Threadneedle UK Social Bond fund reduces duration and changes benchmark

In response to investor feedback

Columbia Threadneedle Investments manager Simon Bond has reduced the duration of his UK Social Bond fund and changed its benchmark in response to investor feedback.

The fund launched in December 2013 in partnership with Big Issue Invest, and invests in 83 bonds issued by organisations that support social and economic development in the UK. On its third anniversary and following feedback from clients concerned about rising interest rates, Bond has reduced duration on the £97m fund from 6.8 years to 4.75 years, in a move which should also reduce volatility. To reflect the ongoing shortened duration of the fund, the group has changed the fund's benchmark from the IA Sterling Corporate Bond sector to the BofA Merrill Lynch 1-10 Year Sterling Non Gilt...