8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  September 6, 2005

AMERIPRISE FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-32525	13-3180631
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

707 2nd Avenue South
Minneapolis, Minnesota	55474
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (612) 671-3131

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01               Regulation FD Disclosure.

Ameriprise Financial, Inc. furnishes herewith, as Exhibit 99.1, its Quarterly Statistical Supplement for the quarterly period ended June 30, 2005.

Item 9.01               Financial Statements and Exhibits.

(c) Exhibits.

Exhibit 99.1 Quarterly Statistical Supplement of Ameriprise Financial, Inc. for the quarterly period ended June 30, 2005.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMERIPRISE FINANCIAL, INC.
(REGISTRANT)
By:	/s/ Walter S. Berman
Name:	Walter S. Berman
Title:	Executive Vice President
	and Chief Financial Officer

DATE:  September 6, 2005

3

AMERIPRISE FINANCIAL, INC.

CURRENT REPORT ON FORM 8-K

Report Dated September 2, 2005

Exhibit No.	Description
Exhibit 99.1	Quarterly Statistical Supplement of Ameriprise Financial, Inc. for the quarterly period ended June 30, 2005.

4

EX-99.1

Exhibit 99.1

STATISTICAL SUPPLEMENT

(unaudited)

June 30, 2005

Table of Contents

		Page
Ameriprise Financial, Inc.
	Consolidated Income Statements	1
	Financial Summary	2
	Consolidating Segment Information	3
	Consolidated Balance Sheets	4
	Selected Consolidated Information	5-6
	Selected Balance Sheet Information	7
Asset Accumulation and Income
	Income Statements	8
	Product Information	9
	Selected Statistical Information	10
	Managed Asset Roll Forward	11
	Product Roll Forward	12
Protection
	Income Statements	13
	Product Information	14
	Selected Statistical Information	15
	Product Roll Forward	16
Corporate and Other and Eliminations
	Statements of Operations	17
Exhibit 1		A1-A5

Ameriprise Financial, Inc.

Consolidated Income Statements

(Millions, unaudited)

	2Q			3Q			4Q			1Q			2Q			2Q’05 vs. 2Q’04		Full Year
	2004			2004			2004			2005			2005			% Inc/(Dec)		2004
Revenues
Management, financial advice and service fees	$	541		$	549		$	605		$	607		$	630		16	%	$	2,244
Distribution fees	272			248			267			288			289			6	%	1,101
Net investment income	599			576			632			618			629			5	%	2,359
Premiums	254			262			264			270			279			10	%	1,023
Other revenues	126			132			135			133			137			9	%	518
Total revenues	1,792			1,767			1,903			1,916			1,964			10	%	7,245
Expenses
Compensation and benefits:
Field	334			311			339			362			371			11	%	1,332
Non-field	221			249			259			279			280			27	%	956
Total compensation and benefits	555			560			598			641			651			17	%	2,288
Interest credited to account values	328			324			372			350			375			14	%	1,352
Benefits, claims, losses and settlement expenses	215			205			223			218			238			11	%	828
Amortization of deferred acquisition costs	133			108			125			136			134			1	%	437
Interest and debt expense	12			13			15			17			19			58	%	52
Other expense	267			280			297			275			291			9	%	1,115
Total expenses	1,510			1,490			1,630			1,637			1,708			13	%	6,072
Income before income tax provision, separation costs and accounting change	282			277			273			279			256			(9	)%	1,173
Income tax provision	96			78			38			83			64			(33	)%	308
Income before separation costs and accounting change	186			199			235			196			192			3	%	865
Separation costs, after-tax *	—			—			—			13			37				#	—
Income before accounting change	186			199			235			183			155			(17	)%	865
Cumulative effect of accounting change, net of tax	—			—			—			—			—			—		(71		)
Net income	$	186		$	199		$	235		$	183		$	155		(17	)%	$	794
Net investment gains, after-tax	$	20		$	7		$	5		$	7		$	37		85	%	$	7
Dividends paid	$	532		$	100		$	602		$	—		$	—			#	$	1,325
Contribution margin**	51.1		%	52.5		%	50.9		%	51.5		%	49.9		%	—		51.5		%

*      Separation costs, after-tax is calculated using the statutory tax rate of 35%.

**   Contribution margin represents total revenues less field compensation and benefits, interest credited to account values and benefits, claims, losses and settlement expenses as a percentage of total revenues.

#      Variance 100% or greater.

1

Ameriprise Financial, Inc.

Financial Summary

(Millions except per share data, unaudited)

	2Q			3Q			4Q			1Q			2Q			2Q’05 vs. 2Q’04		Full Year
	2004			2004			2004			2005			2005			% Inc/(Dec)		2004
Common shares outstanding (ended) - pro forma *	248			248			248			248			248			—		248
Weighted average common shares outstanding - basic	248			248			248			248			248			—		248
Dilutive effect of stock options	TBD			TBD			TBD			TBD			TBD			—		TBD
Weighted average common shares outstanding - diluted	TBD			TBD			TBD			TBD			TBD			—		TBD
Pro forma-EPS - Basic*:
Income before separation costs and accounting change	$	0.75		$	0.80		$	0.95		$	0.79		$	0.78		4	%	$	3.48
Separation costs and accounting change	—			—			—			(0.05		)	(0.15		)		#	(0.28		)
Net income	$	0.75		$	0.80		$	0.95		$	0.74		$	0.63		(16	)%	$	3.20
Pro forma-EPS - Diluted:
Income before separation costs and accounting change	TBD			TBD			TBD			TBD			TBD			—		TBD
Separation costs and accounting change	—			—			—			TBD			TBD			—		TBD
Net income	TBD			TBD			TBD			TBD			TBD			—		TBD
Net income margin	10.4		%	11.3		%	12.3		%	9.6		%	7.9		%	—		11.0		%
Operating income margin **	10.4		%	11.3		%	12.3		%	10.2		%	9.8		%	—		11.9		%
Effective tax rate	34		%	28		%	14		%	29		%	23		%	—		26		%
Average shareholder’s equity (billions)	$	7.2		$	7.2		$	7.0		$	6.7		$	6.8		(5	)%	$	7.0
Operating return on average total shareholder’s equity ***	11.8		%	11.7		%	12.3		%	12.1		%	12.0		%	—		12.3		%
Book value:
Book value	$	6,570		$	7,151		$	6,702		$	6,482		$	6,993		6	%	$	6,702
Book value, excluding the impact of accumulated other comprehensive income (OCI)	$	6,569		$	6,681		$	6,322		$	6,513		$	6,679		2	%	$	6,322
Book value per share	$	26.49		$	28.83		$	27.02		$	26.14		$	28.20		6	%	$	27.02
Book value per share, excluding the impact of OCI	$	26.49		$	26.94		$	25.49		$	26.26		$	26.93		2	%	$	25.49
Debt/capital measure****	17.4		%	18.3		%	19.7		%	20.6		%	19.2		%	—		19.7		%
Allocated capital: *****
Asset accumulation and income	$	3,914		$	3,941		$	3,925		$	3,848		$	3,789		(3	)%	$	3,925
Protection	1,903			1,958			1,964			1,974			1,942			2	%	1,964
Corporate and other	752			782			433			691			948			26	%	433
Accumulated other comprehensive income	1			470			380			(31		)	314				#	380
Total	$	6,570		$	7,151		$	6,702		$	6,482		$	6,993		6	%	$	6,702

*	The calculation of pro forma basic earnings per share and weighted average shares outstanding are based on the American Express Company shares of common stock outstanding as of June 30, 2005, adjusted for the expected distribution ratio of one share of our common stock for every five shares of American Express Company common stock.
**	Operating income margin represents income before separation costs and accounting change as a percentage of total revenues.
***	Calculated using the trailing 12 month income before separation costs and accounting change and the average shareholder’s equity as of the last day of the preceding three quarters and the current quarter.
****	Debt consists of short term line of credit with American Express Company and other long term debt with both American Express Company and third parties.  Excluded is non recourse debt. Capital includes total shareholder’s equity plus the previously described debt.
*****	Allocated capital reflects the internal allocation of consolidated shareholder’s equity (excluding OCI) to the Company’s operating segments for purposes of measuring segment pretax operating return on allocated capital.  Allocated capital does not reflect insurance company risk-based capital or other regulatory capital requirements applicable to the Company and certain of its subsidiaries.
#	Variance 100% or greater.

2

Ameriprise Financial, Inc.

