EX-99.2 3 a05-18818_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

QUARTERLY STATISTICAL SUPPLEMENT

(unaudited)

 

September 30, 2005

 

Effective August 1, 2005, Ameriprise Financial, Inc. transferred its 50% ownership interest and the related assets and liabilities of American Express International Deposit Company (AEIDC) to American Express Company as part of its separation agreement from the latter.   The assets, liabilities and operations of AEIDC are reported as discontinued operations.

 

Information for prior periods has been restated to conform to this presentation.

 




 

Ameriprise Financial, Inc.

Consolidated Income Statements

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

550

 

$

606

 

$

608

 

$

632

 

$

687

 

25

%

$

2,248

 

Distribution fees

 

248

 

267

 

288

 

289

 

296

 

19

%

1,101

 

Net investment income

 

520

 

571

 

548

 

558

 

561

 

8

%

2,137

 

Premiums

 

262

 

264

 

270

 

279

 

202

 

-23

%

1,023

 

Other revenues

 

132

 

135

 

133

 

137

 

127

 

-3

%

518

 

Total revenues

 

1,712

 

1,843

 

1,847

 

1,895

 

1,873

 

9

%

7,027

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field

 

311

 

339

 

362

 

371

 

408

 

31

%

1,331

 

Non-field

 

249

 

259

 

279

 

280

 

295

 

19

%

957

 

Total compensation and benefits

 

560

 

598

 

641

 

651

 

703

 

26

%

2,288

 

Interest credited to account values

 

302

 

342

 

311

 

328

 

337

 

11

%

1,268

 

Benefits, claims, losses and settlement expenses

 

205

 

223

 

218

 

238

 

190

 

-8

%

828

 

Amortization of deferred acquisition costs

 

108

 

125

 

136

 

134

 

49

 

-55

%

437

 

Interest and debt expense

 

13

 

15

 

17

 

19

 

16

 

27

%

52

 

Other expense

 

263

 

280

 

258

 

278

 

305

 

16

%

1,042

 

Total expenses before separation costs

 

1,451

 

1,583

 

1,581

 

1,648

 

1,600

 

10

%

5,915

 

Income before income tax provision, separation costs, discontinued operations and accounting change

 

261

 

260

 

266

 

247

 

273

 

4

%

1,112

 

Income tax provision before tax benefit attributable to separation costs

 

73

 

34

 

78

 

61

 

91

 

25

%

287

 

Income before separation costs, discontinued operations and accounting change

 

188

 

226

 

188

 

186

 

182

 

-3

%

825

 

Separation costs, after-tax *

 

 

 

13

 

37

 

59

 

 

 

Income before discontinued operations and accounting change

 

188

 

226

 

175

 

149

 

123

 

-35

%

825

 

Discontinued operations, net of tax

 

11

 

9

 

8

 

6

 

2

 

-87

%

40

 

Cumulative effect of accounting change, net of tax

 

 

 

 

 

 

 

(71

)

Net income

 

$

199

 

$

235

 

$

183

 

$

155

 

$

125

 

-38

%

$

794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), after-tax

 

$

7

 

$

5

 

$

7

 

$

37

 

$

(4

 

#

$

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid **

 

$

100

 

$

603

 

$

 

$

 

$

217

 

 

#

$

1,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin***

 

52.2

%

51.0

%

51.8

%

50.5

%

50.1

%

 

51.3

%

 


*       The non-GAAP presentation of separation costs, after-tax is calculated using the statutory tax rate of 35%.

 

**     Dividends paid in 3Q 2005 includes $165 million associated with the transfer of the Company’s interest in AEIDC to American Express Company.

 

***   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

 

(Dollars in millions except per share data, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (ended) *

 

246.2

 

246.2

 

246.2

 

246.2

 

246.2

 

0

%

246.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic*

 

246.2

 

246.2

 

246.2

 

246.2

 

246.2

 

0

%

246.2

 

Dilutive effect of stock options

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted*

 

246.2

 

246.2

 

246.2

 

246.2

 

246.2

 

0

%

246.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS - Basic: ******

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs, discontinued operations and accounting change

 

$

0.77

 

$

0.92

 

$

0.76

 

$

0.76

 

$

0.74

 

-4

%

$

3.35

 

Separation costs, discontinued operations and accounting change

 

0.04

 

0.03

 

(0.02

)

(0.13

)

(0.24

)

#

 

(0.13

)

Net income

 

$

0.81

 

$

0.95

 

$

0.74

 

$

0.63

 

$

0.50

 

-38

%

$

3.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS - Diluted: ******

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs, discontinued operations and accounting change

 

$

0.77

 

$

0.92

 

$

0.76

 

$

0.76

 

$

0.74

 

-4

%

$

3.35

 

Separation costs, discontinued operations and accounting change

 

0.04

 

0.03

 

(0.02

)

(0.13

)

(0.24

)

#

 

(0.13

)

Net income

 

$

0.81

 

$

0.95

 

$

0.74

 

$

0.63

 

$

0.50

 

-38

%

$

3.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income margin

 

11.6

%

12.7

%

9.9

%

8.2

%

6.6

%

 

 

11.3

%

Operating income margin **

 

15.3

%

14.1

%

14.4

%

13.0

%

14.6

%

 

 

11.7

%

Average shareholders’ equity (billions)

 

$

7.2

 

$

7.0

 

$

6.7

 

$

6.8

 

$

7.0

 

-2

%

$

7.0

 

Return on equity before discontinued operations ***

 

12.0

%

11.4

%

11.3

%

9.8

%

9.8

%

 

 

11.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value

 

$

7,152

 

$

6,702

 

$

6,482

 

$

6,993

 

$

7,836

 

10

%

$

6,702

 

Book value, excluding the impact of accumulated other comprehensive income (OCI)

 

$

6,682

 

$

6,322

 

$

6,514

 

$

6,679

 

$

7,855

 

18

%

$

6,322

 

Book value per share

 

$

29.05

 

$

27.23

 

$

26.33

 

$

28.41

 

$

31.83

 

10

%

$

27.23

 

Book value per share, excluding the impact of OCI

 

$

27.14

 

$

25.68

 

$

26.46

 

$

27.13

 

$

31.91

 

18

%

$

25.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt/capital measure****

 

18.3

%

19.7

%

20.6

%

19.2

%

15.2

%

 

 

19.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity: *****

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset accumulation and income

 

$

3,795

 

$

3,760

 

$

3,677

 

$

3,575

 

$

3,551

 

-6

%

$

3,760

 

Protection

 

1,958

 

1,964

 

1,974

 

1,942

 

1,965

 

0

%

1,964

 

Corporate and other

 

929

 

598

 

863

 

1,163

 

2,339

 

 

#

598

 

Accumulated other comprehensive income

 

469

 

380

 

(32

)

313

 

(19

)

 

#

380

 

Total

 

$

7,151

 

$

6,702

 

$

6,482

 

$

6,993

 

$

7,836

 

10

%

$

6,702

 

 


*

Represents actual Ameriprise Financial, Inc. shares outstanding as of September 30, 2005 assuming no dilution for all periods presented.

 

 

**

Operating income margin represents income before income tax provision, separation costs, discontinued operations and accounting change as a percentage of total revenues.

 

 

***

Calculated using the trailing 12 month net income before discontinued operations and accounting change and the average of shareholders’ equity before both the assets and liabilities of discontinued operations as of the last day of the preceding four quarters and the current quarter.

 

 

****

Prior to September 30, 2005, debt consisted of a short term line of credit and long term debt with American Express Company; as well as medium term notes with external third parties.  During 3Q 2005, debt outstanding from American Express Company was replaced with a bridge loan from an external third party.

 

Excluded is non recourse debt. Capital includes total shareholders’ equity plus the previously described debt.

 

 

*****

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

 

 

******

EPS for other than EPS - Net income are non-GAAP financial measures.

 

 

#

Variance 100% or greater.

 

2



 

Ameriprise Financial, Inc.

Consolidating Segment Information

 

(Millions, unaudited)

 

INCOME STATEMENT

 

 

 

3Q 2005

 

 

 

Asset
Accumulation
and Income

 

Protection

 

Corporate and
Other and
Eliminations

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

611

 

$

17

 

$

59

 

$

687

 

Distribution fees

 

207

 

27

 

62

 

296

 

Net investment income

 

479

 

90

 

(8

)

561

 

Premiums

 

 

217

 

(15

)

202

 

Other revenues

 

8

 

109

 

10

 

127

 

Total revenues

 

1,305

 

460

 

108

 

1,873

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

252

 

57

 

99

 

408

 

Interest credited to account values

 

299

 

38

 

 

337

 

Benefits, claims, losses and settlement expenses

 

3

 

187

 

 

190

 

Amortization of deferred acquisition costs

 

68

 

(20

)

1

 

49

 

Interest and debt expense

 

12

 

9

 

(5

)

16

 

Other operating expense*

 

505

 

53

 

42

 

600

 

Total expenses before separation costs

 

1,139

 

324

 

137

 

1,600

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax provision (benefit), separation costs, discontinued operations and accounting change

 

166

 

136

 

(29

)

273

 

Separation costs, pretax

 

 

 

92

 

92

 

Income (loss) before income tax provision (benefit), discontinued operations and accounting change

 

$

166

 

$

136

 

$

(121

)

$

181

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

73,983

 

$

16,326

 

$

2,064

 

$

92,373

 

 


* On a consolidated basis, non-field compensation and benefits expense was $ 295 MM.

