Bank of America
has agreed to sell most of its asset management arm to Ameriprise
, but the bank isn't going to get out of the money market fund business. On Tuesday BofA revealed
that it will "retain Columbia Management
's cash business" and keep it inside BofA's global wealth and investment management unit after the deal with Ameriprise finalizes in the spring. The bank plans to rebrand the money fund lineup.
According to BofA, for now the cash business' portfolio management team will report to Paul Quistberg
, head of liquidity strategies, who in turn reports to Columbia chief investment officer Colin Moore
. Yet once the Ameriprise deal closes, Moore will serve as CIO of the asset management side of Ameriprise.
Industry insiders may not be surprised to hear that the brand of the money funds will be changing. (Ameriprise will be re-branding most of its asset management arm and products as Columbia.)
"The money market funds sponsored by Columbia Management will be rebranded on or about the closing of the long-term business transaction with Ameriprise," a BofA statement reads.
BofA did not reveal what that new brand will be. A BofA spokesman declined to comment further on the specifics of the move.
After about a year of speculation that started in September 2008 when BofA unveiled its deal to buy Merrill Lynch
, BofA unveiled a deal in September 2009 to sell the non-money market Columbia business to Ameriprise for between $900 million and $1.2 billion in cash.
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