Consolidating Segment Information

(Millions, unaudited)

	2Q 2005
	Asset Accumulation and Income		Protection		Corporate and Other and Eliminations			Total
INCOME STATEMENT
Revenues
Management, financial advice and service fees	$	559	$	13	$	58		$	630
Distribution fees	200		26		63			289
Net investment income	549		85		(5		)	629
Premiums	—		279		—			279
Other revenues	17		112		8			137
Total revenues	1,325		515		124			1,964
Expenses
Compensation and benefits - field	241		20		110			371
Interest credited to account values	347		28		—			375
Benefits, claims, losses and settlement expenses	16		222		—			238
Amortization of deferred acquisition costs	97		37		—			134
Interest and debt expense	7		4		8			19
Other operating expense*	451		83		37			571
Total expenses	1,159		394		155			1,708
Income (loss) before income tax provision (benefit) and separation costs	166		121		(31		)	256
Separation costs, pretax	—		—		56			56
Income (loss) before income tax provision (benefit)	$	166	$	121	$	(87	)	$	200
BALANCE SHEET
Total Assets	$	77,687	$	14,145	$	4,120		$	95,952

* On a consolidated basis, non-field compensation and benefits expense was $280.

3

Ameriprise Financial, Inc.

Consolidated Balance Sheets

(Millions, unaudited)

	June 30, 2004		September 30, 2004		December 31, 2004		March 31, 2005			June 30, 2005
Assets
Cash and cash equivalents	$	1,026	$	1,853	$	1,078	$	1,334		$	2,510
Investments	43,006		44,190		45,984		45,647			45,883
Receivables	2,129		2,300		2,203		2,594			2,523
Deferred acquisition costs	3,922		3,927		3,956		4,043			4,032
Separate account assets	32,908		32,367		35,901		35,995			37,433
Restricted and segregated cash	1,898		1,479		1,536		1,535			1,241
Other assets	2,702		2,386		2,455		2,388			2,330
Total assets	$	87,591	$	88,502	$	93,113	$	93,536		$	95,952
Liabilities and Shareholder’s Equity
Liabilities:
Future policy benefits and claims	$	32,699	$	33,010	$	33,253	$	33,190		$	33,169
Investment certificate reserves	9,517		10,178		11,332		11,980			12,174
Accounts payable and accrued expenses	2,440		2,447		2,563		2,780			2,787
Payable to American Express	1,755		1,808		1,869		1,882			1,838
Long-term debt	375		377		385		385			378
Separate account liabilities	32,908		32,367		35,901		35,995			37,433
Other liabilities	1,327		1,164		1,108		842			1,180
Total liabilities	81,021		81,351		86,411		87,054			88,959
Shareholder’s Equity:
Common shares ($.01 par, 100 shares authorized, issued and outstanding)	—		—		—		—			—
Additional paid-in capital	2,886		2,899		2,907		2,915			2,926
Retained earnings	3,683		3,782		3,415		3,598			3,753
Accumulated other comprehensive income (loss), net of tax	1		470		380		(31		)	314
Total shareholder’s equity	6,570		7,151		6,702		6,482			6,993
Total liabilities and shareholder’s equity	$	87,591	$	88,502	$	93,113	$	93,536		$	95,952

4

Ameriprise Financial, Inc.

Selected Consolidated Information

(Millions, except where noted, unaudited)

	2Q		3Q		4Q		1Q		2Q		2Q’05 vs. 2Q’04		Full Year
	2004		2004		2004		2005		2005		% Inc/(Dec)		2004
Owned, managed and administered assets (billions):
Owned assets*	$	81.6	$	82.5	$	87.1	$	87.4	$	89.9	10	%	$	87.1
Managed assets**	228.0		229.7		249.7		243.3		248.2		9	%	249.7
Administered assets	66.0		66.2		71.0		69.8		72.1		9	%	71.0
Total owned, managed and administered assets	$	375.6	$	378.4	$	407.8	$	400.5	$	410.2	9	%	$	407.8
Ending shareholder’s equity by legal entity:
IDS Life Insurance Co.	$	4,787	$	5,320	$	4,906	$	4,714	$	5,096	6	%	$	4,906
IDS Property Casualty Ins. Co.	419		436		444		492		525		25	%	444
Ameriprise Certificate Co.	271		322		343		298		346		28	%	343
Other	1,093		1,073		1,009		978		1,026		(6	)%	1,009
Total	$	6,570	$	7,151	$	6,702	$	6,482	$	6,993	6	%	$	6,702
CASH SALES
By product:
Mutual funds***	$	6,022	$	5,634	$	5,774	$	6,192	$	6,044	—	%	$	24,633
Annuities	1,912		1,887		1,835		2,016		2,440		28	%	7,820
Investment certificates	1,445		1,786		2,586		2,226		1,896		31	%	7,141
Life and other insurance products	285		306		288		327		313		10	%	1,162
Institutional products and services****	2,841		1,664		1,763		1,758		2,519		(11	)%	7,683
Other	1,116		991		1,078		925		1,081		(3	)%	4,477
Total	$	13,621	$	12,268	$	13,324	$	13,444	$	14,293	5	%	$	52,916
By channel:
Branded advisor***	$	5,762	$	5,357	$	6,014	$	6,333	$	6,258	9	%	$	23,656
Securities America	1,322		1,280		1,263		1,535		1,632		24	%	5,662
Third-party distribution	212		204		220		248		264		25	%	870
Institutional	2,976		1,604		1,354		1,705		2,321		(22	)%	7,455
Threadneedle	1,933		2,106		2,254		1,819		2,050		6	%	8,536
All Other (AEIDC/AEB,etc)	1,416		1,717		2,219		1,804		1,768		25	%	6,737
Total	$	13,621	$	12,268	$	13,324	$	13,444	$	14,293	5	%	$	52,916
Total Gross Dealer Concession *****	$	367.5	$	357.2	$	382.4	$	403.3	$	416.9	13	%	$	1,501.1

*Owned assets include certain assets on our balance sheet, principally investments in the general and separate accounts of our life insurance subsidiaries, as well as cash and cash equivalents, restricted and segregated cash and receivables.

**Managed assets includes all assets managed by Ameriprise Financial, Inc., or its subsidiaries that are investment advisers, but does not include owned assets or administered assets. The presentation of managed assets may be different when provided by any of these subsidiaries.

***Excludes non proprietary sales within Ameriprise’s wrap accounts.

****Includes separately managed accounts and alternative investments.

*****Internal measure, commonly used in the financial services industry, of the sales production of the advisor channel, excluding Securities America.

Securities America is a separately managed broker dealer and its results are included in the Corporate and Other segment.

5

Ameriprise Financial, Inc.

Selected Consolidated Information (continued)

(unaudited)

	2Q			3Q				4Q			1Q			2Q			2Q’05 vs. 2Q’04		Full Year
	2004			2004				2004			2005			2005			% Inc/(Dec)		2004
Employee base:
Field (employee advisors)	2,828			2,947				3,170			3,241			3,109			10	%	3,170
Non-field	8,636			8,692				8,538			8,594			8,664			—	%	8,538
Advisors:
Employee advisors	2,828			2,947				3,170			3,241			3,109			10	%	3,170
Franchisee advisors	7,585			7,583				7,571			7,534			7,470			(2	)%	7,571
Total branded financial advisors	10,413			10,530				10,741			10,775			10,579			2	%	10,741
Securities America registered representatives	1,530			1,541				1,603			1,581			1,583			3	%	1,603
Total advisors	11,943			12,071				12,344			12,356			12,162			2	%	12,344
Employee advisor retention	55		%	59			%	62		%	65		%	65		%	—		62		%
Franchisee advisor retention	93		%	93			%	93		%	92		%	92		%	—		93		%
Cash sales* per branded advisor (thousands)	$	553		$	509			$	560		$	588		$	592		7	%	$	2,202
Gross Dealer Concession** per branded advisor (thousands)	$	35.3		$		33.9		$	35.6		$	37.4		$	39.4		12	%	$	139.8
Financial planning:
Financial plans sold (thousands)	55			51				59			66			58			5	%	227
Percentage of clients with financial plans	41		%	42			%	42		%	43		%	43		%	—		42		%
Sales per branded advisor client (thousands)	$	2.7		$		2.5		$	2.8		$	3.1		$	3.1		15	%	$	11.0
Clients:
Total clients (millions)	2.7			2.7				2.7			2.7			2.8			2	%	2.7
Branded advisor clients (millions)	2.2			2.2				2.2			2.0			2.0			(5	)%	2.2
Client retention	94		%	94			%	94		%	93		%	94		%	—		94		%

*Branded advisor cash sales excludes non proprietary sales within Ameriprise’s wrap accounts.

**Internal measure, commonly used in the financial services industry, of the sales production of the advisor channel excluding Securities America.

Securities America is a separately managed broker dealer and its results are included in the Corporate and Other segment.

6

Ameriprise Financial, Inc.

