EX-99.2 3 a06-2970_2ex99d2.htm EXHIBIT 99

Exhibit 99.2

 

 

QUARTERLY STATISTICAL SUPPLEMENT

(unaudited)

 

December 31, 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.

 

Percentage changes are calculated using amounts in thousands.

 

Certain prior period information has been restated to conform to the current period presentation.

 




 

Ameriprise Financial, Inc.

Consolidated Income Statements

 

(Dollars in millions, unaudited)

 

 

 

4Q
2004

 

1Q
2005

 

2Q
2005

 

3Q
2005

 

4Q
2005

 

4Q’05 vs. 4Q’04
% Inc/(Dec)

 

Full Year
2004

 

Full Year
2005

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

606

 

$

608

 

$

632

 

$

687

 

$

651

 

7

%

$

2,248

 

$

2,578

 

Distribution fees

 

267

 

288

 

289

 

296

 

277

 

4

%

1,101

 

1,150

 

Net investment income

 

571

 

548

 

558

 

561

 

574

 

1

%

2,137

 

2,241

 

Premiums

 

264

 

270

 

279

 

202

 

228

 

(13

)%

1,023

 

979

 

Other revenues

 

135

 

133

 

137

 

127

 

139

 

3

%

518

 

536

 

Total revenues

 

1,843

 

1,847

 

1,895

 

1,873

 

1,869

 

1

%

7,027

 

7,484

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field

 

340

 

362

 

371

 

408

 

374

 

10

%

1,332

 

1,515

 

Non-field

 

258

 

279

 

280

 

295

 

281

 

8

%

956

 

1,135

 

Total compensation and benefits

 

598

 

641

 

651

 

703

 

655

 

9

%

2,288

 

2,650

 

Interest credited to account values

 

342

 

311

 

328

 

337

 

334

 

(2

)%

1,268

 

1,310

 

Benefits, claims, losses and settlement expenses

 

223

 

218

 

238

 

190

 

234

 

5

%

828

 

880

 

Amortization of deferred acquisition costs

 

125

 

136

 

134

 

49

 

112

 

(9

)%

437

 

431

 

Interest and debt expense

 

15

 

17

 

19

 

16

 

21

 

36

%

52

 

73

 

Other expenses

 

280

 

258

 

278

 

305

 

261

 

(6

)%

1,042

 

1,102

 

Total expenses before separation costs

 

1,583

 

1,581

 

1,648

 

1,600

 

1,617

 

2

%

5,915

 

6,446

 

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

 

260

 

266

 

247

 

273

 

252

 

(3

)%

1,112

 

1,038

 

Income tax provision before tax benefit attributable to separation costs

 

34

 

78

 

61

 

91

 

59

 

74

%

287

 

289

 

Income before separation costs, discontinued operations and accounting change

 

226

 

188

 

186

 

182

 

193

 

(14

)%

825

 

749

 

Separation costs, after-tax *

 

 

13

 

37

 

59

 

82

 

 

 

191

 

Income before discontinued operations and accounting change

 

226

 

175

 

149

 

123

 

111

 

(51

)%

825

 

558

 

Discontinued operations, net of tax

 

9

 

8

 

6

 

2

 

 

 

#

40

 

16

 

Cumulative effect of accounting change, net of tax

 

 

 

 

 

 

 

(71

)

 

Net income

 

$

235

 

$

183

 

$

155

 

$

125

 

$

111

 

(53

)%

$

794

 

$

574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), after-tax

 

$

5

 

$

7

 

$

37

 

$

(4

)

$

3

 

(37

)%

$

6

 

$

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid **

 

$

603

 

$

 

$

 

$

217

 

$

27

 

(95

)%

$

1,326

 

$

244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin***

 

51.0

%

51.8

%

50.5

%

50.1

%

49.6

%

 

 

51.2

%

50.5

%

 


*                 The non-GAAP presentation of separation costs, after-tax is calculated using the statutory tax rate of 35%. In 4Q 2005, adjustments were made for permanent differences.

 

**          Dividends paid in 3Q 2005 includes $164 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 of 100% or greater.

 

1



 

Ameriprise Financial, Inc.

Financial Summary

 

(Millions, except per share data and where noted, unaudited)

 

 

 

4Q
2004

 

1Q
2005

 

2Q
2005

 

3Q
2005

 

4Q
2005

 

4Q’05 vs. 4Q’04
% Inc/(Dec)

 

Full Year
2004

 

Full Year
2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (at end of
period) *

 

246.2

 

246.2

 

246.2

 

246.2

 

249.9

 

2

%

246.2

 

249.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares
outstanding - basic*

 

246.2

 

246.2

 

246.2

 

246.2

 

249.9

 

2

%

246.2

 

247.1

 

Dilutive effect of stock options

 

 

 

 

 

0.4

 

 

 

0.1

 

Weighted average common shares
outstanding - diluted*

 

246.2

 

246.2

 

246.2

 

246.2

 

250.3

 

2

%

246.2

 

247.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS - Basic:******

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs, discontinued operations and accounting change

 

$

0.92

 

$

0.76

 

$

0.76

 

$

0.74

 

$

0.77

 

(16

)%

$

3.35

 

$

3.03

 

Separation costs, discontinued operations and accounting change

 

0.03

 

(0.02

)

(0.13

)

(0.24

)

(0.33

)

 

#

(0.13

)

(0.71

)

Net income

 

$

0.95

 

$

0.74

 

$

0.63

 

$

0.50

 

$

0.44

 

(54

)%

$

3.22

 

$

2.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS - Diluted:******

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs, discontinued operations and accounting change

 

$

0.92

 

$

0.76

 

$

0.76

 

$

0.74

 

$

0.77

 

(16

)%

$

3.35

 

$

3.03

 

Separation costs, discontinued operations and accounting change

 

0.03

 

(0.02

)

(0.13

)

(0.24

)

(0.33

)

 

#

(0.13

)

(0.71

)

Net income

 

$

0.95

 

$

0.74

 

$

0.63

 

$

0.50

 

$

0.44

 

(54

)%

$

3.22

 

$

2.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income margin

 

12.7

%

9.9

%

8.2

%

6.6

%

5.9

%

 

 

11.3

%

7.7

%

Operating income margin **

 

14.1

%

14.4

%

13.0

%

14.6

%

13.5

%

 

 

15.8

%

13.9

%

Effective tax rate

 

12.9

%

29.3

%

21.5

%

32.2

%

12.0

%

 

 

25.8

%

25.1

%

Average shareholders’ equity (billions) ^^

 

$

7.0

 

$

6.7

 

$

6.8

 

$

7.0

 

$

7.1

 

2

%

$

7.0

 

$

7.1

 

Return on equity before discontinued operations*** ^^

 

12.0

%

11.4

%

11.3

%

9.9

%

8.0

%

 

 

12.0

%

8.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value ^^

 

$

6,702

 

$

6,482

 

$

6,993

 

$

7,737

 

$

7,749

 

16

%

$

6,702

 

$

7,749

 

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

 

$

6,322

 

$

6,513

 

$

6,679

 

$

7,757

 

$

7,838

 

24

%

$

6,322

 

$

7,838

 

Book value per share ^^

 

$

27.23

 

$

26.33

 

$

28.41

 

$

31.43

 

$

31.01

 

14

%

$

27.23

 

$

31.01

 

Book value per share, excluding the impact of OCI ^^

 

$

25.68

 

$

26.46

 

$

27.13

 

$

31.51

 

$

31.37

 

22

%

$

25.68

 

$

31.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt/capital measure**** ^^

 

19.7

%

20.6

%

19.2

%

15.3

%

16.7

%

 

 

19.7

%

16.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity: *****

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset accumulation and income

 

$

3,760

 

$

3,677

 

$

3,575

 

$

3,551

 

$

3,806

 

1

%

$

3,760

 

$

3,806

 

Protection

 

1,964

 

1,974

 

1,942

 

1,965

 

2,162

 

10

%

1,964

 

2,162

 

Corporate and other ^^

 

598

 

862

 

1,162

 

2,241

 

1,870

 

 

#

598

 

1,870

 

Accumulated other comprehensive income

 

380

 

(31

)

314

 

(20

)

(89

)

 

#

380

 

(89

)

Total

 

$

6,702

 

$

6,482

 

$

6,993

 

$

7,737

 

$

7,749

 

16

%

$

6,702

 

$

7,749

 

 


*                                         The stock split of 100 shares into 246 million shares of Ameriprise Financial, Inc. common stock effective as of September 30, 2005 is reflected for all prior periods presented.

 

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

 

***                           Calculated using the trailing 12 month 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. During 4Q 2005, the bridge loan was replaced with two tranches of senior notes totaling $1.5 billion due 2010 and 2015. Excluded is non recourse debt. Capital includes total shareholders’ equity plus the previously described debt.

 

*****             Allocated equity represents 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.

 

^^                                Additional paid-in capital was adjusted by $99 million to conform to the third quarter 2005 Form 10-Q presentation. Related ratios were impacted by this adjustment.

 

#                                         Variance of 100% or greater.

 

2



 

Ameriprise Financial, Inc.

Consolidated Segment Information

 

(Dollars in millions, unaudited)

 

 

 

4Q 2005

 

 

 

Asset
Accumulation
and Income

 

Protection

 

Corporate and
Other and
Eliminations

 

Total

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

540

 

$

21

 

$

90

 

$

651

 

Distribution fees

 

185

 

26

 

66

 

277

 

Net investment income/(loss)

 

499

 

81

 

(6

)

574

 

Premiums

 

 

235

 

(7

)

228

 

Other revenues

 

14

 

102

 

23

 

139

 

Total revenues

 

1,238

 

465

 

166

 

1,869

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

250

 

24

 

100

 

374

 

Interest credited to account values

 

292

 

42

 

 

334

 

Benefits, claims, losses and settlement expenses

 

12

 

222

 

 

234

 

Amortization of deferred acquisition costs

 

67

 

47

 

(2

)

112

 

Interest and debt expense

 

19

 

5

 

(3

)

21

 

Other expenses*

 

435

 

69

 

38

 

542

 

Total expenses before separation costs

 

1,075

 

409

 

133

 

1,617

 

 

 

 

 

 

 

 

 

 

 

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

 

163

 

56

 

33

 

252

 

Separation costs, pretax

 

 

 

125

 

125

 

 

 

 

 

 

 

 

 

 

 

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

 

$

163

 

$

56

 

$

(92

)

$

127

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

73,999

 

$

16,587

 

$

2,502

 

$

93,088

 

 


*                                         On a consolidated basis, non-field compensation and benefits expense was $281 MM.

