Columbia Threadneedle plans offshore Sicav of UK income fund

Columbia Threadneedle Investments will launch an offshore version of its UK equity income fund.

Portfolio Adviser


The announcement comes just days after Rathbones said it plans to launch a similar offshore version of its UK income fund for investors based in Continental Europe.

Domiciled in Luxembourg, the Threadneedle (Lux) UK Equity Income Fund will be based on a Sicav structure and hopes to mirror its successful £3.4bn ($4.5bn, €4.01bn) UK fund managed by Richard Colwell, typically holding between 45-60 positions in UK-based companies.

According to the firm, the fund will aim to deliver a dividend yield at least in line or greater than the FTSE All Share TR Index (over three years rolling, gross of fees) and capital growth.

Available to investors from October, the offshore fund will provide investors access to the UK equity income team’s knowledge and expertise, said Columbia Threadneedle in statement on Tuesday.

“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,” said Colwell.

Gary Collins, head of wholesale for EMEA, Columbia Threadneedle, 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.”


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