 

3



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

 

(Millions, unaudited)

 

 

 

September 30,

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,743

 

$

1,024

 

$

1,105

 

$

2,097

 

$

2,620

 

Investments

 

39,097

 

40,232

 

39,915

 

40,207

 

39,454

 

Receivables

 

2,260

 

2,160

 

2,548

 

2,476

 

2,936

 

Deferred acquisition costs

 

3,927

 

3,956

 

4,043

 

4,032

 

4,088

 

Separate account assets

 

32,367

 

35,901

 

35,995

 

37,433

 

39,840

 

Restricted and segregated cash

 

1,479

 

1,536

 

1,535

 

1,241

 

1,058

 

Assets of discontinued operations

 

5,259

 

5,873

 

6,002

 

6,123

 

 

Other assets

 

2,370

 

2,431

 

2,393

 

2,343

 

2,377

 

Total assets

 

$

88,502

 

$

93,113

 

$

93,536

 

$

95,952

 

$

92,373

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

33,010

 

$

33,253

 

$

33,190

 

$

33,169

 

$

32,958

 

Investment certificate reserves

 

5,306

 

5,831

 

6,282

 

6,427

 

6,392

 

Accounts payable and accrued expenses

 

2,344

 

2,456

 

2,665

 

2,681

 

2,516

 

Payable to American Express

 

1,698

 

1,751

 

1,780

 

1,718

 

102

 

Short-term debt

 

 

 

 

 

1,351

 

Long-term debt

 

377

 

385

 

385

 

378

 

360

 

Separate account liabilities

 

32,367

 

35,901

 

35,995

 

37,433

 

39,840

 

Liabilities of discontinued operations

 

5,037

 

5,631

 

5,794

 

5,870

 

 

Other liabilities

 

1,212

 

1,203

 

963

 

1,283

 

1,018

 

Total liabilities

 

81,351

 

86,411

 

87,054

 

88,959

 

84,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

 

 

 

 

2

 

Additional paid-in capital

 

2,899

 

2,907

 

2,916

 

2,926

 

4,193

 

Retained earnings

 

3,782

 

3,415

 

3,597

 

3,753

 

3,661

 

Accumulated other comprehensive income (loss), net of tax

 

470

 

380

 

(31

)

314

 

(20

)

Total shareholders’ equity

 

7,151

 

6,702

 

6,482

 

6,993

 

7,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

88,502

 

$

93,113

 

$

93,536

 

$

95,952

 

$

92,373

 

 

4



 

Ameriprise Financial, Inc.

Selected Consolidated Information

 

(Dollars in millions, except where noted, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets (billions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets*

 

$

77.3

 

$

81.2

 

$

81.4

 

$

83.8

 

$

86.2

 

12

%

$

81.2

 

Managed assets*, **

 

236.2

 

257.0

 

250.9

 

255.8

 

260.1

 

10

%

257.0

 

Administered assets

 

65.2

 

70.0

 

68.7

 

71.1

 

74.4

 

14

%

70.0

 

Total owned, managed and administered assets

 

$

378.7

 

$

408.2

 

$

401.0

 

$

410.7

 

$

420.7

 

11

%

$

408.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shareholders’ equity by legal entity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IDS Life Insurance Co.

 

$

5,320

 

$

4,906

 

$

4,714

 

$

5,096

 

$

5,552

 

4

%

$

4,906

 

IDS Property Casualty Ins. Co.

 

454

 

469

 

500

 

542

 

494

 

9

%

469

 

Ameriprise Certificate Co.

 

322

 

343

 

298

 

346

 

309

 

-4

%

343

 

Other

 

1,056

 

984

 

970

 

1,009

 

1,481

 

40

%

984

 

Total

 

7,152

 

6,702

 

6,482

 

6,993

 

7,836

 

10

%

$

6,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH SALES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds***

 

$

5,634

 

$

5,774

 

$

6,192

 

$

6,044

 

$

6,469

 

15

%

$

24,633

 

Annuities

 

1,887

 

1,835

 

2,016

 

2,440

 

2,483

 

32

%

7,820

 

Investment certificates

 

1,786

 

2,587

 

2,226

 

1,896

 

1,386

 

-22

%

7,141

 

Life and other insurance products

 

306

 

288

 

327

 

313

 

273

 

-11

%

1,162

 

Institutional products and services****

 

1,664

 

1,763

 

1,758

 

2,519

 

846

 

-49

%

7,683

 

Other

 

991

 

1,077

 

925

 

1,081

 

949

 

-4

%

4,478

 

Total

 

$

12,268

 

$

13,324

 

$

13,444

 

$

14,293

 

$

12,406

 

1

%

$

52,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By channel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor***

 

$

5,356

 

$

6,014

 

$

6,333

 

$

6,259

 

$

6,123

 

14

%

$

23,656

 

Securities America

 

1,280

 

1,263

 

1,535

 

1,632

 

1,628

 

27

%

3,865

 

Third-party distribution

 

204

 

220

 

248

 

264

 

282

 

38

%

870

 

Institutional

 

1,603

 

1,355

 

1,705

 

2,321

 

1,055

 

-34

%

7,455

 

Threadneedle

 

2,107

 

2,253

 

1,819

 

2,050

 

2,126

 

1

%

8,536

 

All Other (AEIDC/AEB,etc)

 

1,718

 

2,219

 

1,804

 

1,767

 

1,192

 

-31

%

8,535

 

Total

 

$

12,268

 

$

13,324

 

$

13,444

 

$

14,293

 

$

12,406

 

1

%

$

52,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gross Dealer
Concession *****

 

$

357.2

 

$

382.4

 

$

403.3

 

$

416.9

 

$

419.3

 

17

%

$

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. During 3Q 2005 the Company transferred its 50 percent interest in AEIDC to American Express Company.  For this presentation, prior periods have been restated to remove the AEIDC assets from the owned category and to report the related investment portfolio in the managed category.

 

 

**

Managed assets includes all assets managed by Ameriprise Financial, Inc. or its subsidiaries that are investment advisors, 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 and Eliminations segment.

 

5



 

Ameriprise Financial, Inc.

Selected Consolidated Information (continued)

 

(unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee base:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field (employee advisors)

 

2,947

 

3,170

 

3,241

 

3,109

 

3,039

 

3

%

3,170

 

Non-field

 

8,692

 

8,538

 

8,594

 

8,664

 

8,665

 

0

%

8,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

2,947

 

3,170

 

3,241

 

3,109

 

3,039

 

3

%

3,170

 

Franchisee advisors

 

7,583

 

7,571

 

7,534

 

7,470

 

7,441

 

-2

%

7,571

 

Total branded financial advisors

 

10,530

 

10,741

 

10,775

 

10,579

 

10,480

 

0

%

10,741

 

Securities America registered representatives

 

1,541

 

1,603

 

1,581

 

1,583

 

1,708

 

11

%

1,603

 

Total advisors

 

12,071

 

12,344

 

12,356

 

12,162

 

12,188

 

1

%

12,344

 

Employee advisor retention

 

59

%

62

%

65

%

65

%

64

%

 

 

62

%

Franchisee advisor retention

 

93

%

93

%

92

%

92

%

91

%

 

 

93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash sales* per branded advisor (thousands)

 

$

509

 

$

560

 

$

588

 

$

592

 

$

581

 

14

%

$

2,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Dealer Concession** per branded advisor (thousands)

 

$

33.9

 

$

35.6

 

$

37.4

 

$

39.4

 

$

39.8

 

17

%

$

141.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial planning:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial plans sold (thousands)

 

51

 

59

 

66

 

58

 

54

 

7

%

226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of clients with financial plans

 

42

%

42

%

43

%

43

%

43

%

 

 

42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales per branded advisor client (thousands)

 

$

2.5

 

$

2.8

 

$

3.1

 

$

3.1

 

$

3.2

 

24

%

$

11.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clients:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total clients*** (millions)

 

2.7

 

2.7

 

2.7

 

2.8

 

2.8

 

2

%

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor clients (millions)

 

2.2

 

2.2

 

2.0

 

2.0

 

2.0

 

-9

%

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client retention

 

94

%

94

%

93

%

94

%

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.

 

***   Total clients includes individual, business and institutional clients.

 

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

 

6



 

Ameriprise Financial, Inc.

Selected Balance Sheet Information

 

(Dollars in billions, unaudited)

 

 

 

3Q 2004

 

4Q 2004

 

1Q 2005

 

2Q 2005

 

3Q 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

 

43.0

%

43.6

%

42.4

%

43.0

%

42.5

%

42.6

%

41.5

%

42.0

%

39.8

%

39.9

%

Separate accounts

 

42.3

%

41.9

%

44.6

%

44.2

%

44.3

%

44.2

%

45.0

%

44.6

%

46.3

%

46.2

%

Other

 

14.6

%

14.4

%

12.9

%

12.7

%

13.1

%

13.1

%

13.4

%

13.3

%

13.8

%

13.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale (AFS) investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

18.4

 

$

19.1

 

$

19.5

 

$

20.1

 

$

19.6

 

$

19.8

 

$

19.7

 

$

20.2

 

$

19.4

 

$

19.5

 

Mortgage and other asset-backed securities

 

12.4

 

12.6

 

12.6

 

12.7

 

12.9

 

12.8

 

13.3

 

13.4

 

13.5

 

13.4

 

Structured investments

 

0.8

 

0.8

 

0.8

 

0.7

 

0.7

 

0.7

 

 

 

 

 

State and municipal obligations

 

0.8

 

0.8

 

0.8

 

0.8

 

0.8

 

0.8

 

0.9

 

0.9

 

0.8

 

0.9

 

U.S. government and agencies obligations

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

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

 

 

 

0.2

 

0.1

 

0.2

 

0.1

 

