Columbia Threadneedle partners with UBS GWM for newly launched sustainable fund

4 October 2023

• UBS Global Wealth Management contributes to CT (Lux) Sustainable Global Equity Enhanced Income Fund
• A value bias gives the new Fund a differentiating style dynamic

Columbia Threadneedle Investments, a leading global asset management group, today announces that its longstanding client, UBS Global Wealth Management (UBS GWM), has invested into its newly launched CT (Lux) Sustainable Global Equity Enhanced Income Fund (The “Fund”).

The new Fund, which was launched in late August, is categorised as Article 8 under the SFDR regulation and targets attractive and resilient levels of income from a ‘core’ portfolio of sustainability income leaders. The portfolio is complemented by an ‘overlay’ strategy to enhance the portfolio’s income, with a combined target yield of between 4 and 8% per annum.

The Fund is built around sustainability themes to identify 30-50 companies who stand to benefit from, or contribute to, trends in sustainable development. Nick Henderson and Columbia Threadneedle’s broader global equities team have identified seven persisting ‘megatrends’ including energy transition, health and wellbeing and sustainable cities, which will provide long-term tailwinds to well-placed companies.

Whilst ensuring a clear focus on sustainability solution providers, the resultant portfolio is tilted to a core/value style, which differentiates the Fund from typical growth orientated peers.

Bruno Marxer, Head Global Investment Management at UBS GWM, said: “Sustainability is a key fundamental trend that will continue to shape markets, in our view. We are, therefore, pleased to bring to life this new sustainable investment solution in collaboration with an esteemed industry partner, to offer our clients exclusive access to a fund that is aligned with market trends and contributes to portfolio diversification.”

Commenting on the partnership with UBS GWM, Michaela Collet Jackson, Head of Distribution, EMEA at Columbia Threadneedle, said: “We’re proud and grateful that UBS GWM have yet again entrusted Columbia Threadneedle with their assets, investing in another of our new sustainable funds. UBS GWM’s contribution takes the Fund to a critical size straight away, allowing the portfolio manager to invest meaningfully and opening the Fund to other potential investors. Working closely with our client, we believe we’ve launched a Fund that provides the enhanced income element which investors are so keen to capture in the current persistent inflationary environment and does so in a differentiated sustainable portfolio.”

Source: Columbia Threadneedle