Columbia Management Investment Advisers on Friday announced it agreed to buy active ETF manager Grail Advisors.
Terms were not disclosed.
Columbia will rebrand Grail’s five active ETFs and manage the funds with its own investment personnel, Christopher Thompson, Columbia’s head of product management and marketing, said in a telephone interview.
“We are very excited because it gives us entry into the new market quickly,” Mr. Thompson said, adding that the acquisition speeds up the registration process with the SEC to offer ETFs.
He said Columbia expects to offer the products sometime next month, following the deal’s expected closing. If Columbia were to have started its own ETFs, the approval process from the SEC could have take from 12 to 18 months, he said.
Grail’s five ETFs — three equity, two fixed income — have combined assets under management of $23 million, but Mr. Thompson said they offer “a lot of room for growth.”
U.S. assets in ETFs totaled $1.48 trillion as of Feb. 28, according to Morningstar data, of which only about $4 billion are in active ETFs.
Columbia has $355 billion in assets and is a subsidiary of Ameriprise Financial.