fundamentals
and event risk
Quantitative
Counter-balance to analyst inputs
Beta-adjusted score
Macro economic background
Industry environment
Competitive position
Management and strategy
Financial analysis
Mergers and acquisitions
Supply of bonds
Bond buybacks
Refinancing existing and /
or bank debt
Covenants
Liquidity
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Tangible link between credit research and portfolio construction resulting in a repeatable process
Comprehensive reference tool for analysts’ views on Issuer and Industry fundamentals and relative value
Visual dashboard of Issuer and industry rankings
Efficacy check of current portfolio positioning relative to analysts views of fundamentals and valuations
Credit investment processCredit grids: Industry and quality output
20
Source: Columbia Threadneedle Investments, as at March 2015. For illustrative purposes.
This is Columbia Threadneedle Investments ow n internal research and should not be taken as investment advice. Scale: -2 (max underw eight) to +2 (max overweight).
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Q1 Q2 Q3 Q4 Q5 Total
Banks 0 0 0 0 1 1
Financial services -1 0 0 0 1 0
Insurance -2 0 0 0 0 0
Total Financials -1 0 0 0 1 1
Basic Materials -2 -1 -1 2 0 0
Consumer Goods -2 -2 0 0 2 0
Consumer Services -2 0 0 0 -1 0
Health Care -2 -2 0 0 1 0
Industrials -1 -2 0 1 2 0
Oil & Gas -2 1 -1 0 -1 -2
Technology -2 0 0 2 1 -2
Telecommunications 0 -1 0 0 2 0
Utilities -1 -1 0 0 2 0
Total Corporate -1 -1 0 0 1 0
Asset allocation processWhat we consider at asset allocation level
21
Asset
allocationprocess
Micro
fundamentals
Money
flows
PositioningValuation
Asset
allocationopinion
Macro
fundamentals
Spreads vs. GDP forecasts
Long term spread history
Implied defaults
Spreads vs other markets
Liquidity premia
Cross asset class valuations
Street positioning
Investor positioning
New issue hedging / effect on secondary
Spread reaction to institutional news
Micro fundamentals
Balance sheet leverage
Spread trend
Credit cycle
Fundamental asset classes
Spread beta ranges Net supply balance
Official sector, institutional, retail
Macro data surprises
PMI new orders
Business confidence
Credit creation / money supply
Consumer confidence
Macro event risk
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Asset Allocation Fundamental Structural ValuationOverall
Score
Overall Fixed
Income
Spread Risk
+1 -0 +0 +1
Investment Grade
Credit+1 0 -0 +1
High Yield Credit +1 -1 0 +1
Agency MBS +0 -1 -1 0
Non Agency MBS
& CMBS+2 +1 +1 0
Emerging Markets
– Hard Currency-0 0 +1 -1
Emerging Markets
– Local Currency-1 0 +2 -1
Fixed income asset allocation processExample output from the IG asset allocation decision
22
Apply common scenario framework
Informs overall spread beta
Identify individual assets
Formulate scenarios (e.g. Eurozone crisis, Middle East, global QE tapering)
Stress test widely varying assets to similar scenarios
Score assets by risk-adjusted returns
Source: Columbia Threadneedle Investments, as at December 2014.
Scale: -2 (max underw eight) to +2 (max overweight).
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Fixed income processFormulating macro decisions
23
The Government Scorecard
A framework to develop ideas in a consistent and robust manner
Takes into account fundamental, market structure and valuation
aspects
Covering duration, preference by curve and preference by currency
Source: Columbia Threadneedle Investments, as at December 2014. Scores range from +2 to -2 depending on scale of conviction, zero=neutral, +1 / -1 implies range trade, i.e. -1 = sell strength.
For illustrative purposes. This is Columbia Threadneedle Investments ow n internal research and should not be taken as investment advice.
