Columbia Threadneedle Investments plans to transfer assets from UK-domiciled funds to its Luxembourg range ahead of the UK’s exit from the EU.
The asset manager will launch 13 new funds in its Luxembourg SICAV vehicle to accommodate the transferring assets, it said in a statement on Wednesday. In total, 20 UK-based funds will see assets move to Luxembourg.
All transfers are subject to approvals from investors and the UK and Luxembourg regulators. Affected investors will be contacted between now and September.
The group did not put a figure on the amount of money expected to move, but a spokesman said European clients in UK-based pooled funds “account for a very small percentage” of Columbia Threadneedle’s global assets – roughly 2%. The affected funds together are worth roughly €28bn (see below).
According to IPE’s 2017 Top 400 Asset Managers report, the company ran €432bn worldwide at the end of 2016, including €63.5bn for European institutional clients.
Michelle Scrimgeour, CEO for Europe, the Middle East and Africa at Columbia Threadneedle, said: “Our priority is to provide certainty and continuity for our clients. By facilitating the transfer of European customers to our existing Luxembourg range we will ensure they can continue to access our best investment strategies in a UCITS-compliant fund, regardless of the final agreement between the UK and the EU.
“For EU investors, the transfers will remove uncertainty regarding the future status of their investment in their home country.”
In June last year, M&G announced similar plans to move €7bn worth of assets from its UK-based funds to its Luxembourg fund vehicle to safeguard its non-UK investors.
Affected Columbia Threadneedle funds
|UK-based fund||Size||Luxembourg-based fund||Size|
|Threadneedle American Fund||£2.2bn||Threadneedle (Lux) – American||$230m|
|Threadneedle American Extended Alpha Fund||£169m||Threadneedle (Lux) – American Extended Alpha||New fund|
|Threadneedle American Select Fund||£1.1bn||Threadneedle (Lux) – American Select||$9.4m|
|Threadneedle American Smaller Companies Fund||£641m||Threadneedle (Lux) – American Smaller Companies||New fund|
|Threadneedle Asia Fund||£599m||Threadneedle (Lux) – Asia||New fund|
|Threadneedle Credit Opportunities Fund||£1.9bn||Threadneedle (Lux) – Credit Opportunities||New fund|
|Threadneedle European Corporate Bond Fund||£169m||Threadneedle (Lux) – European Corporate Bond||New fund|
|Threadneedle European High Yield Bond Fund||€726m||Threadneedle (Lux) – European High Yield Bond||New fund|
|Threadneedle European Select Fund||£3bn||Threadneedle (Lux) – European Select||€32.9m|
|Threadneedle European Smaller Companies Fund||£2.2bn||Threadneedle (Lux) – European Smaller Companies||New fund|
|Threadneedle Global Emerging Markets Equity Fund||£326m||Threadneedle (Lux) – Global Emerging Market Equities||$4.6m|
|Threadneedle Global Equity Income Fund||£1.6bn||Threadneedle (Lux) – Global Equity Income||New fund|
|Threadneedle Global Extended Alpha Fund||£261m||Threadneedle (Lux) – Global Extended Alpha||New fund|
|Threadneedle Global Select Fund||£1.2bn||Threadneedle (Lux) – Global Select||New fund|
|Threadneedle Pan European Fund||£252m||Threadneedle (Lux) – Pan European Equities||€64.7m|
|Threadneedle Pan European Equity Dividend Fund||£63m||Threadneedle (Lux) – Pan European Equity Dividend||New fund|
|Threadneedle Pan European Smaller Companies Fund||£1.6bn||Threadneedle (Lux) – Pan European Smaller Companies||New fund|
|Threadneedle UK Fund||£2.1bn||Threadneedle (Lux) – UK Equities||£145.3m|
|Threadneedle UK Absolute Alpha Fund||£648m||Threadneedle (Lux) – UK Absolute Alpha||New fund|
|Threadneedle UK Equity Income Fund||£3.9bn||Threadneedle (Lux) – UK Equity Income||£78.4m|
Source: Columbia Threadneedle Investments. Fund size data correct as of 31 March 2018.