• Active ETF expansion into Europe planned by end of 2025, fuelled by client demand for products that balance risk, return and value
• Initial suite of products for the European market will be Equities focused, building on and enhancing the firm’s successful US range of ETFs
• New range of Active Equity ETFs will provide clients with exposure to Global, US, Europe and Emerging Markets, complementing the existing EMEA product suite

Columbia Threadneedle Investments will build on its successful range of Active ETFs in the US by launching 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 $15bn1 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 ambition is to build out the range to include Fixed Income Active ETFs next year.

Columbia Threadneedle has a strong track record in designing and managing ETF strategies to meet client needs with $5.5bn2 in assets across 14 US domiciled ETFs. The initial Active Equity ETFs for the European market leverage the firm’s experience in managing ETFs and systematic solutions. The range will build on the investment approach behind the Columbia Research Enhanced Core ETF (NYSE Arca: RECS)3 , which is fivestar rated by Morningstar and combines quantitative analysis with Columbia Threadneedle’s extensive fundamental research capabilities. The Active Equity ETFs will be truly active, designed to outperform the index.

Richard Vincent, Head of Product (EMEA) at Columbia Threadneedle Investments, said: “We continually look to develop and broaden our investment offering for clients by providing innovative, value for money products and solutions that complement our existing offering. In line with this, 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.”

Columbia Threadneedle’s new European Active Equity ETFs will look to address the following needs of discretionary fund buyers:

1. Core equity exposures with conviction – providing clients with portfolio building blocks which are benchmark-aware yet aim to provide alpha through true stock selection.
2. A proven, consistent and repeatable investment strategy – using both quantitative and fundamental research expertise in a rules base approach which is repeatable and easy to understand.
3. Transparency and cost-efficiency – providing daily disclosure of investment decisions, a portfolio designed for low transaction costs and competitive fees.

Michaela Collet Jackson, Head of EMEA Distribution and Marketing at Columbia Threadneedle Investments, commented: “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 openended 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.”

Additional information on the four Active Equity ETFs being launched in Europe will be released later this year.

Source: Columbia Threadneedle Investments