It’s Not Personal, Just Business
“Ameriprise Limits Sales of American Funds Products,” read Friday’s headline in the trade publication Ignites (the article is not linked because it is paywalled). Strange. I had not realized that American Funds’ performance was poor. Fund distributors, such as Ameriprise, conduct “robust due diligence” to ensure that their customers will be able to assemble a “broad, quality investment portfolio.” (Those quotes come from a 2017 Ameriprise release.) Did American Funds fail that test?
Silly me for thinking such a thing. It turns out that the decision was not about the investments. From the article: