Profile: Ameriprise Financial Inc (AMP)
24 Apr 2015
Ameriprise Financial, Inc., incorporated on September 29, 1983, is a holding company primarily engaged in business through its subsidiaries. Ameriprise Financial is a diversified financial services Company offering a range of products and services designed to achieve the financial objectives of individual and institutional clients. The Company operates in four segments: Advice & Wealth Management, Asset Management, Annuities and Protection. The Company’s key brands are Ameriprise Financial, Columbia Management and RiverSource. Through its advisors, it offers financial planning, products and services designed to be used as solutions for its clients’ cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer needs.
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 (e.g., financial planning, investment advisory accounts and retail brokerage services) and products and services that the Company markets directly to consumers or through affinity groups (e.g., 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 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. These 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 a distinctive approach to financial planning, and have access to a selection of both affiliated and non-affiliated products to help clients meet their financial needs. 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. In 2013, the Company completed the conversion of federal savings bank subsidiary, Ameriprise Bank to a limited powers national trust bank. The Company also sold Ameriprise Bank’s consumer loan portfolio, including first mortgages, home equity loans, home equity lines of credit and unsecured loans, to affiliates of Ameriprise Bank and sold Ameriprise Bank’s credit card account portfolio to Barclays Bank Delaware (Barclays).
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 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. Threadneedle operates as a primary international investment management platform. Threadneedle manages eight Open Ended Investment Companies (OEICs) and two Societe d’Investissement A Capital Variable (SICAV) offering. The eight OEICs are Threadneedle Investment Funds ICVC (TIF), Threadneedle Specialist Investment Funds ICVC (TSIF), Threadneedle Focus Investment Funds (TFIF), Threadneedle Portfolio Advantage Funds (TPAF), Threadneedle Investment Funds ICVC II (TIF II), Threadneedle Investment Funds ICVC III (TIF III), Threadneedle Investment Funds ICVC IV (TIF IV) and Threadneedle Opportunity Investment Funds ICVC (TOIF). TIF, TSIF, TFIF, TPAF, TIF II, TIF III, TIF IV and TOIF are structured as umbrella companies with a total of 76 (32, 14, 1, 2, 6, 8, 6 and 7, respectively) subfunds covering the world’s bond and equity markets. The SICAVs are the Threadneedle (Lux) SICAV (T(Lux)) and the Columbia Threadneedle SICAV-SIF (SIF). T(Lux) and SIF are structured as umbrella companies with a total of 30 (28 and 2, respectively) sub funds covering the world’s bond, commodities and equity markets. In addition, Threadneedle manages 13 unit trusts, 10 of which invest into the OEICs, 12 property unit trusts and one property fund of funds.
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. 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. These 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.
Ameriprise Financial Inc
1099 Ameriprise Financial Ctr
MINNEAPOLIS MN 55474-0010
Company Web Links
- Ameriprise Financial Reports First Quarter 2015 Results
- Capital Markets Stocks Review -- Deutsche Bank, UBS Group, Apollo Global Management, Credit Suisse Group, and Ameriprise Financial
- Columbia Threadneedle Investments Launches Columbia U.S. Social Bond Fund
- Fitch: Wealth Managers Have Opportunity in Automated Advisory
- ON THE MOVE-Ameriprise hires adviser from Edward Jones