Profile: Ameriprise Financial Inc (AMP)
29 Apr 2016
Ameriprise Financial, Inc. (Ameriprise Financial), incorporated on September 29 1983, is a holding company primarily engaged in business through its subsidiaries. Ameriprise Financial is a diversified financial services company that offers financial solutions to individual and institutional clients. The Company operates in four segments: Advice & Wealth Management, Asset Management, Annuities and Protection. The Company uses Ameriprise Financial as its enterprise brand, as well as the name of its advisor network and certain of its retail products and services. The retail products and services that use the Ameriprise Financial brand include those that the Company provides through its advisors (financial planning investment advisory accounts and retail brokerage services) and products and services that the Company markets directly to consumers or through affinity groups (personal auto and home insurance). The Company uses Columbia Management as the primary brand for its United States asset management products and services, including retail and institutional asset management products. Although Columbia Management markets certain of its services internationally, the Company primarily uses its Threadneedle Investments brand for marketing its asset management products and services outside of the United States. The Company uses its RiverSource brand for its annuity and protection products issued by the RiverSource Life companies, including its life and disability income insurance products.
Advice & Wealth Management segment
The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services, primarily to retail clients through advisors. Its services are centered on long-term, personal relationships between advisors and clients, and focuses on helping clients achieve their financial goals. The Company’s advisors provide an approach to financial planning, and have access to a selection of both affiliated and non-affiliated products to help clients meet their financial needs. As of December 31, 2014, the Company’s nationwide advisor network consisted of approximately 9,700 advisors, which includes approximately 2,100 employee advisors and 7,600 independent franchisees or employees or contractors of franchisees. The Company’s advisors offer clients a diversified set of cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer products and services, as well as a selection of products from other companies.
The Company offers brokerage and investment advisory services, such as individual and family financial services, brokerage and other products and services, fee-based investment advisory accounts, mutual fund offerings, insurance and annuities, banking products, face-amount certificates and financial wellness program. The Company offers retail and institutional clients a range of brokerage and other investment products and services. Its Ameriprise ONE Financial Account is a single integrated financial management brokerage account that enables clients to access a single cash account to fund a range of financial transactions, including investments in mutual funds, individual securities, cash products and margin lending. Additional features include unlimited check writing with overdraft protection, a Visa debit card through a third-party sponsor, online bill payments and ATM access. The Company provides securities execution and clearing services for its retail and institutional clients through its registered broker-dealer subsidiaries. It also offers shares in public non-exchange traded real estate investment trusts, structured notes and other alternative investments issued by unaffiliated companies. It offers trading and portfolio strategy services across a number of fixed income categories, including treasuries, agencies, municipals, corporate, mortgage- and asset-backed securities. In addition to purchases of mutual funds and other securities on a stand-alone basis, clients may purchase mutual funds, among other securities, in connection with investment advisory fee-based account programs or services. The Company offers both discretionary and non-discretionary investment advisory accounts.
The Company offers several types of investment advisory accounts. It sponsors Ameriprise Strategic Portfolio Service (SPS) Advantage, a non-discretionary investment advisory account service, as well as SPS - Advisor, a discretionary investment advisory account service. The Company also sponsors Ameriprise Separate Accounts (a separately managed account (SMA) program), which is a discretionary investment advisory account service through which clients invest in strategies managed by the Company or by affiliated and non-affiliated investment managers. It also sponsors Active Portfolios investments, a discretionary mutual fund investment advisory account service that offers a number of target allocations based on different risk profiles and tax sensitivities. Additionally, it offers discretionary investment advisory account services through which clients may invest in SMAs, mutual funds and exchange traded funds. In addition to the Columbia Management family of funds, it offers mutual funds from nearly 300 mutual fund families representing more than 3,500 mutual funds on its brokerage platform and as part of its investment advisory accounts to provide its clients a broad choice of investment products.
The Company offers insurance and annuities issued by the RiverSource Life companies. The RiverSource insurance solutions available to its retail clients include variable and fixed universal life insurance, traditional life insurance and disability income insurance. RiverSource annuities include fixed annuities, as well as variable annuities that allow its clients to choose from a number of underlying investment options, including volatility management options, and to purchase certain guaranteed benefit riders. In addition to RiverSource insurance and annuity products, the Company’s advisors offer products of unaffiliated carriers on a limited basis, including variable annuities, life insurance and long term care insurance products issued by a select number of unaffiliated insurance companies.
The Company offers consumer deposit and credit products. It provides personal trust, custodial, agency and investment management services to help meet estate and wealth transfer needs of its advisors’ individual and corporate clients. The Company issues five types of face-amount certificates through Ameriprise Certificate Company, a wholly owned subsidiary of Ameriprise Financial. It provides workplace financial planning and educational programs to employees of major corporations, small businesses and school district employees through its Financial Wellness Program.
The Asset Management segment provides investment advice and investment products to retail, high net worth and institutional clients on a global scale through Columbia Management and Threadneedle. Columbia Management primarily provides products and services in the United States and Threadneedle primarily provides products and services internationally. The Company provides clients with United States domestic individual products through unaffiliated third party financial institutions and through Advice & Wealth Management segment, and provides institutional products and services through its institutional sales force. International retail products are primarily distributed through third-party financial institutions and unaffiliated financial advisors. Individual products include United States mutual funds and their non-United States equivalents, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and involve a range of products, including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds and property funds. Collateralized loan obligations, hedge funds and certain private funds are often classified as alternative assets.
