Columbia Threadneedle expands US equity fund range

Added 19th June 2017

Columbia Threadneedle Investments is expanding its US equity fund range with the launch of the Threadneedle (Lux) US Disciplined Core Equities Fund in its Luxembourg Sicav.

Columbia Threadneedle expands US equity fund range

Managed by Brian Condon and Peter Albanese in Boston, the fund provides exposure to US large-cap companies through a quantitative approach with some fundamental analysis.

The long-only fund will hold around 80 stocks and aims to generate returns through stock selection while avoiding sector risks by building a sector-neutral portfolio. 

Initially registered in Luxembourg, the fund is intended for distribution across other markets pending regulatory approval in each country.

These include Austria, Belgium, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and Switzerland.

Charges

The fund will target outperformance of 150 basis points (gross of fees) over the S&P 500 Index annualised over a period of three to five years, with a target tracking error of 2-4%.

It has an ongoing-charges figure of 45 basis points per annum for the platform share class, including an annual management charge of 30 basis points.

Consistent and repeatable

Gary Collins, head of wholesale distribution, Emea at Columbia Threadneedle Investments said: “This fund complements our existing range of higher alpha US equity products and gives clients more choice of investment strategy for their US equity allocations.”

Condon added: “This fund aims to give investors consistent outperformance of the US equity market in a lower cost product. We believe that a fundamentally based, quantitatively implemented investment process can identify and exploit mispricing opportunities in a consistent and repeatable manner.

“By identifying fundamental drivers of stock returns within different industries, we build industry-specific stock selection models which identify undervalued as well as overvalued stocks. Drawing on these models, we construct a diversified, risk-managed portfolio that emphasises stock selection while minimising unintended style, sector, and industry exposures.”

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Kirsten Hastings

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Kirsten is a senior reporter for International Adviser, covering global news stories about the financial services industry. She joined Last Word Media in October 2015 after two years working as a reporter covering the staffing and recruitment industry. Kirsten has a Masters in Financial Journalism from the University of Stirling. 

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