 

3



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

 

(Dollars in millions, unaudited)

 

 

 

December 31,
2004

 

March 31,
2005

 

June 30,
2005

 

September 30,
2005

 

December 31,
2005

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,024

 

$

1,105

 

$

2,097

 

$

2,620

 

$

2,474

 

Investments

 

40,232

 

39,915

 

40,207

 

39,454

 

39,100

 

Receivables ^^

 

2,160

 

2,548

 

2,476

 

2,837

 

2,172

 

Deferred acquisition costs

 

3,956

 

4,043

 

4,032

 

4,088

 

4,182

 

Separate account assets

 

35,901

 

35,995

 

37,433

 

39,840

 

41,561

 

Restricted and segregated cash

 

1,536

 

1,535

 

1,241

 

1,058

 

1,067

 

Other assets

 

2,431

 

2,393

 

2,343

 

2,377

 

2,532

 

Assets of discontinued operations

 

5,873

 

6,002

 

6,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

93,113

 

$

93,536

 

$

95,952

 

$

92,274

 

$

93,088

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

33,253

 

$

33,190

 

$

33,169

 

$

32,958

 

$

32,636

 

Investment certificate reserves

 

5,831

 

6,282

 

6,427

 

6,392

 

5,649

 

Accounts payable and accrued expenses

 

2,456

 

2,665

 

2,681

 

2,516

 

2,728

 

Payable to American Express

 

1,751

 

1,780

 

1,718

 

102

 

52

 

Debt

 

385

 

385

 

378

 

1,710

 

1,833

 

Separate account liabilities

 

35,901

 

35,995

 

37,433

 

39,840

 

41,561

 

Other liabilities

 

1,203

 

963

 

1,283

 

1,019

 

880

 

Liabilities of discontinued operations

 

5,631

 

5,794

 

5,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

86,411

 

87,054

 

88,959

 

84,537

 

85,339

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

 

 

 

2

 

2

 

Additional paid-in capital ^^

 

2,907

 

2,915

 

2,926

 

4,094

 

4,091

 

Retained earnings

 

3,415

 

3,598

 

3,753

 

3,661

 

3,745

 

Accumulated other comprehensive  income (loss), net of tax

 

380

 

(31

)

314

 

(20

)

(89

)

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

6,702

 

6,482

 

6,993

 

7,737

 

7,749

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

93,113

 

$

93,536

 

$

95,952

 

$

92,274

 

$

93,088

 

 


^^        Receivables and additional paid-in capital were adjusted by $99 million to conform to the third quarter 2005 Form 10-Q presentation.

 

4



 

Ameriprise Financial, Inc.

Selected Consolidated Information

 

(Dollars in millions, except where noted, unaudited)

 

 

 

4Q
2004

 

1Q
2005

 

2Q
2005

 

3Q
2005

 

4Q
2005

 

4Q’05 vs. 4Q’04
% Inc/(Dec)

 

Full Year
2004

 

Full Year
2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets (billions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets* ^^

 

$

81.2

 

$

81.4

 

$

83.8

 

$

86.1

 

$

86.8

 

7

%

$

81.2

 

$

86.8

 

Managed assets*, **

 

257.0

 

250.9

 

255.8

 

260.1

 

264.0

 

3

%

257.0

 

264.0

 

Administered assets

 

70.0

 

68.7

 

71.1

 

74.4

 

77.3

 

10

%

70.0

 

77.3

 

Total owned, managed and administered assets

 

$

408.2

 

$

401.0

 

$

410.7

 

$

420.6

 

$

428.1

 

5

%

$

408.2

 

$

428.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending shareholders’ equity by legal entity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IDS Life Insurance Co.

 

$

4,906

 

$

4,714

 

$

5,096

 

$

5,552

 

$

5,223

 

6

%

$

4,906

 

$

5,223

 

IDS Property Casualty Ins. Co.

 

469

 

500

 

542

 

494

 

506

 

8

%

469

 

506

 

Ameriprise Certificate Co.

 

343

 

298

 

346

 

309

 

276

 

(20

)%

343

 

276

 

Other ^^

 

984

 

970

 

1,009

 

1,382

 

1,744

 

77

%

984

 

1,744

 

Total

 

$

6,702

 

$

6,482

 

$

6,993

 

$

7,737

 

$

7,749

 

16

%

$

6,702

 

$

7,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH SALES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds***

 

$

5,774

 

$

6,192

 

$

6,044

 

$

6,469

 

$

6,452

 

12

%

$

24,633

 

$

25,157

 

Annuities******

 

1,827

 

2,000

 

2,426

 

2,467

 

2,394

 

31

%

7,804

 

9,287

 

Investment certificates

 

2,587

 

2,226

 

1,896

 

1,386

 

526

 

(80

)%

7,142

 

6,034

 

Life and other insurance products

 

288

 

327

 

313

 

273

 

262

 

(9

)%

1,162

 

1,175

 

Institutional products and services****

 

1,763

 

1,758

 

2,519

 

846

 

2,013

 

14

%

7,683

 

7,136

 

Other

 

1,077

 

896

 

1,011

 

902

 

596

 

(45

)%

4,478

 

3,405

 

Total

 

$

13,316

 

$

13,399

 

$

14,209

 

$

12,343

 

$

12,243

 

(8

)%

$

52,902

 

$

52,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By channel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor***

 

$

6,014

 

$

6,333

 

$

6,259

 

$

6,123

 

$

5,864

 

(2

)%

$

23,656

 

$

24,579

 

Securities America

 

1,265

 

1,505

 

1,563

 

1,581

 

1,722

 

36

%

5,665

 

6,371

 

Third-party distribution******

 

209

 

233

 

249

 

267

 

266

 

27

%

852

 

1,015

 

Institutional

 

1,355

 

1,705

 

2,321

 

1,055

 

1,614

 

19

%

7,455

 

6,695

 

Threadneedle

 

2,253

 

1,819

 

2,050

 

2,126

 

2,423

 

8

%

8,536

 

8,418

 

All Other (AEIDC/AEB, etc)

 

2,220

 

1,804

 

1,767

 

1,191

 

354

 

(84

)%

6,738

 

5,116

 

Total

 

$

13,316

 

$

13,399

 

$

14,209

 

$

12,343

 

$

12,243

 

(8

)%

$

52,902

 

$

52,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gross Dealer Concession *****

 

$

382.4

 

$

403.3

 

$

416.9

 

$

419.3

 

$

408.9

 

7

%

$

1,501.1

 

$

1,648.4

 

 


*                                         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% 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.

 

******      Prior period amounts have been restated to properly reflect third party annuity sales.

 

^^                                Receivables and additional paid-in capital were adjusted by $99 million to conform to the third quarter 2005
Form 10-Q presentation.

 

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)

 

 

 

4Q
2004

 

1Q
2005

 

2Q
2005

 

3Q
2005

 

4Q
2005

 

4Q’05 vs. 4Q’04
% Inc/(Dec)

 

Full Year
2004

 

Full Year
2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee base:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field (employee advisors)

 

3,170

 

3,241

 

3,109

 

3,039

 

3,225

 

2

%

3,170

 

3,225

 

Non-field

 

8,538

 

8,594

 

8,664

 

8,665

 

8,632

 

1

%

8,538

 

8,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisors:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

3,170

 

3,241

 

3,109

 

3,039

 

3,225

 

2

%

3,170

 

3,225

 

Franchisee advisors

 

7,571

 

7,534

 

7,470

 

7,441

 

7,392

 

(2

)%

7,571

 

7,392

 

Total branded financial advisors

 

10,741

 

10,775

 

10,579

 

10,480

 

10,617

 

(1

)%

10,741

 

10,617

 

Securities America registered representatives

 

1,603

 

1,581

 

1,583

 

1,708

 

1,780

 

11

%

1,603

 

1,780

 

Total advisors

 

12,344

 

12,356

 

12,162

 

12,188

 

12,397

 

0

%

12,344

 

12,397

 

Employee advisor retention

 

62

%

65

%

65

%

64

%

64

%

 

 

62

%

64

%

Franchisee advisor retention

 

93

%

92

%

92

%

91

%

91

%

 

 

93

%

91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash sales* per branded advisor (thousands) ****

 

$

560

 

$

588

 

$

592

 

$

581

 

$

557

 

(1

)%

$

2,243

 

$

2,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Dealer Concession** per branded advisor (thousands) ****

 

$

35.6

 

$

37.4

 

$

39.4

 

$

39.8

 

$

38.8

 

9

%

$

142.3

 

$

155.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial planning:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial plans sold (thousands)

 

59

 

66

 

58

 

54

 

55

 

(6

)%

226

 

233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of clients with financial plans

 

42

%

43

%

43

%

43

%

44

%

 

 

42

%

44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales per branded advisor client (thousands)

 

$

2.8

 

$

3.1

 

$

3.1

 

$

3.2

 

$

3.0

 

7

%

$

11.0

 

$

12.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clients:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total clients*** (millions)

 

2.7

 

2.7

 

2.8

 

2.8

 

2.8

 

1

%

2.7

 

2.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor clients (millions)

 

2.2

 

2.0

 

2.0

 

2.0

 

2.0

 

(7

)%

2.2

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client retention

 

94

%

93

%

94

%

94

%

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.

