Columbia Threadneedle Investments plans to launch a range of four UCITS active equity ETFs across the UK and Europe later this year, subject to regulatory approval. The initial product range will be run by US-based senior portfolio manager Chris Lo and his team, who manage $15bn in assets across 13 US-domiciled funds.
The four new active ETFs will provide European clients exposure to global, US, Europe and emerging market equities. The group aims to build out the range to include fixed income active ETFs next year.
Columbia Threadneedle said the launches are in response to client demand for products that balance risk, return and value for money. The active ETFs will allow discretionary fund buyers to add core equity positions with conviction using these funds as portfolio ‘building blocks’.
They will offer a consistent and repeatable investment strategy, and offer transparency and cost-efficiency with low transaction costs and competitive fees.
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The range will build on the investment approach behind the Columbia Research Enhanced Core ETF, which is five-star rated by Morningstar and combines quantitative analysis with Columbia Threadneedle’s fundamental research capabilities. The group said the active equity ETFs will be truly active, designed to outperform the index.
Michaela Collet Jackson, head of EMEA distribution and marketing at Columbia Threadneedle Investments, said: “We are excited to bring this innovative and differentiated investment strategy to market in Europe within an active ETF wrapper. The four new active ETFs will complement our existing open-ended fund offering, increasing optionality for clients who are looking for core active building blocks for their portfolios.
“Active ETFs are increasingly adopted by clients as an efficient way to implement portfolios. By leveraging our US track record, we can provide clients excellent value for money. We believe this presents a real growth opportunity for us in the region.”
This story was written by our sister title, Portfolio Adviser