The Asset Management segment also provides interCompany asset management services for Ameriprise Financial subsidiaries. The investment management activities of Columbia Management and Threadneedle are conducted through investment management teams located in the United States and the United Kingdom, with operations in Singapore and Malaysia. Columbia’s investment management activities are conducted by teams located in multiple locations throughout the United States, including Boston, Charlotte, Chicago, Los Angeles, Minneapolis, New York, Menlo Park and Portland, Oregon. The portfolios it manages focus on varying sizes and categories of domestic and global equity securities.
Threadneedle’s investment management activities are conducted from its London office, with additional investment capabilities in Singapore and Malaysia. The Company offers investment advice and products to individual, institutional and high-net worth investors. It provides investment advisory, distribution and other services to the Columbia Management family of funds. The Columbia Management family of funds includes retail mutual funds, exchange-listed exchange-traded funds (ETFs) and United States closed-end funds and variable product funds. Columbia Management serves as investment manager for most of its United States mutual funds as well as its exchange-listed ETFs and United States closed-end funds. Threadneedle offers a fund product range that includes different risk-return options across regions, markets, asset classes and product structures, which include funds that are similar to United States mutual funds. Threadneedle Asset Management Ltd. serves as investment manager for most of its non-United States fund products and earns management fees based on underlying asset values for managing the assets of these funds.
The Company provides investment management services to a range of clients globally, including pension, profit-sharing, employee savings, sovereign wealth funds and endowment funds, accounts of large- and medium-sized businesses and governmental clients, as well as the accounts of high-net-worth individuals and smaller institutional clients, including tax-exempt and not-for-profit organizations. Its services include investment of funds on a discretionary or non-discretionary basis and related services, including trading, cash management and reporting. The Company provides investment management services and recognizes management fees for certain assets on its Consolidated Balance Sheets, such as the assets held in the general account of its RiverSource Life companies and assets held by Ameriprise Certificate Company. Columbia Management provides investment advice and related services to private, pooled investment vehicles organized as limited partnerships, limited liability companies or foreign (non-United States) entities. In addition to providing sub-advisory services to each other, Columbia Management and Threadneedle act as sub-advisers for certain United States and non-United States funds, private banking individually managed accounts, common trust funds and other portfolios sponsored or advised by other firms.
The Annuities segment provides variable and fixed annuity products of RiverSource Life companies to individual clients. The Company provides variable annuity products through advisors, and fixed annuity products are distributed through both affiliated and unaffiliated advisors and financial institutions. The Company’s annuity products include deferred variable and fixed annuities, in which assets accumulate until the contract is surrendered, the contractholder (or in some contracts, the annuitant) dies or the contractholder or annuitant begins receiving benefits under an annuity payout option. The Company also offers immediate annuities, in which payments begin within one year of issue and continue for life or for a fixed period of time.
The Protection segment offers a variety of products to address the protection and risk management needs of retail clients, including life, disability income and property-casualty insurance. Its products are designed to provide a lifetime of solutions that allow clients to protect income, grow assets and give to loved ones or charity. Life and disability income products are primarily provided through advisors. The property-casualty products are sold primarily through affinity relationships. The Company issues insurance policies through life insurance subsidiaries and the Property Casualty companies. Through the RiverSource Life companies, the Company issues both variable and fixed (including indexed) universal life insurance, traditional life insurance and disability income insurance. Its solutions are designed to help clients protect their income, grow assets and give to those individuals or causes that they care most about. Universal life insurance is a form of permanent life insurance characterized by flexible premiums, flexible death benefits and unbundled pricing factors (i.e., mortality, interest and expenses). The Company also offers a chronic care rider, AdvanceSource rider, on its new permanent insurance products. This rider allows its policyholder to accelerate a portion of the life insurance death benefit in the event of a qualified chronic care need.
The Company’s variable universal life insurance provides life insurance coverage along with investment returns linked to underlying investment accounts of the policyholder’s choice. RiverSource fixed universal life insurance products provide life insurance coverage and cash value that increases by a fixed interest rate. RiverSource indexed universal life insurance (IUL) provides lifetime insurance protection and asset growth through index-linked interest crediting, without the impact of negative market returns. The Company offers personal auto, home, excess personal liability, travel and specialty insurance products through IDS Property Casualty and its subsidiary, Ameriprise Insurance Company (the Property Casualty companies). It offers a range of coverage options under each product category. The Company’s Property Casualty companies provide personal auto, home and liability coverage to clients in 43 states and the District of Columbia. It reinsures a portion of the insurance risks associated with its life, disability income, long term care and property casualty insurance products through reinsurance agreements with unaffiliated reinsurance companies.
Ameriprise Financial Inc
1099 Ameriprise Financial Ctr
MINNEAPOLIS MN 55474-0010
Company Web Links
- BRIEF-Ameriprise Financial reports Q1 operating earnings per share $2.17
- Ameriprise Financial Reports First Quarter 2016 Results
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- Ameriprise Financial Announces Schedule for First Quarter 2016 Investor Conference Call and Annual Meeting of Shareholders
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