Selected Balance Sheet Information

(Billions, unaudited)

	2Q						3Q						4Q						1Q						2Q
	2004						2004						2004						2005						2005
	Cost			Fair Value			Cost			Fair Value			Cost			Fair Value			Cost			Fair Value			Cost			Fair Value
Earning assets by type (%):
Equity	0.1		%	0.1		%	0.1		%	0.1		%	0.1		%	0.1		%	0.1		%	0.1		%	0.1		%	0.1		%
Fixed income	45.9		%	46.0		%	46.4		%	47.0		%	46.1		%	46.7		%	46.1		%	46.3		%	45.0		%	45.4		%
Separate accounts	40.4		%	40.4		%	39.6		%	39.2		%	41.6		%	41.2		%	41.2		%	41.2		%	42.0		%	41.6		%
Other	13.6		%	13.5		%	13.9		%	13.7		%	12.2		%	12.0		%	12.6		%	12.4		%	12.9		%	12.9		%
Available-for-sale (AFS) investments:
Corporate debt securities	$	20.5		$	20.7		$	20.4		$	21.2		$	21.6		$	22.3		$	21.8		$	22.0		$	22.0		$	22.5
Mortgage and other asset-backed securities	14.9			14.8			15.4			15.5			16.0			16.2			16.4			16.3			16.7			16.8
Structured investments	0.8			0.8			0.8			0.8			0.8			0.7			0.7			0.7			—			—
State and municipal obligations	0.7			0.7			0.8			0.8			0.8			0.8			0.8			0.8			0.9			0.9
U.S. government and agencies obligations	0.4			0.4			0.4			0.4			0.5			0.5			0.5			0.5			0.4			0.5
Foreign government bonds and obligations	0.1			0.1			0.1			0.1			0.1			0.1			0.1			0.1			0.1			0.1
Common and preferred stocks	0.1			0.1			0.1			0.1			0.1			0.1			0.1			0.1			0.1			0.1
Total	$	37.5		$	37.6		$	38.0		$	38.9		$	39.9		$	40.7		$	40.4		$	40.5		$	40.2		$	40.9
Fixed income asset quality:
AAA	43		%				44		%				44		%				44		%				45		%
AA	3		%				4		%				4		%				5		%				6		%
A	20		%				19		%				20		%				19		%				19		%
BBB	25		%				25		%				26		%				26		%				23		%
Below investment grade	9		%*				8		%				6		%				6		%				7		%
Non-performing assets as a percentage of invested assets**	0.04		%				0.03		%				0.02		%				0.05		%				0.02		%
Reserve coverage of non-performing assets	6.6		x				6.3		x				7.2		x				3.6		x				6.6		x
SFAS 115 related mark-to-market amount in assets (pretax)	$	0.1					$	0.9					$	0.8					$	0.1					$	0.7

*Includes $674 million of securities which were not rated by S&P, Moody’s or internal analysts as of June 30, 2004.

**Excludes short-term cash positions and includes the impact of FIN 46.

7

Asset Accumulation and Income

Income Statements

(Millions, unaudited)

	2Q				3Q				4Q				1Q				2Q				2Q’05 vs. 2Q’04		Full Year
	2004				2004				2004				2005				2005				% Inc/(Dec)		2004
Revenues
Management, financial advice and service fees	$	478			$	485			$	531			$	530			$	559			17	%	$	1,982
Distribution fees	185				176				198				205				200				8	%	784
Net investment income	530				506				557				541				549				4	%	2,082
Other revenues	7				16				17				18				17					#	46
Total revenues	1,200				1,183				1,303				1,294				1,325				10	%	4,894
Expenses
Compensation and benefits - field	212				221				233				240				241				14	%	891
Interest credited to account values	301				283				333				314				347				15	%	1,209
Benefits, claims, losses and settlement expenses	8				16				16				5				16					#	52
Amortization of deferred acquisition costs	100				79				82				92				97				(3	)%	305
Interest and debt expense	3				10				12				11				7					#	33
Other operating expense	398				401				458				458				451				13	%	1,652
Total expenses	1,022				1,010				1,134				1,120				1,159				13	%	4,142
Income before income tax provision and accounting change	$	178			$	173			$	169			$	174			$	166			(7	)%	$	752
Net investment gains, pretax	$		27		$		7		$		4		$		7		$		37		37	%	$		8
Contribution margin *	56.6			%	56.0			%	55.3			%	56.8			%	54.4			%	—		56.0			%
Allocated capital **	$	3,914			$	3,941			$	3,925			$	3,848			$	3,789			(3	)%	$	3,925
Return on allocated capital for income before income tax provision and accounting change***	N/A				N/A				19.2			%	17.8			%	17.6			%	—		19.2			%

*	Contribution margin represents total revenues less field compensation and benefits, interest credited to account values and benefits, claims, losses and settlement expenses as a percentage of total revenues.
**	Allocated capital reflects the internal allocation of consolidated shareholder’s equity (excluding OCI) to the Company’s operating segments for purposes of measuring segment return on allocated capital.  Allocated capital does not reflect insurance company risk-based capital or other regulatory capital requirements applicable to the Company and certain of its subsidiaries.
***	Calculated using trailing 12 month income before income tax and accounting change and the average allocated capital as of the last day of the preceding three quarters and the current quarter.
#	Variance 100% or greater.

8

Asset Accumulation and Income

Product Information

(Millions, unaudited)

	2Q		3Q		4Q		1Q		2Q		2Q’05 vs. 2Q’04		Full Year
	2004		2004		2004		2005		2005		% Inc/(Dec)		2004
Revenues:
Asset management	$	343	$	343	$	373	$	358	$	372	8	%	$	1,420
Variable annuities	195		203		218		216		213		9	%	807
Fixed annuities	327		303		309		303		306		(6	)%	1,232
Certificates	118		115		150		140		151		28	%	493
Brokerage, banking and other	217		219		253		277		283		30	%	942
Total	$	1,200	$	1,183	$	1,303	$	1,294	$	1,325	10	%	$	4,894
Product sales: *
Mutual funds	$	5,188	$	4,828	$	4,900	$	5,126	$	5,033	(3	)%	$	21,038
Variable annuities	1,178		1,118		1,223		1,378		1,724		46	%	4,734
Fixed annuities	340		401		309		279		270		(21	)%	1,390
Certificates	1,445		1,786		2,587		2,226		1,896		31	%	7,140
Other	3,876		2,566		2,767		2,583		3,439		(11	)%	11,847
Total	$	12,027	$	10,699	$	11,786	$	11,592	$	12,362	3	%	$	46,149

* Excludes non proprietary sales within Ameriprise’s wrap accounts.

9

Asset Accumulation and Income

Selected Statistical Information

(Billions, unaudited)

	2Q				3Q				4Q				1Q				2Q				2Q’05 vs. 2Q’04
	2004				2004				2004				2005				2005				% Inc/(Dec)
Owned, managed and administered assets:
Owned assets*	$		66.8		$		68.0		$		72.2		$		72.4		$		74.5		12	%
Managed assets**	223.3				224.9				244.2				237.5				242.0				8	%
Administered assets	55.9				55.8				61.2				59.9				62.1				11	%
Total owned, managed and administered assets	$	346.0			$	348.7			$	377.6			$	369.8			$	378.6			9	%
Managed assets by type - excluding separate accounts (%):
Equity	54			%	52			%	52			%	51			%	50			%	—
Fixed income	25			%	26			%	25			%	25			%	24			%	—
Broker managed wrap	12			%	13			%	14			%	15			%	16			%	—
Other	9			%	9			%	9			%	9			%	10			%	—
Mutual fund performance:
Equity - 12-month
Percent of funds, equal weighted in top 2 Lipper quartiles	36			%	41			%	59			%	59			%	66			%	—
Fixed Income - 12-month
Percent of funds, equal weighted in top 2 Lipper quartiles	47			%	53			%	68			%	50			%	45			%	—
Equity - 3-year
Percent of funds, equal weighted in top 2 Lipper quartiles	28			%	39			%	39			%	50			%	52			%	—
Fixed income - 3-year
Percent of funds, equal weighted in top 2 Lipper quartiles	40			%	40			%	20			%	31			%	44			%	—

Aggregated data shows only actively-managed mutual funds by affiliated investment managers.

Aggregated data does not include mutual funds subadvised by advisers not affiliated with Ameriprise Financial, Inc. or index funds.

Aggregated equity rankings include AXP Portfolio Builder Series and other balanced and asset allocation funds that invest in both equities and fixed income.

AXP Portfolio Builder Series funds are funds of mutual funds that may invest in third-party subadvised funds.

Aggregated data only includes mutual funds in existence as of June 30, 2005. Refer to Exhibit 1 for individual mutual fund performance rankings and other important disclosures.

Exhibit 1 includes performance rankings for funds subadvised by non-affiliated advisers for general reference although not included in the summary above.

