Columbia Threadneedle Investments today announced the launch of
three equity income smart beta exchange-traded funds (ETFs), the
first in a series from the new Columbia Beta AdvantageSM family of
rules-based, factor-driven, smart beta ETFs. Columbia Beta
Advantage products are thoughtfully constructed by incorporating
Columbia Threadneedle’s active investing experience and insight
into rules that, in the case of these three ETFs, provide exposure
to companies that have certain attributes believed to offer
sustainable levels of income, as well as total return opportunity.
These funds will track underlying indices calculated by MSCI
Inc.
The three new ETFs, which began trading on NYSE Arca today,
are:
- Columbia Sustainable U.S. Equity Income
ETF (ESGS)
- Columbia Sustainable International
Equity Income ETF (ESGN)
- Columbia Sustainable Global Equity
Income ETF (ESGW)
Each ETF’s underlying index is designed to invest in companies
based on dividend yield, dividend growth and cash flow factors.
These factors are intended to lead to investing in companies that
have the financial stability to support and grow future dividend
payments. The ETFs will replicate custom-designed indices
calculated by MSCI. A distinctive feature of the indices is their
“sustainable” focus, which is implemented by screening companies
based on their environmental, social and governance (ESG)
practices. This sustainability feature further differentiates these
ETFs in the smart beta marketplace.
Columbia Threadneedle has a long history of managing successful,
actively managed, equity income strategies. That experience, as
well as the firm’s fundamental and quantitative investment skills,
informed the design of the Beta AdvantageSM strategies.
“We’re excited about the launch of our first Beta Advantage
funds. We believe that these types of strategies have the potential
to help advisors and their clients meet important investment goals,
such as generating income, growing assets and managing volatility,”
said Colin Moore, global chief investment officer at Columbia
Threadneedle Investments.
Columbia Sustainable U.S. Equity Income ETF (ESGS) tracks
the Beta Advantage Sustainable U.S. Equity Income 100 Index. The
index consists of 100 stocks that provide investors with exposure
to U.S. large- and mid-cap companies.
Columbia Sustainable International Equity Income ETF
(ESGN) tracks the Beta Advantage Sustainable International
Equity Income 100 Index. The index consists of 100 stocks that
provide investors with exposure to foreign (developed market)
large- and mid-cap companies.
Columbia Sustainable Global Equity Income ETF (ESGW)
tracks the Beta Advantage Sustainable Global Equity Income 200
Index. The index consists of 200 stocks that provide investors with
exposure to U.S. and foreign (developed market) large- and mid-cap
companies.
Also of note, on May 11, 2016, Columbia Threadneedle announced
an agreement to acquire Emerging Global Advisors, LLC (EGA), a New
York-based registered investment adviser and a leading provider of
smart beta portfolios focused on emerging markets. EGA has $865
million in assets1 and is the investment adviser to the EGShares
suite of nine emerging markets ETFs that track custom-designed
indices. Columbia Threadneedle intends, subject to the closing of
the EGA acquisition and other necessary approvals, to combine EGA’s
fund line-up with its own under the Columbia Beta Advantage mark
and further develop the product line.
About Columbia Threadneedle Investments:Columbia
Threadneedle Investments is a leading global asset management group
that provides a broad range of actively managed investment
strategies and solutions for individual, institutional and
corporate clients around the world.
With more than 2,000 people, including over 450 investment
professionals based in North America, Europe and Asia, we manage
$464 billion2 of assets across developed and emerging market
equities, fixed income, asset allocation solutions and
alternatives.
Columbia Threadneedle Investments is the global asset management
group of Ameriprise Financial, Inc. (NYSE: AMP).
For more information about Columbia Threadneedle Investments,
please visit columbiathreadneedle.com/us. For more information
about the Columbia Beta Advantage ETFs please visit
columbiathreadneedleetf.com.
1 As of May 31, 2016.2 As of March 31, 2016.
An investor should consider investment objectives, risks,
charges and expenses carefully before investing. The Prospectus
contains this and other information. For more complete information
about the fund or to obtain a Prospectus, call 800-774-3768 or
visit www.columbiathreadneedleetf.com. Please read
the Prospectus carefully before investing.
Shares are not individually redeemable. Investors buy and sell
shares on a secondary market. Only “authorized participants” may
trade directly with the fund(s), typically in blocks of 50,000
shares.
Smart beta is an approach to indexing that weights companies by
criteria other than market capitalization. Smart beta strategies
are rules-based, with product-specific rules that are transparent
to the market. They track indices that deviate from standard
indices in security selection and weighting.
ETFs trade like stocks, are subject to investment risk and will
fluctuate in market value. Investment products, including shares of
funds, are not federally or FDIC-insured, are not deposits or
obligations of, or guaranteed by any financial institution.
Columbia Management Investment Advisers, LLC serves as the
investment manager to the ETFs. The Columbia ETFs are distributed
by ALPS Distributors, Inc., which is not affiliated with Columbia
Management Investment Advisers, LLC, or its parent company
Ameriprise Financial, Inc. Columbia Threadneedle Investments is the
global brand name of the Columbia and Threadneedle group of
companies. EGShares Funds are distributed by ALPS Distributors,
Inc.
The Beta AdvantageSM indexes are custom indexes owned and
calculated by MSCI, based on MSCI Parent Indexes and aim to reflect
the performance of a Columbia Management Investment Advisers, LLC
investment approach.
The funds referred to herein are not sponsored, endorsed, or
promoted by MSCI, and MSCI bears no liability with respect to any
such funds or any index on which such funds are based. The
Prospectus contains a more detailed description of the limited
relationship MSCI has with Columbia Management Investment Advisers,
LLC and any related funds.
Columbia Sustainable U.S. Equity Income ETF (the Fund) seeks
investment results that, before fees and expenses, closely
correspond to the performance of the Beta AdvantageSM Sustainable
U.S. Equity Income 100 Index (the Index).
Columbia Sustainable Global Equity Income ETF (the Fund) seeks
investment results that, before fees and expenses, closely
correspond to the performance of the Beta AdvantageSM Sustainable
Global Equity Income 200 Index (the Index).
Columbia Sustainable International Equity Income ETF (the Fund)
seeks investment results that, before fees and expenses, closely
correspond to the performance of the Beta AdvantageSM Sustainable
International Equity Income 100 Index (the Index).
Columbia Beta AdvantageSM ETFs are new and have limited
history.
© 2016 Columbia Management Investment Advisers, LLC. All rights
reserved.
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version on businesswire.com: http://www.businesswire.com/news/home/20160613005739/en/
For Columbia Threadneedle InvestmentsCarlos Melville,
617-897-9384carlos.melville@ampf.comorRyan Lund,
612-671-3459ryan.s.lund@ampf.com
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