State Street Corporation has recently announced a significant development in its partnership with Columbia Threadneedle Investments, the global asset management group under Ameriprise Financial. This appointment will enable State Street to provide enhanced fund accounting, administration, and custody services for Columbia Threadneedle’s pooled funds, which include exchange-traded funds (ETFs), across both the United States and Europe. This portfolio comprises approximately $431 billion in assets, underscoring the scale and significance of this collaboration.
State Street’s relationship with Columbia Threadneedle isn’t new; it has been providing back-office services to various legacy Columbia Threadneedle mutual funds since the 1990s. Over the years, this partnership has evolved, particularly following Columbia Threadneedle’s acquisition of BMO Financial Group’s EMEA Asset Management business in 2021. This solid foundation has enabled State Street to manage back-office operations effectively for Columbia Threadneedle, and it is now poised to take on even more responsibilities.
As part of this expanded mandate, it is anticipated that more than 100 employees from Columbia Threadneedle, who currently focus on fund accounting and administration for the US pooled funds, will transition to comparable roles at State Street. This move not only reflects the deepening collaboration between the two companies but also signifies a commitment to ensuring a smooth transition for those involved.
In Europe, Columbia Threadneedle is taking steps to further consolidate its fund accounting, administration, depositary, and custody services for its pooled funds located in the UK and Luxembourg. This strategic decision will allow them to leverage the strengths of State Street even more effectively, building on an already established and successful relationship between the two organizations.
By combining their expertise and resources, State Street and Columbia Threadneedle are well-positioned to enhance the management of substantial assets while continuing to provide outstanding service to their clients in this rapidly evolving financial landscape.
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“We have enjoyed a successful decades-long relationship with Columbia Threadneedle and look forward to helping them continue their commitment to operational excellence and expanding our services to support the next phase of their growth. As leading asset managers look to build scale and expand into new markets, we are well-positioned to provide them with full-service solutions.”
Joerg Ambrosius, president of Investment Services at State Street
“We are delighted to expand our relationship with State Street as they support our growth agenda, providing valuable and scalable expertise, capabilities and resources. Our partnership will provide continuity of services to our clients and support our continued focus on client service excellence.”
David Logan, Head of EMEA and Global Business Operations at Columbia Threadneedle
