The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

Columbia Threadneedle Investments
Columbia Threadneedle Investments has said that it will be building on its range of active exchange-traded funds in the US by launching four UCITS Active Equity ETFs across the UK and Europe later this year, subject to regulatory approval.

The initial ETF range will be run by US-based senior portfolio manager Chris Lo and his team, who manage $15 billion in assets across 13 US-domiciled funds. The four new ETFs will provide European clients with exposure to global, US, Europe and emerging market equities. The aim is to build out the range to include fixed income active ETFs next year, the firm said in a statement.

Columbia Threadneedle, which has a track record of designing and managing ETF strategies to meet client needs, has $5.5 billion in assets across 14 US domiciled ETFs. The initial Active Equity ETFs for the European market will use 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, the firm said.

“The four new active ETFs will complement our existing open-ended fund offering, increasing optionality for clients who are looking for core active building blocks for their portfolios,” Michaela Collet Jackson, head of EMEA distribution and marketing at Columbia Threadneedle Investments, said. “Active ETFs are increasingly adopted by clients as an efficient way to implement portfolios. By leveraging our US track record, we can provide clients [with] excellent value for money. We believe this presents a real growth opportunity for us in the region.”

Columbia Threadneedle Investments is a global asset manager, with £481 billion ($645 billion) managed on behalf of individual, institutional and corporate clients around the world. It has approximately 550 investment professionals based in North America, Europe and Asia.

Franklin Templeton has also been expanding its ETF range in Europe, most recently with two new indexed exchange-traded funds, classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR): the Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF.

BNP Paribas Asset Management
BNP Paribas Asset Management has reinforced its global equities exchange-traded funds (ETF) range with the launch of BNP Paribas Easy MSCI World Equal Weight Select UCITS ETF, a sub-fund of the BNP Paribas Easy Irish ICAV. The new ETF is listed on Euronext Paris and Deutsche Börse Xetra and will soon be listed on Borsa Italiana and SIX Swiss Exchange.  

BNP Paribas Easy MSCI World Equal Weight Select UCITS ETF is an Article 8 fund according to the EU’s Sustainable Finance Disclosure Regulation (SFDR) regulation, seeking a sustainable investment of at least 30 per cent while providing exposure to the global equity market. The Benchmark Index is MSCI World Equal Weighted Ex Business Involvement Screens Select.

The equal weight concept became a hot topic in 2024, to compensate for the disproportional role in the portfolio weight of the Magnificent 7 – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. Alternative weighting shows a fairer perspective of wider market activity dynamics.

“This new product answers to the growing investor interest in equal-weight strategies, which have historically proven to be a relevant alternative to capital-weighted indices,” Miriam Breen, head of business development for ETFs & Index Funds at BNPP AM UK, said. “Looking specifically to the UK, this product directly answers the demands of UK investors. We know investors in this region tend to invest on a global basis, and this fund meets that need, with reduced concentration in the US, while allowing access to a more global footprint.”

“Looking at the bigger picture, equal-weight strategies gained popularity as mega-cap valuations stretched, with concentration in the largest stocks at record levels,” Breen continued. “As such, an equal-weighted approach reduces concentration risk, which reached its highest level in 20 years last year, provides more balanced exposure, both geographically and in terms of sectors, and increases the exposure to smaller companies in the index.” 

BNPP AM manages ETFs and index funds assets totalling €57.4 billion ($65 billion), including thematic and sustainable products. BNPP AM’s range of ESG equities index funds includes 32 ETFs, with €16 billion under management. Ninety per cent of BNPP AM’s ETF range is classified as SFDR Article 8 or 9 and more than 70 per cent of the range has European sustainability, the firm said.