Institutions eye fixed income – Threadneedle

UK – Threadneedle Investments says it anticipates that institutions will raise their allocations to fixed interest due to a change in the way pension fund liabilities are measured.

"As a result of changing the measuring of pension fund liabilities to using a bond-derived discount rate, we anticipate further institutional allocation to fixed interest in the years ahead,” said Threadneedle’s head of fixed interest Robert Stirling.

“Consequently our bond team needs to be optimally staffed.” The remarks come as the firm announced that it has hired Quentin Fitzsimmons, formerly director of fixed interest (UK Bonds) at F&C Management. Fitzsimmons will be responsible for some institutional UK government bond portfolios and will work with Sandra Holdsworth.

In June Threadneedle hired AXA Investment Managers’ head of corporate bonds, Simon Bond.

The latest survey of fund managers carried out by Merrill Lynch found that global fund managers have changed their interest-rate views - leading to a sharp move underweight in bonds.

Meanwhile, Threadneedle has also said that Dominic Baker will take over its Pan-European Growth Fund at the end of August. He will replace Susie Roberts who is to pursue a career in the sailing industry.

Threadneedle is in the process of being bought by American Express Co. for 482 million euros from Zurich Financial Services, with the deal expected to be completed before the end of the year.

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