 

****                    Periods prior to 3Q 2005 were calculated using branded advisors as of period end.

 

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)

 

 

 

4Q 2004

 

1Q 2005

 

2Q 2005

 

3Q 2005

 

4Q 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

%

 

 

Fixed income

 

42.4

%

43.0

%

42.5

%

42.6

%

41.5

%

42.0

%

39.8

%

39.9

%

39.5

%

39.4

%

Separate accounts

 

44.6

%

44.2

%

44.3

%

44.2

%

45.0

%

44.6

%

46.3

%

46.3

%

47.8

%

47.9

%

Other ^^

 

12.9

%

12.7

%

13.1

%

13.1

%

13.4

%

13.3

%

13.8

%

13.7

%

12.7

%

12.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale (AFS) investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

19.5

 

$

20.1

 

$

19.6

 

$

19.8

 

$

19.7

 

$

20.2

 

$

19.4

 

$

19.5

 

$

18.8

 

$

18.8

 

Mortgage and other asset-backed securities

 

12.6

 

12.7

 

12.9

 

12.8

 

13.3

 

13.4

 

13.5

 

13.4

 

14.1

 

13.9

 

Structured investments

 

0.8

 

0.7

 

0.7

 

0.7

 

 

 

 

 

 

 

State and municipal obligations

 

0.8

 

0.8

 

0.8

 

0.8

 

0.9

 

0.9

 

0.8

 

0.9

 

0.9

 

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

 

 

0.2

 

0.1

 

0.2

 

0.1

 

0.2

 

0.1

 

0.1

 

 

0.1

 

Total

 

$

34.2

 

$

35.0

 

$

34.6

 

$

34.8

 

$

34.5

 

$

35.2

 

$

34.3

 

$

34.4

 

$

34.3

 

$

34.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income asset quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

41

%

 

 

41

%

 

 

43

%

 

 

43

%

 

 

44

%

 

 

AA

 

4

%

 

 

5

%

 

 

6

%

 

 

6

%

 

 

7

%

 

 

A

 

20

%

 

 

20

%

 

 

20

%

 

 

20

%

 

 

19

%

 

 

BBB

 

27

%

 

 

27

%

 

 

24

%

 

 

24

%

 

 

23

%

 

 

Below investment grade

 

8

%

 

 

7

%

 

 

7

%

 

 

7

%

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of invested assets*

 

0.03

%

 

 

0.06

%

 

 

0.03

%

 

 

0.02

%

 

 

0.02

%

 

 

Reserve coverage (times) of non-performing assets

 

7.2

 

 

 

3.6

 

 

 

6.6

 

 

 

8.8

 

 

 

10.2

 

 

 

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

 

$

0.8

 

 

 

$

0.1

 

 

 

$

0.7

 

 

 

$

0.1

 

 

 

$

(0.1

)

 

 

 


^^                                Receivables were adjusted by $99 million to conform to the third quarter Form 10-Q presentation.

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

 

7



 

Asset Accumulation and Income Segment

Income Statements

 

(Dollars in millions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

532

 

$

531

 

$

561

 

$

611

 

$

540

 

1

%

$

1,986

 

$

2,243

 

Distribution fees

 

198

 

205

 

200

 

207

 

185

 

(7

)%

784

 

797

 

Net investment income

 

496

 

471

 

478

 

479

 

499

 

1

%

1,860

 

1,927

 

Other revenues

 

17

 

18

 

17

 

8

 

14

 

(22

)%

46

 

57

 

Total revenues

 

1,243

 

1,225

 

1,256

 

1,305

 

1,238

 

(0

)%

4,676

 

5,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

234

 

240

 

241

 

252

 

250

 

7

%

891

 

983

 

Interest credited to account values

 

303

 

275

 

300

 

299

 

292

 

(3

)%

1,125

 

1,166

 

Benefits, claims, losses and settlement expenses

 

16

 

5

 

16

 

3

 

12

 

(24

)%

52

 

36

 

Amortization of deferred acquisition costs

 

82

 

92

 

97

 

68

 

67

 

(18

)%

305

 

324

 

Interest and debt expense

 

12

 

11

 

7

 

12

 

19

 

72

%

33

 

49

 

Other expenses

 

440

 

441

 

438

 

505

 

435

 

(1

)%

1,579

 

1,819

 

Total expenses

 

1,087

 

1,064

 

1,099

 

1,139

 

1,075

 

(1

)%

3,985

 

4,377

 

Income before income tax provision, discontinued operations and accounting change

 

$

156

 

$

161

 

$

157

 

$

166

 

$

163

 

3

%

$

691

 

$

647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

4

 

$

7

 

$

37

 

$

(8

)

$

6

 

54

%

$

6

 

$

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin *

 

55.6

%

57.5

%

55.6

%

57.6

%

55.2

%

 

 

55.8

%

56.5

%

Allocated equity **

 

$

3,760

 

$

3,677

 

$

3,575

 

$

3,551

 

$

3,806

 

1

%

$

3,760

 

$

3,806

 

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

 

18.3

%

17.0

%

17.0

%

17.6

%

17.7

%

 

 

18.3

%

17.7

%

 


*                                         Contribution margin represents total revenues less compensation and benefits - field, 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 represent 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.

 

8



 

Asset Accumulation and Income Segment

Product Information

 

(Dollars in millions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

$

373

 

$

358

 

$

373

 

$

385

 

$

353

 

(5

)%

$

1,420

 

$

1,469

 

Variable annuities**

 

217

 

216

 

213

 

225

 

226

 

4

%

807

 

880

 

Fixed annuities**

 

309

 

303

 

306

 

309

 

310

 

0

%

1,233

 

1,228

 

Certificates

 

87

 

70

 

80

 

67

 

82

 

(7

)%

270

 

299

 

Brokerage, banking and other

 

257

 

278

 

284

 

319

 

267

 

5

%

946

 

1,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,243

 

$

1,225

 

$

1,256

 

$

1,305

 

$

1,238

 

(0

)%

$

4,676

 

$

5,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales: *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

$

4,900

 

$

5,126

 

$

5,033

 

$

5,415

 

$

5,263

 

7

%

$

21,038

 

$

20,837

 

Variable annuities

 

1,213

 

1,363

 

1,709

 

1,818

 

1,752

 

44

%

4,716

 

6,642

 

Fixed annuities

 

309

 

279

 

270

 

217

 

201

 

(35

)%

1,390

 

967

 

Certificates

 

2,587

 

2,226

 

1,896

 

1,386

 

526

 

(80

)%

7,140

 

6,034

 

Other

 

2,767

 

2,583

 

3,439

 

1,666

 

2,542

 

(8

)%

11,847

 

10,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

11,776

 

$

11,577

 

$

12,347

 

$

10,502

 

$

10,284

 

(13

)%

$

46,131

 

$

44,710

 

 


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

 

**                                  For 3Q 2005, $12 million was reclassified from previously reported Fixed annuities revenue to Variable annuities revenue. This reclassification had no impact on total Asset Accumulation and Income segment revenues.

 

9



 

Asset Accumulation and Income Segment

Selected Statistical Information

 

(Dollars in billions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets*

 

$

67.1

 

$

67.2

 

$

69.1

 

$

70.8

 

$

70.8

 

5

%

Managed assets**

 

251.5

 

245.1

 

249.7

 

253.3

 

255.6

 

2

%

Administered assets

 

60.1

 

58.8

 

61.0

 

63.8

 

65.3

 

9

%

Total owned, managed and administered assets

 

$

378.7

 

$

371.1

 

$

379.8

 

$

387.9

 

$

391.7

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

49

%

48

%

47

%

47

%

46

%

 

 

Fixed income

 

24

%

24

%

23

%

22

%

22

%

 

 

Broker managed wrap

 

14

%

15

%

16

%

17

%

18

%

 

 

Other

 

13

%

13

%

14

%

14

%

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual fund performance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 12-month

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

59

%

59

%

66

%

66

%

69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income - 12-month

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

68

%

50

%

45

%

45

%

50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 3-year

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

39

%

50

%

52

%

43

%

38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income - 3-year

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of funds, equal weighted in top 2 Lipper quartiles

 

20

%

31

%

44

%

31

%

38

%

 

 

 

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

Aggregated data does not include mutual funds subadvised by advisors not affiliated 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 December 31, 2005. Refer to Exhibit A for individual mutual fund performance rankings and other important disclosures.

Exhibit A 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. During 3Q 2005, the Company transferred its 50% 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 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 Segment
Managed Assets Roll Forward

 

(Dollars in billions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

Managed assets - retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource mutual funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

63.3

 

$

65.3

 

$

61.2

 

$

59.9

 

$

59.4

 

(6

)%

$

68.8

 

$

65.3

 

Sales

 

2.0

 

2.1

 

2.0

 

2.0

 

2.0

 

1

%

9.6

 

8.1

 

Redemptions

 

(4.1

)

(4.9

)

(4.5

)

(4.5

)

(4.2

)

4

%

(17.5

)

(18.1

)

Market appreciation/(depreciation)

 

3.9

 

(1.4

)

0.9

 

2.0

 

0.7

 

(84

)%

3.7

 

2.2

 

Other

 

0.2

 

0.1

 

0.3

 

 

0.2

 

(19

)%

0.7

 

0.6

 

Ending assets

 

$

65.3

 

$

61.2

 

$

59.9

 

$

59.4

 

$

58.1

 

(11

)%

$

65.3

 

$

58.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle mutual funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

10.8

 

$

12.2

 

$

11.9

 

$

12.4

 

$

13.4

 

24

%

$

10.7

 

$

12.2

 

Sales

 

0.9

 

1.2

 

1.1

 

1.4

 

1.5

 

66

%

3.8

 

5.2

 

Redemptions

 

(0.7

)

(1.2

)

(1.2

)

(0.7

)

(1.3

)

86

%

(3.6

)

(4.4

)

Market appreciation/(depreciation) and foreign currency translation

 

0.6

 

0.1

 

0.8

 

0.7

 

0.7

 

9

%

1.0

 

2.3

 

Other

 

0.6

 

(0.4

)

(0.2

)

(0.4

)

(0.3

)

 

#

0.3

 

(1.3

)

Ending assets

 

$

12.2

 

$

11.9

 

$

12.4

 

$

13.4

 

$

14.0

 

15

%

$

12.2

 

$

14.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wrap accounts - other company products*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

29.3

 

$

34.0

 

$

36.4

 

$

39.6

 

$

43.7

 

49

%

$

22.6

 

$

34.0

 

Sales

 

3.1

 

3.8

 

3.9

 

3.7

 

3.6

 

16

%

11.0

 

15.0

 

Redemptions

 

(1.7

)

(2.0

)

(2.4

)

(2.2

)

(2.5

)

43

%

(6.4

)

(9.1

)

Market appreciation/(depreciation)

 

2.4

 

 

1.1

 

1.6

 

1.1

 

