Profile: Ameriprise Financial Inc (AMP)
21 Nov 2014
Ameriprise Financial, Inc. (Ameriprise Financial), incorporated on September 9, 1983, is a holding company primarily engaged in business through its subsidiaries. The Company is a diversified financial services company. Ameriprise Financial operates in five segments: Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. As of December 31, 2012, the Company had a network of more than 9,700 affiliated advisors. Ameriprise Financial offers its branded advisors training, tools, leadership, marketing programs and other field and centralized support to assist them in delivering advice and product solutions to clients. It uses three principal brands for its businesses in the United States: Ameriprise Financial, Columbia Management and RiverSource. The Company uses its Threadneedle brand for its international asset manager's products.
Advice & Wealth Management.
Ameriprise Financial’s Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage and banking services, primarily to retail clients, through its affiliated financial advisors. Its affiliated advisors utilize a diversified selection of both affiliated and non-affiliated products. The Company provides clients financial planning, advice and brokerage services through its nationwide network of more than 9,700 affiliated advisors.
The Company offers a range of products and services, including those carrying the Ameriprise Financial, Columbia or RiverSource name, as well as solutions offered by unaffiliated firms. Its advisors deliver financial solutions to its advisory clients. Ameriprise Financial’s offer its retail and institutional clients a range of brokerage and other investment products and services. The Company’s Ameriprise ONE financial account is a single integrated financial management account that combines a client's investment, banking and lending relationships. The Ameriprise ONE financial account enables clients to access a single cash account to fund a variety of financial transactions, including investments in mutual funds, individual securities, cash products and margin lending. Additional features of the Ameriprise ONE financial account include unlimited check writing with overdraft protection, a MasterCard debit card, online bill payments, automatic teller machine (ATM) access and a savings account.
Ameriprise Financial provides securities execution and clearing services for its retail and institutional clients through its registered broker-dealer subsidiaries. Clients can use its online brokerage service to purchase and sell securities, obtain independent research and information about a range of securities, and use self-directed asset allocation and other financial planning tools. The Company also offers shares in public non-exchange traded real estate investment trusts (REITs), and other alternative investments and structured notes issued by unaffiliated companies. In addition to purchases of affiliated and non-affiliated 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 wrap account programs or services.
The Company offers both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, it (or an unaffiliated investment advisor) chooses the underlying investments in the portfolio on behalf of the client, whereas in a non-discretionary wrap account, clients choose the underlying investments in the portfolio based on their own or on their financial advisor's recommendation. Investors in discretionary and non-discretionary wrap accounts pay an asset-based fee (for investment advice and other services)-based on the assets held in that account.
Ameriprise Financial offers various types of investment advisory accounts. The Company sponsors Ameriprise Strategic Portfolio Service Advantage, which is a non-discretionary wrap account service, as well as SPS-Advisor, which is a discretionary wrap account service. It also sponsors Ameriprise separately managed accounts (SMAs), which is a discretionary wrap account service through which clients invest in strategies offered by the Company and by affiliated and non-affiliated investment managers and a similar program on an accommodation basis. It also sponsors Active Portfolios investments, which is a discretionary mutual fund wrap account service. In addition, the Company offers discretionary wrap account services, through which clients may invest in SMAs, mutual funds and exchange traded funds. It offers mutual funds from more than 275 mutual fund families on a stand-alone basis and as part of its wrap accounts to provide the Company’s clients a range 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.
Ameriprise Bank's consumer loan portfolio, including first mortgages, home equity loans, home equity lines of credit and loans, was sold to affiliates of Ameriprise Bank. The Company offers consumer deposit and credit products through relationships with well-known and respected financial services companies.
Ameriprise Financial provides workplace financial planning and educational programs to employees of corporations and small businesses through its Business Alliances group. It offers financial planning as an employee benefit supported by educational materials, tools and programs. In addition, the Company also provides training and support to financial advisors working on-site at company locations to present educational seminars, conduct one-on-one meetings and participate in client educational events. The Company also provides financial advice service offerings, such as Financial Planning and Executive Financial Services.
The Company’s Asset Management segment provides investment advice and investment products to retail and institutional clients. Columbia Management primarily provides the United States domestic products and services, and Threadneedle primarily provides international investment products and services. The United States domestic retail products are primarily distributed through unaffiliated third party financial institutions and also through its Advice & Wealth Management segment, and institutional products and services are sold through its institutional sales force. International retail products are primarily distributed through third parties.
Retail products include mutual funds, variable product funds underlying insurance and annuity separate accounts, separately managed accounts and collective funds. Institutional asset management services include a range of products, including those that focus on asset classes, separate accounts, individually managed accounts, collateralized loan obligations, hedge funds and property funds. In addition to the products and services provided to third party clients, management teams serving its Asset Management segment provide all intercompany asset management services for Ameriprise Financial. As a result of the acquisiton of Columbia Management Group from Bank of America, it combined RiverSource Investments with Columbia Management, under the Columbia Management brand.
The business of the J. & W. Seligman & Co. Incorporated (Seligman) companies includes the management of open- and closed-end investment funds, hedge funds and institutional portfolios. Its United States investment management activities are conducted primarily through investment management teams located in offices throughout the United States. Ameriprise Financial provides investment advisory, distribution and other services to the Columbia family of mutual funds. The Columbia family of funds includes retail mutual funds (both open- and closed-end funds) and variable product funds. Retail mutual funds are available through unaffiliated third-party financial institutions and the Ameriprise financial advisor network. Variable product funds are available as underlying investment options in variable annuity and variable life products, including RiverSource products.