*Owned assets include certain assets on our balance sheet, principally investements in the general and separate accounts of our life insurance subsidiaries, as well as cash and cash equivalents, restricted and segregated cash and receivables.

**Managed assets includes all assets managed by Ameriprise Financial, Inc., or its subsidiaries that are investment advisers, but does not include owned assets or administered assets. The presentation of managed assets may be different when provided by any of these subsidiaries.

10

Asset Accumulation and Income

Managed Asset Roll Forward

(Billions, unaudited)

	2Q 2004			3Q 2004			4Q 2004			1Q 2005			2Q 2005			2Q’05 vs. 2Q’04 % Inc/(Dec)		Full Year 2004
Managed assets - retail:
AXP mutual funds
Beginning assets	$	67.8		$	65.5		$	63.3		$	65.3		$	61.2		(10	)%	$	68.8
Sales	2.4			2.4			2.0			2.1			2.0			(17	)%	9.7
Redemptions	(4.4		)	(4.2		)	(4.1		)	(4.9		)	(4.5		)	1	%	(17.5		)
Market appreciation/(depreciation)	(0.4		)	(0.6		)	3.9			(1.4		)	0.9				#	3.7
Other	0.1			0.2			0.2			0.1			0.3				#	0.6
Ending assets	$	65.5		$	63.3		$	65.3		$	61.2		$	59.9		(9	)%	$	65.3
Threadneedle mutual funds
Beginning assets	$	10.7		$	10.8		$	10.8		$	12.2		$	11.9		11	%	$	10.7
Sales	0.8			0.9			0.9			1.2			1.1			35	%	3.8
Redemptions	(0.9		)	(1.0		)	(0.7		)	(1.2		)	(1.2		)	33	%	(3.6		)
Market appreciation/(depreciation) and foreign currency translation	0.1			0.2			0.6			0.1			0.8				#	1.0
Other	0.1			(0.1		)	0.6			(0.4		)	(0.2		)		#	0.3
Ending assets	$	10.8		$	10.8		$	12.2		$	11.9		$	12.4		15	%	$	12.2
Wrap accounts - other company products*
Beginning assets	$	25.5		$	27.4		$	29.4		$	34.0		$	36.3		43	%	$	22.6
Sales	2.6			2.6			3.1			3.8			3.9			50	%	11.0
Redemptions	(1.7		)	(1.4		)	(1.7		)	(2.0		)	(2.4		)	44	%	(6.4		)
Market appreciation/(depreciation)	0.3			0.2			2.4			0.0			1.1				#	3.8
Other	0.7			0.6			0.8			0.6			0.7			5	%	3.0
Ending assets	27.4			29.4			34.0			36.4			39.6			44	%	34.0
Total managed assets - retail	$	103.7		$	103.5		$	111.5		$	109.5		$	111.9		8	%	$	111.5
Managed assets - institutional:
Separately managed accounts/sub-advisory
Beginning assets	$	19.1		$	17.9		$	14.8		$	15.8		$	14.3		(25	)%	$	18.9
Sales	0.6			0.3			0.4			0.3			0.6			15	%	1.6
Redemptions	(1.2		)	(0.7		)	(0.4		)	(1.3		)	(0.6		)	(47	)%	(3.1		)
Market appreciation/(depreciation)	(0.4		)	0.1			0.6			(0.2		)	0.3				#	1.3
Other	(0.2		)	(2.8		)	0.4			(0.3		)	0.1				#	(2.9		)
Ending assets	$	17.9		$	14.8		$	15.8		$	14.3		$	14.7		(18	)%	$	15.8
Other institutional
Beginning assets	$	9.5		$	9.2		$	9.2		$	9.2		$	9.8		3	%	$	8.6
Sales	1.2			0.1			0.1			0.7			0.8			(33	)%	1.4
Redemptions	(1.3		)	(0.3		)	(0.1		)	(0.1		)	(2.4		)	91	%	(1.7		)
Market appreciation/(depreciation)	(0.2		)	0.2			0.0			0.0			(0.0		)		#	0.9
Ending assets	$	9.2		$	9.2		$	9.2		$	9.8		$	8.2		(11	)%	$	9.2
Threadneedle separately managed accounts/sub-advisory
Beginning assets	$	88.8		$	90.5		$	92.6		$	103.6		$	100.7		13	%	$	84.2
Sales	2.5			4.3			3.3			3.0			5.2				#	14.0
Redemptions	(2.1		)	(2.8		)	(2.7		)	(4.6		)	(6.1		)		#	(11.5		)
Market appreciation/(depreciation) and foreign currency translation	(0.1		)	0.5			4.4			0.5			3.2				#	5.7
Other	1.4			0.1			6.0			(1.8		)	(1.2		)		#	11.2
Ending assets	$	90.5		$	92.6		$	103.6		$	100.7		$	101.8		12	%	$	103.6
Total managed assets - institutional	$	117.6		$	116.6		$	128.6		$	124.8		$	124.7		6	%	$	128.6
Managed assets - retirement services:
Collective funds
Beginning assets	$	12.2		$	12.3		$	12.1		$	12.1		$	11.2		(8	)%	$	12.6
Sales	0.6			0.4			0.4			0.4			0.5			(21	)%	1.9
Redemptions	(0.7		)	(0.7		)	(1.0		)	(1.2		)	(0.7		)	2	%	(3.4		)
Market appreciation/(depreciation)	0.1			0.0			0.4			(0.0		)	0.1			48	%	0.7
Other	0.1			0.1			0.2			(0.1		)	0.2			77	%	0.3
Total managed assets - retirement services	$	12.3		$	12.1		$	12.1		$	11.2		$	11.3		(8	)%	$	12.1
Managed assets - eliminations and other	(10.3		)	(7.3		)	(8.0		)	(8.0		)	(5.9		)	(43	)%	(8.0		)
Total managed assets	$	223.3		$	224.9		$	244.2		$	237.5		$	242.0		8	%	$	244.2

*Excludes Securities America

#Variance 100% or greater.

**Managed assets includes all assets managed by Ameriprise Financial, Inc., or its subsidiaries that are investment advisers, but does not include owned assets or administered assets. The presentation of managed assets may be different when provided by any of these subsidiaries.

11

Asset Accumulation and Income

Product Roll Forward

(Millions, unaudited)

	2Q 2004			3Q 2004			4Q 2004			1Q 2005			2Q 2005			2Q’05 vs. 2Q’04 % Inc/(Dec)		Full Year 2004
Account value activity:
Variable annuities:
Beginning balance	$	25,344		$	25,690		$	25,701		$	28,284		$	28,318		12	%	$	24,282
Deposits	978			914			975			1,234			1,585			62	%	3,911
Withdrawals/surrenders	(540		)	(576		)	(642		)	(719		)	(863		)	60	%	(2,306		)
Net flows	438			338			333			515			722			65	%	1,605
Investment performance/interest credited	(41		)	(266		)	2,227			(509		)	511				#	2,448
Policy charges	—			—			—			—			—			—		—
Other	(51		)	(61		)	23			28			(35		)	(31	)%	(51		)
Ending balance	$	25,690		$	25,701		$	28,284		$	28,318		$	29,516		15	%	$	28,284
Fixed annuities:*
Beginning balance	$	26,415		$	26,570		$	26,796		$	26,979		$	26,823		2	%	$	26,377
Deposits	471			530			482			348			344			(27	)%	1,947
Withdrawals/surrenders	(568		)	(544		)	(634		)	(724		)	(713		)	26	%	(2,415		)
Net flows	(97		)	(14		)	(152		)	(376		)	(369		)		#	(468		)
Policyholder interest credited	251			240			249			238			244			(3	)%	984
Other	1			—			86			(18		)	(1		)		#	86
Ending balance	$	26,570		$	26,796		$	26,979		$	26,823		$	26,697		—	%	$	26,979
Certificates:
Beginning balance	$	9,381		$	9,521		$	10,182		$	11,332		$	11,980		28	%	$	9,211
Deposits	1,569			1,948			2,658			2,352			1,991			27	%	7,779
Withdrawals/surrenders	(1,462		)	(1,345		)	(1,662		)	(1,759		)	(1,832		)	25	%	(5,935		)
Net flows	107			603			996			593			159			49	%	1,844
Interest credited	45			42			82			77			95				#	210
Other	(12		)	16			72			(22		)	(59		)		#	67
Ending balance	$	9,521		$	10,182		$	11,332		$	11,980		$	12,175		28	%	$	11,332
Deferred acquisition costs:
Variable annuities:
Beginning balance	$	1,323		$	1,415		$	1,421		$	1,446		$	1,522		15	%	$	1,271
Capitalization	69			68			71			80			99			42	%	278
Amortization	(37		)	(29		)	(36		)	(46		)	(45		)	22	%	(91		)
Other/FAS 115	60			(33		)	(10		)	42			(39		)		#	(12		)
Ending balance	$	1,415		$	1,421		$	1,446		$	1,522		$	1,537		9	%	$	1,446
Fixed annuities:
Beginning balance	$	447		$	455		$	441		$	426		$	427		(4	)%	$	462
Capitalization	14			16			11			11			9			(33	)%	53
Amortization	(22		)	(25		)	(19		)	(22		)	(21		)	(4	)%	(87		)
Other/FAS 115	16			(5		)	(7		)	12			(10		)		#	(2		)
Ending balance	$	455		$	441		$	426		$	427		$	405		(11	)%	$	426
Other:
Beginning balance	$	233		$	210		$	188		$	167		$	149		(36	)%	$	257
Capitalization	8			5			5			6			5			(38	)%	27
Amortization	(31		)	(27		)	(26		)	(24		)	(22		)	(29	)%	(117		)
Other	—			—			—			—			—			—	%	—
Ending balance	$	210		$	188		$	167		$	149		$	132		(37	)%	$	167

* Fixed annuities product account value includes fixed portion of the variable annuities product.