(53

)%

3.8

 

3.8

 

Other

 

0.9

 

0.6

 

0.6

 

1.0

 

0.3

 

(62

)%

3.0

 

2.5

 

Ending assets

 

34.0

 

36.4

 

39.6

 

43.7

 

46.2

 

36

%

34.0

 

46.2

 

Total managed assets - retail

 

$

111.5

 

$

109.5

 

$

111.9

 

$

116.5

 

$

118.3

 

6

%

$

111.5

 

$

118.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - institutional:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separately managed accounts/sub-advisory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

20.1

 

$

21.6

 

$

20.3

 

$

20.9

 

$

19.7

 

(2

)%

$

23.6

 

$

21.6

 

Sales

 

0.4

 

0.3

 

0.6

 

0.3

 

0.3

 

(14

)%

1.7

 

1.5

 

Redemptions

 

(0.4

)

(1.3

)

(0.6

)

(1.4

)

(0.4

)

(16

)%

(3.0

)

(3.7

)

Market appreciation/(depreciation)

 

0.6

 

(0.2

)

0.3

 

(0.1

)

0.1

 

(85

)%

1.3

 

0.1

 

Other

 

0.9

 

(0.1

)

0.3

 

 

0.7

 

(39

)%

(2.0

)

0.9

 

Ending assets

 

$

21.6

 

$

20.3

 

$

20.9

 

$

19.7

 

$

20.4

 

(6

)%

$

21.6

 

$

20.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

9.2

 

$

9.2

 

$

9.8

 

$

8.2

 

$

7.5

 

(18

)%

$

8.6

 

$

9.2

 

Sales

 

0.1

 

0.7

 

0.8

 

0.1

 

0.7

 

 

#

1.5

 

2.3

 

Redemptions

 

(0.1

)

(0.1

)

(2.4

)

(0.8

)

(0.3

)

 

#

(1.7

)

(3.6

)

Other

 

 

 

 

 

(1.1

)

 

#

0.8

 

(1.1

)

Ending assets

 

$

9.2

 

$

9.8

 

$

8.2

 

$

7.5

 

$

6.8

 

(26

)%

$

9.2

 

$

6.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle separately managed accounts/sub-advisory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

92.5

 

$

103.6

 

$

100.7

 

$

101.8

 

$

102.9

 

11

%

$

84.2

 

$

103.6

 

Sales

 

3.3

 

3.0

 

5.2

 

5.5

 

7.0

 

 

#

14.0

 

20.7

 

Redemptions

 

(2.7

)

(4.6

)

(6.1

)

(6.9

)

(8.2

)

 

#

(11.5

)

(25.8

)

Market appreciation/(depreciation) and foreign currency translation

 

4.4

 

0.5

 

3.2

 

4.3

 

2.9

 

(35

)%

5.7

 

10.9

 

Other

 

6.1

 

(1.8

)

(1.2

)

(1.8

)

(1.7

)

 

#

11.2

 

(6.5

)

Ending assets

 

$

103.6

 

$

100.7

 

$

101.8

 

$

102.9

 

$

102.9

 

(1

)%

$

103.6

 

$

102.9

 

Total managed assets - institutional

 

$

134.4

 

$

130.8

 

$

130.9

 

$

130.1

 

$

130.1

 

(3

)%

$

134.4

 

$

130.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - retirement services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collective funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

12.1

 

$

12.1

 

$

11.2

 

$

11.3

 

$

11.3

 

(7

)%

$

12.6

 

$

12.1

 

Sales

 

0.4

 

0.4

 

0.5

 

0.4

 

0.3

 

(25

)%

1.8

 

1.6

 

Redemptions

 

(1.0

)

(1.2

)

(0.7

)

(0.7

)

(0.8

)

(20

)%

(3.5

)

(3.4

)

Market appreciation/(depreciation)

 

0.4

 

 

0.1

 

0.2

 

0.2

 

(62

)%

0.7

 

0.5

 

Other

 

0.2

 

(0.1

)

0.2

 

0.1

 

0.2

 

 

#

0.5

 

0.4

 

Total managed assets - retirement services

 

$

12.1

 

$

11.2

 

$

11.3

 

$

11.3

 

$

11.2

 

(8

)%

$

12.1

 

$

11.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - eliminations and other

 

(6.5

)

(6.4

)

(4.4

)

(4.6

)

(4.0

)

(40

)%

(6.5

)

(4.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total managed assets

 

$

251.5

 

$

245.1

 

$

249.7

 

$

253.3

 

$

255.6

 

3

%

$

251.5

 

$

255.6

 

 


* Wrap accounts - other company products include flow activity for SPS Non Proprietary products. Cash flows into 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 of 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 Segment

Product Roll Forward

 

(Dollars in millions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

Account value activity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities:*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

25,701

 

$

28,284

 

$

28,317

 

$

29,515

 

$

31,622

 

23

%

$

24,282

 

$

28,284

 

Deposits

 

975

 

1,234

 

1,585

 

1,733

 

1,689

 

73

%

3,911

 

6,241

 

Withdrawals/surrenders

 

(642

)

(719

)

(863

)

(907

)

(839

)

31

%

(2,306

)

(3,328

)

Net flows

 

333

 

515

 

722

 

826

 

850

 

 

#

1,605

 

2,913

 

Investment performance/interest credited

 

2,227

 

(509

)

511

 

1,294

 

682

 

(69

)%

2,448

 

1,978

 

Other

 

23

 

27

 

(35

)

(13

)

(2

)

 

#

(51

)

(23

)

Ending balance

 

$

28,284

 

$

28,317

 

$

29,515

 

$

31,622

 

$

33,152

 

17

%

$

28,284

 

$

33,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed annuities:*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

26,796

 

$

26,979

 

$

26,823

 

$

26,697

 

$

26,460

 

(1

)%

$

26,377

 

$

26,979

 

Deposits

 

482

 

348

 

344

 

249

 

207

 

(57

)%

1,947

 

1,148

 

Withdrawals/surrenders

 

(634

)

(724

)

(713

)

(757

)

(779

)

23

%

(2,415

)

(2,973

)

Net flows

 

(152

)

(376

)

(369

)

(508

)

(572

)

 

#

(468

)

(1,825

)

Policyholder interest credited

 

249

 

238

 

244

 

241

 

242

 

(3

)%

984

 

965

 

Other

 

86

 

(18

)

(1

)

30

 

(99

)

 

#

86

 

(88

)

Ending balance

 

$

26,979

 

$

26,823

 

$

26,697

 

$

26,460

 

$

26,031

 

(4

)%

$

26,979

 

$

26,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,306

 

$

5,831

 

$

6,282

 

$

6,427

 

$

6,392

 

20

%

$

4,784

 

$

5,831

 

Deposits

 

1,165

 

1,129

 

781

 

796

 

538

 

(54

)%

3,285

 

3,244

 

Withdrawals/surrenders

 

(695

)

(719

)

(683

)

(889

)

(1,337

)

92

%

(2,375

)

(3,628

)

Net flows

 

470

 

410

 

98

 

(93

)

(799

)

 

#

910

 

(384

)

Interest credited

 

55

 

37

 

48

 

58

 

56

 

1

%

139

 

199

 

Other

 

 

4

 

(1

)

 

 

(10

)%

(2

)

3

 

Ending balance

 

$

5,831

 

$

6,282

 

$

6,427

 

$

6,392

 

$

5,649

 

(3

)%

$

5,831

 

$

5,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred acquisition costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,421

 

$

1,446

 

$

1,522

 

$

1,536

 

$

1,641

 

15

%

$

1,271

 

$

1,446

 

Capitalization

 

71

 

80

 

99

 

101

 

105

 

48

%

277

 

385

 

Amortization

 

(36

)

(46

)

(45

)

(35

)

(40

)

11

%

(91

)

(166

)

Other/FAS 115

 

(10

)

42

 

(40

)

39

 

13

 

 

(11

)

54

 

Ending balance

 

$

1,446

 

$

1,522

 

$

1,536

 

$

1,641

 

$

1,719

 

19

%

$

1,446

 

$

1,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed annuities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

441

 

$

426

 

$

427

 

$

406

 

$

409

 

(7

)%

$

462

 

$

426

 

Capitalization

 

11

 

11

 

9

 

8

 

4

 

(65

)%

53

 

32

 

Amortization

 

(19

)

(22

)

(21

)

(14

)

(21

)

8

%

(87

)

(78

)

Other/FAS 115

 

(7

)

12

 

(9

)

9

 

4

 

 

(2

)

16

 

Ending balance

 

$

426

 

$

427

 

$

406

 

$

409

 

$

396

 

(7

)%

$

426

 

$

396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

175

 

$

166

 

$

151

 

$

120

 

$

96

 

(45

)%

$

225

 

$

166

 

Capitalization

 

5

 

6

 

5

 

5

 

4

 

(21

)%

26

 

20

 

Amortization

 

(25

)

(24

)

(31

)

(19

)

(5

)

(80

)%

(128

)

(79

)

Other

 

11

 

3

 

(5

)

(10

)

13

 

18

%

43

 

1

 

Ending balance

 

$

166

 

$

151

 

$

120

 

$

96

 

$

108

 

(35

)%

$

166

 

$

108

 

 


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

 

# Variance of 100% or greater.

 

12



 

Protection Segment

Income Statements

 

(Dollars in millions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

19

 

$

16

 

$

13

 

$

17

 

$

21

 

14

%

$

58

 

$

67

 

Distribution fees

 

27

 

27

 

26

 

27

 

26

 

 

105

 

106

 

Net investment income

 

82

 

81

 

85

 

90

 

81

 

(2

)%

316

 

337

 

Premiums

 

264

 

270

 

279

 

217

 

235

 

(11

)%

1,023

 

1,001

 

Other revenues

 

103

 

112

 

112

 

109

 

102

 

(1

)%

421

 

435

 

Total revenues

 

495

 

506

 

515

 

460

 

465

 

(6

)%

1,923

 

1,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

24

 

25

 

20

 

57

 

24

 

2

%

90

 

126

 

Interest credited to account values

 

39

 

36

 

28

 

38

 

42

 

9

%

143

 

144

 

Benefits, claims, losses and settlement expenses

 

207

 

213

 

222

 

187

 

222

 

8

%

777

 

844

 

Amortization of deferred acquisition costs

 

43

 

44

 

37

 

(20

)

47

 

9

%

132

 

108

 

Interest and debt expense

 

7

 

6

 

4

 

9

 

5

 

(29

)%

19

 

24

 

Other expenses

 

75

 

75

 

83

 

53

 

69

 

(11

)%

274

 

280

 

Total expenses

 

395

 

399

 

394

 

324

 

409

 

3

%

1,435

 

1,526

 

Income before income tax provision and accounting change

 

$

100

 

$

107

 

$

121

 

$

136

 

$

56

 

(42

)%

$

488

 

$

420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains, pretax

 

$

4

 

$

2

 

$

7

 

$

3

 

$

(2

)

 

$

2

 

$

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin *

 

45.3

%

46.0

%

47.4

%

38.9

%

37.7

%

 

 

47.5

%

42.7

%

Allocated equity **

 

$

1,964

 

$

1,974

 

$

1,942

 

$

1,965

 

$

2,162

 

10

%

$

1,964

 

$

2,162

 

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

 

25.3

%

23.8

%

23.5

%

23.5

%

20.9

%

 

 

25.3

%

20.9

%

 


*                                         Contribution margin represents total revenues less compensation and benefits - field, 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 represent 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 of 100% or greater.

