The asset management firm is offering its flagship UK equity income strategy to its offshore clients.

Columbia Threadneedle is to launch the Threadneedle (Lux) UK Equity Income Fund, an offshore version of its £3.4 billion ($4.5 billion) Threadneedle UK Equity Income Fund.

The Threadneedle UK Equity Income Fund, managed by Richard Colwell, delivered a cumulative performance of 11.9 per cent over the past year, versus sector average returns during this period of 6.8 per cent, according to Trustnet.

The Luxembourg-domiciled 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 UK. It invests across a broad range of industries, with the aim of generating a dividend yield at least in line with the FTSE All Share TR Index over three years rolling, gross of fees, as well as capital growth. 

The new fund will be available to investors from the 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,” said Colwell.

As of the end of June, Columbia Threadneedle Investments managed around €414 billion ($465 billion) of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.