#  Variance 100% or greater.

12

Protection

Income Statements

(Millions, unaudited)

	2Q 2004			3Q 2004			4Q 2004			1Q 2005			2Q 2005			2Q’05 vs. 2Q’04 % Inc/(Dec)		Full Year 2004
Revenues
Management, financial advice and service fees	$	8		$	17		$	19		$	16		$	13		63	%	$	58
Distribution fees	26			25			27			27			26			—	%	105
Net investment income	82			82			82			81			85			4	%	316
Premiums	254			262			264			270			279			10	%	1,023
Other revenues	111			103			103			112			112			1	%	421
Total revenues	481			489			495			506			515			7	%	1,923
Expenses
Compensation and benefits - field	21			23			24			25			20			(5	)%	90
Interest credited to account values	26			42			39			36			28			8	%	143
Benefits, claims, losses and settlement expenses	207			190			207			213			222			7	%	777
Amortization of deferred policy acquisition costs	33			29			43			44			37			12	%	132
Interest and debt expense	2			5			7			6			4				#	19
Other operating expense	68			66			75			75			83			22	%	274
Total expenses	357			355			395			399			394			10	%	1,435
Income before income tax provision and accounting change	$	124		$	134		$	100		$	107		$	121		(2	)%	$	488
Net investment gains, pretax	$	4		$	3		$	4		$	2		$	7		75	%	$	2
Contribution margin *	47.2		%	47.9		%	45.5		%	45.8		%	47.6		%	—		47.5		%
Allocated capital **	$	1,903		$	1,958		$	1,964		$	1,974		$	1,942		2	%	$	1,964
Return on allocated capital for income before income tax provision and accounting change. ***	N/A			N/A			25.3		%	23.8		%	23.6		%	—		25.3		%

*Contribution margin represents total revenues less field compensation and benefits, interest credited to account values and benefits, claims, losses and settlement expenses as a percentage of total revenues.

**Allocated capital reflects the internal allocation of consolidated shareholder’s equity (excluding AOCI) to the Company’s operating segments for purposes of measuring segment pretax operating return on allocated capital.  Allocated capital does not reflect insurance company risk-based capital or other regulatory capital requirements applicable to the Company and certain of its subsidiaries.

***Calculated using trailing 12 month income before income tax and accounting change and the average allocated capital as of the last day of the preceding three quarters and the current quarter.

#Variance 100% or greater.

13

Protection

Product Information

(Millions, unaudited)

	2Q 2004		3Q 2004		4Q 2004		1Q 2005		2Q 2005		2Q’05 vs. 2Q’04 % Inc/(Dec)		Full Year 2004
Revenues
VUL/UL	$	164	$	165	$	169	$	170	$	167	2	%	$	658
Term and whole life	21		21		22		22		23		9	%	84
Property and casualty	108		116		120		122		128		19	%	445
Disability income and other	188		187		184		192		197		5	%	736
Total	$	481	$	489	$	495	$	506	$	515	7	%	$	1,923

14

Protection

Selected Statistical Information

(Millions, unaudited)

	2Q			3Q			4Q			1Q			2Q			2Q’05 vs. 2Q’04		Full Year
	2004			2004			2004			2005			2005			% Inc/(Dec)		2004
Owned, managed and administered assets (billions):
Owned assets*	$	11		$	11		$	12		$	12		$	12		9	%	$	12
Life and other non-property and casualty insurance:
Sales:
• VUL/UL	$	74.8		$	77.7		$	79.5		$	79.6		$	79.8		6	%	$	306.1
• Term and whole life	$	5.0		$	5.0		$	5.1		$	4.8		$	5.2		4	%	$	20.0
• Disability and other	$	18.0		$	17.4		$	17.6		$	16.4		$	15.8		(12	)%	$	71.5
Lapse rate
• VUL/UL	5.4		%	4.9		%	5.3		%	5.3		%	5.8		%	—		5.2		%
Face amount outstanding
• VUL/UL	$	95,970		$	97,492		$	98,910		$	100,267		$	102,775		7	%	$	98,910
• Term and whole life	$	41,135		$	42,999		$	44,850		$	46,671		$	48,480		18	%	$	44,850
• Disability and other**	$	2,011		$	2,001		$	1,995		$	1,972		$	1,961		(2	)%	$	1,995
Policyholder reserves
• VUL/UL	$	6,222		$	6,247		$	6,686		$	6,704		$	6,847		10	%	$	6,686
• Term and whole life	$	226		$	226		$	228		$	230		$	231		2	%	$	228
• Disability and other	$	2,264		$	2,297		$	2,334		$	2,359		$	2,385		5	%	$	2,334
Net amount at risk***
• VUL/UL	$	51,121		$	49,908		$	49,773		$	49,215		$	49,792		(3	)%	$	49,773
• Term and whole life	$	17,078		$	16,343		$	16,424		$	16,223		$	15,896		(7	)%	$	16,424
Property casualty:
Earned premium	$	103		$	109		$	114		$	115		$	121		17	%	$	422
Policy count (thousands)	375			392			406			420			434			16	%	406
Loss ratio	83.0		%	83.4		%	83.1		%	82.3		%	81.8		%	—		83.1		%
Expense ratio	16.2		%	16.1		%	18.4		%	15.6		%	15.1		%	—		16.6		%

*Owned assets include certain assets on our balance sheet, principally investements in the general and separate accounts of our life insurance subsidiaries, as well as cash and cash equivalents, restricted and segregated cash and receivables.

**Includes only other life insurance.

***Face amount outstanding less policyholder reserves net of re-insurance.

15

Protection

Product Roll Forward

(Millions, unaudited)

	2Q			3Q			4Q			1Q			2Q			2Q’05 vs. 2Q’04		Full Year
	2004			2004			2004			2005			2005			% Inc/(Dec)		2004
Future policy benefits and policyholder account balances:
VUL/UL
Beginning balance	$	6,144		$	6,222		$	6,247		$	6,686		$	6,704		9	%	$	5,926
Premiums and deposits	237			239			247			251			244			3	%	971
Investment performance	29			(27		)	382			(38		)	100				#	495
Surrenders and withdrawals	(206		)	(203		)	(203		)	(205		)	(209		)	1	%	(822		)
Other	18			16			13			10			8			(56	)%	116
Ending balance	$	6,222		$	6,247		$	6,686		$	6,704		$	6,847		10	%	$	6,686
Deferred acquisition costs:
VUL/UL
Beginning balance	$	1,115		$	1,193		$	1,222		$	1,239		$	1,260		13	%	$	1,116
Capitalization	31			30			32			30			32			3	%	121
Amortization	(14		)	5			(14		)	(16		)	(16		)	14	%	(35		)
Other/FAS 115	61			(6		)	(1		)	7			(7		)		#	37
Ending balance	$	1,193		$	1,222		$	1,239		$	1,260		$	1,269		6	%	$	1,239
Term and whole life
Beginning balance	$	85		$	88		$	90		$	92		$	94		11	%	$	84
Capitalization	7			6			6			6			6			(14	)%	24
Amortization	(4		)	(4		)	(4		)	(4		)	(4		)	—	%	(16		)
Other	—			—			—			—			—			—	%	—
Ending balance	$	88		$	90		$	92		$	94		$	96		9	%	$	92
Disability and other
Beginning balance	$	423		$	427		$	431		$	435		$	438		4	%	$	402
Capitalization	15			15			15			14			15			—	%	59
Amortization	(11		)	(11		)	(11		)	(11		)	(12		)	9	%	(31		)
Other	—			—			—			—			—			—	%	5
Ending balance	$	427		$	431		$	435		$	438		$	441		3	%	$	435
Total property casualty and AMEX Assurance
Beginning balance	$	138		$	142		$	145		$	150		$	150		9	%	$	141
Capitalization	16			15			18			13			15			(6	)%	58
Amortization	(12		)	(12		)	(13		)	(13		)	(13		)	8	%	(49		)
Ending balance	$	142		$	145		$	150		$	150		$	152		7	%	$	150

