Fixed income veteran Simon Bond will retire in 2023 after nearly four decades in the industry.
The aptly named Bond (pictured) will take a step back from his fund management duties at Columbia Threadneedle at the end of June. He has been at the asset manager for 19 years and has helmed the Threadneedle UK Social Bond fund since launch in 2013.
The £389.8m fund has returned 27% over that timeframe, just shy of the IA Sterling Corporate Bond sector average of 29%. It is in the top quartile of funds on a one-year view, despite losing investors 5.8%.
Tammie Tang will take over the mandate from the end of June, as well as the Luxembourg-domiciled Threadneedle European Social Bond fund, having been deputy manager on both for the past four years.
Simultaneously, Bond will transition into a part-time role supporting Columbia Threadneedle’s Emea-based social bond range where he will continue to work on growing the market for impact fixed income products, Portfolio Adviser understands.
He is also expected to remain on the funds’ social advisory committees, on top of his advisory work for the Investment Association Green Gilts subcommittee and the Climate Transition Finance Working Group, among others.
II places Threadneedle UK Social Bond under review
Dzmitry Lipski, head of fund research at interactive investor (II), described him as “a true pioneer in social bond investing”. In addition to building Columbia Threadneedle’s $1.1bn social bond franchise over eight years, Bond spearheaded a campaign for green gilts in 2019, the first of which was issued in 2021.
Threadneedle UK Social Bond was one of the first funds to feature on II’s ethical buy list, the Ace 40. Following news of Bond’s retirement, it has been placed under review by Morningstar, which is in charge of II’s fund research.
Lipski said the fund is a “strong choice” for investors who are particularly concerned with the ‘social’ aspect of ESG investing, as it buys bonds issued by companies, governments, voluntary organisations and/or charities that engage in socially beneficial activities and development.
“However, as Simon takes a step back from the day-to-day running of the fund after so many years, Morningstar must take the time to properly assess whether this changes anything going forward, and whether we can continue to recommend it,” he added.
Morningstar plans to meet with Tang in the coming months to review the fund.