Issuer & Security Selection
Industry & Quality Selection
Asset AllocationDuration, Curve
& Currency
Example Government Bond Desk Global Summary
USD AUD Germany GBP Nordic JPY
Fundamentals
Scorecard (3 months+)
Currency 2 -1 -1 -1 0 -1
STIRS 0 0 1 -1 1 -2
5Y -1 0 -1 -1 1 -2
10Y 0 1 -1 -1 1 -2
30Y 1 1 -1 -1 1 -2
Inflation-Linked -1 - -1 -1 - 0
Structural
Scorecard (< 3 months)
Currency 1 0 0 0 0 2
STIRS -1 0 -1 1 -1 -1
5Y 1 -1 1 0 -1 -1
10Y 0 -1 1 0 -1 -1
30Y -1 -1 0 1 -1 -1
Inflation-Linked 0 - 0 1 - 0
Valuation
Scorecard (1 – 4 weeks)
Currency -2 0 0 0 0 1
STIRS 1 0 -1 0 1 -1
5Y -1 1 -2 -1 1 -1
10Y 0 1 -2 -1 1 -1
30Y 1 1 1 -2 1 -1
Inflation-Linked 1 - 1 -1 - 0
Total
Scorecard
Currency 1 -1 -1 -1 0 2
STIRS 0 0 -1 0 1 -4
5Y -1 0 -2 -2 1 -4
10Y 0 1 -2 -2 1 -4
30Y 1 1 0 -2 1 -4
Inflation-Linked 0 - 0 -1 - 0
Portfolio construction process
24
Monthly meeting attended by
Investment Grade Portfolio Managers to ensure portfolio positions aligned with investment
views across each Alpha Source, and to ensure consistency
across IG desk portfolios
Takes output/scorecard views of key process meetings, Government, Asset Allocation
and Research Scorecards meeting
Build portfolios to reflect the best
views of these processes whilst reflecting risk considerations and client guidelines
Source: Columbia Threadneedle Investments, December 2013.
For illustrative purposes. This is Columbia Threadneedle Investments ow n internal research and should not be taken as investment advice.
Alpha source Primary input Example strategy
Issuer and Security
SelectionCredit Research Scorecard
Overweights: top picks from each
‘box’ on the Credit Scorecard
Industry sector Credit Research Scorecard
Overweight: Insurance,
Consumers, Basic Materials
Underweight: Telcos, Utilities and
Healthcare
Credit quality Credit Research ScorecardOverweight: single A
Underweight AA and BBB
Asset allocationAsset class allocation
scorecard
Modest overweight in credit beta
(DTS), modest allocation to HY
Fund duration Government scorecardNeutral duration relative to
benchmark
Yield curve Government scorecardBullet position (overweight middle
of yield curve)
Currency No active currency risk No active currency risk
Risk management philosophy
25
We believe that risk assessment should focus on the probability of losing money
We monitor a variety of risk measures which include tracking error, VAR and beta as well as duration, curve
and sector allocation measured by percentage contribution to duration
Stress testing and scenario analysis are key tools as risk cannot be defined by a single figure
Our proprietary system (IRIS) enable the portfolio manager to review funds against each of the sources of opportunity
Monthly portfolio construction meeting to ensure directional risk against each source of opportunity is aligned
with fixed income team views and to ensure the size of directional views is reasonable given portfolio objective
The team leader meets, on a quarterly basis, with the risk department and the head of fixed income to ensure the risks taken with in portfolios are appropriate for the funds being managed and their guidelines
Portfolio construction
26
Sizing risk positions
Risk positions in any source of opportunity will be sized in relation to scorecard conviction
Issuer and Industry ranges move with conviction of Sector and Issuer view from Credit Strategy Grids
Managed on both a relative % CTD and relative % DTS (duration * spread) measure
Typically strongest outperform / lowest risk / highest liquidity Issuer ideas approximately +3-5% relative
Typically Industry overlay ±20% range
Overall portfolio spread beta moves with conviction of asset allocation view from asset allocation scorecard
Managed on a relative portfolio DTS measure
Range dependent on performance objective of fund and spread duration of the benchmark, for example between 0.70x
and 1.40x
Managing risk positions
Correlations between sources of opportunity must be managed
Aim to build appropriate market beta positions without exposure to tail risk instruments
Simple % weights (absolute and relative) supplement above methodology
Position size management
27
0.15 – 0.25
0.05 – 0.15
0.00 – 0.05
Relative Contribution to
Spread Duration (CTSD)High return potential with modest risk
Minimal event risk
High liquidity
Shorter time horizon to realize upside
Underlying portfolio
Highest return potential with greatest risk
Difficulty adjusting position, so smaller portfolio impact
Higher event risk
Lower confidence in outcome
More subject to macro risks
Lower return potential with modest risk
“Fair value” issuers typically reside here
Facilitates overall portfolio management, liquidity needs and diversification requirements
High return potential with greater risk
Lower liquidity
Longer time horizon to realize upside
Fundamentals Valuation Market dynamics
Risk assessment (risk ratings 1-4)
Confidence in credit thesis
Catalysts for improvement
Deterioration risk (execution, operations)
Tail risk, surprise potential
Ability to adjust position size/exit
Liquidity
Number of dealers involved
Market familiarity of issuer
Frequency of issuance
Spread volatility
Relative valuation
Expected tightening potential
Downside if wrong
Section 4
Positioning and Performance
Threadneedle European Corporate Bond Fund
29
Source: Columbia Threadneedle Investments, as at 30 September 2016. Characteristics shown above such as ‘Effective Duration’ and ‘Yield to maturity’ are indicative of the fund as at the time of
w riting and are not f ixed. These can change w ith prevailing market conditions and the management of the fund. Figures in brackets correspond to the Reference Index.
