Investment Analyses –
Ameriprise Financial, Inc.
Overview
Ameriprise Financial, Inc. provides various financial products and services to individual and
institutional clients in the United States and internationally. The company’s Advice & Wealth
Management segment provides financial planning and advice, as well as full-service brokerage
services primarily to retail clients through its advisors. Its Asset Management segment offers
investment advice and investment products to retail, high net worth, and institutional clients
through unaffiliated third party financial institutions and institutional sales force. (Yahoo!
Finance).
Industry Outlook
This industry is expected to grow by about 11.49% in the next five years. Due to the amount of
changes in the industry, companies who don’t adapt will face challenges to stay relevant in the
near future. Another reason for threat of extinction is that the number of competitors within the
field is continuously growing stronger (EY.com).
Ticker
AMP
Market
$19.35 B
Value of
Investment
Investment Student Fixed
Group
Income
Management
Industry
Asset
Management
IVA Rating
BBB
ESG Related Issues
The key issues for AMP are carbon emissions, human capital development, and privacy and data security According to MSCI’s
Intangible Value Assessment (IVA) on AMP, carbon emissions and human capital development are the highest ranked of their ESG
concerns. AMP no real policies on that deal with lowering the risks of carbon emissions. However, due to the low exposure risk they
were given a default score of 8.0. The industry average is 8.2
AMP’s services require that they employ and retain a very skilled workforce. According to the IVA report. They have modest
employee benefits and programs that attempt to mitigate some of the risks. Due to the high level of risk and their modest attempts
to lower risk, they were given a score of 2.5. The industry average is 3.0.
The third highest risk that the company faces is privacy and data security. According to the IVA, The Company’s involvement in asset
management and the geographic concentration in the US suggest relatively high exposure to the risks associated with data security.
Given that information, the company was given a rating of 7.1, while the industry average is 5.4.
-
Matthew Smalls for the Sustainable Investing Advisory Committee
September 2015
References
Ameriprise Financial, INC. (AMP) (2015). Profile, business summary. Yahoo!Finance. Retrieved
from http://finance.yahoo.com/q?s=AMP
MSCI Intangible Value Assessment (2015, May), Ameriprise Financial, Inc. Retrieved from
www.esgoncampus.msci.com
Global Wealth and Asset Management Industry Outlook. Global Wealth and Asset Management Industry
OutlookContent (n.d.): n. pag. Ey.com. Ernst & Young, 2014. Retrieved from Ey.com