0.2

 

0.1

 

0.1

 

Total

 

$

33.0

 

$

33.8

 

$

34.2

 

$

35.0

 

$

34.6

 

$

34.8

 

$

34.5

 

$

35.2

 

$

34.3

 

$

34.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income asset quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

41

%

 

 

41

%

 

 

41

%

 

 

43

%

 

 

43

%

 

 

AA

 

4

%

 

 

4

%

 

 

5

%

 

 

6

%

 

 

6

%

 

 

A

 

20

%

 

 

20

%

 

 

20

%

 

 

20

%

 

 

20

%

 

 

BBB

 

26

%

 

 

27

%

 

 

27

%

 

 

24

%

 

 

24

%

 

 

Below investment grade

 

9

%

 

 

8

%

 

 

7

%

 

 

7

%

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of invested assets*

 

0.04

%

 

 

0.03

%

 

 

0.06

%

 

 

0.03

%

 

 

0.02

%

 

 

Reserve coverage (times) of non-performing assets

 

6.3

 

 

 

7.2

 

 

 

3.6

 

 

 

6.6

 

 

 

8.8

 

 

 

SFAS 115 related mark-to-market amount in assets (pretax)

 

$

0.8

 

 

 

$

0.8

 

 

 

$

0.1

 

 

 

$

0.7

 

 

 

$

0.1

 

 

 

 


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

 

7



 

Asset Accumulation and Income

Income Statements

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

486

 

$

532

 

$

531

 

$

561

 

$

611

 

26

%

$

1,986

 

Distribution fees

 

176

 

198

 

205

 

200

 

207

 

17

%

784

 

Net investment income

 

450

 

496

 

471

 

478

 

479

 

7

%

1,860

 

Other revenues

 

16

 

17

 

18

 

17

 

8

 

-45

%

46

 

Total revenues

 

1,128

 

1,243

 

1,225

 

1,256

 

1,305

 

16

%

4,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

221

 

233

 

240

 

241

 

252

 

14

%

890

 

Interest credited to account values

 

261

 

303

 

275

 

300

 

299

 

15

%

1,125

 

Benefits, claims, losses and settlement expenses

 

16

 

16

 

5

 

16

 

3

 

-82

%

52

 

Amortization of deferred acquisition costs

 

79

 

82

 

92

 

97

 

68

 

-16

%

305

 

Interest and debt expense

 

10

 

12

 

11

 

7

 

12

 

18

%

33

 

Other operating expense

 

384

 

441

 

441

 

438

 

505

 

32

%

1,580

 

Total expenses

 

971

 

1,087

 

1,064

 

1,099

 

1,139

 

17

%

3,985

 

Income before income tax provision, discontinued operations and accounting change

 

$

157

 

$

156

 

$

161

 

$

157

 

$

166

 

7

%

$

691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

8

 

$

4

 

$

7

 

$

37

 

$

(8

 

#

$

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin *

 

55.9

%

55.6

%

57.5

%

55.6

%

57.6

%

 

 

55.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity **

 

$

3,795

 

$

3,760

 

$

3,677

 

$

3,575

 

$

3,551

 

-6

%

$

3,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity for income before income tax provision, discontinued operations and accounting change***

 

NA

 

18.3

%

17.0

%

17.0

%

17.6

%

 

 

18.3

%

 


*

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 equity reflects the internal allocation of consolidated shareholders’ equity (excluding OCI) to the Company’s operating segments for purposes of measuring segment return on allocated equity. Allocated equity 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 provision, discontinued operations and accounting change and the average allocated equity 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

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

$

343

 

$

373

 

$

358

 

$

373

 

$

385

 

12

%

$

1,420

 

Variable annuities

 

203

 

217

 

216

 

213

 

213

 

11

%

807

 

Fixed annuities

 

303

 

309

 

303

 

306

 

321

 

2

%

1,233

 

Certificates

 

59

 

87

 

70

 

80

 

67

 

15

%

270

 

Brokerage, banking and other

 

220

 

257

 

278

 

284

 

319

 

44

%

946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,128

 

$

1,243

 

$

1,225

 

$

1,256

 

$

1,305

 

16

%

$

4,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales: *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

4,828

 

$

4,900

 

$

5,126

 

$

5,033

 

$

5,415

 

12

%

$

21,038

 

Variable annuities

 

1,118

 

1,223

 

1,378

 

1,724

 

1,834

 

64

%

4,734

 

Fixed annuities

 

401

 

309

 

279

 

270

 

217

 

-46

%

1,390

 

Certificates

 

1,786

 

2,587

 

2,226

 

1,896

 

1,386

 

-22

%

7,140

 

Other

 

2,566

 

2,767

 

2,583

 

3,439

 

1,665

 

-35

%

11,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

10,699

 

$

11,786

 

$

11,592

 

$

12,362

 

$

10,517

 

-2

%

$

46,149

 

 


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

 

9



 

Asset Accumulation and Income

Selected Statistical Information

 

(Dollars in billions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets*

 

$

63.6

 

$

67.1

 

$

67.2

 

$

69.1

 

$

70.8

 

11

%

Managed assets**

 

231.4

 

251.5

 

245.1

 

249.7

 

253.3

 

9

%

Administered assets

 

54.8

 

60.1

 

58.8

 

61.0

 

63.8

 

16

%

Total owned, managed and administered assets

 

$

349.8

 

$

378.7

 

$

371.1

 

$

379.8

 

$

387.9

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets by type - excluding separate accounts (%):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

49

%

49

%

48

%

47

%

47

%

 

 

Fixed income

 

25

%

24

%

24

%

23

%

22

%

 

 

Broker managed wrap

 

13

%

14

%

15

%

16

%

17

%

 

 

Other

 

13

%

13

%

13

%

14

%

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual fund performance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 12-month

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

41

%

59

%

59

%

66

%

66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income - 12-month

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

53

%

68

%

50

%

45

%

45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 3-year

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

39

%

39

%

50

%

52

%

43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income - 3-year

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

40

%

20

%

31

%

44

%

31

%

 

 

 

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

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

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

RiverSource 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 September 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 advisors for general reference although not included in the summary above.

 


*              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 include all assets managed by Ameriprise Financial, Inc., or its subsidiaries that are investment advisors, 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 Assets Roll Forward

 

(Dollars in billions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

Managed assets - retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource mutual funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

65.5

 

$

63.3

 

$

65.3

 

$

61.2

 

$

59.9

 

-9

%

$

68.8

 

Sales

 

2.4

 

2.0

 

2.1

 

2.0

 

2.0

 

-21

%

9.6

 

Redemptions

 

(4.2

)

(4.1

)

(4.9

)

(4.5

)

(4.5

)

8

%

(17.5

)

Market appreciation/(depreciation)

 

(0.6

)

3.9

 

(1.4

)

0.9

 

2.0

 

 

#

3.7

 

Other

 

0.2

 

0.2

 

0.1

 

0.3

 

 

-11

%

0.7

 

Ending assets

 

$

63.3

 

$

65.3

 

$

61.2

 

$

59.9

 

$

59.4

 

-6

%

$

65.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle mutual funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

10.8

 

$

10.8

 

$

12.2

 

$

11.9

 

$

12.4

 

15

%

$

10.7

 

Sales

 

0.9

 

0.9

 

1.2

 

1.1

 

1.4

 

63

%

3.8

 

Redemptions

 

(1.0

)

(0.7

)

(1.2

)

(1.2

)

(0.7

)

-30

%

(3.6

)

Market appreciation/(depreciation) and foreign currency translation

 

0.2

 

0.6

 

0.1

 

0.8

 

0.7

 

 

#

1.0

 

Other

 

(0.1

)

0.6

 

(0.4

)

(0.2

)

(0.4

)

 

#

0.3

 

Ending assets

 

$

10.8

 

$

12.2

 

$

11.9

 

$

12.4

 

$

13.4

 

24

%

$

12.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wrap accounts - other company products*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

27.4

 

$

29.3

 

$

34.0

 

$

36.4

 

$

39.6

 

44

%

$

22.6

 

Sales

 

2.6

 

3.1

 

3.8

 

3.9

 

3.7

 

44

%

11.0

 

Redemptions

 

(1.4

)

(1.7

)

(2.0

)

(2.4

)

(2.2

)

59

%

(6.4

)

Market appreciation/(depreciation)

 

0.2

 

2.4

 

 

1.1

 

1.6

 

 

#

3.8

 

Other

 

0.5

 

0.9

 

0.6

 

0.6

 

1.0

 

67

%

3.0

 

Ending assets

 

29.3

 

34.0

 

36.4

 

39.6

 

43.7

 

49

%

34.0

 

Total managed assets - retail

 

$

103.4

 

$

111.5

 

$

109.5

 

$

111.9

 

$

116.5

 

13

%

$

111.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separately managed accounts/sub-advisory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

22.7

 

$

20.1

 

$

21.6

 

$

20.3

 

$

20.9

 

-8

%

$

23.6

 

Sales

 

0.3

 

0.4

 

0.3

 

0.6

 

0.3

 

-28

%

1.7

 

Redemptions

 

(0.7

)

(0.4

)

(1.3

)

(0.6

)

(1.4

)

 

#

(3.0

)

Market appreciation/(depreciation)

 

0.1

 

0.6

 

(0.2

)

0.3

 

(0.1

)

 

#

1.3

 

Other

 

(2.3

)

0.9

 

(0.1

)

0.3

 

 

 

#

(2.0

)

Ending assets

 

$

20.1

 

$

21.6

 

$

20.3

 

$

20.9

 

$

19.7

 

-2

%

$

21.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

9.2

 