Strategies
Fundamental, bottom-up, research driven approach
Returns expected to come primarily from issuer and security selection. Incremental contribution
from actively controlling portfolio credit spread beta
Seek to exploit relative pricing inconsistencies across markets
Portfolio construction
Scorecard based approach
Positions sized relative to risk and conviction
IG Strategy Grids provide tangible link between
analysts and PMs on sector/security selection
Risk management
Variety of risk measures utilised
In combination with stress testing and scenario
analysis
Focus on identifying risk that precedes volatility
and weakness
Lead Fund Manager Alasdair Ross (Since October 2007)
Reference index iBoxx European Corporate
Peer groupGIFS Offshore – EUR Corporate Bond
Fund size €215 million
Launch date November 2002
Effective duration 4.91 years (5.27 years)
Yield to maturity 1.05% (0.71%)
Average credit rating BBB+ (A-)
Portfolio issuers 167 (490)
Distinguishing features
Threadneedle European Corporate Bond FundPortfolio positioning
30
Source: Columbia Threadneedle Investments, as at 30 September 2016.
The mention of any specif ic shares or bonds should not be taken as a recommendation to deal.
Top 10 issuer underweights % CTDTop 10 issuer overweights% CTD
Fund
(%)
Active
(%)
Germany 6.9 6.9
Tennet 3.3 2.9
National Grid 2.2 2.1
Kinder Morgan 2.0 1.8
Eurogrid 2.0 1.8
Wellcome Trust 1.8 1.8
Liberty Mutual 1.8 1.8
Ab-InBev 3.9 1.8
Grand City Properties 1.6 1.6
NV Luchthaven Schiphol 1.4 1.4
Fund
(%)
Active
(%)
BNP Paribas - -1.9
EDF - -1.9
Rabobank - -1.9
Volkswagen - -1.3
GE Capital - -1.1
Credit Agricole 0.2 -1.1
Deutsche Telekom - -0.9
Daimler - -0.9
Deutsche Bank - -0.9
Eni - -0.9
Threadneedle European Corporate Bond FundPortfolio sector and credit rating breakdown
31
Source: Columbia Threadneedle Investments, as at 30 September 2016. Figures are relative to iBoxx European Corporate Bond Index.
For illustrative purposes only and should not be taken as investment advice.
Relative % CTD by sector Relative % CTD by credit rating
-10%
-5%
0%
5%
10%
15%
AAA AA A BBB BB & Below Not Rated
%C
TD
-15%
-10%
-5%
0%
5%
10%
15%
Sove
reig
n &
Su
b-S
ove
reig
n
Uti
litie
s (N
on
-Co
llate
ralis
ed
)
Oth
er
Fin
anci
als
Ind
ust
rial
s
Secu
riti
sed
An
d C
oll
ate
ralis
ed
Ba
sic
Mat
eria
ls
Insu
ran
ce
Tel
eco
mm
un
icat
ion
s
Un
cla
ssif
ied
Oil
& G
as
He
alth
Car
e
Co
nsu
me
r Se
rvic
es
Tec
hn
olo
gy
Co
nsu
me
r G
oo
ds
<U
na
ssig
ne
d>
Ba
nks
%C
TD
Threadneedle European Corporate Bond FundGross performance in EUR
32
Source: Columbia Threadneedle Investments, as at 30 September 2016.
Past performance is not a guide to future performance.
