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RiverSource Outsources, Lays off 68
RiverSource Investments laid off 68 workers last week. The Minneapolis StarTribune reports that the workers were all from the company's asset custody and servicing business.
RiverSource is outsourcing administrative work to JPMorgan's fund services unit. A JPMorgan spokeswoman told The MFWire that the conversion will occur in the fourth quarter.
The spokeswoman said JPMorgan will provide Ameriprise with fund accounting, fund administration and transfer agency services for over $20 billion in assets.
A spokesman for RiverSource told the MFWire that, "we (RiverSource) entered into the strategic relationship so we can focus our attention on more attractive opportunities. Remaining competitive in the asset custody business would have required ... a significant investment to increase scale and technology effectiveness."
JPMorgan will also serve as outsourcing provider for Ameriprise’s domestic and global custody and securities lending services for more than $130 billion in assets.
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