THREADNEEDLE UK EQUITY FUND RANGE INCOME STRATEGIES

Transcription

1 THREADNEEDLE UK EQUITY FUND RANGE INCOME STRATEGIES CORE INCOME FUND Fund SMOOTH INCOME UK Monthly Fund HIGH CONVICTION Alpha Fund DIVERSIFICATION Monthly Extra Fund UNCONSTRAINED UK Growth & Fund

2 Fund Range Strategies INVESTING IN UK EQUITIES Shares in UK companies continue to be a popular choice for UK investors. The broad range of businesses on offer and the familiarity of many of the companies featured make the UK market an attractive option for novices and highly sophisticated investors alike. Our team takes a collaborative approach to investing, primarily focusing on bottom-up stock fundamentals, while also leveraging the wider macro and thematic resources from across the investment teams at Columbia Investments. Our Equity team s investment philosophy places valuation at the heart of the process, exploiting short-term market volatility to capture longer-term valuation opportunity. The team manages a variety of UK equity strategies, including core, alpha, high alpha, income, mid 250, smaller companies, long-short and ethical portfolios. OUR UK EQUITY PHILOSOPHY n We believe that markets are inefficient. n We place valuation at the heart of our investment process. n We use short-term volatility in the market to exploit the long-term valuation opportunity. n By constructing a diversified portfolio we are able to deliver consistent and strong risk adjusted returns through the cycle. should be core to any investor s portfolio. We believe our compelling suite of income products cater to a range of risk appetites and distribution requirements. Richard Colwell, Head of UK Equities 2

3 Fund Range Strategies WHY COLUMBIA THREADNEEDLE INVESTMENTS n Large and experienced team our team includes 10 investment professionals with an average of 16 years experience, a client portfolio manager and two dedicated dealers. The team has over 21bn of assets under management* n Balanced risk approach central to all parts of the investment process and independently monitored by a dedicated risk team n Collaborative approach the investment process of each fund in the range leverages the stock ideas generated by the team as well as our wider macro and thematic thinking n Strong track record 97% of our actively managed UK equity strategies have outperformed over 10 years** WHY UK EQUITY INCOME? Demand for investment solutions that can deliver a consistent and sustainable income is rising due to an ageing population and the introduction of pension freedoms. Yet, in a world where ultra-low interest rates have become the norm it has become harder to meet those income needs. Against such a difficult backdrop, the higher income delivered by UK dividend-paying shares has become a vital source of returns for investors. They can provide a high and growing source of income, and complemented by the power of compounding can also be a good strategy for long-term capital growth. *Source: Columbia Investments as at ** Total strategies managed by Asset Management Limited outperforming their relevant benchmark (Peer group or index) at , in GBP, including segregated accounts/portfolios, weighted by AuM. Fund performance relative to peer group median (source: Morningstar) calculated using official prices with income reinvested, net of assumed fees and expenses excluding initial charges. Fund performance relative to index is gross of total expenses using global close authorised valuations based on in-house calculated transactions with cash flow at start of day. Past performance is not a guide to future performance.

4 Fund Range Strategies OUR UK EQUITY INCOME FUNDS Our experienced and resourced Team manages a broad range of income strategies. DIVERSIFICATION Monthly Extra SMOOTH INCOME UK Monthly CORE INCOME FUND HIGH CONVICTION Alpha UNCONSTRAINED UK Growth & Our income strategies are managed for total return as well as income - with income constructed at portfolio level, not at stock level. Richard Colwell, Head of UK Equities 4

5 Fund Range Strategies IA SECTOR DISTRIBUTES FUND MANAGER(S) TYPICAL NO OF HOLDINGS RATINGS THREADNEEDLE UK EQUITY INCOME Core Fund Quarterly Richard Colwell Richard Colwell Mainstream UK income fund A THREADNEEDLE MONTHLY EXTRA INCOME Diversification Best of both combining ideas from both UK equities and bond teams for a diversified income fund & Bond Monthly Richard Colwell (Equities) & Alasdair Ross (Fixed income) (Equities) 100+ (Issues) Richard Colwell Alasdair Ross THREADNEEDLE UK MONTHLY INCOME Smooth Monthly Jonathan Barber Monthly paying UK equity income fund THREADNEEDLE UK EQUITY ALPHA INCOME High Conviction Quarterly Richard Colwell 25-5 Richard Colwell Highly focused UK equity income fund THREADNEEDLE UK GROWTH & INCOME Unconstrained Unconstrained version of core fund, not bound by yield target UK All Companies Bi-annually Richard Colwell 5-55 Richard Colwell *Yield target over three year period. Please note performance targets may not be attained. Source all information is Columbia Investments as at , unless otherwise stated. Past performance is not a guide to future performance. The fund characteristics described above are internal guidelines (rather than limits and controls). They do not form part of the fund s objective and policy and are subject to change without notice in the future. All intellectual property rights in the brands and logos set out in this slide are reserved by respective owners. 5

