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Threadneedle to move €7bn European assets out of UK

Fund manager Columbia Threadneedle Investments will move up to €7 billion (£6.12 billion) of money held by EU investors from London to Luxembourg.

 
Threadneedle to move €7bn European assets out of UK

Fund manager Columbia Threadneedle Investments plans to move up to €7 billion (£6.12 billion) held by EU investors in its UK funds as it begins final preparations for Brexit.

The group is proposing to transfer assets held in 20 of its London-based open-ended investment companies (Oeics) by investors in the European Union to equivalent funds it operates in Luxembourg.

The transition, which will see it add 13 funds to its range of ‘Sicavs' in Luxembourg, requires shareholder approval. The Commission de Surveillance du Secteur Financier (CSSF) and the Financial Conduct Authority (FCA) have been notified.

The sums involved represent just under 2% of Columbia Threadneedle’s global assets under management of €395 billion.

Michelle Scrimgeour, chief executive of EMEA 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.'

Columbia Theadneedle's decision to transfer EU client money to its Sicav range follows a similar move by M&G, which earlier this year announced plans to move four non-UK client funds, containing €6 billion in assets, to Luxembourg in what it called a 'precautionary move'.

 

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