Ameriprise Financial Completes Columbia Management Acquisition
May 03 2010 - 8:00AM
Business Wire
Ameriprise Financial, Inc. (NYSE: AMP) today announced that it
has completed the acquisition of the long-term asset management
business of Columbia Management from Bank of America for
approximately $1 billion in cash.
As of March 31 data, the acquisition adds $189 billion in assets
and establishes the company as the eighth largest manager of
long-term mutual fund assets in the U.S. Ameriprise Financial now
has $652 billion in total owned, managed and administered
assets.
In addition to enhancing equity and fixed income retail and
institutional capabilities, the transaction includes a five-year
strategic distribution agreement that provides ongoing access to
clients of Bank of America affiliated distributors, including U.S.
Trust.
“The Columbia Management acquisition transforms our asset
management capabilities and provides a platform to accelerate our
growth,” said Jim Cracchiolo, chairman and chief executive officer
of Ameriprise Financial. “It enhances our scale, broadens our
distribution and strengthens and diversifies our lineup of strong
performing retail and institutional funds. Importantly, the
transaction allows us to capture essential expense synergies that
will be instrumental in driving improved asset management returns
and margins over time.”
“Since the transaction was announced in September, both
RiverSource Investments and Columbia Management employees have been
focused on serving clients and advisors and maintaining business
momentum. We are grateful for their efforts and look forward to
growing this business together.”
Ameriprise Financial will combine its current U.S. asset
management business, RiverSource Investments, with Columbia
Management under the Columbia brand. Threadneedle Investments
remains the company’s international investment platform. The
RiverSource brand will continue for the company’s annuity and life,
health and disability insurance products.
The U.S. asset management business will continue to be led by
William F. “Ted” Truscott, CEO, U.S. Asset Management &
President, Annuities. Michael A. Jones will continue to serve as
President of Columbia Management and Colin Moore will continue to
serve as Chief Investment Officer. Messrs. Moore and Jones will
report to Mr. Truscott.
“We’re energized by the opportunities this transaction gives
us,” Mr. Truscott said. “We have assembled a team of
extraordinarily talented investment professionals, and we now offer
clients strong-performing funds in every style category. We believe
this combined organization is poised to deliver a very compelling
value proposition.”
The transaction is expected to be accretive to the company’s
earnings and return on equity within one year, excluding
integration costs. Ameriprise Financial continues to maintain more
than $1.5 billion of excess capital and a strong liquidity
position.
Notes:
Data used to calculate the assets under management figures in
this news release are as of March 31, 2010, including assets
acquired from Bank of America. Actual entity assets under
management will be reported in the next Ameriprise Financial, Inc.
quarter-ending financial disclosures.
Columbia Management is the 8th largest manager of long-term
mutual fund assets according to ICI data.
Ameriprise Financial, Inc. is a diversified financial services
company serving the comprehensive financial planning needs of the
mass affluent and affluent. For more information, visit
ameriprise.com.
On April 30, 2010, Ameriprise Financial, Inc., the parent
company of RiverSource Investments, LLC, acquired the long-term
asset management business of Columbia Management Group, LLC,
including certain of its affiliates, which were, prior to this
acquisition, part of Bank of America. In connection with the
acquisition of the long-term assets, certain clients of Columbia
Management Advisors, LLC (including the Columbia Funds) have a new
investment adviser, RiverSource Investments, LLC, which is now
known as Columbia Management Investment Advisers, LLC. On the same
date, Ameriprise Financial also acquired Columbia Wanger Asset
Management, LLC (CWAM). CWAM will continue as the investment
adviser for Columbia Acorn and Wanger Funds and no changes are
anticipated in the existing investment management team. For those
clients that use the services of a sub-advisor, those arrangements
are continuing unless notified otherwise. RiverSource Fund
Distributors, Inc., now known as Columbia Management Investment
Distributors, Inc., member FINRA, will act as the principal
distributor of the Columbia, Wanger, Columbia Acorn, RiverSource,
Seligman and Threadneedle branded funds. RiverSource Service
Corporation, now known as Columbia Management Investment Services
Corp., is the transfer agent for the Funds.
Legal Notice Regarding Forward-Looking Statements
This news release contains forward-looking statements that
reflect management’s plans, estimates and beliefs. All statements
other than statements of historical fact included in this news
release are forward-looking statements. Examples of forward-looking
statements in this release include: statements of management’s
expectations regarding the capabilities of the combined asset
management business and the ability to capture expense synergies;
statements regarding the intent combine the U.S. asset management
business, the expected leadership of the combined asset management
business and the branding under which the combined asset management
and other businesses of the company are expected to operate; and
the statement that the transaction is expected to be accretive to
the company’s earnings and return on equity within one year,
excluding integration costs.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results
or performance of Ameriprise Financial and its affiliates to be
materially different from any future results or performance
expressed or implied by such forward-looking statements. A list of
certain additional factors that could cause actual results to be
materially different from those expressed or implied by any of
these forward-looking statements is detailed under the headings
“Forward-Looking Statements” and “Risk Factors”, and elsewhere, in
our Annual Report on Form 10-K for the year ended December 31, 2009
and in our Form 8-K filed on March 8, 2010. These forward-looking
statements speak only as of today’s date, and we undertake no
obligation to update publicly or revise them for any reason.
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