7.39
8.18
6.01
7.73
4.97
6.05
7.36
4.78
6.05
4.65
YTD 1 Year annualised 3 Years annualised 5 Years annualised 10 Years annualised
European Corporate Bond Fund (Gross, EUR), % iBoxx Euro Corporate, %
Performance % YTD1 Year
annualised
3 Years
annualised
5 Years
annualised
10 Years
Annualised
European Corporate
Bond Fund (Gross, EUR)7.39 8.18 6.01 7.73 4.97
iBoxx Euro Corporate 6.05 7.36 4.78 6.05 4.65
Excess Return 1.27 0.77 1.17 1.58 0.30
Information Ratio - 1.04 2.04 2.48 0.13
Threadneedle European Corporate Bond FundPerformance attribution
33
Source: Columbia Threadneedle Investments, as at 30 September 2016.
Past performance is not a guide to future performance.
1 year annualised (%) 2 years annualised (%) 3 years annualised (%) 4 years annualised (%) 5 years annualised (%)
Interest rates 0.17 0.30 0.17 0.01 0.14
Currency 0.12 0.03 0.05 0.04 0.02
Asset class allocation -0.14 -0.14 -0.04 0.06 0.31
Industry selection 0.39 0.16 0.06 -0.01 0.01
Security selection 0.23 0.84 0.94 1.12 1.09
Total 0.77 1.19 1.17 1.22 1.58
Representative account – Gross relative returns
Contribution to performance attribution (relative to Index)
0.77%
1.19% 1.17% 1.22%
1.58%
0.0%
0.5%
1.0%
1.5%
2.0%
1 year 2 years (annualised) 3 years (annualised) 4 years (annualised) 5 years (annualised)
Threadneedle European Corporate Bond FundPerformance attribution by sector
34
Source: Columbia Threadneedle Investments, as at 30 September 2016, Figures are relative to iBoxx European Corporate Bond Index,
Past performance is not a guide to future performance.
2016 YTD performance attribution by industry sector
-1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8
Cash
Government Guaranteed
Telecommunications
Media
Covered Bonds
Consumer Non-Cyclical
Technology & Electronics
Asset Backed
Consumer Cyclical
Derivative
Leisure
Automotive
Commercial Mortgage Backed
Financial Services
Foreign Sovereign
Agency
Healthcare
Retail
Capital Goods
Services
Consumer Goods
Transportation
Real Estate
CDS
Basic Industry
Insurance
Sovereign
Energy
Utility
Banking
Threadneedle European Corporate Bond FundPerformance attribution
35
Source: Columbia Threadneedle Investments, as at 30 September 2016, Figures are relative to iBoxx European Corporate Bond Index.
Past performance is not a guide to future performance.
European Corporate Bond Fund vs iBoxx Euro Corporates in EUR (%)
3 yr (ann) 5 yr (ann) 2011 2012 2013 2014 2015 YTD 2016
Portfolio 6.01 7.73 2.22 16.67 3.72 9.01 0.30 7.39
Benchmark 4.78 6.05 1.73 13.57 2.24 8.24 -0.66 6.05
Excess return 1.17 1.58 0.48 2.72 1.45 0.72 0.97 1.27
Interest rates 0.17 0.14 0.44 0.67 -0.60 0.32 0.20 0.06
Currency 0.05 0.02 0.07 -0.04 -0.01 0.06 0.01 0.08
Asset allocation -0.04 0.31 -1.58 1.15 0.64 -0.27 0.08 -0.20
Sector allocation 0.06 0.01 0.09 -0.11 -0.13 -0.15 -0.33 0.75
Security selection 0.94 1.09 1.46 1.05 1.55 0.75 1.01 0.57
Excess return 1.17 1.58 0.48 2.72 1.45 0.72 0.97 1.27
Appendix
Key Indicators Flag Trend
1. Tight policy
conditions Flat
2. A deteriorating
economic backdropMarginal
Deterioration
3. Expensive
valuations Worsening
4. Worsening
corporate health Worsening
5. Abnormally low
but rising volatility Flat
Investment Grade outlookKey corporate market triggers review
37
Left Source: Columbia Threadneedle Investments, September 2016.
Right Source: Bloomberg, Merrill Lynch, September 2016.
FOR INVESTMENT PROFESSIONALS ONLY
Spreads are pricing in pain but not a recession
EUR & Global Corporate Bond Spreads
Avg Global
0
50
100
150
200
250
300
350
400
450
500
1996 1998 2000 2001 2003 2004 2006 2008 2009 2011 2012 2014 2015
Spre
ad (
bp
s)
EUR IG (ER00) Global IG (G0BC)
Avg Europe
What is driving European credit markets?Very low base rates result in search for yield
38
Source: Columbia Threadneedle Investments, Bank of America Merrill Lynch, Bloomberg, September 2016.
