Musical chairs at Columbia Funds

Columbia Management Group LLC recently changed portfolio managers at 20 teams that manage more than 55 mutual funds.
FEB 25, 2009
Columbia Management Group LLC, a Boston-based subsidiary of Bank of America Corp., recently changed portfolio managers at 20 teams that manage 58 mutual funds. The management team changes took effect Feb. 20, according to an internal memo obtained by InvestmentNews and filings with the Securities and Exchange Commission. The changes affect nearly half of the firm's 122 funds. The management shakeup comes as the Charlotte, N.C.-based Bank of America begins its integration of Merrill Lynch & Co. Inc. of New York, which BofA acquired late last year. In December, the bank announced that it would eliminate 30,000 to 35,000 positions companywide over the next three years. “That announcement was related to market conditions and related to the Merrill transaction,” said Bank of America spokesman Scott Silvestri. “That process is under way. That process has started this year.” He declined to give specifics as to where job eliminations are taking place by region or business line. Columbia spokesman Jon Goldstein had no comment on whether the portfolio manager changes involved layoffs. The firm uses a team management approach, he said. “These changes reflect Columbia’s ongoing efforts to integrate investment platforms in support of its disciplined investment process and team-based approach,” Mr. Goldstein said. “Portfolio managers work with a larger team of other portfolio managers, research analysts, traders and other investment professionals. These constitute the combined resources from which any particular portfolio manager develops his or her own ideas.” Mr. Goldstein added that the investment leadership team remains intact with Colin Moore, chief investment officer, Robert McConnaughey, head of equity, and Steve Peacher, head of fixed income. “We have very strong continuity of leadership within Columbia,” Mr. Goldstein said. Some of the largest Columbia funds affected by the changes include: The $1.6 billion Columbia Large Cap Index Fund (NINDX) and the $1.27 billion Columbia Mid Cap Index Fund (NMPAX), formerly managed by Vikram Kuriyan and now managed by Cheryl D’Hollander and Peter Joo. The $508 million Columbia High Yield Municipal Fund (SRHMX), formerly managed by Maureen Newman, is now managed by Chad Farrington. And the $2 billion Columbia Intermediate Bond Fund (SRBFX) saw its four-member manager team reduced by one. Columbia employs nearly 1,000 people, and the firm has $386.4 billion in assets.

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