Cielinski, formerly head of global investment grade credit at Goldman Sachs, joined Threadneedle in October 2010 but has not yet taken up lead position on any of the group’s funds.
With the Threadneedle (Lux) Global Opportunities Bond fund, that is still subject to regulatory approval, Cielinski will adopt a flexible, go-anywhere approach to the fixed interest markets. The fund will look to achieve an absolute return by investing in a range of fixed income assets including developed and emerging market government bonds, investment grade and high yield corporate bonds, asset backed securities, currencies and fixed income derivatives.
Cielinski notes having the flexibility to invest in a broad cross-section of risks will enable him to generate attractive returns over a full investment cycle. Diversification will be key to the fund’s strategy and he will look to draw on the expertise of Threadneedle’s 43 strong fixed income team for investment ideas.
He says: “There are currently high levels of dispersion that exist in the fixed income markets. Barriers between traditional asset classes are rapidly eroding. Classifications such as ‘emerging markets’, ‘corporate credit’ and ‘sovereign credit’ are becoming less meaningful as risks blur and nearly all types of fixed income instrument assume some degree of credit risk.”
Threadneedle already has three absolute return bond portfolios, including its Target Return funds, and has recently been expanding its equity offerings in this space. Threadneedle UK Absolute Alpha and American Absolute Alpha were launched last year.