$

9.2

 

$

9.2

 

$

9.8

 

$

8.2

 

-11

%

$

8.6

 

Sales

 

0.1

 

0.1

 

0.7

 

0.8

 

0.1

 

65

%

1.5

 

Redemptions

 

(0.3

)

(0.1

)

(0.1

)

(2.4

)

(0.8

)

 

#

(1.7

)

Market appreciation/(depreciation)

 

0.2

 

0.0

 

0.0

 

0.0

 

(0.0

)

-79

%

0.8

 

Ending assets

 

$

9.2

 

$

9.2

 

$

9.8

 

$

8.2

 

$

7.5

 

-18

%

$

9.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle separately managed accounts/sub-advisory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

90.5

 

$

92.5

 

$

103.6

 

$

100.7

 

$

101.8

 

13

%

$

84.2

 

Sales

 

4.3

 

3.3

 

3.0

 

5.2

 

5.5

 

30

%

14.0

 

Redemptions

 

(2.8

)

(2.7

)

(4.6

)

(6.1

)

(6.9

)

 

#

(11.5

)

Market appreciation/(depreciation) and foreign currency translation

 

0.5

 

4.4

 

0.5

 

3.2

 

4.3

 

 

#

5.7

 

Other

 

0.0

 

6.1

 

(1.8

)

(1.2

)

(1.8

)

 

#

11.2

 

Ending assets

 

$

92.5

 

$

103.6

 

$

100.7

 

$

101.8

 

$

102.9

 

11

%

$

103.6

 

Total managed assets - institutional

 

$

121.8

 

$

134.4

 

$

130.8

 

$

130.9

 

$

130.1

 

7

%

$

134.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - retirement services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collective funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

12.4

 

$

12.1

 

$

12.1

 

$

11.2

 

$

11.3

 

-9

%

$

12.6

 

Sales

 

0.4

 

0.4

 

0.4

 

0.5

 

0.4

 

4

%

1.8

 

Redemptions

 

(0.7

)

(1.0

)

(1.2

)

(0.7

)

(0.7

)

-11

%

(3.5

)

Market appreciation/(depreciation)

 

 

0.4

 

 

0.1

 

0.2

 

 

#

0.7

 

Other

 

(0.0

)

0.2

 

(0.1

)

0.2

 

0.1

 

-42

%

0.5

 

Total managed assets - retirement services

 

$

12.1

 

$

12.1

 

$

11.2

 

$

11.3

 

$

11.3

 

-7

%

$

12.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - eliminations and other

 

(5.9

)

(6.5

)

(6.4

)

(4.4

)

(4.6

)

-24

%

(6.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total managed assets

 

$

231.4

 

$

251.5

 

$

245.1

 

$

249.7

 

$

253.3

 

9

%

$

251.5

 

 


* Wrap accounts - other company products include flow activity for SPS Non Proprietary products.  Cash sales for this product line are included as sales for the managed asset rollforward but excluded from other cash sales metrics included in these Quarterly Statistical Supplement Tables.  Securities America is also excluded.

 

# Variance 100% or greater.

 

Note:  Managed assets includes all assets managed by Ameriprise Financial, Inc., or its subsidiaries that are investment advisors, 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

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

Account value activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities:*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

25,690

 

$

25,701

 

$

28,284

 

$

28,317

 

$

29,515

 

15

%

$

24,282

 

Deposits

 

914

 

975

 

1,234

 

1,585

 

1,733

 

89

%

3,911

 

Withdrawals/surrenders

 

(576

)

(642

)

(719

)

(863

)

(907

)

57

%

(2,306

)

Net flows

 

338

 

333

 

515

 

722

 

826

 

 

#

1,605

 

Investment performance/interest credited

 

(266

)

2,227

 

(509

)

511

 

1,294

 

 

#

2,448

 

Policy charges

 

 

 

 

 

 

 

 

Other

 

(61

)

23

 

27

 

(35

)

(13

)

-79

%

(51

)

Ending balance

 

25,701

 

28,284

 

28,317

 

29,515

 

$

31,622

 

23

%

$

28,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed annuities:*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

26,570

 

$

26,796

 

$

26,979

 

$

26,823

 

$

26,697

 

0

%

$

26,377

 

Deposits

 

530

 

482

 

348

 

344

 

249

 

-53

%

1,947

 

Withdrawals/surrenders

 

(544

)

(634

)

(724

)

(713

)

(757

)

39

%

(2,415

)

Net flows

 

(14

)

(152

)

(376

)

(369

)

(508

)

0

%

(468

)

Policyholder interest credited

 

240

 

249

 

238

 

244

 

241

 

1

%

984

 

Other

 

 

86

 

(18

)

(1

)

30

 

 

86

 

Ending balance

 

$

26,796

 

$

26,979

 

$

26,823

 

$

26,697

 

$

26,460

 

-1

%

$

26,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,006

 

$

5,306

 

$

5,831

 

$

6,282

 

$

6,427

 

28

%

$

4,784

 

Deposits

 

806

 

1,165

 

1,129

 

781

 

796

 

-1

%

3,285

 

Withdrawals/surrenders

 

(528

)

(695

)

(719

)

(683

)

(889

)

68

%

(2,375

)

Net flows

 

278

 

470

 

410

 

98

 

(93

)

 

#

910

 

Interest credited

 

23

 

55

 

37

 

48

 

58

 

 

#

139

 

Other

 

(1

)

 

4

 

(1

)

 

-28

%

(2

)

Ending balance

 

$

5,306

 

$

5,831

 

$

6,282

 

$

6,427

 

$

6,392

 

20

%

$

5,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred acquisition costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,415

 

$

1,421

 

$

1,446

 

$

1,522

 

$

1,536

 

9

%

$

1,271

 

Capitalization

 

68

 

71

 

80

 

99

 

101

 

49

%

277

 

Amortization

 

(29

)

(36

)

(46

)

(45

)

(35

)

21

%

(91

)

Other/FAS 115

 

(33

)

(10

)

42

 

(40

)

39

 

 

#

(11

)

Ending balance

 

$

1,421

 

$

1,446

 

$

1,522

 

$

1,536

 

$

1,641

 

15

%

$

1,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed annuities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

455

 

$

441

 

$

426

 

$

427

 

$

406

 

-11

%

$

462

 

Capitalization

 

16

 

11

 

11

 

9

 

8

 

-53

%

53

 

Amortization

 

(25

)

(19

)

(22

)

(21

)

(14

)

-41

%

(87

)

Other/FAS 115

 

(5

)

(7

)

12

 

(9

)

9

 

 

#

(2

)

Ending balance

 

$

441

 

$

426

 

$

427

 

$

406

 

$

409

 

-7

%

$

426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

196

 

$

175

 

$

166

 

$

151

 

$

120

 

-38

%

$

225

 

Capitalization

 

5

 

5

 

6

 

5

 

5

 

-16

%

26

 

Amortization

 

(27

)

(25

)

(24

)

(31

)

(19

)

-32

%

(128

)

Other

 

1

 

11

 

3

 

(5

)

(10

)

 

#

43

 

Ending balance

 

$

175

 

$

166

 

$

151

 

$

120

 

$

96

 

-45

%

$

166

 

 


*  The fixed portion of the Variable annuities product is included in the Fixed annuities product account values.

 

#  Variance 100% or greater.

 

12



 

Protection

Income Statements

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

17

 

$

19

 

$

16

 

$

13

 

$

17

 

-1

%

$

58

 

Distribution fees

 

25

 

27

 

27

 

26

 

27

 

4

%

105

 

Net investment income

 

82

 

82

 

81

 

85

 

90

 

9

%

316

 

Premiums

 

262

 

264

 

270

 

279

 

217

 

-17

%

1,023

 

Other revenues

 

103

 

103

 

112

 

112

 

109

 

6

%

421

 

Total revenues

 

489

 

495

 

506

 

515

 

460

 

-6

%

1,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

23

 

24

 

25

 

20

 

57

 

 

#

90

 

Interest credited to account values

 

42

 

39

 

36

 

28

 

38

 

-11

%

143

 

Benefits, claims, losses and settlement expenses

 

190

 

207

 

213

 

222

 

187

 

-1

%

777

 

Amortization of deferred policy acquisition costs

 

29

 

43

 

44

 

37

 

(20

)

 

#

132

 

Interest and debt expense

 

5

 

7

 

6

 

4

 

9

 

75

%

19

 

Other operating expense

 

66

 

75

 

75

 

83

 

53

 

-21

%

274

 

Total expenses

 

355

 

395

 

399

 

394

 

324

 

-9

%

1,435

 

Income before income tax provision and accounting change

 

$

134

 

$

100

 

$

107

 

$

121

 

$

136

 

0

%

$

488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains, pretax

 

$

3

 

$

4

 

$

2

 

$

7

 

$

3

 

-32

%

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin *

 

48.1

%

45.3

%

46.0

%

47.4

%

38.9

%

 

 

47.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity **

 

$

1,958

 

$

1,964

 

$

1,974

 

$

1,942

 

$

1,965

 

0

%

$

1,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on allocated equity for income before income tax provision and accounting
change ***

 

NA

 

25.3

%

23.8

%

23.5

%

23.5

%

 

 

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 equity reflects the internal allocation of consolidated shareholders’ equity (excluding OCI) to the Company’s operating segments for purposes of measuring segment pretax operating return on allocated equity. Allocated equity 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 provision and accounting change and the average allocated equity as of the last day of the preceding three quarters and the current quarter.

 

 

#

Variance 100% or greater.

