Ameriprise Financial, Inc.

Type	Public S&P 500 Component
Traded as	NYSE: AMP
Industry	Financial services
Founded	1894
Founder(s)	John Tappan
Headquarters	Minneapolis, Minnesota, U.S.
Key people	James Cracchiolo, Chairman & CEO
Products	Investments
Revenue	US$10.2 billion (FY 2011)[1]
Net income	US$1.08 billion (FY 2011)[1]
Total assets	US$134 billion (FY 2011)[2]
Total equity	US$10.3 billion (FY 2011)[2]
Website	www.ameriprise.com

Ameriprise Financial, Inc. (NYSE: AMP) is one of the leading diversified financial services companies in the U.S.^[3] Ameriprise Financial engages in business through its subsidiaries who provide a wide range of financial planning, products and services designed to be utilized as solutions for its clients’ cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer needs, including wealth management, asset management, insurance, annuities and estate planning.

Ameriprise Financial, Inc., the holding company is incorporated in Delaware. The company's headquarters are in Minneapolis, Minnesota. James Cracchiolo is the chairman and chief executive officer. The company's primary subsidiaries include Ameriprise Financial Services, Inc., Columbia Management Investment Advisers, LLC, and RiverSource Life Insurance Company. Threadneedle Asset Management is Ameriprise Financial's international asset manager and an award-winning provider of investment solutions to institutional and retail clients across the globe. The company's subsidiary in India, Ameriprise India Private Limited, offers holistic financial planning services to upwardly mobile Indian consumers.^[4]

History[link]

Spin-off from American Express[link]

Ameriprise Financial is the successor to American Express Financial Corporation (AEFC), a former subsidiary of the American Express Company. In 2005, American Express spun off AEFC as an independent company. AEFC's new name, Ameriprise Financial, Inc. came into effect August 1, 2005, and the spin-off transaction closed on September 30, 2005.

Timeline[link]

Ameriprise Financial began life as Investors Syndicate in 1894. Here are a few of the company's key milestones:

• 1894 - John Tappan founds Investors Syndicate
• 1937 - Company assets reach $100 million
• 1940 - Investors Syndicate introduces one of the first mutual funds, the Investors Mutual Fund, giving clients new investing options and two advantages: diversification and professional management. By the 1960s, Investors Mutual Fund is the largest balanced mutual fund in the world.
• 1949 - Investors Syndicate changes its name to Investors Diversified Services, Inc. (IDS)
• 1958 - IDS founds the Investors Syndicate Life Insurance and Annuity Company (now known as RiverSource Life Insurance Company)
• 1974 - the IDS Centre (now IDS Center) is opened in downtown Minneapolis, Minnesota as the company's headquarters
• 1979 - IDS became a wholly owned subsidiary of Alleghany Corporation pursuant to a merger
• 1984 - American Express completes acquisition of IDS Financial Services from Alleghany Corporation; company renamed as American Express Financial Corporation (AEFC)
• 1986 - IDS acquires Wisconsin Employers Casualty Company of Green Bay and renames it IDS Property Casualty Insurance Company
• 1994 - IDS reaches $100 billion in assets and conducts business under the American Express brand
• 2003 - American Express Financial Corporation acquires London-based Threadneedle Asset Management Holdings
• 2005 - American Express Financial Corporation spins off and becomes an independent company named Ameriprise Financial, Inc.; begins trading on the NYSE under the ticker symbol AMP
• 2006 - Ameriprise Financial launches Ameriprise Bank, FSB
• 2007 - Ameriprise Financial debutes at 297 on the FORTUNE 500 list
• 2008 - Ameriprise Financial acquires H&R Block Financial Advisors for $315 million, and the asset management firm J. & W. Seligman & Co. for $400 Million; declines U.S. Government financial assistance
• 2009 - Ameriprise Financial acquires long-term asset management business of Columbia Management for $1.2 billion from Bank of America
• 2010 - Ameriprise Financial completes 116 years of existence and its fifth anniversary as an independent public company
• 2011 - Ameriprise Financial takes its proprietary Dream > Plan > Track > approach to Financial Planning to consumers in India^[5]

