Newly independent Ameriprise Financial
is making its first moves to bolster its mutual fund business. The Minneapolis-based broker-dealer is closing its San Diego office and moving the management of the New Dimensions Fund to Boston where it will be merged with the RiverSource Large Equity Fund
The RiverSource Funds is the mutual fund brand for Ameriprise, which formally spun-off from American Express on Monday. Portfolio manager Gordon Fines
has already confirmed that he will retire and the fund itself has shrunk from $30 billion to $10 billion in assets.
The move of the fund's portfolio managers and the decision to merge it are not a surprise.
Fines was the force behind the firm's decision to open the San Diego office in 2001 and his retirement provided an opportunity for Ameriprise to consolidate its fund operations in Boston and Cambridge. Those offices were created by the firm when it lured portfolio managers from Fidelity Investments. The firm also employees investment professionals in Minneapolis.
By closing the San Diego office Ameriprise will eliminate 21 jobs, including that of co-portfolio manager Mike Nance
, according to the Minneapolis Star Tribune
Two managers in Boston -- Nick Thakore and Bob Ewing -- will take over responsibility for portions of the portfolio on October 17.
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