Columbia Threadneedle 

Columbia Threadneedle moves UK funds over Brexit fears

Columbia Threadneedle moves UK funds over Brexit fears

Columbia Threadneedle has revealed plans to transfer the assets of European clients currently in its range of UK domiciled funds into the equivalent Sicav products domiciled in Luxembourg.

The company said this is due to fears about the UK leaving the European Union.

As FTAdviser previously reported, the UK government's secretary of state for exiting the EU, David Davis, has refused to guarantee the status of the financial services sector as part of any new arrangement with the EU.

Clients of 20 Columbia Threadneedle funds, including the £4.4bn UK Equity Income fund, which is run by Richard Colwell, will be switched into the offshore versions of the same funds.

All clients are being switched to funds managed by precisely the same fund manager as previously, and will pursue the same investment strategy.

The relevant regulators in the UK and Europe have been informed of Columbia Threadneedle's intention to move.

Michelle Scrimgeour, chief executive for Europe, 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.”

The funds will be switched between May and September, with investors receiving further information prior to any switch being made.

In total, the funds being managed equate to £6.2bn in assets. Minesh Patel, an adviser at EA Solutions in London., said "this is an interesting development. It is the first of the major providers taking action to protect their clients from disruption.. Quite a number of the funds on that list are top performers, and this action is designed to protect those mandates, so they can continue to do what they have been doing to achieve that performance".   

The full list of funds affected is:

Impacted funds

Threadneedle Fund

 

To

 

Threadneedle (Lux) Fund

 

Threadneedle Pan European Smaller Companies Fund

 

 

 

Threadneedle (Lux) – Pan European Smaller Companies

 

Threadneedle Credit Opportunities Fund

 

 

 

Threadneedle (Lux) – Credit Opportunities

 

Threadneedle European High Yield Bond Fund

 

 

 

Threadneedle (Lux) – European High Yield Bond

 

Threadneedle Pan European Fund

 

 

 

Threadneedle (Lux) – Pan European Equities

 

Threadneedle European Corporate Bond Fund

 

 

 

Threadneedle (Lux) – European Corporate Bond

 

Threadneedle Pan European Equity Dividend Fund

 

 

 

Threadneedle (Lux) – Pan European Equity Dividend

 

Threadneedle European Smaller Companies Fund

 

 

 

Threadneedle (Lux) – European Smaller Companies

 

Threadneedle Global Equity Income Fund

 

 

 

Threadneedle (Lux) – Global Equity Income

 

Threadneedle Global Extended Alpha Fund

 

 

 

Threadneedle (Lux) – Global Extended Alpha

 

Threadneedle American Smaller Companies Fund (US)

 

 

 

Threadneedle (Lux) – American Smaller Companies

 

Threadneedle Global Select Fund

 

 

 

Threadneedle (Lux) – Global Select

 

Threadneedle American Extended Alpha Fund

 

 

 

Threadneedle (Lux) – American Extended Alpha

 

Threadneedle European Select Fund

 

 

 

Threadneedle (Lux) – European Select

 

Threadneedle UK Fund

 

 

 

Threadneedle (Lux) – UK Equities

 

Threadneedle American Fund

 

 

 

Threadneedle (Lux) – American

 

Threadneedle American Select Fund

 

 

 

Threadneedle (Lux) – American Select

 

Threadneedle UK Equity Income Fund

 

 

 

Threadneedle (Lux) – UK Equity Income

 

Threadneedle UK Absolute Alpha Fund

 

 

 

Threadneedle (Lux) – UK Absolute Alpha

 

Threadneedle Global Emerging Markets Equity Fund

 

 

 

Threadneedle (Lux) – Global Emerging Market Equities

 

Threadneedle Asia Fund

 

 

 

Threadneedle (Lux) – Asia

 

 

Minesh Patel, an adviser at EA Solutions in London, said Columbia Threadneedle's move was "an interesting development."

He said: "It is the first of the major providers taking action to protect their clients from disruption.

"Quite a number of the funds on that list are top performers and this action is designed to protect those mandates, so they can continue to do what they have been doing to achieve that performance."

david.thorpe@ft.com