Columbia Threadneedle now a Top 10 UK asset manager by AUM following completion of acquisition of BMO’s EMEA asset management business

The acquisition of BMO’s EMEA arm increases Columbia Threadneedle’s total AUM to $714 billion.

Columbia Threadneedle Investments, part of Ameriprise Financial, has completed the acquisition of Bank of Montreal’s (BMO) EMEA asset management business.

The completion of the acquisition follows the announcement on 12 April that the two firms had agreed terms of a deal.

The acquisition adds $131 billion in assets under management (AUM) to Columbia Threadneedle, increasing its total AUM to $714 billion, making it one of the top 35 asset managers globally and one of the top 10 in the UK.

Through the completed transaction, Columbia Threadneedle can now focus on areas of increasing importance in the European and global asset management landscape, including responsible investment (RI), alternatives, and solutions.

In respect to RI, Columbia Threadneedle and BMO’s EMEA asset management have partnered to create a 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, the two firms manage total assets of $49 billion in RI funds and strategies across asset classes.

When it comes to alternatives, Columbia Threadneedle and BMO’s EMEA asset management have established a global alternatives business of more than $47 billion, which includes real estate in the UK, Europe and the US, infrastructure, private equity and hedge fund offerings.

Together, the two firms also plan to address the increasing demand from clients for less liquid, diversifying assets both as standalone strategies and within bespoke solutions.

In respect to solutions, Columbia Threadneedle and BMO’s EMEA asset management have a solutions business which is  the point of entry of more than $200 billion of client assets, or almost 30% of its expanded assets under management.

Following the acquisition, BMO’s EMEA asset management’s managed investment trusts and its multi-manager range will be added to Columbia Threadneedle’s offering.

Subject to client consent, at a later stage it is expected that certain BMO US asset management clients will move to Columbia Threadneedle following the transaction.  

This strategically important acquisition accelerates our growth in the EMEA region and secures our position as a significant global asset manager,” said Nick Ring, chief executive, EMEA at Columbia Threadneedle.

”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.”