American Express 1998 Annual Report Download - page 11

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9
includes 401(k) services and separate account
asset management services for corporate, public
and union retirement funds. We added several
large clients and now serve nearly 600 institutions.
Third-party Channel —We distribute annuities
to consumers through alliances with other
financial institutions. Our focus here is on
expanding the number of partners we work
with and the range of products they offer to
their customers.
Superior service continues to be a competitive
advantage for Financial Advisors. Once again we
improved our already high client satisfaction sur-
vey ratings. These surveys include direct feedback
on advisors and are intended to ensure that we
maintain our high service levels.
Despite a strong overall performance, there
were areas of disappointment as well in 1998.
Some mutual funds posted stellar results, but our
overall fund performance was below expectations.
In addition, sales of annuities declined for the
second year in a row.
INTERNATIONAL FINANCIAL SERVICES
We are capitalizing on the large and growing
opportunity to meet the financial services needs of
customers outside the United States by leveraging
Financial Advisors’ strength in asset management,
the marketing expertise of our card business, and
American Express Bank’s global presence.
platform with high levels of structure and cor-
porate support; (2) an American Express-branded
platform of independent contractors with
moderate levels of support; and (3) a non-
branded platform of independent contractors
with a minimal level of support. Our goal is for
all advisors to select a platform within the next
two years.
In 1998, we took a significant step in this
direction with the purchase of Securities America,
an independent broker/dealer that serves finan-
cial planners and distributes mutual funds,
annuities and insurance. This acquisition added
approximately 1,100 financial advisors to our
field force and will form the basis of our non-
branded platform.
We strengthened our American Express-
branded financial advisor field force during the
year as well. Together with Securities America, we
had 10,350 financial advisors at year end.
We are also working to strengthen advisor
retention by providing a new generation of
technology support and tools. All American
Express-branded advisors now have access to
AdvisorLink, an integrated desktop financial
planning, client management and communica-
tions software package that helps them generate
more sophisticated, easy-to-read financial plans
more quickly.
Institutional Channel — During the year, we
expanded our institutional business, which
During the year, we made progress in selling additional American Express products
and services to our existing customers. For example, American Express Bank increased
client holdings in investment certificates manufactured by American Express Financial
Advisors by more than $1 billion; Cardmembers accounted for one-third of all new
clients of Financial Advisors; and the number of Cardmembers purchasing fee-based
services from American Express Relationship Services increased by 7 percent.