The global asset management group has rejigged its European growth strategy following last week's historic referendum result.

Columbia Threadneedle is expanding its asset management presence in Luxembourg in preparation for the UK's planned exit from the European Union.

The group seeks to replicate some funds from its UK-based OEIC range within its Luxembourg-based SICAV platform, with a “small number” of fund managers based in Europe. It said the vast majority of our employees can expect to remain where they are. There are no plans to move its head office from London.

“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,” said a Columbia Threadneedle spokesperson.

“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 focus on Luxembourg was attributed to the understanding that under current EU rules, any asset manager that wants to distribute in the EU will need to have fund managers based there.

Columbia Threadneedle, which had $464 billion in assets under management as of 31 March 2016, has a presence in 18 countries across North America, Europe, Asia-Pacific and the Middle East.

Earlier this week, UK-based M&G Investments confirmed to this publication that Ireland would be its preferred option for EU retail fund distribution if the UK exits the single market, adding that it has other options, such as Luxembourg. 

“No decision yet – there’s at least two years from the invocation of Article 50 for the UK Government to agree new trade arrangements. Definitely no relocation of staff or resources,” an M&G spokesperson said.