Columbia Threadneedle Investments

LV= EMPLOYEE PENSION SCHEME INVESTS £80 MILLION IN THE THREADNEEDLE DYNAMIC REAL RETURN FUND

Press Release   •   Aug 20, 2015 10:29 +08

LONDON, 10 August 2015: Columbia Threadneedle Investments, a leading global asset management group, today announced that the LV= Employee Pension Scheme has invested £80 million from its Defined Benefit (DB) section in the Threadneedle Dynamic Real Return fund, the company’s flagship Diversified Growth fund. 

The LV= Employee Pension Scheme (DB section) is valued at approximately £1.3 billion and has some 11,000 members.1 It is advised by investment consultant Redington who assisted with the search. 

The Threadneedle Dynamic Real Return fund offers investors well diversified, active asset allocation and active underlying funds. Managed by Toby Nangle, Head of Asset Allocation, EMEA, it seeks to deliver equity-like returns with two thirds of the volatility. It takes a ‘go anywhere’ approach by exploiting market inefficiencies and dynamically allocating between equities, fixed income, commodities, property, alternatives and cash. 

The fund has a consistent track record of outperformance, having delivered 6.9% 2 per annum since inception in June 2013, exceeding its performance target of CPI +4%. It has been designed as a risk efficient, return-seeking investment for DB Schemes and as a default option for Defined Contribution (DC) Schemes. Columbia Threadneedle Investments’ own DB and DC Schemes invest in the fund. 

Paul Cassidy, Chairman of Trustees at LV= Employee Pension Scheme, said: “Our employee pension scheme has a long-standing relationship with Columbia Threadneedle Investments, which has been managing a large proportion of our assets in various mandates over the last few years. The firm has a strong track record in multi asset investing spanning two decades. We were attracted by the Threadneedle Dynamic Real Return fund as it has proven a successful strategy for investors looking for equity-like returns with lower volatility.”

1. Figures as at 31.03.2015. Source: Trustee Report and Accounts for the year ended 31 March 2015, 

2. Gross performance. Figures as at 30.06.2015 

Andrew Nicoll, Global Head of Insurance at Columbia Threadneedle Investments, said: “We manage £9.5 billion for LV= and value our long-standing, strategic partnership. Asset allocation and multi asset mandates are a core competency of ours and we are pleased that the LV= Employee Pension Scheme is investing in our flagship Diversified Growth fund. The fund’s dynamic multi asset approach is able to swiftly react to and take advantage of divergence in risk and market returns. It is a good option for pension schemes looking to invest for long-term growth. We look forward to continuing to deliver strong returns for LV= and meeting the investment needs of its pension scheme.” 

Columbia Threadneedle Investments in EMEA manages approximately £42.5 billion3 in multi asset portfolios. Its Asset Allocation Strategy Group consists of nine senior members from the company’s global investment team, including Toby Nangle and EMEA CIO Mark Burgess. The company has last year expanded its wider multi asset capability, with Maya Bhandari joining as Multi Asset Investment Strategist from Citigroup and Craig Nowrie joining as Client Portfolio Manager from Aon Hewitt. In July 2014, the firm launched the Threadneedle Global Multi Asset Income Fund in response to the UK pension reforms.

Notes to Editors

All figures as at 30 June 2015 

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. 1 Source: Ameriprise Financial Q2 2015 earnings release. 

Past performance is not a guide to future performance. 

The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. 

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 financial instruments, or to provide investment advice or services.

Issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, 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 a leading global asset management group that provides a broad range of actively managed investment strategies and solutions for individual, institutional and corporate clients around the world.

With more than 2000 people including over 450 investment professionals based in North America, Europe and Asia, we manage (£341 billion / €471 billion / US$ 506 billion)¹ of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives. Columbia Threadneedle Investments is the global asset management group of Ameriprise Financial, Inc., a leading US-based financial services provider. As part of Ameriprise, we are supported by a large and well-capitalised diversified financial services firm.