Columbia Threadneedle Investments lists three active QR Series ETFs on London Stock Exchange

Investment objectives and policy

All three funds aim to increase the value of your investment over the long term and invest at least 80% of their assets in listed equities and equity-related securities of companies traded on Regulated Markets. The CT QR Series Global Equity Active UCITS ETF may invest up to 20% of its net assets in emerging markets, including the possibility of holding China A shares through the Stock Connect programs.

The funds are actively managed with reference to the MSCI Europe, MSCI ACWI, and Russell 1000 indices respectively. Managers have discretion in security selection and may choose weightings different from the reference index or invest in securities not included in the benchmark. Portfolios may therefore show significant divergence from the indices.

The QR Series investment approach

The series applies a proprietary research model that ranks individual companies based on three factors: quality, catalyst, and value. Securities are selected based on their relative positioning within their industry sector.

The portfolio construction process follows a structured approach. The initial research phase identifies securities with the highest potential for outperformance through a combination of quantitative modelling (using over twenty years of data) and fundamental analysis conducted by a team of more than 200 analysts. In the ranking phase, securities are rated on a scale from “strong buy” to “strong sell”, excluding those with lower expected performance and reducing the investable universe by approximately two-thirds. The resulting portfolios hold about 35% of the securities present in their respective benchmarks. The recalibration phase follows a rules-based, benchmark-aware approach aimed at minimising sector and geographical biases. Portfolios are rebalanced semi-annually, with daily monitoring to respond to any security downgrades. The strategy targets a tracking error between 2% and 4%.

ESG characteristics and sustainable investments

The funds promote environmental and social characteristics by applying a proprietary ESG materiality rating model. The objective is to compare favourably against the reference index over rolling 12-month periods. At least 50% of the portfolio is invested in companies aligned with environmental or social characteristics, and each fund allocates a minimum of 20% of its assets to sustainable investments.

Exclusions apply to companies deriving certain revenue thresholds from industries such as coal and tobacco, those with direct involvement in nuclear or controversial weapons, and companies determined to have breached international standards and principles. The manager conducts engagement activities with companies to encourage improvement of their ESG practices.

Outlook

With these listings, Columbia Threadneedle expands its presence in the European active ETF segment, responding to demand for transparent, cost-efficient solutions with a genuinely active management approach supported by research.