$521 billion in total assets under management
8th largest manager of long-term U.S. mutual
funds
Combined U.S. asset management business to operate under the Columbia
Management brand
MINNEAPOLIS--(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.
Source: Ameriprise Financial, Inc.
Contact: Ameriprise Financial, Inc.
Investor Relations:
Laura Gagnon, 612-671-2080
laura.c.gagnon@ampf.com
or
Media Relations:
Ben Pratt, 612-678-5881
benjamin.j.pratt@ampf.com
or
Paul Johnson, 612-671-0625
paul.w.johnson@ampf.com