0
1
2
3
4
5
6
7
8
Dec 96 Dec 99 Dec 02 Dec 05 Dec 08 Dec 11 Dec 14
Yie
ld (
%)
Corporate yield ECB refinancing rateAverage Ave +1 SDAve +2 SD Ave - 1 SD
0
50
100
150
200
250
300
350
400
450
500
Dec 96 Dec 99 Dec 02 Dec 05 Dec 08 Dec 11 Dec 14
OA
S s
pre
ad
(b
ps)
Corporate spread Average
2007 2016
Rating A+ A-
Sub 24% 13%
Europe: ECB refinancing rate and IG yield Europe: Investment Grade OAS spread to bunds
Investment grade corporate bond spreads (US 5-10y)IG spreads are wider than many previous crises
39
Source: Bloomberg, C6A0 index, September 2016.
0
5
10
15
20
25
0
100
200
300
400
500
600
700
1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
US IG spread (LHS, bps) Average +1 Stdev +2 Stdev +3 Stdev -1 Stdev Fed funds rate (RHS, %)
Eurozone Sovereign debt crisis
Recession /
Bank Failure
Recession
(Double-dip)
Corporate
RaidersRecession /
RTC
Russia /
LTCM
Fraud / Corp
Governance
Credit Crisis
IG bond spreads (5-10y, bps)
Investment Grade opportunitiesCross-currency market and curve point selection
40
0
50
100
150
200
250
300
3y 5y 7.5y 10y 15y 25y
IG ML Index ASW (unswapped) - 30 Sep 2016
USD Index EUR Index GBP Index
50
100
150
200
250
3y 5y 7.5y 10y 15y 25y
IG ML Index OAS (vs Govt) – 30 Sep 2016
USD Index EUR Index GBP Index
USD spread curves steep compared to history and compared to Euro and Sterling
Source: Bloomberg, Columbia Threadneedle Investments, September 2016.
Investment Grade opportunitiesCross-currency issuer selection – example of USD preference
41
Source: (left) Bloomberg, Columbia Threadneedle Investments, September 2016.
Source: (right) Bloomberg, Columbia Threadneedle Investments, September 2016.
The positions discussed here are merely for commentary purposes and should not be view ed as investment advice, nor as a recommendation to trade.
AB InBev (Euro vs USD/Sterling) AT&T (Euro vs USD/Sterling)
0
50
100
150
200
250
300
0 5 10 15 20 25 30Z s
pre
ad
(b
ps)
Years to Maturity
$ € £ Log. ($) Log. (€) Log. (£)
0
50
100
150
200
250
300
0 5 10 15 20 25 30
Z s
pre
ad
(b
ps)
Years to Maturity
$ € £ Log. ($) Log. (€)
Investment Grade opportunitiesCross-currency issuer selection – example of Euro preference
42
Source: (left) Bloomberg, Columbia Threadneedle Investments, September 2016.
Source: (right) Bloomberg, Columbia Threadneedle Investments, September 2016.
The positions discussed here are merely for commentary purposes and should not be view ed as investment advice, nor as a recommendation to trade.
Berkshire Hathaway (Euro vs USD) Liberty Mutual (Euro vs USD)
0
40
80
120
160
200
0 5 10 15 20 25 30
Z s
pre
ad
(b
ps)
Years to Maturity
$ € Log. ($) Log. (€)
0
50
100
150
200
250
300
0 5 10 15 20 25 30
Z s
pre
ad
(b
ps)
Years to Maturity
$ € Log. (€)
Global Investment Grade opportunitiesUtility and Midstream sector spreads
43
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
1.80x
2.00x
2.20x
2.40x
2.60x
Dec-96 Dec-99 Dec-02 Dec-05 Dec-08 Dec-11 Dec-14
Mid
str
eam
spre
ad /
utilit
ies s
pre
ad
Spread Average +1 STDEV -1 STDEV
Source: Bank of America ML; Bloomberg, Columbia Threadneedle Investments; September 2016.