#  Variance 100% or greater.

16

Corporate and Other and Eliminations

Statements of Operations

(Millions, unaudited)

	2Q 2004			3Q 2004			4Q 2004			1Q 2005			2Q 2005			2Q’05 vs. 2Q’04 % Inc/(Dec)		Full Year 2004
Revenues
Management, financial advice and service fees	$	55		$	47		$	55		$	61		$	58		5	%	$		204
Distribution fees	61			47			42			56			63			3	%	212
Net investment income (losses)	(13		)	(12		)	(7		)	(4		)	(5		)	(62	)%	(39			)
Other revenues	8			13			15			3			8			—	%	51
Total revenues	111			95			105			116			124			12	%	428
Expenses
Compensation and benefits - field	101			67			82			97			110			9	%	351
Interest credited to account values	1			(1		)	—			—			—				#	—
Benefits, claims, losses and settlement expenses	—			(1		)	—			—			—			—		(1			)
Interest and debt expense	7			(2		)	(4		)	—			8			14	%	—
Other operating expense	22			62			23			21			37			68	%	145
Total expenses	131			125			101			118			155			18	%	495
(Loss) income before tax (benefit) provision, separation costs and accounting change	(20		)	(30		)	4			(2		)	(31		)	55	%	(67			)
Separation costs, pretax	—			—			—			20			56				#	—
(Loss) income before income tax (benefit) provision, and accounting change	$	(20	)	$	(30	)	$	4		$	(22	)	$	(87	)		#	$		(67	)
Net investment gains, pretax	$	—		$	—		$	1		$	1		$	13			#	$	1
Contribution margin *	8.1		%	31.6		%	21.9		%	16.4		%	11.3		%	—		18.2			%
Allocated capital **	$	752		$	782		$	433		$	691		$	948		26	%	$	433

*       Contribution margin represents total revenues less field compensation and benefits, interest credited to account values and benefits, claims, losses and settlement expenses as a percentage of total revenues.

**     Allocated capital reflects the internal allocation of consolidated shareholder’s equity (excluding AOCI) to the Company’s operating segments for purposes of measuring segment return on allocated capital.  Allocated capital does not reflect insurance company risk-based capital or other regulatory capital requirements applicable to the Company and certain of its subsidiaries.

#       Variance 100% or greater.

17

Exhibit 1

AXP Equity Fund Performance & Lipper Ranking as of June 30, 2005

Source:  Lipper

Please note the following about the “Ranking since” Lipper Rankings: In order to obtain a more accurate “since inception” Lipper Ranking for funds with an inception prior to 1999, the Thursday or month-end date closest to the actual inception date was used, rather than the actual inception date.

•Since fund inception returns and rankings are not available.  Actual fund inception date per-dates data in Lipper database.

	1 yr				3 yr				5 yr
	Return	Pct		Rank / #Funds	Return	Pct		Rank / #Funds	Return	Pct		Rank / #Funds
Balanced Funds
AXP® Mutual A	8.60	16	%	98 / 616	7.41	42	%	189 / 457	-2.03	90	%	331 / 367
AXP® Portfolio Builder Moderate Fund A	8.63	16	%	95 / 616
AXP® Portfolio Builder Moderate Aggressive Fund A	8.82	14	%	85 / 616
Lipper Emerging Market Funds Category
AXP® Threadneedle Emerging Markets Fund A	29.80	67	%	123 / 184	20.08	72	%	115 / 160	5.29	71	%	82 / 115
Lipper Equity Income Funds Category
AXP® Diversified Equity Income Fund A	15.07	10	%	22 / 223	13.83	4	%	6 / 154	8.31	13	%	17 / 130
AXP® Dividend Opportunity Fund A	17.79	2	%	4 / 223	6.77	77	%	119 / 154	-0.48	87	%	113 / 130
LipperEuropean Region Funds Category
AXP® Threadneedle European Equity Fund A	12.80	83	%	87 / 105	6.29	95	%	88 / 92	-4.95	90	%	63 / 69
Lipper Flexible Portfolio Funds Category
AXP® Managed Allocation Fund A	9.98	21	%	75 / 372	8.56	34	%	86 / 256	1.48	40	%	74 / 187
Lipper Global Flexible Portfolio Funds Category
AXP® Threadneedle Global Balanced Fund A	13.01	19	%	18 / 96	9.28	56	%	44 / 78	-0.96	94	%	67 / 71
Lipper Global Large Cap Growth Funds Category
AXP® Threadneedle Global Equity Fund A	15.53	4	%	2 / 56	8.78	28	%	13 / 47	-6.44	36	%	15 / 41
Lipper Gold-Oriented Funds Category
AXP® Precious Metals Fund A	0.06	88	%	44 / 49	10.12	82	%	36 / 43	17.83	77	%	26 / 33
Lipper Income Funds Category
AXP® Portfolio Builder Conservative Fund A	5.87	61	%	143 / 237
AXP® Portfolio Builder Moderate Conservative Fund A	7.49	34	%	80 / 237
Lipper International Large Cap Core Funds Category
AXP® Threadneedle International Fund A	9.98	76	%	146 / 193	5.57	90	%	153 / 170	-7.23	92	%	115 / 125
Lipper International Multi Cap Growth Funds Category
AXP® Partners Int’l Aggressive Growth Fund A	16.08	14	%	23 / 175	11.92	29	%	42 / 147
Lipper International Multi Cap Value Funds Category
AXP® Partners Int’l Core Fund A	8.37	95	%	113 / 118
AXP® Partners Int’l Select Value Fund A	16.87	28	%	33 / 118	15.02	31	%	28 / 90
Lipper International Small/Mid Cap Core Funds Category
AXP® Partners Int’l Small Cap Fund A	12.24	81	%	42 / 51
Lipper Large Cap Core Funds Category
AXP® Large Cap Equity Fund A	5.72	40	%	361 / 908	7.18	32	%	241 / 774
AXP® New Dimensions Fund® A	-0.70	92	%	833 / 908	3.42	90	%	696 / 774	-6.21	79	%	489 / 618
AXP® Partners Growth Fund A	0.35	87	%	786 / 908
AXP® Quantitative Large Cap Equity Fund A	6.27	33	%	299 / 908
AXP® Stock Fund A	5.07	47	%	420 / 908	4.99	71	%	548 / 774	-3.21	49	%	302 / 618
Lipper Large Cap Growth Funds Category
AXP® Growth Fund A	10.86	4	%	23 / 663	7.02	22	%	115 / 545	-12.09	83	%	357 / 432
Large Cap Value Fund
AXP® Equity Value Fund A	12.99	8	%	33 / 436	9.09	27	%	94 / 356	3.19	52	%	121 / 234
AXP® Large Cap Value Fund A	9.30	48	%	207 / 436	8.54	40	%	140 / 356
AXP® Partners Value Fund A	4.92	87	%	377 / 436	8.00	50	%	177 / 356
Lipper Mid Cap Growth Funds Category
AXP® Equity Select Fund A	5.10	72	%	392 / 546	7.94	77	%	334 / 438	-1.03	25	%	77 / 309
AXP® Partners Aggressive Growth Fund A	6.08	65	%	352 / 546
AXP® Strategy Aggressive Fund A	4.93	74	%	404 / 546	6.48	89	%	388 / 438	-13.15	91	%	281 / 309
Lipper Mid Cap Value Funds Category
AXP® Mid Cap Value Fund A	20.03	12	%	28 / 239	17.51	11	%	20 / 191
Lipper Multi Cap Core Funds Category
AXP® Partners Fundamental Value Fund A	8.44	34	%	256 / 753	10.33	21	%	112 / 540
AXP® Portfolio Builder Aggressive Fund A	8.98	28	%	211 / 753
AXP® Portfolio Builder Total Equity Fund A	9.49	25	%	181 / 753
Lipper Multi Cap Value Funds Category
AXP® Partners Select Value Fund A	10.33	51	%	236 / 467	13.55	10	%	34 / 361
Lipper Real Estate Funds Category
AXP® Real Estate Fund A	31.32	57	%	124 / 220
Lipper Science & Technology Fund Category
AXP® Global Technology Fund A	1.06	19	%	54 / 284	16.12	13	%	34 / 265	-19.44	59	%	108 / 185
Lipper Small Cap Core Funds Category
AXP® Discovery Fund A*	12.64	37	%	218 / 596	15.73	17	%	78 / 476	1.11	90	%	299 / 332
AXP® Partners Small Cap Core Fund A	13.15	31	%	180 / 596	14.59	27	%	125 / 476
AXP® Partners Small Cap Value Fund A	10.84	53	%	314 / 596	11.70	67	%	315 / 476
AXP® Small Cap Advantage Fund A	10.54	55	%	325 / 596	13.95	33	%	157 / 476	5.58	70	%	233 / 332
Lipper Small Cap Growth Funds Category
AXP® Partners Small Cap Growth Fund A	1.40	79	%	410 / 522	5.73	82	%	357 / 439

