Syndicate Offerings

• Syndicates underwrite and distribute new securities to the investing public
• Ameriprise Financial participates in the syndicate group for closed-end funds and preferred securities

A syndicate offering is a means of bringing a new security to the market. The lead underwriter will put together a syndicate of several investment banking companies and broker-dealers to jointly underwrite and distribute the new offering to the investing public.

Syndicate offerings at Ameriprise Financial

Ameriprise Financial participates in two types of syndicate offerings: closed-end funds and preferred securities.

A Closed-end Fund (CEF) is a publicly traded investment company, which is typically actively managed.

• It raises money from investors through an initial public offering (IPO)
• Invests raised capital in securities and other assets
• After the IPO, the shares of the CEF trade on an exchange like the New York Stock Exchange (NYSE) and may trade at a premium or a discount to the net asset value (NAV) of the underlying investments

A Preferred Security is a perpetual preferred or debt security issued by a corporation, which trades on an exchange.

• These securities provide investors a stated* quarterly dividend or interest payment (depending on the type of security) that must be paid before income is paid to common stockholders
• They take precedence over common stock in the event of a liquidation
• Most preferred securities do not allow for voting rights
• Risks associated with preferred securities include, but are not limited to, credit risk, interest rate risk and any other issue-specific risk associated with the issuer.

* Typically fixed, but in some cases the issue will pay a defined floating rate.

Take the next step

To find out more about syndicate offerings at Ameriprise Financial, contact your Ameriprise financial advisor or locate an advisor near you .

Investors should understand and consider the investment objectives, risk factors, charges and expenses of the investment. This and other information can be found in the prospectus. Read the prospectus carefully before investing. Syndicate new issues are sold by prospectuses only. A preliminary prospectus should be delivered during the indication of interest period, but no later than 48 hours prior to trade date. Note that some issues may include restrictions based upon customer profile and/or percentage of investable assets restrictions.

Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by, any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

Ameriprise Financial Services, Inc. Member FINRA and SIPC.