 

13



 

Protection Segment

Product Information

 

(Dollars in millions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

169

 

$

170

 

$

167

 

$

173

 

$

172

 

3

%

$

658

 

$

682

 

Term and whole life

 

22

 

22

 

23

 

20

 

26

 

21

%

84

 

91

 

Personal auto and home

 

120

 

122

 

128

 

145

 

140

 

17

%

445

 

535

 

Disability income and other

 

184

 

192

 

197

 

122

 

127

 

(31

)%

736

 

638

 

Total

 

$

495

 

$

506

 

$

515

 

$

460

 

$

465

 

(6

)%

$

1,923

 

$

1,946

 

 

14



 

 

Protection Segment

Selected Statistical Information

 

(Dollars in millions, except where noted, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets (billions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets*

 

$

13.4

 

$

13.6

 

$

14.0

 

$

14.4

 

$

14.6

 

9

%

$

13.4

 

$

14.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and other non-property and casualty insurance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- VUL/UL

 

$

79.5

 

$

79.6

 

$

79.8

 

$

88.3

 

$

92.1

 

16

%

$

306.1

 

$

339.8

 

- Term and whole life

 

$

5.1

 

$

4.8

 

$

5.2

 

$

5.4

 

$

5.4

 

6

%

$

20.0

 

$

20.8

 

- Disability and other

 

$

17.6

 

$

16.4

 

$

15.8

 

$

15.5

 

$

15.0

 

(15

)%

$

71.5

 

$

62.7

 

Lapse rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- VUL/UL

 

5.2

%

5.0

%

5.2

%

5.2

%

5.0

%

 

 

5.1

%

5.2

%

Face amount outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- VUL/UL

 

$

98,910

 

$

100,267

 

$

102,775

 

$

104,331

 

$

105,924

 

7

%

$

98,910

 

$

105,924

 

- Term and whole life

 

$

44,850

 

$

46,671

 

$

48,480

 

$

50,255

 

$

52,163

 

16

%

$

44,850

 

$

52,163

 

- Other**

 

$

1,995

 

$

1,972

 

$

1,961

 

$

1,941

 

$

1,931

 

(3

)%

$

1,995

 

$

1,931

 

Policyholder reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- VUL/UL

 

$

6,686

 

$

6,704

 

$

6,847

 

$

7,131

 

$

7,327

 

10

%

$

6,686

 

$

7,327

 

- Term and whole life

 

$

228

 

$

230

 

$

231

 

$

232

 

$

234

 

2

%

$

228

 

$

234

 

- Disability and other

 

$

2,334

 

$

2,359

 

$

2,385

 

$

2,429

 

$

2,463

 

6

%

$

2,334

 

$

2,463

 

Net amount at risk***

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- VUL/UL

 

$

49,773

 

$

49,215

 

$

49,792

 

$

49,171

 

$

48,804

 

(2

)%

$

49,773

 

$

48,804

 

- Term and whole life

 

$

16,424

 

$

16,223

 

$

15,896

 

$

15,605

 

$

15,616

 

(5

)%

$

16,424

 

$

15,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal auto and home insurance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned premium

 

$

114

 

$

115

 

$

121

 

$

127

 

$

129

 

15

%

$

422

 

$

492

 

Policy count (thousands)

 

406

 

420

 

434

 

445

 

451

 

11

%

406

 

451

 

Loss ratio

 

83.1

%

82.3

%

81.8

%

83.3

%

82.6

%

 

 

83.1

%

82.4

%

Expense ratio

 

18.4

%

15.6

%

15.1

%

13.0

%

17.2

%

 

 

16.6

%

15.5

%

 


*                                         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 Segment

Product Roll Forward

 

(Dollars in millions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and policyholder account balances:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

6,247

 

$

6,686

 

$

6,704

 

$

6,847

 

$

7,131

 

14

%

$

5,926

 

$

6,686

 

Premiums and deposits

 

247

 

251

 

244

 

249

 

259

 

4

%

971

 

1,003

 

Investment performance

 

382

 

(38

)

100

 

246

 

139

 

(64

)%

495

 

447

 

Surrenders and withdrawals

 

(203

)

(205

)

(210

)

(229

)

(221

)

9

%

(822

)

(865

)

Other

 

13

 

10

 

9

 

18

 

19

 

66

%

116

 

56

 

Ending balance

 

$

6,686

 

$

6,704

 

$

6,847

 

$

7,131

 

$

7,327

 

10

%

$

6,686

 

$

7,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred acquisition costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,222

 

$

1,239

 

$

1,260

 

$

1,269

 

$

1,350

 

10

%

$

1,140

 

$

1,239

 

Capitalization

 

32

 

30

 

32

 

34

 

34

 

5

%

120

 

130

 

Amortization

 

(14

)

(16

)

(16

)

40

 

(16

)

10

%

(35

)

(8

)

Other/FAS 115

 

(1

)

7

 

(7

)

7

 

3

 

 

14

 

10

 

Ending balance

 

$

1,239

 

$

1,260

 

$

1,269

 

$

1,350

 

$

1,371

 

11

%

$

1,239

 

$

1,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

90

 

$

92

 

$

94

 

$

96

 

$

100

 

12

%

$

84

 

$

92

 

Capitalization

 

6

 

6

 

7

 

6

 

6

 

(1

)%

24

 

25

 

Amortization

 

(4

)

(4

)

(4

)

(3

)

(5

)

34

%

(16

)

(16

)

Other

 

 

 

(1

)

1

 

 

 

 

 

Ending balance

 

$

92

 

$

94

 

$

96

 

$

100

 

$

101

 

10

%

$

92

 

$

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disability and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

433

 

$

436

 

$

439

 

$

452

 

$

455

 

5

%

$

402

 

$

436

 

Capitalization

 

15

 

14

 

15

 

16

 

16

 

2

%

58

 

61

 

Amortization

 

(12

)

(12

)

(3

)

(12

)

(20

)

76

%

(30

)

(47

)

Other

 

 

1

 

1

 

(1

)

(3

)

 

6

 

(2

)

Ending balance

 

$

436

 

$

439

 

$

452

 

$

455

 

$

448

 

3

%

$

436

 

$

448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total property casualty and AMEX Assurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

145

 

$

150

 

$

150

 

$

152

 

$

37

 

(75

)%

$

141

 

$

150

 

Capitalization

 

19

 

12

 

16

 

7

 

7

 

(67

)%

58

 

42

 

Amortization

 

(13

)

(13

)

(13

)

(5

)

(5

)

(61

)%

(49

)

(36

)

Other

 

(1

)

1

 

(1

)

(117

)

(1

)

69

%

 

(118

)

Ending balance

 

$

150

 

$

150

 

$

152

 

$

37

 

$

38

 

(75

)%

$

150

 

$

38

 

 


# Variance of 100% or greater.

 

16



 

Corporate and Other and Eliminations Segment

Statements of Operations

Includes the Impact of Separation Costs

 

(Dollars in millions, unaudited)

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’05 vs. 4Q’04

 

Full Year

 

Full Year

 

 

 

2004

 

2005

 

2005

 

2005

 

2005

 

% Inc/(Dec)

 

2004

 

2005

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

55

 

$

61

 

$

58

 

$

59

 

$

90

 

60

%

$

204

 

$

268

 

Distribution fees

 

42

 

56

 

63

 

62

 

66

 

55

%

212

 

247

 

Net investment loss

 

(7

)

(4

)

(5

)

(8

)

(6

)

(10

)%

(39

)

(23

)

Premiums ***

 

 

 

 

(15

)

(7

)

 

 

(22

)

Other revenues

 

15

 

3

 

8

 

10

 

23

 

58

%

51

 

44

 

Total revenues

 

105

 

116

 

124

 

108

 

166

 

57

%

428

 

514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

82

 

97

 

110

 

99

 

100

 

20

%

351

 

406

 

Interest credited to account values

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

(1

)

 

Amortization of deferred acquisition costs

 

 

 

 

1

 

(2

)

 

 

(1

)

Interest and debt expense

 

(4

)

 

8

 

(5

)

(3

)

21

%

 

 

Other expenses

 

23

 

21

 

37

 

42

 

38

 

71

%

145

 

138

 

Total expenses before separation costs

 

101

 

118

 

155

 

137

 

133

 

31

%

495

 

543

 

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

 

4

 

(2

)

(31

)

(29

)

33

 

 

(67

)

(29

)

Separation costs, pretax

 

 

20

 

56

 

92

 

125

 

 

 

293

 

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

 

$

4

 

$

(22

)

$

(87

)

$

(121

)

$

(92

)

 

$

(67

)

$

(322

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

 

$

1

 

$

13

 

$

(1

)

$

1

 

(0

)%

$

1

 

$

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin *

 

22.6

%

16.1

%

11.6

%

7.7

%

40.8

%

 

 

18.0

%

21.3

%

Allocated equity ** ^^

 

$

598

 

$

862

 

$

1,162

 

$

2,241

 

$

1,870

 

 

$

598

 

$

1,870

 

 


*                                         Contribution margin represents total revenues less compensation and benefits - field, 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 represent insurance company risk-based capital or other regulatory capital requirements applicable to the Company and certain of its subsidiaries.

