BOSTON--(BUSINESS WIRE)--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:
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•Beyond BRICs (BBRC) |
•Emerging Markets Core (EMCR) |
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•EM Core ex-China (XCEM) |
•India Consumer (INCO) |
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•EM Quality Dividend (HILO) |
•India Infrastructure (INXX) |
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•EM Strategic Opportunities (EMSO) |
•India Small Cap (SCIN) |
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•Emerging Markets Consumer (ECON) |
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“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.
