Columbia Threadneedle monitors capacity in £1.5bn Credit Opportunities fund

Grown AUM from £819m last year

Columbia Threadneedle is closely watching flows into its Credit Opportunities fund, and considering further measures to limit demand, amid soaring assets under management (AUM).

The firm said they have stopped pitching the fund to new clients and are looking at applying further limits to halt flows, such as a soft closure, after AUM climbed from £819m in April 2016 to £1.5bn as at the end of April. Managed by Barrie Whitman, the fund takes long/short positions across both investment grade and high yield credit while aiming to deliver absolute returns. Over the past year to 15 May, the fund has returned 4.4% compared to the IA Targeted Absolute Return sector average of 3.9%, according to FE. Managers warn unwinding European QE could burst 'the mother of all...