Last April, Columbia Threadneedle Investments announced the acquisition of Bank of Montreal’s EMEA asset management business (BMO GAM EMEA). Seven months later, the transaction has now been completed and adds 131 billion dollars to Columbia Threadneedle to bring total assets under management to 714 billion dollars.
In a press release, the asset manager has revealed that the acquisition enables them to build further strength and capability in areas of increasing prominence in the European and global asset management landscape, such as responsible investment. Both firms “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 solutions”, they say. Together, they manage total assets of 49 billion dollars in RI funds and strategies across asset classes.
Another area that has been reinforced with this transaction is alternatives, since they have established a global business of more than 47 billion dollars, including real estate in the UK, Europe and the US, infrastructure, private equity and hedge fund offerings. Columbia Threadneedle believes that they are now “well set to respond to increasing demand from clients for less liquid, diversifying assets both as standalone strategies and within bespoke solutions”.
Lastly, they have strengthened their capacity of offering investment 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 200 billion dollars of client assets, or almost 30% of our expanded AUM”, the asset manager points out.
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.
“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”, commented Nick Ring, CEO, EMEA, at Columbia Threadneedle.
He also highlighted that their 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”, he concluded.
For Sofia Cisneros
For Funds Society, Madrid