***                           Represents the elimination of intercompany E&O premiums recorded in the Protection segment.

^^                                Additional paid-in capital was adjusted by $99 million to conform to the third quarter 2005 Form 10-Q presentation.

 

# Variance of 100% or greater.

 

17



 

EXHIBIT A

 



 

Equity Fund Performance & Lipper Ranking

As of December 31, 2005

Source of Data: Lipper

 


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

%                                         Actual inception date for the RiverSourceSM Growth Fund is March 1, 1972.

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

**                                  Closed to new investors (Discovery Fund).

***                           RiverSourceSM S&P 500 Index Fund data is for D shares.

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Total Net

 

Total Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Class A Shares by Lipper

 

Assets

 

Assets

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Category

 

(Mil $)

 

Date

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Balanced Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

1,145.90

 

12/30/2005

 

3.56

 

75%

 

10.60

 

46%

 

0.00

 

88%

 

3.49

 

97%

 

4/16/1940

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

482 / 650

 

 

 

215 / 475

 

 

 

337 / 382

 

 

 

171 / 177

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Fund

 

551.30

 

12/30/2005

 

5.36

 

36%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

6.98

 

3/4/2004

 

14%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

233 / 650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

75 / 575

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

675.10

 

12/30/2005

 

6.36

 

20%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

7.73

 

3/4/2004

 

8%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

126 / 650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44 / 575

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

439.60

 

12/30/2005

 

34.10

 

37%

 

32.88

 

81%

 

16.94

 

79%

 

 

 

 

 

11/13/1996

 

7.84

 

11/14/1996

 

52%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

68 / 187

 

 

 

137 / 170

 

 

 

102 / 129

 

 

 

 

 

 

 

 

 

 

 

35 / 67

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

5,418.40

 

12/30/2005

 

13.33

 

2%

 

23.88

 

2%

 

9.76

 

5%

 

10.54

 

19%

 

10/15/1990

 

12.80

 

10/18/1990

 

34%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

3 / 227

 

 

 

2 / 163

 

 

 

6 / 131

 

 

 

14 / 73

 

 

 

 

 

 

 

9 / 26

 

RiverSourceSM Dividend Opportunity Fund

 

1,219.70

 

12/30/2005

 

7.41

 

24%

 

12.51

 

80%

 

-2.94

 

95%

 

7.11

 

79%

 

8/1/1988

 

9.49

 

8/4/1988

 

78%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

54 / 227

 

 

 

131 / 163

 

 

 

125 / 131

 

 

 

58 / 73

 

 

 

 

 

 

 

17 / 21

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

109.20

 

12/30/2005

 

9.40

 

64%

 

16.74

 

93%

 

-1.18

 

93%

 

 

 

 

 

6/26/2000

 

-1.55

 

6/26/2000

 

88%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

65 / 102

 

 

 

88 / 94

 

 

 

71 / 76

 

 

 

 

 

 

 

 

 

 

 

58 / 65

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

1,111.70

 

12/30/2005

 

7.39

 

26%

 

13.24

 

42%

 

3.79

 

25%

 

6.09

 

76%

 

1/23/1985

 

10.97

 

1/24/1985

 

29%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

97 / 378

 

 

 

107 / 258

 

 

 

45 / 184

 

 

 

67 / 88

 

 

 

 

 

 

 

2 / 6

 

Global Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Balanced Fund

 

129.80

 

12/30/2005

 

9.39

 

37%

 

14.94

 

57%

 

2.59

 

92%

 

 

 

 

 

11/13/1996

 

5.16

 

11/14/1996

 

89%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

35 / 95

 

 

 

46 / 81

 

 

 

64 / 69

 

 

 

 

 

 

 

 

 

 

 

37 / 41

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

622.00

 

12/30/2005

 

18.41

 

5%

 

19.82

 

21%

 

0.48

 

43%

 

5.26

 

75%

 

5/29/1990

 

5.63

 

5/31/1990

 

84%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

3 / 61

 

 

 

11 / 53

 

 

 

20 / 46

 

 

 

15 / 19

 

 

 

 

 

 

 

5 / 5

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund

 

89.70

 

12/30/2005

 

25.56

 

74%

 

19.72

 

83%

 

23.91

 

89%

 

5.05

 

64%

 

4/22/1985

 

7.17

 

4/25/1985

 

37%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

39 / 52

 

 

 

39 / 46

 

 

 

31 / 34

 

 

 

16 / 24

 

 

 

 

 

 

 

4 / 10

 

Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

110.60

 

12/30/2005

 

3.25

 

60%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

4.01

 

3/4/2004

 

60%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

159 / 265

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

138 / 229

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

216.10

 

12/30/2005

 

4.07

 

27%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

5.49

 

3/4/2004

 

29%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

71 / 265

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65 / 229

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

569.50

 

12/30/2005

 

13.43

 

53%

 

18.91

 

69%

 

-0.91

 

91%

 

2.85

 

94%

 

11/15/1984

 

8.43

 

11/15/1984

 

84%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

107 / 204

 

 

 

129 / 188

 

 

 

128 / 140

 

 

 

55 / 58

 

 

 

 

 

 

 

5 / 5

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund *

 

303.30

 

12/30/2005

 

16.56

 

41%

 

24.54

 

31%

 

 

 

 

 

 

 

 

 

9/28/2001

 

13.74

 

9/28/2001

 

39%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

71 / 176

 

 

 

48 / 154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50 / 128

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund *

 

124.50

 

12/30/2005

 

15.28

 

32%

 

20.96

 

87%

 

 

 

 

 

 

 

 

 

10/03/2002

 

20.87

 

10/3/2002

 

92%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

36 / 112

 

 

 

83 / 95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

84 / 91

 

RiverSourceSM International Select Value Fund *

 

1,555.10

 

12/30/2005

 

20.32

 

7%

 

27.40

 

21%

 

 

 

 

 

 

 

 

 

9/28/2001

 

17.29

 

9/28/2001

 

30%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

7 / 112

 

 

 

20 / 95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24 / 81

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund *

 

100.10

 

12/30/2005

 

14.99

 

67%

 

27.02

 

74%

 

 

 

 

 

 

 

 

 

10/03/2002

 

27.15

 

10/3/2002

 

69%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

36 / 53

 

 

 

33 / 44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 / 43

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

1,385.70

 

12/30/2005

 

5.76

 

36%

 

12.50

 

52%

 

 

 

 

 

 

 

 

 

3/28/2002

 

3.13

 

3/28/2002

 

41%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

315 / 890

 

 

 

393 / 759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

287 / 708

 

RiverSourceSM New Dimensions Fund®

 

8,727.10

 

12/30/2005

 

0.94

 

91%

 

8.96

 

92%

 

-3.02

 

83%

 

7.43

 

57%

 

8/1/1968

 

11.15

 

8/1/1968

 

7%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

804 / 890

 

 

 

692 / 759

 

 

 

514 / 619

 

 

 

130 / 229

 

 

 

 

 

 

 

2 / 29

 

 

 

 

Annualized Returns at POP

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Balanced Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-2.40

 

8.44

 

-1.18

 

2.88

 

 

RiverSourceSM Portfolio Builder Moderate Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-0.70

 

 

 

 

 

 

 

3.56

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

0.24

 

 

 

 

 

 

 

4.29

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

26.38

 

30.28

 

15.56

 

 

 

7.14

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

6.81

 

21.46

 

8.46

 

9.89

 

12.36

 

RiverSourceSM Dividend Opportunity Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

1.24

 

10.31

 

-4.08

 

6.48

 

9.12

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

3.11

 

14.46

 

-2.34

 

 

 

-2.60

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

1.21

 

11.03

 

2.57

 

5.47

 

10.66

 

Global Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Balanced Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

3.10

 

12.69

 

1.38

 

 

 

4.48

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

11.61

 

17.48

 

-0.70

 

4.64

 

5.23

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

18.34

 

17.38

 

22.45

 

4.43

 

6.86

 

Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-1.66

 

 

 

 

 

 

 

1.27

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-0.87

 

 

 

 

 

 

 

2.71

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

6.91

 

16.59

 

-2.07

 

2.24

 

8.13

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

9.86

 

22.11

 

 

 

 

 

12.17

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

8.65

 

18.60

 

 

 

 

 

18.69

 

RiverSourceSM International Select Value Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

13.40

 

24.91

 

 

 

 

 

15.67

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

8.38

 

24.54

 

 

 

 

 

24.85

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-0.32

 

10.30

 

 

 

 

 

1.52

 

RiverSourceSM New Dimensions Fund®
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-4.86

 

6.83

 

-4.16

 

6.79

 

10.97

 

 



 

Equity Fund Performance & Lipper Ranking

As of December 31, 2005

Source of Data: Lipper

 


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

%                                         Actual inception date for the RiverSourceSM Growth Fund is March 1, 1972.

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

**                                  Closed to new investors (Discovery Fund).

***                           RiverSourceSM S&P 500 Index Fund data is for D shares.

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Total Net

 

Total Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Class A Shares by Lipper

 

Assets

 

Assets

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Category

 

(Mil $)

 

Date

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

RiverSourceSM Fundamental Growth Fund *

 

143.60

 

12/30/2005

 

2.98

 

74%

 

 

 

 

 

 

 

 

 

 

 

 

 

4/24/2003

 

8.32

 

4/24/2003

 

92%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

651 / 890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

717 / 780

 

RiverSourceSM Disciplined Equity Fund

 

52.50

 

12/30/2005

 

6.20

 

31%

 

 

 

 

 

 

 

 

 

 

 

 

 

4/24/2003

 

14.68

 

4/24/2003

 

20%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

274 / 890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

154 / 780

 

RiverSourceSM Stock Fund

 

1,814.30

 

12/30/2005

 

5.77

 

36%

 

12.44

 

54%

 

-0.98

 

55%

 

6.25

 

77%

 

4/6/1945

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

314 / 890

 

 

 

404 / 759

 

 

 

336 / 619

 

 

 

177 / 229

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Returns at POP

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

RiverSourceSM Fundamental Growth Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-2.94

 

 

 

 

 

 

 

5.96

 

RiverSourceSM Disciplined Equity Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

0.09

 

 

 

 

 

 

 

12.18

 

RiverSourceSM Stock Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-0.31

 

10.24

 

-2.15

 

5.62

 

 

 



 

Equity Fund Performance & Lipper Ranking

As of December 31, 2005

Source of Data: Lipper

 


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

%                                         Actual inception date for the RiverSourceSM Growth Fund is March 1, 1972.