Business[link]

Ameriprise Financial is the largest financial planning company in the United States^[6] and is among the 25 largest asset managers in the world.^[7] It is ranked 246 in the 2011 Fortune 500.^[8]

Business Lines[link]

As a leader in wealth management and retirement in the U.S. and as an asset manager with an increasingly global business, Ameriprse Financial has earned top 10 positions in each of its main businesses, including mutual funds, life insurance and annuities.^[9]

Wealth Management and Retirement[link]

Ameriprise Financial specializes in meeting the retirement-related financial needs of the mass affluent. As of December 31, 2010, the company has a three-million-strong client base with more financial planning clients than any other firm, and $672.7 billion in owned, managed and administered assets worldwide.^[7] As part of its retirement capabilities, the company offers variable annuities and life and disability insurance exclusively to its clients. It also operates Ameriprise Bank, FSB which offers a variety of consumer banking and lending products and personal trust and related services.

Ameriprise Financial is also credited with moving faster than most other full-service wealth management firms to develop social media for its advisors and investors; the company has empowered its consumers to use LinkedIn to find connections who can provide references on prospective advisors since November 2011.^[10]

Asset Management[link]

Ameriprise Financial operates two complementary asset management platforms: Columbia Management in the U.S. and Threadneedle internationally. The company reported as having $436 billion in assets under management as of December 31, 2011, placing it eighth in long-term mutual fund assets in the U.S., fourth in retail funds in the U.K. and 27th in global assets under management.^[11]

Principal Brands[link]

The company uses three principal brands for its businesses in the United States: Ameriprise Financial, Columbia Management and RiverSource. The Threadneedle brand is used for its international asset manager’s products.

Ameriprise Financial Services[link]

Ameriprise Financial Services, Inc., a financial planning and retail distribution subsidiary which operates under the Ameriprise Financial brand name, is a registered broker-dealer and registered investment adviser. It has an integrated model of comprehensive and personalized financial planning, diversified product manufacturing and affiliated and unaffiliated distribution through its network of financial advisors and registered representatives.^[7] The retail products and services that use the Ameriprise Financial brand include those that the company provides through its affiliated advisors (e.g., financial planning, investment advisory accounts, retail brokerage services and banking products) and products and services that it markets directly to consumers (e.g., personal auto and home insurance).^[11]

Columbia Management[link]

This is the primary brand for the company's U.S. asset management products and services, including retail and institutional asset management products. Following the completion of the acquisition of the long-term asset management business of the Columbia Management Group from Bank of America in April 2010, the company combined RiverSource Investments, its legacy U.S. asset management business, with Columbia Management, under the Columbia Management brand.^[11]

RiverSource[link]

This is the brand for the company's annuities products and for the protection products issued by the RiverSource Life companies, including life and disability income insurance products.^[11]

Sale of Securities America[link]

Securities America Financial Corporation’s roots go back to Financial Dynamics, an insurance marketing organization founded in 1984 by Steve Wild that had between 10,000 and 12,000 independent insurance agents affiliated with the firm. Financial Dynamics created Securities America, an independent securities broker/dealer, to use its insurance sales force to offer investments. Securities America Advisors Inc., an SEC-registered Investment Advisory firm, was founded in 1993 to offer investment management, financial advice and financial planning through a national network of independent financial advisors. In 1998, Securities America was acquired by American Express. In October 2005, after Ameriprise Financial's spin-off from American Express, Securities America became a wholly owned subsidiary of Ameriprise Financial, but continued to operate independently as a Nebraska-based broker/dealer and serving independent financial advisers across the country. Securities America acquired Brecek & Young Advisors, a California-based broker/dealer, and its subsidiary, Iron Point Capital Management, from Security Benefit Corp. of Topeka, Kansas. Securities America had received the inaugural Practitioner Thought Leadership Award from the Retirement Income Industry Association in March 2011,^[12] and was ranked as the seventh largest independent broker-dealer based on total revenues in the U.S., according to a June 2011 Financial Planning Magazine survey.^[13]

