Acquisition will accelerate the company’s Smart
Beta efforts
Columbia Threadneedle Investments today announced an agreement
for Columbia Management Investment Advisers, LLC to acquire
Emerging Global Advisors, LLC (EGA), a New York-based registered
investment adviser and a leading provider of smart beta portfolios
focused on emerging markets. The acquisition will significantly
expand the smart beta capabilities of Columbia Threadneedle
Investments. Terms of the EGA acquisition were not disclosed. The
transaction is expected to close later this year.
With $892 million1 in assets, EGA has an established presence in
the smart beta marketplace. It is the investment adviser to the
EGShares suite of nine emerging markets equity exchange-traded
funds (ETFs) that track custom-designed indices:
•Beyond BRICs (BBRC)
•Emerging Markets Core (EMCR)
•EM Core ex-China (XCEM)
•India Consumer (INCO)
•EM Quality Dividend (HILO)
•India Infrastructure (INXX)
•EM Strategic Opportunities (EMSO)
•India Small Cap (SCIN)
•Emerging Markets Consumer (ECON)
“The experience and knowledge of the EGA team and strong
emerging markets ETF products will complement our existing actively
managed product lineup,” said Ted Truscott, chief executive officer
of Columbia Threadneedle Investments. “The EGA acquisition will
allow us to reach even more investors and accelerates our efforts
as we build our smart beta capabilities.”
Since launching its first ETF in 2009, EGA has had a dedicated
focus on providing rules-based, smart beta strategies designed to
provide investors with diversification and growth opportunities in
emerging markets.
“The team is excited about joining Columbia Threadneedle
Investments and building on our complementary strengths to deliver
smart beta strategies across asset classes to investors,” said
Marten Hoekstra, Chief Executive Officer of EGA. “Now our clients
gain access to Columbia Threadneedle’s rich investment expertise,
while continuing to benefit from EGA’s experience converting
investment insights into rules-based, smart beta strategies.”
“Columbia Threadneedle Investment’s expansive footprint across
global markets provides an opportunity to accelerate the growth of
our smart beta platform,” said Robert Holderith, President and
Founder of EGA.
As part of our efforts to enter the smart beta marketplace, in
the first quarter of 2016 Columbia Threadneedle Investments filed
with the SEC a preliminary registration statement relating to
multiple equity smart beta ETFs, including Columbia Sustainable
Global Equity Income ETF, Columbia Sustainable International Equity
Income ETF and Columbia Sustainable U.S. Equity Income ETF
(referred to as the Columbia Beta AdvantageSM ETFs).
The Columbia Beta Advantage ETFs are a natural extension of our
equity income capabilities and are intended to track
custom-designed multi-factor indices that will be calculated and
maintained by MSCI. Each ETF’s name includes “Sustainable,” which
refers to selection of index constituents based on their
environmental, social and governance (ESG) practices.
About Columbia Threadneedle Investments:
Columbia Threadneedle Investments is a leading global asset
management group that provides a broad range of investment
strategies and solutions for individual, institutional and
corporate clients around the world.
With more than 2,000 people, including over 450 investment
professionals based in North America, Europe and Asia, we manage
$464 billion2 of assets across developed and emerging market
equities, fixed income, asset allocation solutions and
alternatives.
Columbia Threadneedle Investments is the global asset management
group of Ameriprise Financial, Inc. (NYSE: AMP).
For more information, please visit columbiathreadneedle.com/us.
Follow us on Twitter @CTInvest_US.
About Emerging Global Advisors:
Emerging Global Advisors (EGA) is a leading provider of smart
beta portfolios in emerging markets and employs a disciplined,
rules-based investment process rooted in research and portfolio
strategy. EGA’s investment strategies, including the EGShares suite
of ETFs, are designed to help investors generate alpha within their
emerging and frontier market allocations. EGA provides core equity,
thematic and equity income emerging and frontier market
exposures.
1As of April 30, 2016
2As of March 31, 2016
The information herein and in the preliminary prospectus
relating to the Columbia Beta Advantage ETFs is not complete and
may be changed. A registration statement relating to these
securities has been filed with the Securities and Exchange
Commission but has not yet become effective. These securities are
not available until the registration statement is
effective.
Columbia Threadneedle Investments (Columbia Threadneedle) is the
global brand name of the Columbia and Threadneedle group of
companies.
EGShares Funds are distributed by ALPS Distributors, Inc.
Emerging Global Advisors acts as the investment adviser to the
EGShares Funds. Emerging Global Advisors, Columbia Threadneedle
Investments and ALPS Distributors, Inc. (ALPS) are unaffiliated
entities. Marten Hoekstra and Robert Holderith are registered
representatives of ALPS Distributors, Inc.
Investing involves risk including the risk of loss of principal.
Emerging market investments involve risk of capital loss from
unfavorable fluctuation in currency values, from differences in
generally accepted accounting principles, from economic or
political instability in other nations or increased volatility, and
lower trading volume. The value of an investment denominated in a
foreign currency could change significantly as foreign currencies
strengthen or weaken relative to the U.S. dollar. Some Funds are
non-diversified and, as a result, may have greater volatility than
diversified funds. Some Funds will concentrate investment in
issuers of one or more particular industries to the same extent
that the underlying index is so concentrated. Concentration risk
results from maintaining exposure to issuers conducting business in
a specific industry.
Investors in EGShares Funds should carefully consider the
investment objectives, risks, charges and expenses of these Funds
before investing. To obtain an EGShares Fund prospectus containing
this and other important information, please call (888) 800-4347 or
visit www.egshares.com to view or download a prospectus online.
Read the prospectus carefully before investing.
The content within this press-release is for informational
purposes only and is not an offer to sell any of these
securities.
Columbia Management Investment Advisers, LLC.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160511005783/en/
for Columbia Threadneedle InvestmentsCarlos Melville,
617-897-9384carlos.melville@ampf.comorRyan Lund,
612-671-3459ryan.s.lund@ampf.com
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