6 Fund Range Strategies UK EQUITIES TEAM EXPERIENCED AND RESOURCED RICHARD COLWELL Head of UK Equities 26 years experience JONATHAN BARBER 26 years experience JEREMY SMITH Core, and Head of Research 22 years experience JAMES THORNE Small and Mid Cap 18 years experience MARK WESTWOOD High Alpha and Absolute 18 years experience CHRIS KINDER Core, Alpha and Absolute 15 years experience SONAL SAGAR Analyst 11 years experience PHILIP MACARTNEY Absolute and Mid Cap 9 years experience STACEY CASSIDY Analyst 8 years experience CRAIG ADEY Analyst 5 years experience CAROLINE CANTOR Client Portfolio Manager 7 years experience DOMINIC YOUNGER Client Portfolio Analyst 4 years experience Source: Columbia Investments as at

7 Fund Range Strategies KEY RISKS UK Monthly Alpha Monthly Extra UK Growth and Investment risk: The value of investments can fall as well as rise and investors might not get back the sum originally invested Currency risk: Where investments are in assets that are denominated in multiple currencies, or currencies other than your own, changes in exchange rates Derivatives for EPM/Hedging: The investment policy of the fund allows it to invest in derivatives for the purposes of reducing risk or minimising the cost of transactions High Volatility risk: The fund typically carries a risk of high volatility due to its portfolio composition or the portfolio management techniques used. This means that the fund s value is likely to fall and risk more frequently and this could be more pronounced than with other funds Issuer risk: The Fund invests in securities whose value would be significantly affected if the issuer refused, was unable to or was perceived to be unable to pay Liquidity risk: The Fund holds assets which could prove difficult to sell. The fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities Inflation risk: Most bond and cash funds offer limited capital growth potential and an income that is not linked to inflation. Inflation is likely to affect the value of capital and income over time Interest rate risk: Changes in interest rates are likely to affect the fund s value. In general, as interest rates rise, the price of a fixed rate bond will fall, and vice versa Effect of portfolio concentration: The Fund has a concentrated portfolio (holds a limited number of investments and/or has a restricted investment universe) and if one or more of these investments declines or is otherwise affected, it may have a pronounced effect on the fund s value. Volatility: The Fund may exhibit significant price volatility 7

8 To find out more visit COLUMBIATHREADNEEDLE.CO.UK/UKEQUITIES or call * *Please note. We record calls for your protection and to improve our standards To find out more visit columbiathreadneedle.co.uk/ukequities Important Information For internal use by Professional and/or Qualified Investors only (not to be used with or passed on to retail clients). Past performance is not a guide to future performance. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. Investment Funds ICVC ( TIF ) is an openended investment company structured as an umbrella company, incorporated in England and Wales, authorised and regulated in the UK by the Financial Conduct Authority (FCA) as a UCITS scheme. TIF is registered for public offer in Austria, Belgium, France, Germany, Hong Kong, Italy, Luxembourg, The Netherlands, Portugal, Spain, Switzerland (some sub-funds only) and the UK. Shares in the Funds may not be offered to the public in any other country and this document must not be issued, circulated or distributed other than in circumstances which do not constitute an offer to the public and are in accordance with applicable local legislation. Specialist Investment Funds ICVC ( TSIF ) is an open-ended investment company structured as an umbrella company, incorporated in England and Wales, authorised and regulated in the UK by the Financial Conduct Authority (FCA) as a UCITS scheme.tsif is registered for public offer in Austria, Belgium, France, Germany, Hong Kong (some sub-funds only), Ireland, Italy, Luxembourg, the Netherlands, Norway (some sub-funds only), Portugal (some sub-funds only), Spain, Switzerland (some sub-funds only), Sweden and the UK. Shares in the Funds may not be offered to the public in any other country and this document must not be issued, circulated or distributed other than in circumstances which do not constitute an offer to the public and are in accordance with applicable local legislation. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services. Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports and the applicable terms & conditions. Please refer to the Risk Factors section of the Prospectus for all risks applicable to investing in any fund and specifically this Fund. The above documents are available in English only and may be obtained free of charge on request from Columbia Investments at PO Box 100, Chelmsford, Essex CM99 2AL. This document is not investment, legal, tax, or accounting advice. Investors should consult with their own professional advisors for advice on any investment, legal, tax, or accounting issues relating an investment with Columbia Investments. The fund characteristics described above are internal guidelines (rather than limits and controls). They do not form part of the fund s objective and policy and are subject to change without notice in the future. The analysis included in this document has been produced by Columbia Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be Guaranteed. Issued by Investment Services Limited. Registered in England and Wales, Registered No , Cannon Place, 78 Cannon Street, London EC4N 6AG. Authorised and regulated in the UK by the Financial Conduct Authority. Columbia Investments is the global brand name of the Columbia and group of companies. columbiathreadneedle.com Issued Valid to J