Columbia Mutual Funds Transition — FAQ

To continue to serve you well on the road ahead, we’re continually enhancing our technology to provide improved online services and investment capabilities. That’s why we are moving your Columbia mutual fund positions from the current service platform to an account on our brokerage platform on June 23, 2017.

This change will give you access to a broader selection of funds, enhanced state tax withholding capabilities, and the option to establish an interest-bearing cash sweep for uninvested cash balances.

Below are the Ameriprise Brokerage Client Agreement and Other Important Disclosures document which outline the terms and conditions of your new brokerage account. If you would like a paper copy of these documents, please contact a client service representative at 1.800.862.7919.

Client Agreement

Other Important Disclosures

Click on the tabs below for more details about what to expect as a result of this change.

What accounts are converting?

On June 23, 2017 we'll convert any remaining Columbia Threadneedle accounts held on our legacy product platform to an Ameriprise brokerage account. 

Can I opt out of the conversion?

Because we are changing the platform on which we hold all Columbia Threadneedle funds, we're not able to leave any fund accounts on the old platform.

Are you creating a new account(s) for transition?

We will open a new Ameriprise brokerage account to hold your existing Columbia fund positions. This new account will be subject to the terms and conditions outlined in the Ameriprise Brokerage Client Agreement and the Other Important Disclosures document.

Columbia accounts with the same ownership and beneficiaries will move to a single brokerage account. Your new Ameriprise brokerage account will appear on your June month-end client statement.

Your new account is a standard brokerage account, and the standard fees specified in the Other Important Disclosures document will apply. TSCA accounts have unique fees and features; please refer to your client letter and ‘What this change means to you’ insert for more information.

Will my account number change?

Yes. Your account number will change and the old accounts will be inactivated as part of the move.

How and when will I receive my new account number(s)?

Your new account number will appear on your June month-end statement of accounts, and on the secure site on ameriprise.com.

Are there new or different fees in the Ameriprise Brokerage account?

The brokerage account will be subject to the fees as outlined in the Other Important Disclosures document. You can find a link to this document at the top of this page.

For tax-qualified accounts the custodial fee is the same, but unlike with your previous account, shares will not automatically be sold to cover the custodial fee. The custodial fee will instead be paid from the cash/cash sweep. This provides you with the opportunity to sell a fund or add cash to the sweep option ahead of time to cover this fee. Adding cash to a tax-qualified account will be considered a contribution.

What will happen to the systematic arrangements I have set up on my current account?

Systematic arrangements on your Columbia mutual fund account ending in 002 will be moved to a new account, with some limitations.

Please see the “Systematic Arrangements” tab for more detailed information.

How will the features of my account change?

  As-is To-be
Depositing money (regardless of source) Deposits currently reference the account number ending in 002. Please reference the new brokerage account number (account number ending in 133) on all future deposits.
Settlement Trade date + 0

Trade date + 3

This means that if you sell a fund position, the proceeds from that sale will be available for distribution to you 3 business days after the sale takes place.

Likewise, if you buy shares of a fund, the purchase amount will be due 3 business days after the trade date.

Cash Cash is used to directly purchase a Columbia Fund

The new Ameriprise® brokerage account offers a cash sweep program. A cash sweep automatically moves, or “sweeps”, uninvested cash balances to an available multi-bank, FDIC-insured deposit program or (for some clients) to a money market mutual fund. There is no minimum amount for deposit into the cash sweep account. Please review the information relating to our cash sweep programs in the Other Important Disclosures document. 

You may be able to choose a sweep option, please request an Ameriprise Sweep Change Form from your advisor, or by contacting a customer service representative at 1.800.862.7919

Minimum to buy, sell or exchange There is no minimum purchase amount for non-systematic purchases. Scheduled systematic mutual fund purchases have a minimum purchase amount of $50.

The minimum amount needed to buy, sell or exchange an existing fund will be $100. The minimum for 'buy' transaction in a TSCA account is $25, sells and exchanges are $100.

Initial purchases of other mutual funds must meet fund minimums as stated in the prospectus for that fund.

You may deposit any amount (up to IRA deposit limits in qualified accounts) in the Cash Sweep of your brokerage account.

Exchanges from existing Columbia Funds to the Columbia Money Market Fund will still be permitted. However, it is not possible to buy this fund with new money. Instead, new cash deposits will go into cash or your cash sweep.

Money Market Fund Purchases You can directly purchase the Columbia Money Market Fund with new money.

Any existing shares you currently hold in the Columbia Money Market Fund will be transferred to your new account.

Timing of Statement of Accounts If you do not already have a brokerage account in your household, you receive a quarterly statement. When the brokerage account is open, you will receive an account statement for any month in which there is qualifying activity. At a minimum, you’ll receive statements quarterly.

Bank Instructions
Any bank instructions you have on file will still be available for you to use when setting up new arrangements on your new brokerage account.

If you have systematic arrangements that regularly move money into or out of your Columbia Mutual Fund account, in most cases we will automatically move these arrangements to your new brokerage account. 

There are some arrangement types we may not be able to automatically move to your new brokerage account.  Below is a list of those arrangements.

If your systematic arrangement cannot be moved automatically, your Ameriprise financial advisor can help you modify and re-establish one on your new brokerage account.

Contact your Ameriprise Advisor regarding what arrangements you’d like established on your new brokerage account.

If you don’t have an Ameriprise financial advisor, you can contact a customer service representative at 800.862.7919, select option 4 and ask for the Brokerage Columbia Only team.

Arrangements not permitted Rationale
Buys of Columbia Money Market fund Columbia Money Market fund is closed to new purchases on the Ameriprise Brokerage Platform.
Systematic buys of Columbia mutual funds for less than $100 The minimum amount for a buy instruction is $100. (TSCA accounts have a $25 minimum for buys.)
Multiple dividend arrangements distributing to multiple destinations from the same brokerage account Although multiple positions may be set to pay dividends to cash, only one brokerage income distribution instruction to a single destination is permitted.
Systematic buys for a variable amount Variable amount buys cannot be established in the brokerage account.

Systematic payouts with the following non-standard frequencies:

  • Irregular
  • Every four months
  • Bi-fortnightly
These frequencies are not supported on the Ameriprise Brokerage Platform.

Systematic payouts which request an amount using:

  • Shares
  • Percentage
  • Specific term length
Arrangements in brokerage must be for a specific dollar amount.
Systematic payouts of Columbia mutual funds for less than $100 Brokerage account mutual funds have a minimum sell amount of $100.
Purchases using a IRA month indicator Brokerage accounts do not allow coding of an IRA month indicator. The arrangement will be set up on the brokerage platform but will not contain a IRA month indicator.
Federal/state withholding for 100% of the distribution amount Withholding 100% of the distribution amount is not supported on the Ameriprise Brokerage Platform.
Brokerage product rules will apply, including minimum distribution amounts and frequency.

 

Questions?
Contact Us

800.862.7919

Choose option 4, and ask the operator for the “Brokerage Columbia Only team”

Monday through Friday
7 a.m. – 6 p.m. Central time