Columbia Threadneedle acquires EGA for smart beta ETF business

May 19th, 2016 | By | Category: ETF and Index News

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Global asset manager Columbia Threadneedle Investments has acquired New York-based investment adviser Emerging Global Advisors (EGA) as it builds out its smart beta investment business. The acquisition will significantly expand Colombia Threadneedle’s smart beta capabilities with the use of EGA’s skill as an emerging markets specialist and the firm’s suite of nine emerging markets equity exchange-traded funds that track custom-designed indices.

Columbia Threadneedle builds smart beta ETF suite by acquiring Emerging Global Advisors

Ted Truscott, Chief Executive Officer of Columbia Threadneedle Investments.

Ted Truscott, Chief Executive Officer of Columbia Threadneedle Investments, commented in a statement: “The experience and knowledge of the EGA team and strong emerging markets ETF products will complement our existing actively managed product lineup. The EGA acquisition will allow us to reach even more investors and accelerates our efforts as we build our smart beta capabilities.”

“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,” added 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.

EGA’s suite of smart beta emerging market equity ETFs include the:

EGShares Beyond BRICs ETF (BBRC)
EGShares EM Core ex-China ETF (XCEM)
EGShares EM Quality Dividend ETF (HILO)
EGShares EM Strategic Opportunities ETF (EMSO)
EGShares Emerging Markets Consumer ETF (ECON)
EGShares Emerging Markets Core ETF (EMCR)
EGShares India Consumer ETF (INCO)
EGShares India Infrastructure ETF (INXX)
EGShares India Small Cap ETF (SCIN)

The fund’s total expense ratios range from 0.35% to 0.89%.

As of 30 April 2016, EGA had over $890m in assets under management. Terms of the EGA acquisition were not disclosed. The transaction is expected to close later this year.

Columbia Threadneedle have also filed with the SEC a preliminary registration statement relating to a range of equity smart beta ETFs to be known as the Columbia Beta Advantage ETFs. These include the Columbia Sustainable Global Equity Income ETF, Columbia Sustainable International Equity Income ETF and Columbia Sustainable US Equity Income ETF. The funds will track custom-designed multi-factor indices that will be calculated and maintained by MSCI. Each ETF’s index constituents will be based on environmental, social and governance practices.

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