Further to the announcement on 12 April 2021, Columbia Threadneedle Investments (Columbia Threadneedle), part of Ameriprise Financial (NYSE:AMP), confirms that the acquisition of Bank of Montreal’s EMEA asset management business (BMO GAM (EMEA)) has now completed. The acquisition adds €113bn (£97bn / $131bn)[1] assets under management to Columbia Threadneedle to bring total AUM to €617bn (£530bn / $714bn) [2].
The acquisition enables Columbia Threadneedle to build further strength and capability in areas of increasing prominence in the European and global asset management landscape, such as:
- Responsible Investment (RI): Columbia Threadneedle and BMO GAM (EMEA) combine complementary strengths to create a world class RI capability based on creating value through research intensity, driving real-world change through active ownership, and partnering with clients to deliver innovative RI solutions. Together, we manage total assets of £36bn ($49bn)[3] in RI funds and strategies across asset classes.
- Alternatives: Together we establish a global alternatives business of more than £34bn ($47bn)[4] , including real estate in the UK, Europe and the US, infrastructure, private equity and hedge fund offerings, and are well set to respond to increasing demand from clients for less liquid, diversifying assets both as standalone strategies and within bespoke solutions.
- Solutions: Columbia Threadneedle has longstanding relationships with large and complex clients delivering regulatory sensitive portfolios (such as Solvency II and Basel III) for insurance companies and banks as well as customised solutions for sub-advisory partners, while BMO GAM (EMEA) has a top four LDI business in Europe as well as an established fiduciary management business. Together our Solutions business represents the point of entry of more than £145bn ($200bn)[5] of client assets, or almost 30% of our expanded AUM.
The acquisition also adds the BMO GAM (EMEA) managed investment trusts and its established multimanager range to Columbia Threadneedle’s offering. Separately, the transaction will result in certain BMO US asset management clients moving to Columbia Threadneedle, at a later date subject to client consent.
Nick Ring, CEO, EMEA, at Columbia Threadneedle commented: “This strategically important acquisition accelerates our growth in the EMEA region and secures our position as a significant global asset manager. Our established strengths in core asset classes and our strong, long term performance track record are complemented by key strategic capabilities that improve our ability to meet the evolving needs of our clients.
“Our combined team of more than 2,500 people share a client-centric culture, a collaborative and research-based investment approach, and a long-held commitment to responsible investment principles. Together, we look forward to embracing our role as active investors to drive change, deliver client outcomes and continue to make our own contribution to a sustainable future.
“As we’ve begun to work together, we’re excited by the opportunity to combine our considerable resources and bring greater depth and breadth to our client offering.”
[1] As at 30 September 2021
[2] As at 30 September 2021
[3] As at 30 June 2021. Includes ESG screened, UN Global Compact aligned, best-in-class, exclusion and faith-based screened strategies, as well as thematic outcomes funds.
[4] As at 30 June 2021
[5] As at 30 June 2021
