Columbia Threadneedle Investments has announced its plans to launch a Luxembourg-domiciled offshore version of its £3.4bn Threadneedle UK Equity Income Fund managed by Richard Colwell.
The Threadneedle (Lux) UK Equity Income fund will mirror the onshore fund which typically holds between 45-60 positions in companies domiciled in the UK or exercising a predominant part of their activity in the country across a broad range of industries, with the aim to deliver a dividend yield at least in line or greater than the FTSE All Share TR Index (over 3 years rolling, gross of fees) and capital growth.
Threadneedle UK Equity Income Fund has delivered 10.7 per cent annualised return over five years. The Luxembourg-domiciled offshore version is expected to be available to investors from beginning of October 2016.
“The ultra-low rate environment and an ageing population means that income remains a priority for many investors, whether they need dividends to help fund their living expenses or because regular cash payments are reinvested to bolster returns. I am very pleased that we will now be able to offer our offshore clients our successful UK Equity Income strategy,” Colwell said.
“The fund is being launched in response to strong demand from overseas investors to access our market-leading UK equity income franchise which until now we have not been able to offer. A Sicav structure provides us with a vehicle to broaden our distribution and give investors access to an established and market-leading investment team,” said Gary Collins, head of Wholesale, EMEA, at Columbia.