On April 25, 2011, Ameriprise announced that it is trying to find an "appropriate buyer" for Securities America Financial Corporation and its subsidiaries. Ameriprise said that this move will independent allow Securities America advisors and registered representatives who conduct business without utilizing the Ameriprise brand “to focus on growth opportunities in the independent channel.”^[14] In November 2011, Ameriprise completed the sale of Securities America to Ladenburg Thalmann Financial Services for $150 million in cash and potential future payments. Ameriprise claimed that selling this independent broker-dealer allows Ameriprise to focus its efforts on servicing and developing its branded advisor network.^[11]

International Subsidiaries[link]

Threadneedle Asset Management Holdings[link]

Threadneedle Asset Management Holdings SARL is a Luxembourg-based holding company for the Threadneedle group of companies and a wholly owned independent subsidiary of Ameriprise Financial which provides investment management products and services to clients in the United Kingdom, Europe, the Middle East and the Asia-Pacific region. Though acquired by Ameriprise Financial in 2003, Threadneedle operates as an independent international asset manager, under its own brand name, management organization and operating, compliance and technology infrastructure. Threadneedle primarily provides international investment products and services, and Ameriprise Financial, through an arrangement with Threadneedle, offers certain international and U.S. equity strategies to its U.S. clients.

In 2008, Threadneedle acquired Invesco Perpetual's full service defined contribution pension business with total assets of £470m,^[15] followed by acquisition of Standard Chartered Bank’s World Express Funds investment funds business in 2009, the latter providing Threadneedle with an established Luxembourg-based SICAV platform with over US$2.38 billion worth assets under management as at April 30, 2009.^[16] In August 2011 it was announced that Threadneedle would acquire the investment assets of LV= amounting to some £8 billion.^[17] At December 31, 2010, Threadneedle had $105.6 billion in managed assets worldwide, and was expanding distribution of its institutional products in Europe, Asia, U.S., Middle East and Australia.

Ameriprise India[link]

In early 2012, Ameriprise announced that it had begun offering retail financial planning and distribution services in India through its subsidiary, Ameriprise India Private Limited. Ameriprise has also established an insurance brokerage entity in India that is licensed to deal in insurance products by India’s Insurance Regulatory and Development Authority (IRDA). Ameriprise India has established offices in Delhi, Gurgaon, Greater Noida and Mumbai, with a plan to expand to other Indian metro areas in the future. As with its U.S. financial planning business, Ameriprise India provides holistic financial planning services through its trained advisor force. Fees are received for delivering financial plans; however, Ameriprise India does not currently sell affiliated investment or insurance products, instead refers clients who elect to implement their financial plan to third-party product manufacturers to purchase recommended investment and/or insurance products.

Locations[link]

• Ameriprise Financial's headquarters is located at 55 Ameriprise Financial Center, Minneapolis, Minnesota 55474.
• It maintains executive offices at 7 World Trade Center, New York, New York 10007.
• Its offices in Wall Street, New York provides portfolio management, banking, marketing and various support functions.
• Ameriprise Financial's employee and franchised financial advisor branch offices are located throughout the United States.
• Columbia Management is based in Boston, and has investment management teams in Chicago, Los Angeles, Minneapolis, New York, Menlo Park and Portland.
• RiverSource Life Insurance Company of New York and American Centurion Life are located in Albany, NY.
• RiverSource also has offices in Minneapolis, Green Bay, Phoenix, Boston, Los Angeles, New York and London.
• Ameriprise Advisor Center has locations in Minneapolis and Las Vegas.
• Ameriprise Auto & Home is located in Green Bay and Phoenix.
• Threadneedle is headquartered in Luxembourg and maintains its primary investment operations in London in the United Kingdom.
• Ameriprise Financial also has employees located in offices at Bangalore, the National Capital Region, and Mumbai in India.