Security Analyst Rec% fee
basedSpread Yield
EPD 4.9% 46 BBB+/R2/Mkt 85% +282 4.5%
PAA 4.9% 45 BBB/R2/Out 75% +373 5.4%
CPGX 5.8% 45 BBB-/R2/Out 95% +283 4.6%
KMI 5.55% 45 BBB-/R2/Out 82% +359 5.3%
WPZ 4.9% 45 BBB/R2/Mkt 80% +347 5.2%
1.5 stdev cheap to history
UTILITY & MIDSTREAM SECTOR CHARACTERISTICS
Stable CF driven by regulation or fee-based contracts
Minimal direct commodity price exposure
Capital intensive industries require debt market access
State Utility regulators & creditor goals are closely aligned:
reliability, affordability and IG ratings to finance growth
Midstream regulation is lighter: FERC regulation more
focussed on quality/safety than financial strength
Commodity price falls and corporate restructurings have
weighed on midstream pipeline spreads
Investment grade opportunitiesSpread widening has also run concurrent with the return of some
idiosyncratic risk
44
.
Volkswagen: Emissions scandalGlencore: Commodities price slump
Deutsche Bank: Business model & litigation RWE: Corporate restructuring
Source: Bloomberg, September 2016.
0
200
400
600
800
1000
1200
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4
Jul-
14
Oct
-14
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
ITRX Main Glencore CDS
0
50
100
150
200
250
300
350
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4
Jul-
14
Oct
-14
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
ITRX Main VW CDS
0
50
100
150
200
250
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4
Jul-
14
Oct
-14
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
ITRX Main DB CDS
0
50
100
150
200
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4
Jul-
14
Oct
-14
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
ITRX Main RWE CDS
Relative credit qualityBB High Yield flat to BBB IG. Idiosyncratic rising star stories exist
45
Source: Bloomberg, Merrill Lynch, September 2016.
Past performance is not a guide to future performance.
European Corporate Credit
BB / BBB Spread per unit of Duration
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
0
20
40
60
80
100
120
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
OA
S /
Eff
Du
r M
ult
iple
OA
S /
Eff
Du
r
Euro Corp OAS / Eff Dur BB/BBB OAS / Eff Dur (RHS) BB/BBB OAS / Eff Dur Average (RHS)
BBs cheap vs. BBBs
BBs rich vs. BBBs
Industry: Banks: Senior vs Sub Opportunities remain across bank capital structure
46
Source: Columbia Threadneedle Investments as at September 2016. This is Columbia Threadneedle Investments’ ow n internal research and should not be taken as investment advice.
Industry: Banks: TLAC
47
Source: Barclays, Morgan Stanley, January 2015.
TLAC
Equity + Hybrids + loss absorbing debt
21-25% of rwa’s for large banks
Enough debt to convert to equity so that the bank can restart over
the weekend
Assumes most or all of the equity and hybrids absorb losses
The TLAC bondholders end up owning the company (like HY
bondholders)
What qualifies?
Senior debt from a holding company (currently rare in European
context)
Opco senior debt with explicit TLAC language (current stock gets
replaced)
Current style opco senior with no TLAC language (but only up to
2.5% of rwa)
Tier 1 and Tier 2 (old instruments too)
Equity (unlikely due to WACC implications)
Industry: Banks: TLAC – supply implications
48
Source: Bloomberg, CreditSights, ECB, Company Reports, Columbia Threadneedle Investments, January 2015.
There is already a large enough stock of debt so there is no need for net issuance
Most banks have enough TLAC already (deposit funded banks penalised – HSBC)
Roughly €300bn rolling off over next 2 years (total stock c.2.5tr)
Euro market has a 4.3yr average life, sterling is 8.3yrs
Transition from current opco senior to holdco or TLAC senior can be made within 5 years
Contribution to Duration (CTD) figures explained
49
Duration is a sensitivity measure widely used in Fixed Income investment products. It indicates how sensitive a portfolio is to changes in yields.
Generally speaking, a bond with a larger duration measure implies a greater interest rate risk or reward for the price of the bond.
Contribution to Duration is a way of splitting out the amount of duration each asset in the portfolio carries, to assess which investments are
adding or reducing to the interest rate sensitivity/risk of the portfolio.
Complex calculations and formulae are involved to calculate the sensitivities, but our risk systems produce CTD reports, similar to the below.
In a very simplified example, imagine with have a portfolio with 2 holdings:
Asset 1: Contribution to duration = 3 years
Asset 2: Contribution to duration = 5 years
Portfolio duration = 8 years
You will notice these sum nicely. From this we could extrapolate that if we were to reduce exposure to Asset 2, we would be reducing the duration
of the fund and thus reducing the interest rate risk of the fund.
% Contribution to Duration is then simply the proportion of the assets’ contribution to duration to the total amount of duration in the portfolio.