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

**                                  Closed to new investors (Discovery Fund).

***                           RiverSourceSM S&P 500 Index Fund data is for D shares.

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Total Net

 

Total Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Class A Shares by Lipper

 

Assets

 

Assets

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Category

 

(Mil $)

 

Date

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

3,447.30

 

12/30/2005

 

8.42

 

26%

 

12.41

 

56%

 

-5.83

 

75%

 

4.41

 

87%

 

2/28/1972%

 

11.95

 

3/2/1972

 

23%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

178 / 687

 

 

 

327 / 593

 

 

 

354 / 475

 

 

 

137 / 158

 

 

 

 

 

 

 

6 / 26

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

1,116.30

 

12/30/2005

 

11.78

 

3%

 

19.29

 

3%

 

3.73

 

36%

 

8.21

 

59%

 

3/20/1995

 

9.53

 

3/23/1995

 

65%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

11 / 469

 

 

 

9 / 386

 

 

 

92 / 259

 

 

 

68 / 115

 

 

 

 

 

 

 

65 / 100

 

RiverSourceSM Large Cap Value Fund

 

94.80

 

12/30/2005

 

4.22

 

65%

 

14.11

 

65%

 

 

 

 

 

 

 

 

 

6/27/2002

 

8.59

 

6/27/2002

 

53%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

304 / 469

 

 

 

248 / 386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

191 / 360

 

RiverSourceSM Value Fund *

 

445.10

 

12/30/2005

 

2.72

 

88%

 

14.65

 

54%

 

 

 

 

 

 

 

 

 

6/18/2001

 

3.95

 

6/18/2001

 

43%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

410 / 469

 

 

 

207 / 386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

125 / 296

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

1,932.50

 

12/30/2005

 

9.88

 

54%

 

13.94

 

94%

 

2.19

 

27%

 

10.48

 

21%

 

6/4/1957

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

297 / 553

 

 

 

429 / 458

 

 

 

93 / 348

 

 

 

26 / 126

 

 

 

 

 

 

 

 

 

RiverSourceSM Aggressive Growth Fund *

 

104.10

 

12/30/2005

 

9.42

 

60%

 

 

 

 

 

 

 

 

 

 

 

 

 

4/24/2003

 

21.52

 

4/24/2003

 

27%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

331 / 553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126 / 473

 

RiverSourceSM Strategy Aggressive Fund *

 

528.60

 

12/30/2005

 

9.40

 

61%

 

14.99

 

90%

 

-7.12

 

92%

 

4.83

 

84%

 

3/20/1995

 

6.87

 

3/23/1995

 

80%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

333 / 553

 

 

 

410 / 458

 

 

 

318 / 348

 

 

 

106 / 126

 

 

 

 

 

 

 

90 / 112

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

1,237.00

 

12/30/2005

 

16.67

 

4%

 

28.73

 

6%

 

 

 

 

 

 

 

 

 

2/14/2002

 

15.95

 

2/14/2002

 

8%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

9 / 250

 

 

 

12 / 209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 / 182

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund *

 

1,146.40

 

12/30/2005

 

8.99

 

20%

 

16.05

 

35%

 

 

 

 

 

 

 

 

 

6/18/2001

 

5.09

 

6/18/2001

 

27%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

164 / 831

 

 

 

208 / 602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

119 / 445

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

332.80

 

12/30/2005

 

7.71

 

32%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

8.55

 

3/4/2004

 

28%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

261 / 831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

197 / 715

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

276.10

 

12/30/2005

 

9.04

 

19%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

9.50

 

3/4/2004

 

18%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

158 / 831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

124 / 715

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund *

 

687.20

 

12/30/2005

 

1.76

 

88%

 

14.40

 

80%

 

 

 

 

 

 

 

 

 

3/8/2002

 

8.44

 

3/8/2002

 

20%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

410 / 466

 

 

 

290 / 364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 / 312

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

103.10

 

12/30/2005

 

15.82

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

21.81

 

3/4/2004

 

15%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

21 / 228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29 / 203

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund ***

 

282.90

 

12/30/2005

 

4.14

 

 

 

13.63

 

 

 

-0.11

 

 

 

 

 

 

 

10/25/1999

 

0.28

 

10/28/1999

 

 

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

172.10

 

12/30/2005

 

5.00

 

50%

 

25.59

 

14%

 

-11.91

 

71%

 

 

 

 

 

11/13/1996

 

4.53

 

11/14/1996

 

66%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

141 / 284

 

 

 

36 / 263

 

 

 

156 / 221

 

 

 

 

 

 

 

 

 

 

 

27 / 40

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Discovery Fund * , **

 

155.80

 

12/30/2005

 

8.70

 

29%

 

25.21

 

19%

 

5.32

 

84%

 

5.78

 

92%

 

8/24/1981

 

9.37

 

8/27/1981

 

75%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

183 / 638

 

 

 

96 / 506

 

 

 

314 / 373

 

 

 

99 / 107

 

 

 

 

 

 

 

6 / 7

 

RiverSourceSM Small Cap Equity Fund *

 

211.40

 

12/30/2005

 

8.75

 

28%

 

23.54

 

26%

 

 

 

 

 

 

 

 

 

3/8/2002

 

9.05

 

3/8/2002

 

63%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

178 / 638

 

 

 

129 / 506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

288 / 459

 

RiverSourceSM Small Cap Value Fund *

 

1,061.20

 

12/30/2005

 

5.02

 

64%

 

20.77

 

61%

 

 

 

 

 

 

 

 

 

6/18/2001

 

11.93

 

6/18/2001

 

28%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

405 / 638

 

 

 

305 / 506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

111 / 402

 

RiverSourceSM Small Cap Advantage Fund

 

790.50

 

12/30/2005

 

4.68

 

66%

 

22.61

 

33%

 

7.30

 

72%

 

 

 

 

 

5/4/1999

 

8.08

 

5/6/1999

 

81%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

420 / 638

 

 

 

167 / 506

 

 

 

266 / 373

 

 

 

 

 

 

 

 

 

 

 

228 / 281

 

RiverSourceSM Small Company Index Fund

 

1,171.60

 

12/30/2005

 

6.76

 

48%

 

21.32

 

52%

 

9.75

 

48%

 

 

 

 

 

8/19/1996

 

10.63

 

8/22/1996

 

54%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

306 / 638

 

 

 

260 / 506

 

 

 

178 / 373

 

 

 

 

 

 

 

 

 

 

 

64 / 119

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund *

 

214.20

 

12/30/2005

 

4.99

 

58%

 

16.52

 

74%

 

 

 

 

 

 

 

 

 

1/24/2001

 

-1.40

 

1/24/2001

 

70%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

303 / 523

 

 

 

331 / 447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

244 / 352

 

 

 

 

Annualized Returns at POP

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

2.19

 

10.21

 

-6.94

 

3.80

 

11.76

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

5.36

 

16.96

 

2.51

 

7.57

 

8.93

 

RiverSourceSM Large Cap Value Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-1.77

 

11.88

 

 

 

 

 

6.78

 

RiverSourceSM Value Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-3.19

 

12.40

 

 

 

 

 

2.60

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

3.56

 

11.72

 

0.98

 

9.83

 

 

RiverSourceSM Aggressive Growth Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

3.13

 

 

 

 

 

 

 

18.87

 

RiverSourceSM Strategy Aggressive Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

3.11

 

12.74

 

-8.21

 

4.21

 

6.28

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

9.96

 

26.21

 

 

 

 

 

14.19

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

2.72

 

13.78

 

 

 

 

 

3.73

 

RiverSourceSM Portfolio Builder Aggressive Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

1.51

 

 

 

 

 

 

 

5.08

 

RiverSourceSM Portfolio Builder Total Equity Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

2.77

 

 

 

 

 

 

 

6.00

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-4.09

 

12.17

 

 

 

 

 

6.77

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

9.16

 

 

 

 

 

 

 

17.92

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund ***

 

N/A

 

4.14

 

13.63

 

-0.11

 

 

 

0.28

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-1.04

 

23.14

 

-12.95

 

 

 

3.86

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Discovery Fund * , **
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

2.45

 

22.76

 

4.08

 

5.15

 

9.10

 

RiverSourceSM Small Cap Equity Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

2.49

 

21.13

 

 

 

 

 

7.37

 

RiverSourceSM Small Cap Value Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-1.02

 

18.41

 

 

 

 

 

10.47

 

RiverSourceSM Small Cap Advantage Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-1.34

 

20.21

 

6.03

 

 

 

7.12

 

RiverSourceSM Small Company Index Fund
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

0.62

 

18.95

 

8.46

 

 

 

9.94

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund *
Lipper Fund Ranking / Total Funds in Category

 

5.75

 

-1.04

 

14.24

 

 

 

 

 

-2.58

 

 



 

Fixed Income Fund Performance & Lipper Ranking

As of December 31, 2005

Source of Data: Lipper

 


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

%                                         Actual inception date for RiverSource Tax-Exempt Bond Fund is November 24, 1976.