Ameriprise advisors[link]

As of December 31, 2011, Ameriprise Financial reported as having more than 9,700 branded advisors, the fifth largest branded advisor force in the U.S.^[11] Ameriprise Financial advisors recommend actions and a broad range of product solutions consisting of investment, annuity, insurance, banking and other financial products to clients based on an appropriate range and level of risk. The financial advisors charge clients for financial advice and selling products. There are four ways the financial advisors affiliate with Ameriprise Financial:

• Approximately 60% of Ameriprise's financial advisors are independent contractor franchisees — they are not employed by Ameriprise, but are licensed registered representatives of Ameriprise and do not receive a salary from the parent company.
• About one quarter of financial advisors are employed by Ameriprise ("employee financial advisors"). Ameriprise Financial Services, Inc. has the largest number of these professionals among any retail advisory force. The majority of the employee advisors work in local offices like their franchisee counterparts.
• Over 120 of the employee advisors work within the corporate office in Minneapolis as part of the Ameriprise Advisor Center (AAC). These Advisors are fully licensed Securities and Insurance professionals that have received additional training which allows them to assist clients exclusively by telephone. They are required to hold the Series 7 and Series 63 Financial Industry Regulatory Authority (FINRA) licenses, along with insurance licenses in all states they serve, and are encouraged to acquire their Chartered Retirement Planning Counselor (CRPC) professional designation from the College of Financial Planning, and are reimbursed for the cost.
• The company also has associate Financial Advisors, employed by the independent contractor franchisees.^[18]

Many Ameriprise advisors are Certified Financial Planners, and the company actively encourages attaining this designation. Many advisors also hold similar designations such as the CLU or ChFC.

Fee structure[link]

Ameriprise Financial advisors and their clients enter into an agreement whereby the client pays a flat annual fee (a negotiated percentage of the overall value of the account) for an on-going planning relationship (Wrap Account).^[19] This fee varies based on advisor experience, certifications, and the complexity of the given client's service needs. By doing so, all normal brokerage fees and commissions are waived.

Ameriprise Financial and its advisors also receive commissions when they sell their clients mutual funds, annuities, insurance, and various other investment products. Financial planning services and investment products purchased through 'managed accounts' are not assessed a commission but rather are fee-based.

Awards & accolades[link]

Financial industry and media experts have recognized Ameriprise Financial for its growth, innovative financial solutions and unique approach to financial planning. A few awards and recognition received by Ameriprise Financial are as follows:

2012[link]

• Corporate Volunteerism Council – Twin Cities honored Ameriprise Financial with the Community Partner Award in May 2012 for the company's 2011 National Day of Service (NDS) initiative.^[20]
• Ranked 248 on the 2012 Fortune 500, a list of top 500 largest U.S. corporations by revenue.^[21]
• Web Marketing Association presented Columbia Management with the Best Financial Services Online Campaign award as part of the 2012 IAC award for outstanding achievement in Internet Advertising.^[22]
• Ameriprise Auto & Home Insurance named the "Next Generation Best Place to Work" by the Green Bay Chamber of Commerce.
• Lipper Fund Awards for five Columbia Management funds as "top-performing mutual funds" in their respective categories.
• The Wall Street Journal named nine Columbia Management funds as "Category Kings" in its "Investing in Funds: A Quarterly Analysis" issue.

2011[link]

• 2011 TNS Choice Award in Investment Services for its superior client retention performance, client satisfaction, and Ameriprise advisors' strong relationships with their clients.
• Ranked #29 in Barron's 13th annual Top 500 list of American companies that have generated "the most revenue growth and cash returns" released in May 2011.^[23]
• 2011 Lipper Fund Awards for seven Columbia Management funds as "top-performing mutual funds" in their respective categories.^[24]

2010[link]

• EarthShare National Campaign Partner Award for Excellence for Ameriprise's 2010 Annual Employee Giving Campaign.^[25]
• Ranked #1 (by Gross Revenue) on Financial Advisor Magazine 2009 Broker-Dealer Ranking^[26]
• Best Places to Work for LGBT Equality, Human Rights Campaign, 2010

2009[link]