The Columbia family of funds includes domestic and international equity funds, fixed income funds, cash management funds, balanced funds and asset allocation funds, including fund-of-funds. As of December 31, 2012, its retail mutual funds had total managed assets of $148.9 billion in 141 funds. As of December 31, 2011, the variable insurance trust funds (VIT Funds) had total managed assets of $153.9 billion in 135 funds. Columbia Management Investment Advisers, LLC (CMIA) serves as investment manager for its United States mutual funds. Columbia Wanger Asset Management, LLC (Columbia Wanger) also serves as investment manager for certain funds.
The Company provides investment management services to pension, profit-sharing, employee savings and endowment funds, accounts of large- and medium-sized businesses and governmental clients, as well as the accounts of 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. Ameriprise Financial offers various fixed income and equity investment strategies for its institutional separately managed accounts clients. The Company also offers United States equity and a range of fixed income strategies to non- United States clients.
Ameriprise Financial provides investment management services. The Company provides collateral management services to special purpose vehicles that issue CDOs. It provides investment advice and related services to private, pooled investment vehicles organized as limited partnerships, limited liability companies or foreign (non- United States) entities. As of December 31, 2012, excluding CDOs managed by Threadneedle, the Company managed $5.1 billion of assets related to CDOs. It offers separately managed account services to a range of institutional clients, including pension plans, employee savings plans, foundations, endowments, corporations, banks, trusts, governmental entities, high-net-worth individuals and not-for-profit organizations. The Company provides investment management services for insurance companies, including its insurance subsidiaries, as well as hedge fund management and other alternative investment products. It also provides a range of services for its institutional clients that sponsor retirement plans. As of December 31, 2012, the Company managed $114.2 billion of assets for Columbia Management institutional clients.
Ameriprise Financial offers international investment management products and services through Threadneedle. Threadneedle offers a range of products and services, including segregated asset management, mutual funds and hedge funds to institutional clients, as well as to retail clients in Europe, the United Kingdom, the Middle East and the Asia-Pacific region. Threadneedle's mutual fund and hedge fund product range includes different risk-return options across regions, markets, asset classes and product structures, which include Open Ended Investment Companies (OEICs), Societe d'Investissement A Capital Variable (SICAV), unit trusts, Undertakings for Collective Investments in Transferable Securities (UCITS III) and offshore vehicles. Threadneedle's institutional business offers separately managed accounts to European and other international pension funds and other institutions.
The Company’s Annuities segment provides RiverSource variable and fixed annuity products to retail clients. Variable annuity products are distributed through its branded financial advisors, while fixed annuity products are distributed through both affiliated and unaffiliated advisors. Ameriprise Financial’s products include deferred variable and fixed annuities. It also offers immediate annuities. The Company’s RiverSource Distributors subsidiary is a broker-dealer that serves as the principal underwriter and distributor of RiverSource variable and fixed annuities. Its Portfolio Navigator asset allocation program is available under the Company’s variable annuities. The Portfolio Navigator program allows clients to allocate their contract value to one of five funds of funds, each of which invests in various underlying funds.
Ameriprise Financial’s Protection segment provides a range of protection products for its retail clients, including life, disability income and property-casualty insurance. Life and disability income products are primarily distributed through its branded advisors. The Company’s property-casualty products are sold primarily through affinity relationships. It issues insurance policies through its life insurance subsidiaries and the Property Casualty companies. Through the RiverSource Life companies, it is the issuer of both variable and fixed universal life insurance, traditional life insurance and disability income insurance. The Company also offers a chronic care rider, AdvanceSource, on its new permanent insurance products. Variable universal life insurance provides life insurance coverage along with investment returns linked to underlying investment accounts of the policyholder's choice. In 2012, the Company introduced the SecureSource 3 living benefit rider, an optional GMWB rider that can be added to new purchases of RiverSource variable annuities for a fee.
Ameriprise Financial offers personal auto, home and excess personal liability insurance products through IDS Property Casualty and its subsidiary, Ameriprise Insurance Company (the Property Casualty companies). Its Property Casualty companies provide personal auto, home and liability coverage to clients in 43 states and the District of Columbia. The Company reinsures a portion of the insurance risks associated with its life, disability income and long term care insurance products through reinsurance agreements with unaffiliated reinsurance companies. As of December 31, 2012, it reinsured 90% of the death benefit liability related to individual fixed and variable universal life and term life insurance products.
Ameriprise Financial Inc
1099 AMERIPRISE FINANCIAL CENTER
MINNEAPOLIS MN 55474
Company Web Links
- Columbia Management Announces Strategic Initiative With Blackstone Alternative Asset Management
- 12,000 Ameriprise Financial Volunteers Turn Out at Nonprofits Across the Country to Help Fight Hunger on Nov. 14
- Morning Briefing on Asset Management and Custody Banks Stocks - Apollo Global Management, Och-Ziff Capital Management, Apollo Investment, Ameriprise Financial, and BlackRock
- Ex-Ameriprise broker pleads guilty after SEC insider trading case
- Financial Performance, Study Results, and Asset Sale - Research Reports on Capital One, Chubb, Ameriprise, Simon and American Realty