Columbia To Acquire Emerging Global Advisers

The deal aims to propel both firms more aggressively into the smart-beta space.

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Reviewed by: Cinthia Murphy
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Edited by: Cinthia Murphy
Columbia Threadneedle Investments, the global asset management group behind Columbia Management Investment Advisers, with some $464 billion in global assets under management, is acquiring Emerging Global Advisors.

EGA is a fund provider with nearly $900 million in assets under management, known for its focus on smart-beta takes on emerging markets. Terms of the deal were not disclosed. The deal is expected to close later this year.

Both EGA and Columbia said in a press release today that the acquisition should allow for the firms to expand their efforts in the smart-beta segment.

Columbia shuttered its lineup of large-cap equity ETFs last December, but still offers its two active U.S. bond strategies, the Columbia Core Bond (GMTB | D-71) and the Columbia Intermediate Municipal Bond (GMMB | D-46). Each fund has less than $9 million in assets.

Earlier this year, the firm also put into registration several equity smart-beta ETFs, including plans to launch the Columbia Sustainable Global Equity Income ETF, Columbia Sustainable International Equity Income ETF and Columbia Sustainable U.S. Equity Income ETF—funds designed around multifactor indexes.

“The EGA acquisition will allow us to reach even more investors and accelerates our efforts as we build our smart beta capabilities,” Ted Truscott, chief executive officer of Columbia Threadneedle Investments, said in the release.

Emerging Global Advisors’ most successful fund is the nearly $600 million EGShares Emerging Markets Consumer ETF (ECON | C-49)—a strategy that represents roughly two-thirds of the firm’s total ETF assets.

“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,” Marten Hoekstra, chief executive officer of EGA, said.

Contact Cinthia Murphy at [email protected].

Cinthia Murphy is head of digital experience, advocating for the user in all that etf.com does. She previously served as managing editor and writer for etf.com, specializing in ETF content and multimedia. Cinthia’s experience includes time at Dow Jones and former BridgeNews, covering commodity futures markets in Chicago and Brazil equities in Sao Paulo. She has a bachelor’s degree in journalism from the University of Missouri-Columbia.