• Barron's 500, Barron's, 2009
• Training Top 125, Training, 2009
• Listed in CollegeGrad's Top Entry Level Employers for 2009.^[27]
• Ranked fifth in overall client satisfaction in a 2009 J.D. Power & Associates survey of full-service financial advisory firms.^[28]
• Ranked as the 67th best place to launch a career in a 2009 national survey by BusinessWeek.^[29]

2008[link]

• 2008 Lavender Pride Award by Lavender Magazine.
• 2008 Jefferson Award for outstanding public and community service.
• Best Places to Work for LGBT Equality, Human Rights Campaign, 2008
• Training Top 125, Training, 2008
• Best Employers for Latinos to Work for, Latinos for Hire, 2008

Criticism & controversy[link]

• Securities America was fined $5.4 million in 2003 for letting a broker work under a false name in its Orlando office and allegedly make bogus investments.^[30] In 2005, Ameriprise agreed to pay a $12.3 million to settle NASD charges relating to favorable treatment allegedly given to some mutual funds in exchange for brokerage business.^[31]

• In mid-2005, the State of New Hampshire reached a $7.4 million settlement with American Express Financial Advisors, alleging the company had violated the law by rewarding their financial advisers for recommending underperforming in-house mutual funds to clients.^[32]

• Also in 2005, Ameriprise Financial entered into a $15 million settlement with the SEC for charges of market timing. The Minnesota Department of Commerce levied $2 million in fines for similar market timing violations. The National Association of Securities Dealers fined Ameriprise an additional $12.3 million for unsuitable share sales.^[33][34] Ameriprise, having become a separate company, had not revealed which funds were timed, or the names of the people involved and the exact nature of the disciplinary action taken. Morningstar temporarily reduced the stewardship grade for Ameriprise's funds, although it did not impact the fund's overall star ratings from that firm.^[35]

• In 2006, the NASD threatened to suspend the company for failing to pay an arbitration award to a former broker.^[36]

• In September, 2006, Securities America reached a $16.3 million settlement with a group of Exxon Mobil Corp. retirees for failing to supervise an associated broker.^[37][38]

• On July 11, 2007, the NASD fined Securities America $375,000 for improperly sharing directed brokerage commissions from a mutual fund company with a former Securities America broker.^[39] Another NASD arbitration panel awarded $9.3 million to three retired American Airlines pilots against Securities America and a formerly associated broker for allegedly mishandling their savings. Other airline pilots have arbitration claims pending.^[40]

• On July 10, 2009, the Securities and Exchange Commission (SEC) announced an enforcement action against Ameriprise for receiving millions of dollars in undisclosed revenue sharing as a condition for selling certain real estate investment trusts (REITs) to its brokerage customers. Ameriprise agreed to pay $17.3 million to settle the SEC's charges, however the period in which SEC states the violations took place were prior to the spinoff from American Express.^[41]

• On April 15, 2011, Securities America, Inc. (SAI) and its holding company, Securities America Financial Corporation, entered into settlement agreements related to the sale of private placement securities issued by Medical Capital and Provident Royalties that resulted in a $118 million pre-tax charge in the first quarter of 2011. The charge is in addition to a $40 million pre-tax charge in the fourth quarter of 2010.^[42]

Competitors[link]

• New York Life Insurance Co.
• John Hancock Financial Services
• Edward Jones Investments
• T. Rowe Price
• The Charles Schwab Corporation
• Merrill Lynch
• Morgan Stanley
• Morgan Stanley Smith Barney
• Linsco/Private Ledger (LPL)
• The Vanguard Group
• American Century Investments
• E*TRADE
• Scottrade
• Fidelity Investments

See also[link]

• American Express
• Columbia Management
• RiverSource

Notes[link]

External links[link]