So back to the example above, we would have:
Asset 1: Contribution to duration = 3 years %CTD = 3/8 = 37.5%
Asset 2: Contribution to duration = 5 years %CTD = 5/8 = 62.5%
Portfolio duration = 8 years (and of course, these sum to 100%)
Biography
ALASDAIR ROSS
Head of Investment Grade Portfolio Management, EMEA
Alasdair Ross joined the company in 2003 and is currently Head of Investment Grade Portfolio Management,
EMEA, with responsibility for our UK and European investment grade corporate credit teams in London. He is also
lead portfolio manager for UK, Euro and Global credit portfolios which include the Threadneedle European
Corporate Bond Fund, the Threadneedle (Lux) Global Corporate Bond Fund and the Threadneedle Pensions
Corporate Bond Fund.
Alasdair’s investment background is as a relative value focused, bottom-up investment grade credit analyst.
Between joining the company in 2003 and becoming a portfolio manager in 2007, he had responsibility for covering
the TMT, utility and energy sectors, as well as the sterling whole business securitisation sector.
Prior to joining the company, Alasdair worked at BP plc in a rotation of commercial roles.
Alasdair has a first class honours degree in Politics, Philosophy and Economics from the University of Oxford. He
also holds the Chartered Financial Analyst designation.
Company start date: 2003
Industry start date: 2003
50
Threadneedle European Corporate Bond FundKey Risks and Objective
51
Investment Risk: The value of investments can fall as well as rise and investors might not get back the sum originally invested.
Currency Risk: Where investments are made in assets that are denominated in multiple currencies, changes in exchange rates may affect the value of the investments.
Derivatives for EPM / Hedging: The investment policy of the fund allows it to invest in derivatives for the purposes of reducing risk or minimising the cost of transactions.
Issuer Risk: The fund invests in securities whose value would be significantly affected if the issuer either refused to pay o r was unable to pay or perceived to be unable to pay.
Liquidity Risk: The fund may hold assets that are not always readily saleable without suffering a discount to fair value. The fund may have to lower the selling price, sell other investments or forego another, more appealing investment opportunity.
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.
Objective: The Fund aims to achieve total return.
The ACD’s investment policy is to invest the assets of the Fund in a managed portfolio of fixed interest securities which are primarily Euro denominated. The portfolio will consist
primarily of a broad range of investment grade corporate fixed interest investments in companies domiciled in Europe or which have significant European operations. From time to time, it may also invest in securities issued by investment grade sovereign and supranational borrowers. However, it is inten ded that the portfolio will not be more than 25%
invested in securities rated AAA (Standard & Poor’s) or equivalent rating by another leading rating agency. A maximum of 10% of the portfolio can be invested in below investment grade securities. Where securities are non-Euro denominated it is intended that they will typically be hedged into Euro.
Important Information
52
For internal use and for Professional and/or Qualif ied Investors only (not to be used w ith 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 dow n as w ell as up and may be affected by exchange rate f luctuations.
This means that an investor may not get back the amount invested.
Threadneedle Investment Funds ICVC (“TIF”) is an open-ended investment company structured as an umbrella company, incorporated in England and Wales, authorised and regulated in the UK by the
Financial Conduct Authority (FCA) as a UCITS scheme.
TIF is registered for public offer in Austria, Belgium, Finland, France, Germany, Hong Kong, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sw itzerland (some sub-funds only) and the
UK. Shares in the Funds may not be offered to the public in any other country and this document must not be issued, circulated or distributed other than in circumstances which do not constitute an
offer to the public and are in accordance with applicable local legislation.
TIF is registered w ith Danish Financial Services Authority for marketing to professional investors only. The Funds may not be offered or sold to retail investors in Denmark.
TIF is authorised in Spain by the Comisión Nacional del Mercado de Valores (CNMV) and registered w ith the relevant CNMV's Registered w ith number 482.
Het compartiment is op grond van artikel 1:107 van de Wet op het f inancieel toezicht opgenomen in het register dat w ordt gehouden door de Autoriteit Financiële Markten. / Pursuant to article 1:107 of
the Act of Financial Supervision, the subfund is included in the register that is kept by the AFM.
Income may fluctuate in accordance with market conditions and taxation arrangements. The difference at any one time betw een the sale and repurchase price of units in the scheme means that the
investment should be view ed as a medium to long term investment. Investments may be subject to sudden and large falls in value, and the investor could lose the total value of the initial investment.
Shares in the Funds may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any “U.S. Person”, as defined in Regulation S under the 1933 Act.
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 f inancial instruments, or to provide investment advice or services.