	10 yr				Since Inception			Ranking Since
	Return	Pct		Rank / #Funds	Inc Date	Return		Date	Pct		Rank / #Funds
Balanced Funds
AXP® Mutual A	4.24	97	%	159 / 163	4/16/1940		•
AXP® Portfolio Builder Moderate Fund A					03/04/2004	6.10		3/4/2004	10	%	56 / 589
AXP® Portfolio Builder Moderate Aggressive Fund A					03/04/2004	6.13		3/4/2004	9	%	53 / 589
Lipper Emerging Market Funds Category
AXP® Threadneedle Emerging Markets Fund A					11/13/1996	5.31		11/14/1996	56	%	38 / 67
Lipper Equity Income Funds Category
AXP® Diversified Equity Income Fund A	10.67	26	%	18 / 70	10/15/1990	12.40		10/18/1990	45	%	12 / 26
AXP® Dividend Opportunity Fund A	8.02	78	%	55 / 70	08/01/1988	9.49		8/4/1988	93	%	25 / 26
LipperEuropean Region Funds Category
AXP® Threadneedle European Equity Fund A					06/26/2000	-3.64		6/26/2000	85	%	59 / 69
Lipper Flexible Portfolio Funds Category
AXP® Managed Allocation Fund A	6.11	84	%	71 / 84	01/23/1985	10.89		1/24/1985	25	%	2 / 7
Lipper Global Flexible Portfolio Funds Category
AXP® Threadneedle Global Balanced Fund A					11/13/1996	4.37		11/14/1996	94	%	40 / 42
Lipper Global Large Cap Growth Funds Category
AXP® Threadneedle Global Equity Fund A	3.79	82	%	13 / 15	05/29/1990	4.76		5/31/1990	84	%	5 / 5
Lipper Gold-Oriented Funds Category
AXP® Precious Metals Fund A	2.95	53	%	12 / 22	04/22/1985	5.75		4/25/1985	37	%	4 / 10
Lipper Income Funds Category
AXP® Portfolio Builder Conservative Fund A					03/04/2004	4.04		3/4/2004	47	%	106 / 227
AXP® Portfolio Builder Moderate Conservative Fund A					03/04/2004	5.04		3/4/2004	31	%	70 / 227
Lipper International Large Cap Core Funds Category
AXP® Threadneedle International Fund A	2.19	90	%	45 / 49	11/15/1984	7.81		11/15/1984	84	%	5 / 5
Lipper International Multi Cap Growth Funds Category
AXP® Partners Int’l Aggressive Growth Fund A					09/28/2001	11.24		9/28/2001	36	%	48 / 134
Lipper International Multi Cap Value Funds Category
AXP® Partners Int’l Core Fund A					10/03/2002	17.51		10/3/2002	95	%	95 / 99
AXP® Partners Int’l Select Value Fund A					09/28/2001	14.57		9/28/2001	34	%	30 / 89
Lipper International Small/Mid Cap Core Funds Category
AXP® Partners Int’l Small Cap Fund A					10/03/2002	27.08		10/3/2002	75	%	33 / 43
Lipper Large Cap Core Funds Category
AXP® Large Cap Equity Fund A					03/28/2002	2.35		3/28/2002	27	%	203 / 759
AXP® New Dimensions Fund® A	8.31	50	%	114 / 231	08/01/1968	11.16		8/1/1968	10	%	3 / 32
AXP® Partners Growth Fund A					04/24/2003	7.51		4/24/2003	95	%	787 / 835
AXP® Quantitative Large Cap Equity Fund A					04/24/2003	15.04		4/24/2003	20	%	167 / 835
AXP® Stock Fund A	6.60	82	%	190 / 231	4/6/1945		•
Lipper Large Cap Growth Funds Category
AXP® Growth Fund A	5.49	76	%	107 / 140	3/1/1972		•
Large Cap Value Fund
AXP® Equity Value Fund A	8.40	73	%	75 / 103	03/20/1995	8.97		3/23/1995	72	%	72 / 99
AXP® Large Cap Value Fund A					06/27/2002	8.67		6/27/2002	43	%	150 / 356
AXP® Partners Value Fund A					06/18/2001	2.96		6/18/2001	44	%	129 / 293
Lipper Mid Cap Growth Funds Category
AXP® Equity Select Fund A	10.74	20	%	23 / 114	6/4/1957		•
AXP® Partners Aggressive Growth Fund A					04/24/2003	21.78		4/24/2003	25	%	118 / 490
AXP® Strategy Aggressive Fund A	5.36	83	%	95 / 114	03/20/1995	6.10		3/23/1995	83	%	93 / 112
Lipper Mid Cap Value Funds Category
AXP® Mid Cap Value Fund A					02/14/2002	14.74		2/14/2002	14	%	25 / 182
Lipper Multi Cap Core Funds Category
AXP® Partners Fundamental Value Fund A					06/18/2001	3.88		6/18/2001	28	%	125 / 451
AXP® Portfolio Builder Aggressive Fund A					03/04/2004	6.16		3/4/2004	26	%	185 / 719
AXP® Portfolio Builder Total Equity Fund A					03/04/2004	6.37		3/4/2004	24	%	171 / 719
Lipper Multi Cap Value Funds Category
AXP® Partners Select Value Fund A					03/08/2002	9.48		3/8/2002	9	%	30 / 345
Lipper Real Estate Funds Category
AXP® Real Estate Fund A					03/04/2004	23.86		3/4/2004	16	%	33 / 215
Lipper Science & Technology Fund Category
AXP® Global Technology Fund A					11/13/1996	3.66		11/14/1996	58	%	26 / 44
Lipper Small Cap Core Funds Category
AXP® Discovery Fund A*	5.64	95	%	93 / 97	08/24/1981	9.23		8/27/1981	78	%	7 / 8
AXP® Partners Small Cap Core Fund A					03/08/2002	8.43		3/8/2002	63	%	292 / 463
AXP® Partners Small Cap Value Fund A					06/18/2001	11.89		6/18/2001	26	%	102 / 406
AXP® Small Cap Advantage Fund A					05/04/1999	7.77		5/6/1999	81	%	231 / 286
Lipper Small Cap Growth Funds Category
AXP® Partners Small Cap Growth Fund A					01/24/2001	-3.47		1/24/2001	70	%	256 / 366

A1

Source: Lipper as of 6/30/2005. Lipper rankings are based upon annualized total returns, excluding sales charges.

*Closed to new investors.

With minimum sales charge of 4.75%.

Fee waivers were in place for each American Express Partners Fund shown. Return would have been lower for each Fund had fee waivers not been in place.

The performance information shown represents past performance and is not a guarantee of future results. Fund returns for all periods would have been lower if the applicable sales charges were included. The value of your investment and returns will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.

Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting americanexpress.com

A2

		AXP Fixed Income Funds Annualized Total Returns
		1 yr					3 yr
Class A Shares	First NAV Date	Total Return	Percentile Ranking		Ranking	# of funds	Total Return	Percentile Ranking		Ranking	# of funds
Intermediate Investment Grade Debt Funds category		6.07					5.40
AXP® Core Bond Fund	6/19/2003	6.16	52	%	235	451
AXP® Diversified Bond Fund	10/3/1974	6.74	27	%	119	451	5.39	53	%	206	392
Global Income Funds category		8.68					9.32
AXP® Global Bond Fund1	3/20/1989	7.42	58	%	54	93	9.06	40	%	34	84
High Yield Funds category		8.93					12.07
AXP® High Yield Bond Fund2	12/8/1983	11.36	11	%	44	419	13.57	22	%	77	352
AXP® Income Opportunities Fund2	6/19/2003	9.93	26	%	108	419
Short-Intermediate Investment Grade Debt Funds		3.43					3.86
AXP® Limited Duration Bond Fund	6/19/2003	4.83	12	%	18	150
Corporate Debt — A rated Funds category		6.60					5.87
AXP® Selective Fund	12/31/1959	6.01	69	%	137	200	4.14	95	%	147	155
Short U.S. Government Funds category		1.90					1.93
AXP® Short Duration U.S. Government Fund	8/19/1985	2.09	37	%	31	84	2.04	43	%	33	76
U.S. Mortgage Funds category		5.10					4.00
AXP® U.S. Government Mortgage Fund	2/14/2002	5.18	52	%	42	81	4.36	32	%	23	72
California Municipal Debt Funds category		8.60					5.33
AXP® California Tax-Exempt Fund3	8/18/1986	8.53	43	%	53	125	5.27	54	%	59	110
General Municipal Debt Funds category		7.30					5.04
AXP® High Yield Tax-Exempt Fund3	5/7/1979	7.32	48	%	134	281	4.92	52	%	132	257
AXP® Tax-Exempt Bond Fund3	12/7/1976	7.39	45	%	126	281	4.75	61	%	155	257
Insured Municipal Debt Funds category		7.27					5.03
AXP® Insured Tax-Exempt Fund3	8/18/1986	7.05	67	%	36	53	4.74	70	%	35	49
Intermediate Municipal Debt Funds category		5.04					4.03
AXP® Intermediate Tax-Exempt Fund3	11/13/1996	5.33	46	%	69	151	4.11	49	%	61	126
Massachusetts Municipal Debt Funds category		7.40					5.05
AXP® Massachusetts Tax-Exempt Fund3	7/2/1987	7.42	57	%	30	52	4.57	77	%	40	51
Michigan Municipal Debt Funds category		6.84					4.71
AXP® Michigan Tax-Exempt Fund3	7/2/1987	6.80	53	%	20	37	4.93	43	%	16	37
Minnesota Municipal Debt Funds category		7.36					5.12
AXP® Minnesota Tax-Exempt Fund3	8/18/1986	6.73	72	%	36	49	4.88	60	%	30	49
New York Municipal Debt Funds category		7.65					5.13
AXP® New York Tax-Exempt Fund3	8/18/1986	7.04	64	%	69	107	5.08	47	%	45	96
Ohio Municipal Debt Funds category		7.22					4.84
AXP® Ohio Tax-Exempt Fund3	7/2/1987	6.90	61	%	26	42	4.37	73	%	31	42

		AXP Fixed Income Funds Annualized Total Returns
		5 yrs					10 yrs					Since First NAV Date
Class A Shares	First NAV Date	Total Return	Percentile Ranking		Ranking	# of funds	Total Return	Percentile Ranking		Ranking	# of funds	Total Return
Intermediate Investment Grade Debt Funds category		6.66					5.98
AXP® Core Bond Fund	6/19/2003											2.31
AXP® Diversified Bond Fund	10/3/1974	5.99	78	%	211	273	5.92	53	%	73	137	9.50
Global Income Funds category		7.54					6.66
AXP® Global Bond Fund1	3/20/1989	7.52	44	%	28	64	5.68	59	%	21	35	7.92
High Yield Funds category		5.46					5.82
AXP® High Yield Bond Fund2	12/8/1983	5.22	62	%	180	290	5.76	50	%	48	96	8.28
AXP® Income Opportunities Fund2	6/19/2003											9.19
Short-Intermediate Investment Grade Debt Funds		5.57					5.49
AXP® Limited Duration Bond Fund	6/19/2003											2.14
Corporate Debt — A rated Funds category		6.87					6.20
AXP® Selective Fund	12/31/1959	5.00	98	%	116	118	5.32	92	%	64	69	7.49
Short U.S. Government Funds category		4.01					4.52
AXP® Short Duration U.S. Government Fund	8/19/1985	4.19	38	%	25	66	4.70	35	%	18	51	6.39
U.S. Mortgage Funds category		6.02					5.76
AXP® U.S. Government Mortgage Fund	2/14/2002											4.65
California Municipal Debt Funds category		6.14					5.74
AXP® California Tax-Exempt Fund3	8/18/1986	5.89	62	%	63	101	5.47	71	%	48	67	6.10
General Municipal Debt Funds category		5.99					5.40
AXP® High Yield Tax-Exempt Fund3	5/7/1979	5.74	62	%	138	225	5.47	45	%	65	146	7.10
AXP® Tax-Exempt Bond Fund3	12/7/1976	6.00	46	%	102	225	5.62	34	%	49	146	6.19
Insured Municipal Debt Funds category		6.00					5.38
AXP® Insured Tax-Exempt Fund3	8/18/1986	5.71	73	%	35	47	5.31	47	%	18	38	6.19
Intermediate Municipal Debt Funds category		5.38					5.07
AXP® Intermediate Tax-Exempt Fund3	11/13/1996	5.06	72	%	69	96						4.49
Massachusetts Municipal Debt Funds category		6.12					5.48
AXP® Massachusetts Tax-Exempt Fund3	7/2/1987	5.65	78	%	37	47	5.18	72	%	27	37	6.04
Michigan Municipal Debt Funds category		5.85					5.41
AXP® Michigan Tax-Exempt Fund3	7/2/1987	5.90	45	%	17	37	5.22	67	%	20	29	6.18
Minnesota Municipal Debt Funds category		6.00					5.20
AXP® Minnesota Tax-Exempt Fund3	8/18/1986	5.86	55	%	25	45	5.43	37	%	14	37	6.19
New York Municipal Debt Funds category		6.18					5.53
AXP® New York Tax-Exempt Fund3	8/18/1986	5.95	59	%	53	89	5.34	64	%	40	62	5.97
Ohio Municipal Debt Funds category		5.82					5.33
AXP® Ohio Tax-Exempt Fund3	7/2/1987	5.38	75	%	30	39	5.12	64	%	21	32	6.01

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Source: Lipper as of 6/30/2005. Lipper rankings are based upon annualized total returns, excluding sales charges.

With minimum sales charge of 4.75%.

The performance information shown represents past performance and is not a guarantee of future results. Fund returns for all periods would have been lower if the applicable sales charges were included. The value of your investment and returns will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.

Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting americanexpress.com

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Important Disclosures

You should consider the investment objectives, risks, charges and expenses of mutual funds carefully before investing. For a free prospectus, which contains this and other important information about our funds, call (800) AXP-FUND, TTY: (800) 846-4852. Read the prospectus carefully before you invest.

An investment in money market funds is not  insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.

Stocks of small- and mid-capitalization companies involve substantial risk. Historically, these stocks have experienced greater price volatility than stocks of larger companies, and they can be expected to do so in the future. Stocks of mid-capitalization may be slightly less volatile than those of small-capitalization companies but still involve substantial risk.

The investment process used to manage the AXP Quantitative Large Cap Equity Fund employs new technologies and statistical methods that have not previously been used to manage open-end mutual funds. Shareholders should be prepared for the possibility that the Fund may underperform its benchmark.  While Ameriprise Financial, Inc. seeks to control trading activity, the Fund may trade more often that other funds in its peer group.  Trading activity may result in inceased fees, expenses and taxes.

International investing involves increased risk and volatility, not typically associated with domestic investing, due to changes in currency exchange rates, foreign government regulations, differences in auditing and accounting standards, potential political and economic instability, limited liquidity and volatile prices. The risks of international investing are particularly significant in emerging markets.

The AXP Global Technology Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives.

The AXP Real Estate Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives. An investment in a real estate fund is subject to the same risks as a direct investment in real estate. Such risks include market risk, economic risk and mortgage rate risk.

The AXP Precious Metals Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives.

There are risks associated with an investment in a bond fund, including the impact of interest rates, credit and inflation. These and other risk considerations are discussed in the fund’s prospectus. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.

High-yield funds invest in lower-rated bonds, which generally have more volatile prices and carry more risk to principal and income than investment grade securities.

Income from tax-exempt funds may be subject to state and local taxes, and a portion of income may be subject to the federal and/or state alternative minimum tax for certain investors. Federal income tax rules will apply to any capital gains distribution.

Shares of the AXP Short Duration U.S. Government Fund and the AXP U.S. Government Mortgage Fund are not insured or guaranteed by the U.S. government.

Principal risks associated with the AXP Inflation Protected Securities Fund include style risk, interest rate risk, market risk, credit risk, liquidity risk and sector/concentration risk. Treasury Inflation Protected Securities (TIPS) are backed by the full faith and credit of the U.S. government. The U.S. government guarantee applies only to the underlying TIPS securities, and not the Fund itself.

“Standard & Poor’s®,” “S&P,” “S&P 500®,” and “Standard & Poor’s 500®” are trademarks of the McGraw-Hill Companies, Inc. These trademarks and service marks have been licensed for use by Ameriprise Financial Services, Inc. The Funds are not sponsored, endorsed, sold or promoted by Standard & Poor’s or any of their subsidiaries or affiliates (the “Licensors”), and the Licensors make no representation regarding the advisability of investing in the Funds.

Ameriprise Financial Services, Inc., Member NASD

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