 

13



 

Protection

Product Information

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

165

 

$

169

 

$

170

 

$

167

 

$

173

 

4

%

$

658

 

Term and whole life

 

21

 

22

 

22

 

23

 

20

 

-5

%

84

 

Personal auto and home

 

116

 

120

 

122

 

128

 

145

 

25

%

445

 

Disability income and other

 

187

 

184

 

192

 

197

 

122

 

-35

%

736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

489

 

$

495

 

$

506

 

$

515

 

$

460

 

-6

%

$

1,923

 

 

14



 

Protection

Selected Statistical Information

 

(Dollars in millions, except where noted, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets (billions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets*

 

$

13

 

$

13

 

$

14

 

$

14

 

$

14

 

12

%

$

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and other non-property and casualty insurance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• VUL/UL

 

$

77.7

 

$

79.5

 

$

79.6

 

$

79.8

 

$

88.3

 

14

%

$

306.1

 

• Term and whole life

 

$

5.0

 

$

5.1

 

$

4.8

 

$

5.2

 

$

5.4

 

4

%

$

20.0

 

• Disability and other

 

$

17.4

 

$

17.6

 

$

16.4

 

$

15.8

 

$

15.5

 

-11

%

$

71.5

 

Lapse rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• VUL/UL

 

5.1

%

5.2

%

5.0

%

5.2

%

5.2

%

 

 

5.1

%

Face amount outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• VUL/UL

 

$

97,492

 

$

98,910

 

$

100,267

 

$

102,775

 

$

104,331

 

7

%

$

98,910

 

• Term and whole life

 

$

42,999

 

$

44,850

 

$

46,671

 

$

48,480

 

$

50,255

 

17

%

$

44,850

 

• Other**

 

$

2,001

 

$

1,995

 

$

1,972

 

$

1,961

 

$

1,941

 

-3

%

$

1,995

 

Policyholder reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• VUL/UL

 

$

6,247

 

$

6,686

 

$

6,704

 

$

6,847

 

$

7,131

 

14

%

$

6,686

 

• Term and whole life

 

$

226

 

$

228

 

$

230

 

$

231

 

$

232

 

3

%

$

228

 

• Disability and other

 

$

2,297

 

$

2,334

 

$

2,359

 

$

2,385

 

$

2,429

 

6

%

$

2,334

 

Net amount at risk***

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• VUL/UL

 

$

49,908

 

$

49,773

 

$

49,215

 

$

49,792

 

$

49,171

 

-1

%

$

49,773

 

• Term and whole life

 

$

16,343

 

$

16,424

 

$

16,223

 

$

15,896

 

$

15,605

 

-5

%

$

16,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal auto and home insurance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premium

 

$

109

 

$

114

 

$

115

 

$

121

 

$

127

 

16

%

$

422

 

Policy count (thousands)

 

392

 

406

 

420

 

434

 

445

 

13

%

406

 

Loss ratio

 

83.4

%

83.1

%

82.3

%

81.8

%

83.3

%

 

 

83.1

%

Expense ratio

 

16.1

%

18.4

%

15.6

%

15.1

%

13.0

%

 

 

16.6

%

 


*

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.

**

Includes only other life insurance.

***

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

 

15



 

Protection

Product Roll Forward

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and policyholder account balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

6,222

 

$

6,247

 

$

6,686

 

$

6,704

 

$

6,847

 

10

%

$

5,926

 

Premiums and deposits

 

239

 

247

 

251

 

244

 

249

 

4

%

971

 

Investment performance

 

(27

)

382

 

(38

)

100

 

246

 

 

#

495

 

Surrenders and withdrawals

 

(203

)

(203

)

(205

)

(210

)

(229

)

13

%

(822

)

Other

 

16

 

13

 

10

 

9

 

18

 

17

%

116

 

Ending balance

 

$

6,247

 

$

6,686

 

$

6,704

 

$

6,847

 

$

7,131

 

14

%

$

6,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred acquisition costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,193

 

$

1,222

 

$

1,239

 

$

1,260

 

$

1,269

 

6

%

$

1,140

 

Capitalization

 

30

 

32

 

30

 

32

 

34

 

13

%

120

 

Amortization

 

5

 

(14

)

(16

)

(16

)

40

 

 

#

(35

)

Other/FAS 115

 

(6

)

(1

)

7

 

(7

)

7

 

 

#

14

 

Ending balance

 

$

1,222

 

$

1,239

 

$

1,260

 

$

1,269

 

$

1,350

 

10

%

$

1,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

88

 

$

90

 

$

92

 

$

94

 

$

96

 

9

%

$

84

 

Capitalization

 

6

 

6

 

6

 

7

 

6

 

12

%

24

 

Amortization

 

(4

)

(4

)

(4

)

(4

)

(3

)

-38

%

(16

)

Other

 

 

 

 

(1

)

1

 

 

 

Ending balance

 

$

90

 

$

92

 

$

94

 

$

96

 

$

100

 

12

%

$

92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disability and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

435

 

$

433

 

$

436

 

$

439

 

$

452

 

4

%

$

402

 

Capitalization

 

15

 

15

 

14

 

15

 

16

 

4

%

58

 

Amortization

 

(17

)

(12

)

(12

)

(3

)

(3

)

-27

%

(30

)

Other

 

 

 

1

 

1

 

(1

)

 

6

 

Ending balance

 

$

433

 

$

436

 

$

439

 

$

452

 

$

464

 

5

%

$

436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total property casualty and AMEX Assurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

142

 

$

145

 

$

150

 

$

150

 

$

152

 

7

%

$

141

 

Capitalization

 

15

 

19

 

12

 

16

 

17

 

-56

%

58

 

Amortization

 

(11

)

(13

)

(13

)

(13

)

(14

)

-56

%

(49

)

Other

 

(1

)

(1

)

1

 

(1

)

(118

)

 

#

 

Ending balance

 

$

145

 

$

150

 

$

150

 

$

152

 

$

37

 

-75

%

$

150

 

 


#  Variance 100% or greater.

 

16



 

Corporate and Other and Eliminations

Statements of Operations

 

(Dollars in millions, unaudited)

 

 

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

3Q’05 vs. 3Q’04

 

Full Year

 

 

 

2004

 

2004

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

47

 

$

55

 

$

61

 

$

58

 

$

59

 

27

%

$

204

 

Distribution fees

 

47

 

42

 

56

 

63

 

62

 

34

%

212

 

Net investment income (losses)

 

(12

)

(7

)

(4

)

(5

)

(8

)

-26

%

(39

)

Premiums

 

 

 

 

 

(15

)

 

 

Other revenues

 

13

 

15

 

3

 

8

 

10

 

-26

%

51

 

Total revenues

 

95

 

105

 

116

 

124

 

108

 

14

%

428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

67

 

82

 

97

 

110

 

99

 

49

%

351

 

Interest credited to account values

 

(1

)

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

(1

)

 

 

 

 

 

(1

)

Amortization of deferred acquisition costs

 

 

 

 

 

1

 

 

 

Interest and debt expense

 

(2

)

(4

)

 

8

 

(5

)

89

%

 

Other operating expense

 

62

 

23

 

21

 

37

 

42

 

-30

%

145

 

Total expenses before separation costs

 

125

 

101

 

118

 

155

 

137

 

11

%

495

 

(Loss) income before tax (benefit) provision, separation costs and accounting change

 

(30

)

4

 

(2

)

(31

)

(29

)

0

%

(67

)

Separation costs, pretax

 

 

 

20

 

56

 

92

 

 

 

(Loss) income before income tax (benefit) provision and accounting change

 

$

(30

)

$

4

 

$

(22

)

$

(87

)

$

(121

)

 

#

$

(67

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

 

$

 

$

1

 

$

13

 

$

(1

)

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin *

 

29.1

%

22.6

%

16.1

%

11.6

%

7.7

%

 

18.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity **

 

$

929

 

$

598

 

$

863

 

$

1,163

 

$

2,339

 

 

#

$

598

 

 


*

 

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 equity reflects the internal allocation of consolidated shareholders’ equity (excluding OCI) to the Company’s operating segments for purposes of measuring segment return on allocated equity. Allocated equity 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

 

 



 

Equity Fund Performance & Lipper Ranking as calculated by Lipper

As of September 30, 2005

Source:  Lipper

 

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

 

*      Mutual funds subadvised by advisors not affiliated with Ameriprise Financial, Inc.