Please read the Prospectus before investing.
Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as w ell 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 specif ically this Fund. The above documents are available in English, French, German, Portuguese, Italian, Spanish and Dutch (no Dutch Prospectus), Sw edish (for the Key Investor Information Document only) and can be obtained free of charge on request from:
- in Austria: Raiffeisen Zentralbank Österreich AG, Am Stadtpark 9, 1030 Wien;
- in Belgium: J.P. Morgan Chase Bank Brussels, 1, Boulevard du Roi Albert II, 1210 Brussels;
- in France: BNP Paribas Securities Services, 66 rue de la Victoire, 75009 Paris;
Important Information (cont.)
53
- in Finland: Eufex Bank Plc, Keilaranta 19, 02150 Espoo, Finland
- in Germany: JP Morgan AG, Junghofstr. 14, 60311 Frankfurt,
- in Ireland: J.P. Morgan Bank Administration Services (Ireland) Limited, J.P. Morgan House International Financial Services Centre, Dublin 1
- in Italy: State Street Bank S.p.A., via Col Moschin 16, 20136 Milano.
- in Luxembourg: State Street Bank Luxembourg S.A., 49 Avenue J. F. Kennedy, 1855 Luxembourg;
- in Spain: any appointed distributor listed on the Spanish Financial Regulator’s w ebsite(www.cnmv.es);
- In Sw eden from Skandiaviska Enskilda Banken AB, Kungsträdgårdsgatan, SE – 10640, Stockholm, Sw eden;
- in UK; Columbia Threadneedle Investments’ Client Services department PO Box 10033, Chelmsford, Essex CM99 2AL.
For Sw iss Investors: Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Inf ormation Document, as w ell as the latest annual or interim reports, w hich
can be obtained free of charge on request, 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 specif ically this Fund. The above documents and the instrument of incorporation are available on request from our representative and Paying Agent in Sw itzerland, BNP Paribas Securities Services,
Paris, Zurich branch, Selnaustrasse 16,CH-8002 Zurich.
This presentation is not investment, legal, tax, or accounting advice. Investors should consult w ith their ow n professional advisors for advice on any investment, legal, tax, or accounting issues relating
to an investment w ith Columbia Threadneedle Investments.
The mention of any specif ic shares or bonds should not be taken as a recommendation to deal.
This document is a marketing communication. The research and analysis included in this document have not been prepared in accordance with the legal requirements designed to promote its
independence and have been produced by Columbia Threadneedle Investments for its ow n 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 w ithout 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.
This presentation and its contents are confidential and proprietary. The information provided in this presentation is for the sole use of those attending the presentation. It may not be reproduced in any form or passed on to any third party w ithout the express written permission of Columbia Threadneedle Investments. This presentation is the property of Columbia Threadneedle Investments and must
be returned upon request.
Issued by Threadneedle Investment Services Limited. Registered in England and Wales, Registered No. 3701768, Cannon Place, 78 Cannon Street London EC4N6AG, United Kingdom. Authorised
and regulated in the UK by the Financial Conduct Authority.
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
Important Information (cont.)
54
These materials may only be used in one-on-one presentations w ith institutional investors.
Past performance is not a guide to future performance.
The value of investments and any income is not guaranteed and can go dow n as well as up and may be affected by exchange rate f luctuations. This means that an investor may not get back the
amount invested.
Where references are made to portfolio guidelines and features, these are at the discretion of the portfolio manager and may be subject to change over time and prevailing market conditions. Actual investment parameters w ill be agreed and set out in the prospectus or formal investment management agreement.
Please note that the performance target may not be attained.
The research and analysis included in this document has been produced by Columbia Threadneedle Investments for its ow n 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 w ithout 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.
The mention of any specif ic shares or bonds should not be taken as a recommendation to deal.
This presentation and its contents are confidential and proprietary. The information provided in this presentation is for the sole use of those attending the presentation. It may not be reproduced in any
form or passed on to any third party w ithout the express written permission of Columbia Threadneedle Investments. This presentation is the property of Columbia Threadneedle Investments and must
be returned upon request.
This presentation is not investment, legal, tax, or accounting advice. Investors should consult w ith their ow n professional advisors for advice on any investment, legal, tax, or accounting issues relating to an investment w ith Columbia Threadneedle Investments.
Issued by Threadneedle Investment Services Limited. Registered in England and Wales, Registered No. 3701768, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised
and regulated in the UK by the Financial Conduct Authority.
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.