Columbia Threadneedle to expand Luxembourg business post-Brexit

EU-Euro-Europe-Eurozone-700x450.jpgColumbia Threadneedle is planning to relocate fund managers and launch new funds to expand its Luxembourg business following the UK’s decision to Brexit.

The asset management company says that ahead of the UK leaving the EU, the business will expand its existing Luxembourg office to ensure it can still serve EU clients.

As part of the plans it will move some fund managers to be based in Europe and will also replicate some funds from its UK Oeic range into its Sicav range.

“We have a well-established European business and have focused significant product development on our Luxembourg-based SICAV over the past several years. We are therefore well placed to continue to serve our European clients,” says a spokesperson from Columbia Threadneedle.

“We have begun the process of applying to expand the scope of our Luxembourg-based management company to enable us to establish an asset management presence in the EU. This would involve us having some fund managers based in Europe before the UK leaves the EU. We currently have investors in 12 locations globally, so we would expect this to be a smooth transition.”

“It’s important investors understand that they do not need to take any immediate action. Our priority is to provide clarity and certainty for our customers and to ensure any changes needed are taken care of with minimum disruption for them.”

The company does not plan to move its head office and the vast majority of funds manager will not be required to relocate, Fund Strategy understands.

The asset manager is understands that an asset manager that wants to offer funds to EU clients will need to have fund managers based in the region.

M&G has already said that it is bolstering its Dublin presence in preparation for the UK leaving the EU.