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

Total Net

 

Total Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Class A Shares by Lipper

 

Assets

 

Assets

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Category

 

(Mil $)

 

Date

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

192.90

 

12/30/2005

 

3.79

 

44%

 

4.13

 

48%

 

4.58

 

60%

 

4.80

 

64%

 

8/18/1986

 

5.97

 

8/31/1986

 

78%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

55 / 125

 

 

 

56 / 117

 

 

 

60 / 99

 

 

 

44 / 68

 

 

 

 

 

 

 

17 / 21

 

Corporate Debt — A rated Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Selective Fund

 

657.10

 

12/30/2005

 

1.91

 

45%

 

2.98

 

74%

 

3.63

 

98%

 

4.56

 

92%

 

4/6/1945

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

81 / 183

 

 

 

115 / 155

 

 

 

113 / 115

 

 

 

63 / 68

 

 

 

 

 

 

 

 

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

3,633.10

 

12/30/2005

 

2.92

 

55%

 

3.72

 

57%

 

4.65

 

53%

 

4.72

 

50%

 

5/7/1979

 

6.97

 

5/31/1979

 

42%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

142 / 260

 

 

 

140 / 247

 

 

 

113 / 216

 

 

 

70 / 141

 

 

 

 

 

 

 

10 / 23

 

RiverSourceSM Tax-Exempt Bond Fund

 

626.90

 

12/30/2005

 

3.00

 

51%

 

3.46

 

67%

 

4.42

 

65%

 

4.68

 

53%

 

12/7/1976%

 

6.10

 

12/9/1976

 

78%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

133 / 260

 

 

 

164 / 247

 

 

 

139 / 216

 

 

 

75 / 141

 

 

 

 

 

 

 

7 / 8

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

440.40

 

12/30/2005

 

-5.32

 

68%

 

5.66

 

50%

 

6.42

 

48%

 

4.84

 

67%

 

3/20/1989

 

7.47

 

3/23/1989

 

34%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

62 / 91

 

 

 

44 / 88

 

 

 

32 / 67

 

 

 

28 / 41

 

 

 

 

 

 

 

3 / 8

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

2,154.90

 

12/30/2005

 

4.38

 

7%

 

13.63

 

20%

 

7.39

 

51%

 

5.36

 

52%

 

12/8/1983

 

8.23

 

12/8/1983

 

46%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

26 / 423

 

 

 

74 / 371

 

 

 

155 / 305

 

 

 

54 / 104

 

 

 

 

 

 

 

11 / 23

 

RiverSourceSM Income Opportunities Fund

 

283.10

 

12/30/2005

 

3.73

 

15%

 

 

 

 

 

 

 

 

 

 

 

 

 

6/19/2003

 

8.30

 

6/19/2003

 

40%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

63 / 423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

156 / 391

 

Insured Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Insured Tax-Exempt Fund

 

341.20

 

12/30/2005

 

2.08

 

73%

 

3.22

 

66%

 

4.23

 

74%

 

4.44

 

58%

 

8/18/1986

 

6.02

 

8/31/1986

 

50%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

39 / 53

 

 

 

33 / 49

 

 

 

36 / 48

 

 

 

23 / 39

 

 

 

 

 

 

 

6 / 11

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

48.50

 

12/30/2005

 

1.87

 

46%

 

 

 

 

 

 

 

 

 

 

 

 

 

6/19/2003

 

1.74

 

6/19/2003

 

71%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

213 / 468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

292 / 412

 

RiverSourceSM Diversified Bond Fund

 

2,311.20

 

12/30/2005

 

2.10

 

33%

 

3.70

 

37%

 

4.79

 

73%

 

5.12

 

63%

 

10/3/1974

 

9.31

 

10/3/1974

 

25%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

153 / 468

 

 

 

145 / 399

 

 

 

220 / 303

 

 

 

86 / 137

 

 

 

 

 

 

 

1 / 3

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

122.40

 

12/30/2005

 

1.36

 

58%

 

2.66

 

59%

 

4.25

 

59%

 

 

 

 

 

11/13/1996

 

4.25

 

11/14/1996

 

82%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

85 / 147

 

 

 

75 / 128

 

 

 

56 / 95

 

 

 

 

 

 

 

 

 

 

 

61 / 74

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

68.40

 

12/30/2005

 

2.20

 

78%

 

3.27

 

75%

 

4.36

 

78%

 

4.40

 

75%

 

7/2/1987

 

5.86

 

7/31/1987

 

93%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

42 / 53

 

 

 

39 / 51

 

 

 

38 / 48

 

 

 

29 / 38

 

 

 

 

 

 

 

12 / 12

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

56.20

 

12/30/2005

 

2.72

 

45%

 

3.63

 

32%

 

4.79

 

37%

 

4.45

 

68%

 

7/2/1987

 

6.04

 

7/31/1987

 

88%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

17 / 37

 

 

 

12 / 37

 

 

 

14 / 37

 

 

 

21 / 30

 

 

 

 

 

 

 

7 / 7

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

375.60

 

12/30/2005

 

2.31

 

70%

 

3.64

 

64%

 

4.70

 

57%

 

4.72

 

44%

 

8/18/1986

 

6.04

 

8/31/1986

 

58%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

35 / 49

 

 

 

32 / 49

 

 

 

26 / 45

 

 

 

17 / 38

 

 

 

 

 

 

 

4 / 6

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

78.90

 

12/30/2005

 

2.67

 

60%

 

3.38

 

60%

 

4.60

 

59%

 

4.66

 

65%

 

8/18/1986

 

5.81

 

8/31/1986

 

78%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

64 / 107

 

 

 

64 / 106

 

 

 

53 / 90

 

 

 

42 / 64

 

 

 

 

 

 

 

14 / 17

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

56.70

 

12/30/2005

 

2.08

 

66%

 

3.11

 

73%

 

4.20

 

73%

 

4.38

 

68%

 

7/2/1987

 

5.84

 

7/31/1987

 

89%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

28 / 42

 

 

 

31 / 42

 

 

 

29 / 39

 

 

 

23 / 33

 

 

 

 

 

 

 

8 / 8

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

105.40

 

12/30/2005

 

1.53

 

29%

 

 

 

 

 

 

 

 

 

 

 

 

 

6/19/2003

 

1.72

 

6/19/2003

 

22%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

43 / 149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29 / 133

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

1,212.00

 

12/30/2005

 

1.34

 

54%

 

1.05

 

62%

 

3.14

 

55%

 

4.17

 

57%

 

8/19/1985

 

6.25

 

8/22/1985

 

29%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

42 / 78

 

 

 

44 / 71

 

 

 

35 / 63

 

 

 

27 / 47

 

 

 

 

 

 

 

2 / 6

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

158.10

 

12/30/2005

 

2.16

 

39%

 

 

 

 

 

 

 

 

 

 

 

 

 

3/4/2004

 

3.27

 

3/4/2004

 

51%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

34 / 88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34 / 66

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

265.00

 

12/30/2005

 

2.23

 

28%

 

3.11

 

29%

 

 

 

 

 

 

 

 

 

2/14/2002

 

4.21

 

2/14/2002

 

32%

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

22 / 80

 

 

 

21 / 73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22 / 69

 

 

 

 

Annualized Returns @ POP

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Since

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-1.14

 

2.45

 

3.57

 

4.30

 

5.71

 

Corporate Debt — A rated Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Selective Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.93

 

1.32

 

2.63

 

4.05

 

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-1.96

 

2.05

 

3.64

 

4.21

 

6.77

 

RiverSourceSM Tax-Exempt Bond Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-1.90

 

1.79

 

3.41

 

4.17

 

5.92

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-9.82

 

3.96

 

5.39

 

4.33

 

7.16

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-0.58

 

11.80

 

6.35

 

4.85

 

7.99

 

RiverSourceSM Income Opportunities Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-1.19

 

 

 

 

 

 

 

6.23

 

Insured Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Insured Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.77

 

1.56

 

3.22

 

3.93

 

5.76

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.97

 

 

 

 

 

 

 

-0.20

 

RiverSourceSM Diversified Bond Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.75

 

2.03

 

3.78

 

4.61

 

9.14

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-3.46

 

1.01

 

3.24

 

 

 

3.69

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.65

 

1.61

 

3.35

 

3.90

 

5.58

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.16

 

1.97

 

3.78

 

3.94

 

5.76

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.55

 

1.97

 

3.69

 

4.21

 

5.78

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.20

 

1.72

 

3.59

 

4.15

 

5.55

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.77

 

1.45

 

3.19

 

3.87

 

5.56

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-3.30

 

 

 

 

 

 

 

-0.22

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-3.47

 

-0.57

 

2.14

 

3.66

 

6.00

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.70

 

 

 

 

 

 

 

0.55

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund
Lipper Fund Ranking / Total Funds in Category

 

4.75

 

-2.63

 

1.45

 

 

 

 

 

2.91

 

 



 

Fund Performance & Lipper Ranking

As of December 31, 2005

Source of Data: Lipper

 

Lipper rankings are based upon annualized total returns, excluding sales charges. Net asset value (NAV) returns for all periods would have been lower if the applicable sales charges were included.

 

Please note the following about the “Ranking since” Lipper Rankings: In order to obtain a more accurate “since inception” Lipper Ranking for funds with an inception prior to 2000, the Thursday or month-end date following the actual inception date was used, rather than the actual inception date. When researching since inception rankings, please use the “Ranking Since” date.

 

Please note the following about the “Annualized Returns @ POP”: the point of purchase return is calculated assuming a one-time purchase of the Fund at the maximum sales charge. Sales charges vary depending on the amount of your purchase. For more information regarding sales charges, please refer to the fund’s prospectus. RiverSource S&P 500 Index Fund has no sales loads, however, a redemption fee of 0.50% is charged on shares redeemed within 180 days of purchase.

 

Net assets per fund include all share classes. Assets for RiverSource Portfolio Builder Funds are invested in other RiverSource Funds and therefore would be double counted if assets are summed to reach a total. Please see page 11 to find total RiverSource Fund assets as of the quarter end.

 

The performance information shown represents past performance and is not a guarantee of future results. 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: www.ameriprise.com/amp/individual/products/investing/mutual-funds.asp

 



 

Important Disclosures

 

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment 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 riversource.com/investments.

 

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.

 

You should consider the investment objectives, risks, and charges and expenses of mutual funds carefully before investing. For more complete information about our funds, which contains this and other information, call (800) 297-3863, TTY: (800) 846-4852, for a free prospectus. Read the prospectus carefully before you invest.

 

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

 

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 companies may be slightly less volatile than those of small-capitalization companies but still involve substantial risk.

 

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

 

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 RiverSource Investments seeks to control trading activity, the Fund may trade more often than other funds in its peer group. Trading activity may result in increased fees, expenses and taxes.

 

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.

 

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.

 

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.

 

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.

 

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.

 

“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 RiverSource Investments. 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.

 

Products are not federally or FDIC insured, are not deposits or obligations of, or guaranteed by any financial institution; and involve investment risks including possible loss of principal and fluctuation in value.

 

RiverSource Funds are managed by RiverSource Investments, LLC and distributed by Ameriprise Financial Services, Inc., Member NASD