Threadneedle’s parent company, Ameriprise Financial, Inc has completed the acquisition of the long-term asset management business of Columbia Management from Bank of America for approximately USD1 billion in cash.

 

Threadneedle Investments remains Ameriprise Financial’s international investment platform, and Ameriprise Financial will combine its current US asset management business, RiverSource Investments, with Columbia Management under the Columbia brand. The RiverSource brand will continue for the company’s annuity and life, health and disability insurance products.

 

As of March 31, the acquisition adds USD189 billion in assets and establishes the Ameriprise Financial as the eighth largest manager of long-term mutual fund assets in the US. Ameriprise Financial now has USD652 billion in total owned, managed and administered assets. In addition to enhancing equity and fixed income retail and institutional capabilities, the transaction includes a five-year strategic distribution agreement that provides ongoing access to clients of Bank of America affiliated distributors, including the US Trust.

 

“The Columbia Management acquisition transforms Ameriprise’s asset management capabilities and provides a platform to accelerate our growth,” says Jim Cracchiolo, chairman and chief executive officer of Ameriprise Financial.

 

“It enhances our scale, broadens our distribution and strengthens and diversifies our line up of strong performing retail and institutional funds. Most importantly, the transaction allows us to capture essential expense synergies that will be instrumental in driving improved asset management returns and margins over time.”

 

The US asset management business will continue to be led by William F Truscott, CEO, US Asset Management & president, Annuities. Michael A Jones will continue to serve as president of Columbia Management and Colin Moore will continue to serve as chief investment officer. Moore and Jones will report to Truscott.