Columbia Threadneedle Investments will join other legacy fund managers entering Europe’s active ETF market with a suite of four equity strategies later this year.
The Boston-based asset manager is awaiting regulatory approval to launch its initial UCITS ETF offering covering global, US, Europe and emerging markets.
The four ETFs “will build on” the investment approach of the US-listed Columbia Research Enhanced Core ETF, which is passively managed and replicates the performance of the Beta Advantage Research Enhanced US Equity index.
The index is sector neutral versus the Russell 1000 and combines quality, value and “catalyst” factors to select well-rated securities based on the manager's own quantitative model.
The upcoming UCITS ETF suite will also be “benchmark-aware”, with a “repeatable investment strategy” and “rules based approach”.
However, the European offering will be run by US-based senior portfolio manager Chris Lo and his team, intended to be “truly active, designed to outperform the index”, the firm said.
Richard Vincent, head of product EMEA at Columbia Threadneedle Investments, commented: “Bringing active ETFs to Europe and building on the foundations of our successful offering in the US is a natural expansion, tapping into years of expertise in delivering ETF solutions to our US clients.”
Michaela Collet Jackson, EMEA head of distribution and marketing added: “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.”
The firm currently offers 14 US domiciled ETFs housing $5.5bn assets under management (AUM) collectively.
After debuting its initial four-strong suite, it plans to build out its range in Europe to include active fixed income ETFs next year.