 

**   Closed to new investors (Discovery Fund).

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Inception

 

Fund A Share

 

1 year

 

3 years

 

Class A Shares by Lipper Category

 

Date

 

Net Assets ($m)

 

Return

 

Ranking

 

Return

 

Ranking

 

Balanced Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

04/16/1940

 

989.8

 

8.86

 

64

%

402 / 629

 

12.28

 

37

%

167 / 461

 

RiverSourceSM Portfolio Builder Moderate Fund

 

03/04/2004

 

336.2

 

11.18

 

29

%

180 / 629

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

03/04/2004

 

456.0

 

13.39

 

8

%

49 / 629

 

 

 

 

 

 

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

11/13/1996

 

313.8

 

45.36

 

42

%

78 / 186

 

32.86

 

82

%

133 / 163

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

10/15/1990

 

3750.6

 

24.24

 

2

%

3 / 225

 

26.44

 

2

%

3 / 159

 

RiverSourceSM Dividend Opportunity Fund

 

08/01/1988

 

889.9

 

17.52

 

16

%

35 / 225

 

15.13

 

72

%

114 / 159

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

06/26/2000

 

83.1

 

20.70

 

86

%

86 / 99

 

19.70

 

90

%

79 / 87

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

01/23/1985

 

937.6

 

15.81

 

17

%

60 / 369

 

14.92

 

36

%

89 / 247

 

Global Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Balanced Fund

 

11/13/1996

 

68.6

 

19.95

 

20

%

19 / 95

 

16.61

 

56

%

44 / 78

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

05/29/1990

 

455.8

 

28.62

 

5

%

3 / 61

 

20.37

 

25

%

13 / 53

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund

 

04/22/1985

 

69.1

 

9.37

 

69

%

35 / 50

 

20.71

 

69

%

30 / 43

 

Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

03/04/2004

 

60.0

 

6.00

 

73

%

175 / 241

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

03/04/2004

 

126.4

 

8.73

 

31

%

75 / 241

 

 

 

 

 

 

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

11/15/1984

 

424.1

 

23.26

 

57

%

111 / 195

 

18.93

 

83

%

145 / 175

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund*

 

09/28/2001

 

221.7

 

27.71

 

30

%

52 / 178

 

23.95

 

40

%

61 / 154

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund*

 

10/03/2002

 

95.4

 

21.61

 

88

%

101 / 114

 

 

 

 

 

 

 

RiverSourceSM International Select Value Fund*

 

09/28/2001

 

1022.3

 

27.61

 

24

%

27 / 114

 

28.51

 

24

%

22 / 91

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund*

 

10/03/2002

 

67.7

 

25.35

 

76

%

40 / 52

 

 

 

 

 

 

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

03/28/2002

 

1044.9

 

13.80

 

26

%

223 / 881

 

13.95

 

55

%

414 / 765

 

RiverSourceSM New Dimensions Fund®

 

08/01/1968

 

6543.2

 

7.00

 

90

%

789 / 881

 

10.67

 

91

%

692 / 765

 

RiverSourceSM Fundamental Growth Fund*

 

04/24/2003

 

17.8

 

10.10

 

65

%

571 / 881

 

 

 

 

 

 

 

RiverSourceSM Disciplined Equity Fund

 

04/24/2003

 

32.3

 

15.56

 

14

%

122 / 881

 

 

 

 

 

 

 

RiverSourceSM Stock Fund

 

04/06/1945

 

1465.9

 

12.58

 

37

%

326 / 881

 

12.75

 

74

%

560 / 765

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

03/01/1972

 

2203.3

 

17.18

 

15

%

101 / 678

 

13.88

 

39

%

222 / 577

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

03/20/1995

 

890.0

 

19.53

 

4

%

17 / 443

 

21.63

 

4

%

13 / 367

 

RiverSourceSM Large Cap Value Fund

 

06/27/2002

 

72.5

 

12.00

 

57

%

251 / 443

 

16.31

 

68

%

248 / 367

 

RiverSourceSM Value Fund*

 

06/18/2001

 

260.3

 

11.43

 

67

%

294 / 443

 

17.57

 

42

%

154 / 367

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

06/04/1957

 

1369.4

 

19.97

 

60

%

324 / 541

 

16.34

 

81

%

358 / 441

 

RiverSourceSM Aggressive Growth Fund*

 

04/24/2003

 

30.5

 

22.13

 

37

%

198 / 541

 

 

 

 

 

 

 

RiverSourceSM Strategy Aggressive Fund

 

03/20/1995

 

429.7

 

19.94

 

61

%

326 / 541

 

15.76

 

86

%

376 / 441

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

02/14/2002

 

781.9

 

27.06

 

8

%

19 / 247

 

29.47

 

9

%

17 / 195

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund*

 

06/18/2001

 

721.6

 

13.27

 

65

%

489 / 752

 

16.90

 

48

%

271 / 567

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

03/04/2004

 

218.9

 

15.62

 

38

%

286 / 752

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

03/04/2004

 

176.6

 

18.09

 

19

%

141 / 752

 

 

 

 

 

 

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund*

 

03/08/2002

 

547.1

 

16.02

 

42

%

196 / 470

 

19.06

 

46

%

164 / 362

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

03/04/2004

 

74.3

 

29.80

 

19

%

40 / 216

 

 

 

 

 

 

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund

 

10/25/1999

 

218.0

 

11.55

 

67

%

111 / 166

 

15.90

 

74

%

111 / 149

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

11/13/1996

 

124.4

 

20.83

 

30

%

85 / 288

 

34.73

 

5

%

12 / 265

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Discovery Fund*, **

 

08/24/1981

 

147.5

 

22.08

 

22

%

132 / 604

 

26.49

 

19

%

92 / 488

 

RiverSourceSM Small Cap Equity Fund*

 

03/08/2002

 

140.5

 

21.94

 

23

%

136 / 604

 

24.94

 

29

%

138 / 488

 

RiverSourceSM Small Cap Value Fund*

 

06/18/2001

 

755.6

 

14.40

 

87

%

521 / 604

 

23.21

 

52

%

251 / 488

 

RiverSourceSM Small Cap Advantage Fund

 

05/04/1999

 

607.7

 

18.11

 

59

%

356 / 604

 

24.48

 

33

%

157 / 488

 

RiverSourceSM Small Company Index Fund

 

08/19/1996

 

865.6

 

20.10

 

41

%

245 / 604

 

23.12

 

53

%

258 / 488

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund*

 

01/24/2001

 

139.3

 

15.58

 

71

%

367 / 522

 

17.72

 

71

%

306 / 436

 

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Inception

 

Fund A Share

 

5 years

 

10 years

 

Class A Shares by Lipper Category

 

Date

 

Net Assets ($m)

 

Return

 

Ranking

 

Return

 

Ranking

 

Balanced Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

04/16/1940

 

989.8

 

-2.13

 

93

%

338 / 366

 

3.88

 

98

%

165 / 169

 

RiverSourceSM Portfolio Builder Moderate Fund

 

03/04/2004

 

336.2

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

03/04/2004

 

456.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

11/13/1996

 

313.8

 

11.82

 

76

%

92 / 121

 

 

 

 

 

 

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

10/15/1990

 

3750.6

 

8.91

 

10

%

13 / 131

 

10.86

 

24

%

17 / 72

 

RiverSourceSM Dividend Opportunity Fund

 

08/01/1988

 

889.9

 

-3.06

 

94

%

124 / 131

 

7.63

 

77

%

56 / 72

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

06/26/2000

 

83.1

 

-2.40

 

92

%

65 / 70

 

 

 

 

 

 

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

01/23/1985

 

937.6

 

2.36

 

31

%

56 / 180

 

6.04

 

79

%

67 / 84

 

Global Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Balanced Fund

 

11/13/1996

 

68.6

 

1.25

 

89

%

63 / 70

 

 

 

 

 

 

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

05/29/1990

 

455.8

 

-3.15

 

45

%

21 / 46

 

4.77

 

83

%

14 / 16

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund

 

04/22/1985

 

69.1

 

23.79

 

80

%

27 / 33

 

4.37

 

57

%

13 / 22

 

Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

03/04/2004

 

60.0

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

03/04/2004

 

126.4

 

 

 

 

 

 

 

 

 

 

 

 

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

11/15/1984

 

424.1

 

-3.64

 

91

%

117 / 128

 

2.72

 

93

%

51 / 54

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund*

 

09/28/2001

 

221.7

 

 

 

 

 

 

 

 

 

 

 

 

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund*

 

10/03/2002

 

95.4

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Select Value Fund*

 

09/28/2001

 

1022.3

 

 

 

 

 

 

 

 

 

 

 

 

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund*

 

10/03/2002

 

67.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

03/28/2002

 

1044.9

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New Dimensions Fund®

 

08/01/1968

 

6543.2

 

-5.05

 

78

%

469 / 603

 

7.85

 

53

%

116 / 221

 

RiverSourceSM Fundamental Growth Fund*

 

04/24/2003

 

17.8

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Equity Fund

 

04/24/2003

 

32.3

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Stock Fund

 

04/06/1945

 

1465.9

 

-2.51

 

51

%

303 / 603

 

6.46

 

79

%

174 / 221

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

03/01/1972

 

2203.3

 

-10.89

 

81

%

367 / 453

 

4.61

 

84

%

124 / 147

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

03/20/1995

 

890.0

 

3.11

 

49

%

119 / 242

 

8.43

 

63

%

71 / 113

 

RiverSourceSM Large Cap Value Fund

 

06/27/2002

 

72.5

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Value Fund*

 

06/18/2001

 

260.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

06/04/1957

 

1369.4

 

-1.58

 

32

%

101 / 320

 

10.94

 

16

%

19 / 120

 

RiverSourceSM Aggressive Growth Fund*

 

04/24/2003

 

30.5

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategy Aggressive Fund

 

03/20/1995

 

429.7

 

-13.23

 

91

%

290 / 320

 

4.90

 

82

%

99 / 120

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

02/14/2002

 

781.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund*

 

06/18/2001

 

721.6

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

03/04/2004

 

218.9

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

03/04/2004

 

176.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund*

 

03/08/2002

 

547.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

03/04/2004

 

74.3

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund

 

10/25/1999

 

218.0

 

-2.16

 

75

%

96 / 128

 

 

 

 

 

 

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

11/13/1996

 

124.4

 

-19.02

 

60

%

125 / 210

 

 

 

 

 

 

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Discovery Fund *, **

 

08/24/1981

 

147.5

 

2.62

 

89

%

301 / 341

 

5.33

 

95

%

97 / 102

 

RiverSourceSM Small Cap Equity Fund*

 

03/08/2002

 

140.5

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Value Fund*

 

06/18/2001

 

755.6

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Advantage Fund

 

05/04/1999

 

607.7

 

6.05

 

71

%

241 / 341

 

 

 

 

 

 

 

RiverSourceSM Small Company Index Fund

 

