Certitude Global Investments (Certitude) has launched the Threadneedle Global Equity Income Fund (Unhedged) (‘the Fund’), an Australian registered investment management scheme which invests in the actively managed Threadneedle Global Equity Income Fund.
The Fund is the latest addition to Certitude’s range of actively managed investment funds in Australia.
Commenting on the launch, Craig Mowll, CEO of Certitude, said “Threadneedle is one of Europe’s leading active fund managers and we are pleased that our partnership is going from strength to strength through the addition of the Fund”.
Mr Mowll went on to explain the growing need for a global equity income fund to meet the changing needs of Australian investors and confirmed that Australian retail and wholesale investors would be able to access the Fund exclusively through Certitude.
“Interest rates and bond yields are at historically low levels,” he said, “and Australian investors are increasingly looking for income. We think the Fund will tick all the boxes by offering an attractive and stable income stream with the potential for capital appreciation over the longer term,” he explained. “Further, it provides Australian investors with the ability to diversify their portfolio with income producing assets.”
The performance of the Threadneedle Global Equity Income Fund since its inception in June 2007 has been impressive. It has consistently outperformed its benchmark, the MSCI AC World Index, over 1,2,3,4 and 5 years* and achieved an historic yield for the 12 months to 30 September 2012 of 5.6%.
“5.6% is an excellent result, particularly in the current low interest rate environment,” Mr Mowll said.
The Threadneedle Global Equity Income Fund is managed out of London by Stephen Thornber, utilising Threadneedle’s robust investment process. Mr Thornber has managed this fund since its inception in 2007.
“In managing the fund my focus is on ‘quality income’ stocks that offer a combination of high dividends, growth and a robust financial structure,” Mr Thornber said. “Sustainability is key, I look for companies with business models and balance sheets that will support a high and growing dividend stream, which means we typically only invest in shares with a yield of at least 4%, he said. “There are no derivatives or hedging used in the fund.
The Threadneedle Global Equity Income Fund invests in a relatively concentrated portfolio of international equities, typically between 75 and 95 stocks. Investors benefit from geographic and industrial diversification, with regional and sector weights reflecting the best opportunities, unconstrained by regional boundaries.
“Risk control is central to portfolio construction, building the portfolio from the bottom up through stock selection, whilst ensuring diversification at the stock, sector, thematic and country level. A global approach offers the largest opportunity set of dividend paying stocks, and gives me flexibility to move into and out of regions and sectors to take advantage of growth and value opportunities,” Mr Thornber explained.
Mr Mowll concluded by saying that he believed the Fund was ideally suited to either retail or wholesale investors who are looking for regular income, combined with longer term capital growth.
“Certitude welcomes the opportunity of offering Australian investors exclusive access to another quality global fund.” he said.
The Threadneedle Global Equity Income Fund (Unhedged) will be available to retail and wholesale Australian investors directly from Certitude from 19 November 2012.
