Columbia Threadneedle said on Wednesday that it will buy Emerging Global Advisors, a New York provider of emerging markets smart-beta funds.
The purchase, for an undisclosed amount, will give it a niche in the
growing smart-beta market. The transaction will close this year. EGA has $892 million in assets and nine emerging markets ETFs. The company launched its first ETF in 2009.
“The experience and knowledge of the EGA team and strong emerging markets ETF products will complement our existing actively managed product lineup,” Ted Truscott, chief executive officer of Columbia Threadneedle Investments, said in a statement. “The EGA acquisition will allow us to reach even more investors and accelerates our efforts as we build our smart beta capabilities.”
The acquisition is part of Columbia Threadneedle's push into the smart beta marketplace. In the first quarter of 2016, the company filed with the SEC for several smart-beta ETFs, including Columbia Sustainable Global Equity Income ETF, Columbia Sustainable International Equity Income ETF and Columbia Sustainable U.S. Equity Income ETF. The funds should be launched this year.
The “sustainable” in the funds' names refer to the selection of investments based on their
environmental, social and governance practices.
Columbia Threadneedle manages $464 billion in assets, and currently has two ETFs available to the public.