08/19/1996

 

865.6

 

9.91

 

46

%

154 / 341

 

 

 

 

 

 

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund*

 

01/24/2001

 

139.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

Annualized Returns @ POP

 

 

 

Inception

 

Fund A Share

 

Since Inception

 

Ranking Since

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Date

 

Net Assets ($m)

 

Return

 

Date

 

Ranking

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Balanced Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

04/16/1940

 

989.8

 

 

 

 

 

 

 

 

2.60

 

10.08

 

-3.28

 

3.27

 

 

RiverSourceSM Portfolio Builder Moderate Fund

 

03/04/2004

 

336.2

 

7.04

 

03/04/2004

 

12

%

65 / 579

 

4.79

 

 

 

 

 

 

 

3.09

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

03/04/2004

 

456.0

 

7.70

 

03/04/2004

 

9

%

48 / 579

 

6.87

 

 

 

 

 

 

 

3.72

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

11/13/1996

 

313.8

 

7.11

 

11/14/1996

 

52

%

35 / 67

 

37.00

 

30.26

 

10.51

 

 

 

6.40

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

10/15/1990

 

3750.6

 

12.77

 

10/18/1990

 

38

%

10 / 26

 

17.10

 

23.97

 

7.63

 

10.20

 

12.32

 

RiverSourceSM Dividend Opportunity Fund

 

08/01/1988

 

889.9

 

9.55

 

08/04/1988

 

93

%

25 / 26

 

10.77

 

12.88

 

-4.21

 

7.00

 

9.18

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

06/26/2000

 

83.1

 

-1.91

 

06/26/2000

 

88

%

58 / 65

 

13.76

 

17.36

 

-3.55

 

 

 

-3.00

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

01/23/1985

 

937.6

 

11.01

 

01/24/1985

 

29

%

2 / 6

 

9.15

 

12.67

 

1.15

 

5.41

 

10.70

 

Global Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Balanced Fund

 

11/13/1996

 

68.6

 

5.15

 

11/14/1996

 

89

%

37 / 41

 

13.06

 

14.33

 

0.06

 

 

 

4.45

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

05/29/1990

 

455.8

 

5.47

 

05/31/1990

 

84

%

5 / 5

 

21.22

 

18.02

 

-4.29

 

4.15

 

5.07

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund

 

04/22/1985

 

69.1

 

6.66

 

04/25/1985

 

37

%

4 / 10

 

3.08

 

18.35

 

22.33

 

3.75

 

6.35

 

Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

03/04/2004

 

60.0

 

4.07

 

03/04/2004

 

59

%

133 / 227

 

0.96

 

 

 

 

 

 

 

0.90

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

03/04/2004

 

126.4

 

5.60

 

03/04/2004

 

31

%

70 / 227

 

3.57

 

 

 

 

 

 

 

2.38

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

11/15/1984

 

424.1

 

8.32

 

11/15/1984

 

84

%

5 / 5

 

16.17

 

16.61

 

-4.78

 

2.12

 

8.01

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund*

 

09/28/2001

 

221.7

 

13.30

 

09/28/2001

 

40

%

52 / 132

 

20.37

 

21.53

 

 

 

 

 

11.64

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund*

 

10/03/2002

 

95.4

 

19.91

 

10/03/2002

 

96

%

92 / 95

 

14.62

 

 

 

 

 

 

 

17.56

 

RiverSourceSM International Select Value Fund*

 

09/28/2001

 

1022.3

 

16.98

 

09/28/2001

 

30

%

25 / 85

 

20.27

 

25.99

 

 

 

 

 

15.27

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund*

 

10/03/2002

 

67.7

 

28.14

 

10/03/2002

 

73

%

32 / 43

 

18.15

 

 

 

 

 

 

 

25.63

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

03/28/2002

 

1044.9

 

2.86

 

03/28/2002

 

36

%

259 / 724

 

7.26

 

11.72

 

 

 

 

 

1.13

 

RiverSourceSM New Dimensions Fund®

 

08/01/1968

 

6543.2

 

11.21

 

08/01/1968

 

7

%

2 / 29

 

0.85

 

8.50

 

-6.17

 

7.21

 

11.03

 

RiverSourceSM Fundamental Growth Fund*

 

04/24/2003

 

17.8

 

7.83

 

04/24/2003

 

95

%

756 / 798

 

3.77

 

 

 

 

 

 

 

5.24

 

RiverSourceSM Disciplined Equity Fund

 

04/24/2003

 

32.3

 

15.89

 

04/24/2003

 

16

%

125 / 798

 

8.92

 

 

 

 

 

 

 

13.10

 

RiverSourceSM Stock Fund

 

04/06/1945

 

1465.9

 

 

 

 

 

 

 

 

6.11

 

10.54

 

-3.65

 

5.84

 

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

03/01/1972

 

2203.3

 

 

 

 

 

 

 

 

10.44

 

11.65

 

-11.94

 

3.99

 

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

03/20/1995

 

890.0

 

9.41

 

03/23/1995

 

67

%

68 / 101

 

12.66

 

19.25

 

1.90

 

7.79

 

8.80

 

RiverSourceSM Large Cap Value Fund

 

06/27/2002

 

72.5

 

8.73

 

06/27/2002

 

53

%

190 / 359

 

5.56

 

14.04

 

 

 

 

 

6.77

 

RiverSourceSM Value Fund*

 

06/18/2001

 

260.3

 

3.67

 

06/18/2001

 

45

%

132 / 296

 

5.02

 

15.27

 

 

 

 

 

2.24

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

06/04/1957

 

1369.4

 

 

 

 

 

 

 

 

13.07

 

14.06

 

-2.74

 

10.29

 

 

RiverSourceSM Aggressive Growth Fund*

 

04/24/2003

 

30.5

 

23.09

 

04/24/2003

 

22

%

102 / 474

 

15.11

 

 

 

 

 

 

 

20.13

 

RiverSourceSM Strategy Aggressive Fund

 

03/20/1995

 

429.7

 

6.77

 

03/23/1995

 

81

%

91 / 112

 

13.05

 

13.50

 

-14.25

 

4.28

 

6.17

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

02/14/2002

 

781.9

 

15.88

 

02/14/2002

 

10

%

17 / 181

 

19.75

 

26.94

 

 

 

 

 

14.00

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund*

 

06/18/2001

 

721.6

 

4.47

 

06/18/2001

 

32

%

140 / 442

 

6.76

 

14.62

 

 

 

 

 

3.04

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

03/04/2004

 

218.9

 

8.42

 

03/04/2004

 

26

%

180 / 709

 

8.97

 

 

 

 

 

 

 

4.41

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

03/04/2004

 

176.6

 

9.25

 

03/04/2004

 

20

%

138 / 709

 

11.30

 

 

 

 

 

 

 

5.21

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund*

 

03/08/2002

 

547.1

 

9.73

 

03/08/2002

 

11

%

35 / 325

 

9.35

 

16.74

 

 

 

 

 

7.92

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

03/04/2004

 

74.3

 

22.92

 

03/04/2004

 

15

%

31 / 208

 

22.34

 

 

 

 

 

 

 

18.37

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund

 

10/25/1999

 

218.0

 

-0.01

 

10/28/1999

 

79

%

86 / 108

 

11.55

 

15.90

 

-2.16

 

 

 

-0.01

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

11/13/1996

 

124.4

 

4.27

 

11/14/1996

 

60

%

27 / 44

 

13.89

 

32.10

 

-19.98

 

 

 

3.57

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Discovery Fund*, **

 

08/24/1981

 

147.5

 

9.37

 

08/27/1981

 

78

%

7 / 8

 

15.06

 

24.02

 

1.41

 

4.71

 

9.10

 

RiverSourceSM Small Cap Equity Fund*

 

03/08/2002

 

140.5

 

9.36

 

03/08/2002

 

62

%

286 / 461

 

14.93

 

22.50

 

 

 

 

 

7.56

 

RiverSourceSM Small Cap Value Fund*

 

06/18/2001

 

755.6

 

12.13

 

06/18/2001

 

30

%

118 / 403

 

7.83

 

20.80

 

 

 

 

 

10.59

 

RiverSourceSM Small Cap Advantage Fund

 

05/04/1999

 

607.7

 

8.24

 

05/06/1999

 

80

%

225 / 281

 

11.32

 

22.04

 

4.80

 

 

 

7.24

 

RiverSourceSM Small Company Index Fund

 

08/19/1996

 

865.6

 

10.92

 

08/22/1996

 

52

%

61 / 118

 

13.19

 

20.72

 

8.61

 

 

 

10.20

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund*

 

01/24/2001

 

139.3

 

-2.13

 

01/24/2001

 

72

%

256 / 357

 

8.93

 

15.42

 

 

 

 

 

-3.36

 

 

A1



 

Source: Lipper as of 9/30/2005. Lipper rankings are based upon annualized total returns, excluding sales charges.

 

Public Offering Price (POP) returns reflect fund sales charges.

 

Fee waivers were in place for each subadvised 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 ameriprise.com/amp/individual/products/investing/mutualfunds.

