Columbia Threadneedle Investments has today announced plans to launch a Luxembourg-domiciled offshore version of its £3.4bn Threadneedle UK Equity Income fund.
The existing UK equity income fund, managed by Richard Colwell, holds 45 to 60 positions in companies domiciled in the UK or with a “predominant part of their activity” in the UK.
The fund seeks capital growth and dividend yield in line or greater than the FTSE All Share TR index over three years rolling and gross of fees.
It has delivered 10.7 per cent annualised return over five years.
Columbia Threadneedle head of wholesale for EMEA Gary Collins says the offshore fund is being launched in response to strong demand from overseas investors who have wanted to access the existing UK equity income fund.
“A Sicav structure provides us with a vehicle to broaden our distribution and give investors access to an established and market-leading investment team.”
Colwell says: “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.”
The fund will be available to investors from beginning of October 2016.