• Ameriprise Financial - Official Site
• Ameriprise Investor Relations
• A small group of historical corporate records of IDS are available for research use at the Minnesota Historical Society.
• FINRA Brokercheck Page
• JD Power ranking of online brokers
• "Financial fact sheet and history". Ameriprise. http://www.ameriprise.com/amp/global/about-ameriprise/key-facts.asp. 
• "2006 Ameriprise Financial Completes First Year as an Independent, Public Company" (Press release). Ameriprise Financial. October 3, 2006. http://www.ameriprise.com/amp/global/press-center/press-release-84.asp. 
• "NASD Fines Ameriprise Financial Services, Inc. $500,000 for Supervisory Violations in 529 College Savings Plan Sales" (Press release). NASD. October 26, 2005. http://www.nasd.com/PressRoom/NewsReleases/2005NewsReleases/NASDW_015319. 
• "Ameriprise Financial Chosen as New Name for American Express Financial Advisors" (Press release). Ameriprise Financial. May 25, 2005. http://www.ameriprise.com/amp/global/press-center/press-release-1.asp. 
• "American Express to Spin Off Financial Advisors Business to Shareholders" (Press release). Ameriprise Financial. February 1, 2005. http://www.ameriprise.com/amp/global/press-center/press-release-8.asp. 

Terry Schrunk
44th Mayor of Portland, Oregon
In office 1957–1973
Preceded by	Fred L. Peterson
Succeeded by	Neil Goldschmidt
Personal details
Born	March 10, 1913
Died	March 4, 1975
Profession	Law enforcement

Terry Schrunk Plaza in Portland, Oregon.

Terry Doyle Schrunk (March 10, 1913 – March 4, 1975)^[1] was an American politician who served as the mayor for the city of Portland, Oregon, from 1957–1973, a length tying George Luis Baker who also served 17 years (1917–1933).^[2][3] Prior to becoming mayor, he had been the sheriff of Multnomah County since 1949.^[1][4] In his 1956 campaign for mayor, he advocated for urban renewal.^[5] Schrunk beat incumbent Fred L. Peterson by 17,000 votes in a nine-person primary, but did not get an absolute majority, and then beat Peterson in the fall run-off election.^[6]

Mayor[link]

In mid-twentieth-century Portland, gambling dens, brothels, and unlicensed bars operated virtually uninhibited by police as long as vice racketeers paid scheduled kickbacks to key city law enforcement officials.^[7]

Schrunk was elected mayor with Teamsters union support, allegedly in part because the incumbent Republican Mayor, Fred Peterson offended the union when he wouldn't oust Police chief J. Bardell Purcell. The Teamsters felt that Purcell impeded their drive to open a wider vice business in Portland.^[8]

An allegation against Mayor Schrunk soon landed him before the special Senate committee headed by Arkansas Democrat John McClellan investigating U.S. labor racketeering in March 1957. While still sheriff in September 1955, Schrunk and his deputies had raided the 8212 Club, a gambling and after-hours drinking joint financed by Portland Racketeer James B. Elkins. Elkins testified that the manager, Clifford Bennett, told him he had paid Schrunk $500, and the sheriff had gone away without causing any more trouble—except for arresting a few drunks. Although Bennett refused to testify, several others confirmed pieces of the story. Schrunk flatly denied having taken bribes from Bennett. But he did admit that his deputies had raided the 8212 Club, seen liquor being illegally served after hours, spotted gambling equipment all over the place—and that he had gone away without taking further action.^[8]

Robert Kennedy, then the lead attorney for the Senate committee, came to Portland to testify against him. Jurors acquitted Schrunk in less than two hours.^[9]

Three years later, Kennedy was managing his brother, Senator John F. Kennedy's, presidential campaign, with Oregon one of seven primaries that JFK entered. Kennedy's pursuit of Schrunk had angered enough Oregon Democrats that some of JFK's key supporters persuaded Kennedy operative Joseph S. Miller to ask Senator Kennedy to keep his younger brother out of Oregon. Although JFK largely accepted the advice, Miller's bluntness angered both brothers.^[10] Continued resentment by Schrunk and his supporters was seen as a contributing factor to Robert Kennedy losing the Oregon Democratic Primary to Eugene McCarthy in May 1968.

Schrunk suffered a heart attack in October 1972 while at City Hall and was taken to the hospital where he survived.^[11]

See also[link]

• Government of Portland, Oregon
• List of mayors of Portland, Oregon

References[link]

External links[link]

• Cogswell, Philip. Terry Schrunk in the Oregon Encyclopedia