 

A2



 

Fixed Income Fund Performance & Lipper Ranking as calculated by Lipper

As of September 30, 2005

Source:  Lipper

 

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

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Inception

 

Fund A Share

 

1 year

 

3 years

 

Class A Shares by Lipper Category

 

Date

 

Net Assets ($m)

 

Return

 

Ranking

 

Return

 

Ranking

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

08/18/1986

 

184.5

 

4.60

 

37

%

45 / 123

 

3.29

 

58

%

66 / 114

 

Corporate Debt — A rated Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Selective Fund

 

04/06/1945

 

550.9

 

2.54

 

47

%

87 / 187

 

3.22

 

76

%

117 / 153

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

05/07/1979

 

3581.7

 

3.24

 

56

%

150 / 268

 

3.23

 

60

%

151 / 254

 

RiverSourceSM Tax-Exempt Bond Fund

 

11/24/1976

 

620.9

 

3.32

 

54

%

144 / 268

 

2.81

 

74

%

188 / 254

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

03/20/1989

 

364.9

 

2.80

 

78

%

71 / 91

 

7.71

 

47

%

41 / 88

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

12/08/1983

 

1727.0

 

7.07

 

26

%

109 / 424

 

14.40

 

43

%

153 / 362

 

RiverSourceSM Income Opportunities Fund

 

06/19/2003

 

204.8

 

5.66

 

53

%

225 / 424

 

 

 

 

 

 

 

Insured Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Insured Tax-Exempt Fund

 

08/18/1986

 

310.9

 

2.54

 

63

%

34 / 53

 

2.56

 

78

%

39 / 49

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

06/19/2003

 

35.1

 

2.32

 

57

%

258 / 458

 

 

 

 

 

 

 

RiverSourceSM Diversified Bond Fund

 

10/03/1974

 

1742.7

 

2.88

 

26

%

116 / 458

 

4.32

 

33

%

131 / 396

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

11/13/1996

 

106.6

 

1.70

 

52

%

76 / 147

 

2.50

 

54

%

66 / 122

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

07/02/1987

 

55.3

 

2.67

 

72

%

38 / 52

 

2.52

 

81

%

42 / 51

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

07/02/1987

 

51.4

 

2.99

 

50

%

19 / 37

 

3.02

 

53

%

20 / 37

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

08/18/1986

 

336.6

 

2.79

 

72

%

36 / 49

 

3.27

 

66

%

33 / 49

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

08/18/1986

 

70.8

 

3.04

 

61

%

65 / 107

 

2.84

 

70

%

72 / 103

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

07/02/1987

 

49.9

 

2.59

 

63

%

27 / 42

 

2.34

 

80

%

34 / 42

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

06/19/2003

 

81.0

 

2.04

 

14

%

21 / 155

 

 

 

 

 

 

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

08/19/1985

 

820.5

 

1.15

 

47

%

37 / 79

 

1.16

 

61

%

44 / 72

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

03/04/2004

 

93.4

 

4.57

 

49

%

37 / 76

 

 

 

 

 

 

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

02/14/2002

 

153.9

 

2.72

 

35

%

27 / 77

 

3.37

 

29

%

20 / 69

 

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Inception

 

Fund A Share

 

5 years

 

10 years

 

Class A Shares by Lipper Category

 

Date

 

Net Assets ($m)

 

Return

 

Ranking

 

Return

 

Ranking

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

08/18/1986

 

184.5

 

5.28

 

60

%

60 / 99

 

5.26

 

64

%

43 / 67

 

Corporate Debt — A rated Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Selective Fund

 

04/06/1945

 

550.9

 

4.35

 

98

%

110 / 112

 

5.04

 

92

%

64 / 69

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

05/07/1979

 

3581.7

 

5.26

 

60

%

133 / 221

 

5.15

 

49

%

71 / 145

 

RiverSourceSM Tax-Exempt Bond Fund

 

11/24/1976

 

620.9

 

5.42

 

51

%

112 / 221

 

5.30

 

39

%

56 / 145

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

03/20/1989

 

364.9

 

7.77

 

44

%

28 / 64

 

5.54

 

56

%

21 / 37

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

12/08/1983

 

1727.0

 

5.55

 

61

%

179 / 297

 

5.48

 

54

%

54 / 99

 

RiverSourceSM Income Opportunities Fund

 

06/19/2003

 

204.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Insured Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Insured Tax-Exempt Fund

 

08/18/1986

 

310.9

 

5.14

 

73

%

35 / 47

 

4.97

 

54

%

21 / 38

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

06/19/2003

 

35.1

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Bond Fund

 

10/03/1974

 

1742.7

 

5.36

 

76

%

221 / 290

 

5.60

 

59

%

81 / 138

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

11/13/1996

 

106.6

 

4.70

 

65

%

60 / 92

 

 

 

 

 

 

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

07/02/1987

 

55.3

 

5.10

 

82

%

39 / 47

 

4.86

 

75

%

29 / 38

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

07/02/1987

 

51.4

 

5.44

 

40

%

15 / 37

 

4.89

 

68

%

21 / 30

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

08/18/1986

 

336.6

 

5.26

 

64

%

29 / 45

 

5.14

 

44

%

17 / 38

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

08/18/1986

 

70.8

 

5.42

 

59

%

53 / 89

 

5.05

 

70

%

45 / 64

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

07/02/1987

 

49.9

 

4.85

 

73

%

29 / 39

 

4.82

 

62

%

21 / 33

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

06/19/2003

 

81.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

08/19/1985

 

820.5

 

3.59

 

50

%

31 / 62

 

4.49

 

48

%

23 / 47

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

03/04/2004

 

93.4

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

02/14/2002

 

153.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

Annualized Returns @ POP

 

 

 

Inception

 

Fund A Share

 

Since Inception

 

Ranking Since

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Date

 

Net Assets ($m)

 

Return

 

Date

 

Ranking

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

08/18/1986

 

184.5

 

6.02

 

08/31/1986

 

78

%

17 / 21

 

-0.37

 

1.62

 

4.26

 

4.75

 

5.75

 

Corporate Debt — A rated Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Selective Fund

 

04/06/1945

 

550.9

 

*

 

 

 

 

 

 

 

-2.33

 

1.56

 

3.34

 

4.53

 

*

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

05/07/1979

 

3581.7

 

7.01

 

05/31/1979

 

42

%

10 / 23

 

-1.67

 

1.57

 

4.24

 

4.64

 

6.81

 

RiverSourceSM Tax-Exempt Bond Fund

 

11/24/1976

 

620.9

 

*

 

 

 

 

 

 

 

-1.59

 

1.16

 

4.40

 

4.79

 

*

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

03/20/1989

 

364.9

 

7.74

 

03/23/1989

 

12

%

1 / 8

 

-2.08

 

5.98

 

6.72

 

5.03

 

7.42

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

12/08/1983

 

1727.0

 

8.24

 

12/08/1983

 

46

%

11 / 23

 

1.98

 

12.56

 

4.53

 

4.97

 

8.00

 

RiverSourceSM Income Opportunities Fund

 

06/19/2003

 

204.8

 

8.59

 

06/19/2003

 

46

%

181 / 395

 

0.64

 

 

 

 

 

 

 

6.30

 

Insured Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Insured Tax-Exempt Fund

 

08/18/1986

 

310.9

 

6.07

 

08/31/1986

 

50

%

6 / 11

 

-2.33

 

0.91

 

4.12

 

4.46

 

5.80

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

06/19/2003

 

35.1

 

1.72

 

06/19/2003

 

74

%

307 / 419

 

-2.54

 

 

 

 

 

 

 

-0.43

 

RiverSourceSM Diversified Bond Fund

 

10/03/1974

 

1742.7

 

9.40

 

10/03/1974

 

25

%

1 / 3

 

-2.00

 

2.64

 

4.34

 

5.09

 

9.23

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

11/13/1996

 

106.6

 

4.32

 

11/14/1996

 

80

%

60 / 74

 

-3.13

 

0.85

 

3.69

 

 

 

3.75

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

07/02/1987

 

55.3

 

5.91

 

07/02/1987

 

67

%

2 / 2

 

-2.21

 

0.87

 

4.08

 

4.35

 

5.63

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

07/02/1987

 

51.4

 

6.08

 

07/02/1987

 

67

%

2 / 2

 

-1.91

 

1.36

 

4.42

 

4.38

 

5.80

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

08/18/1986

 

336.6

 

6.08

 

08/31/1986

 

58

%

4 / 6

 

-2.10

 

1.61

 

4.24

 

4.63

 

5.81

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

08/18/1986

 

70.8

 

5.86

 

08/31/1986

 

78

%

14 / 17

 

-1.86

 

1.19

 

4.40

 

4.54

 

5.59

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

07/02/1987

 

49.9

 

5.89

 

07/02/1987

 

67

%

2 / 2

 

-2.28

 

0.69

 

3.83

 

4.31

 

5.61

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

06/19/2003

 

81.0

 

1.76

 

06/19/2003

 

20

%

27 / 139

 

-2.81

 

 

 

 

 

 

 

-0.39

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

08/19/1985

 

820.5

 

6.30

 

08/22/1985

 

29

%

2 / 6

 

-3.66

 

-0.47

 

2.59

 

3.98

 

6.05

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

03/04/2004

 

93.4

 

3.77

 

03/04/2004

 

53

%

35 / 66

 

-0.40

 

 

 

 

 

 

 

0.61

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

02/14/2002

 

153.9

 

4.32

 

02/14/2002

 

36

%

24 / 66

 

-2.16

 

1.71

 

 

 

 

 

2.93

 

 

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Source: Lipper as of 9/30/2005. Lipper rankings are based upon annualized total returns, excluding sales charges.

 

Public Offfering Price (POP) returns reflect fund sales charges.

 

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 ameriprise.com/amp/individual/products/investing/mutualfunds.

 

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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) 297-3863, 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 RiverSource Disciplined 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 RiverSource Global Technology Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives.

 

The RiverSource 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 RiverSource 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 RiverSource Short Duration U.S. Government Fund and the RiverSource U.S. Government Mortgage Fund are not insured or guaranteed by the U.S. government.

 

Principal risks associated with the RiverSource 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

 

A5