* Q1 total net revenue falls 14 pct
* Sees more than $350 mln in re-engineering savings in '09
April 21 (Reuters) - Ameriprise Financial Inc (AMP.N), an asset manager and broker specializing in retirement plans, posted a lower quarterly profit, hurt by a decline in equity markets and lower short-term interest rates.
First-quarter net income attributable to the company fell to $129 million, or 58 cents a share, from $191 million, or 82 cents a share, last year.
Ameriprise, spun off from American Express (AXP.N) in 2005, said total net revenue fell to $1.72 billion.
The company said it continues to reduce expenses, which decreased 12 percent to $1.59 billion in the quarter, in light of market-driven revenue declines.
The company expects the majority of the full-year re-engineering savings of $350 million to be realized in the second half of the year.
Ameriprise said it intends to commit about two-thirds of the savings to the net income, while reinvesting the remainder in growth initiatives.
Management and financial advice fees fell 30 percent to $554 million and distribution fees dropped 28 percent to $311 million.
Shares of the company closed at $24.20 Tuesday on the New York Stock Exchange. (Reporting by Supantha Mukherjee in Bangalore; Editing by Anne Pallivathuckal)