Columbia is combining funds
Columbia Management, the Boston investment group recently acquired by Ameriprise Financial Inc., plans to combine 62 out of more than 200 funds to help simplify its offerings and reduce overlap.
The announcement comes three months after Ameriprise bought Columbia's long-term fund operations from Bank of America Corp. for approximately $1 billion. In the wake of the deal, Ameriprise combined Columbia with some of its existing operations, including RiverSource Investments, which created some duplication of funds and helped spur the company to consolidate its product lineup.
“We believe the mergers would strengthen and streamline our product line up while providing fund shareholders and their financial advisors with excellent products and greater cost-efficiency,” Kevin Connaughton, head of the company's mutual funds, said in a statement.
If approved by shareholders and fund boards, the fund mergers are expected to be completed in the first half of next year. The company said it planned to post the full list of fund mergers on its web site, www.columbiafunds.com, today.
Columbia, which has 500 employees in Boston, said earlier this week it plans to add 150 jobs in Boston over the next three years. The firm is the eighth largest long-term asset manager in the United States with $327 billion in assets.