Threadneedle (Lux) Global Equity Income

Seeking quality income in a low yield world

With interest rates at historically low levels, many investors are looking for more attractive levels of income. Threadneedle (Lux) Global Equity Income Fund offers an alternative way to generate both income and growth by looking to global equities.

 

Key reasons to invest

  • A core fund offering the investor both income and growth, within a relatively concentrated portfolio of typically 75 to 95 stocks.
  • The fund offers an alternative source of income against an economic backdrop of low interest rates and low bond yields, by offering a high and secure income along with prospects for capital appreciation.
  • Offers income investors the benefits of international diversification and exposure to stronger growing economic regions.
  • Strength in depth. The global equity team benefits from Columbia Threadneedle Investments' culture of communication and holds regular meetings with the regional equity teams to debate their best ideas.

Fund Objective 

The aim of the Fund is to provide income with the potential to grow the amount you invested as well. The Fund invests at least two-thirds of its assets in shares of companies worldwide. The Fund makes active investment decisions.

Key Risks

Market 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 made in assets that are denominated in multiple currencies changes in exchange rates may affect the value of the investments. Investor Currency Risk: Where investments in the fund are in currencies other than your own, changes in exchange rates may affect the value of your investments. 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 rise more frequently and pronounced than with other funds.

 

The global investment process

As with all funds in our equities range, the Threadneedle (Lux) Global Equity Income Fund adheres to a clear investment process, as outlined in the diagram below.

 

Global Equity Income Fund campaign

 

Portfolio construction

Portfolio construction is based on stock and sector selection, rather than by geographic allocation.This flexibility allows the manager greater freedom to select which companies he believes will perform strongly. Key factors that drive stock selection are:

  • Higher than average dividend yield.
  • Robust dividend cover.
  • Good potential for dividend growth.
  • Profitable business model, with a focus on free cash flow generation.

Jonathan Crown

Jonathan Crown joined the company in 2005 as an investment analyst on the credit team.  In 2008, he moved from the Fixed Income team to the Global Equities team and has been responsible for several global portfolios since 2010.  He is also deputy head of the financials sector research team.

Before joining the company, he worked at Dresdner Kleinwort Wasserstein as an investment grade credit analyst covering financials.



Jonathan has an MA (Hons) Degree in Economics from the University of St Andrews.

Factsheet

View our Threadneedle (Lux) Global Equity Income Fund Factsheet.

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