EX-99.2 3 a07-2306_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

 

Statistical Supplement

(unaudited)

 

Fourth Quarter 2006

 



 

Ameriprise Financial, Inc.

Table of Contents

 

 

Page

Ameriprise Financial, Inc.

 

Financial Summary

1

Consolidated Income Statements

2

Adjusted Consolidated Income Statements

3

Financial Advisor and Client Metrics

4

Corporate Volumes

5

Consolidated Balance Sheets

6

Investment Detail

7

Selected Balance Sheet Information

8

Adjusted Segment Information

9

Asset Accumulation and Income Segment

 

Income Statements

10

Revenues by Product

11

Retail Managed Assets Rollforwards

12

Institutional Managed Assets Rollforwards

13

Financial Advisor Managed Assets Rollforwards

14

Owned Assets Related to Variable Products

15

Net Investment Income and Spread Products

16

Selected Asset Management Performance Information

17

Deferred Acquisition Costs Rollforwards

18

Protection Segment

 

Income Statements

19

Adjusted Income Statements

20

Adjusted Revenues by Product

21

Selected Statistical Information

22

Product Rollforwards

23

Corporate and Other and Eliminations Segment

 

Income Statements

24

Capital and Ratings Information

25

Non-GAAP Financial Information and Reclassification

26

Glossary of Selected Terminology

27-29

Exhibit A

 

RiverSourceSM Mutual Fund Performance and Lipper Ranking

A1-A12

Exhibit B

 

Adjusted Earnings Reconciliation Tables

B1-B11

Exhibit C

 

Disclosed Items

C1-C3

Exhibit D

 

Prior Statistical Supplement Reconciliation Tables

D1

 



 

Ameriprise Financial, Inc.

Financial Summary

 

(in millions, except per share amounts, headcount and where noted, unaudited)

 

4Q
2005

 

1Q
2006

 

2Q
2006

 

3Q
2006

 

4Q
2006

 

4Q’06 vs.
4Q’05
% Change

 

YTD
2005

 

YTD
2006

 

EPS - Basic: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

0.44

 

$

0.57

 

$

0.57

 

$

0.71

 

$

0.70

 

59

%

$

2.32

 

$

2.56

 

Income from discontinued operations

 

 

 

 

 

 

 

(0.06

)

 

Income attributable to AMEX Assurance, after-tax

 

 

 

 

 

 

 

(0.23

)

 

Separation costs, after-tax

 

0.33

 

0.18

 

0.22

 

0.23

 

0.33

 

 

0.77

 

0.95

 

Adjusted earnings, after-tax

 

$

0.77

 

$

0.75

 

$

0.79

 

$

0.94

 

$

1.03

 

34

%

$

2.80

 

$

3.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS - Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

0.44

 

$

0.57

 

$

0.57

 

$

0.71

 

$

0.69

 

57

%

$

2.32

 

$

2.54

 

Income from discontinued operations

 

 

 

 

 

 

 

(0.06

)

 

Income attributable to AMEX Assurance, after-tax

 

 

 

 

 

 

 

(0.23

)

 

Separation costs, after-tax

 

0.33

 

0.18

 

0.22

 

0.23

 

0.33

 

 

0.77

 

0.94

 

Adjusted earnings, after-tax

 

$

0.77

 

$

0.75

 

$

0.79

 

$

0.94

 

$

1.02

 

32

%

$

2.80

 

$

3.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management’s financial targets and performance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenue growth: Target 6 - 8%

 

4.9

%

9.9

%

12.9

%

4.9

%

15.6

%

 

 

8.6

%

10.8

%

Adjusted earnings growth: Target 10 - 13%

 

(4.5

)%

17.4

%

21.9

%

29.1

%

30.1

%

 

 

(4.1

)%

25.0

%

Adjusted ROE: Target 12 - 15%

 

10.2

%

10.4

%

10.7

%

11.2

%

11.8

%

 

 

10.2

%

11.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin

 

49.6

%

50.0

%

52.8

%

50.5

%

51.9

%

 

 

50.5

%

51.4

%

Adjusted contribution margin

 

49.6

%

50.0

%

52.8

%

50.5

%

51.9

%

 

 

49.9

%

51.4

%

Net income margin

 

5.9

%

7.4

%

6.9

%

8.8

%

7.9

%

 

 

7.7

%

7.8

%

Effective tax rate on net income before discontinued operations

 

12.0

%

24.0

%

24.3

%

19.8

%

15.5

%

 

 

25.1

%

20.8

%

Effective tax rate on adjusted earnings

 

23.4

%

26.7

%

27.8

%

24.0

%

23.0

%

 

 

27.5

%

25.2

%

Return on equity before discontinued operations

 

8.0

%

7.4

%

7.1

%

7.6

%

8.3

%

 

 

8.0

%

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital

 

19.3

%

20.7

%

25.1

%

22.5

%

21.9

%

 

 

19.3

%

21.9

%

Debt to total capital excluding non-recourse debt

 

16.8

%

17.0

%

21.7

%

20.5

%

20.2

%

 

 

16.8

%

20.2

%

Debt to total capital excluding non-recourse debt and 75% equity credit

 

16.8

17.0

17.6

%

16.7

%

16.4

%

 

 

16.8

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business metrics summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets (in billions)

 

$

428.2

 

$

445.7

 

$

427.9

 

$

440.0

 

$

466.1

 

9

%

$

428.2

 

$

466.1

 

Total financial advisors

 

12,440

 

12,379

 

12,372

 

12,427

 

12,592

 

1

%

12,440

 

12,592

 

Clients with a financial plan percentage

 

44

%

44

%

44

%

44

%

45

%

 

 

44

%

45

Total clients (in thousands)

 

2,776

 

2,762

 

2,770

 

2,779

 

2,786

 

 

2,776

 

2,786

 

Gross dealer concession

 

$

469

 

$

527

 

$

545

 

$

545

 

$

596

 

27

%

$

1,879

 

$

2,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee base:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field (employee advisors)

 

3,268

 

3,075

 

3,056

 

3,063

 

3,178

 

(3

)%

3,268

 

3,178

 

Non-field

 

8,589

 

8,582

 

8,607

 

8,647

 

8,680

 

1

%

8,589

 

8,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

249.9

 

244.3

 

244.1

 

242.1

 

241.4

 

(3

)%

249.9

 

241.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

249.9

 

252.3

 

246.3

 

244.5

 

243.3

 

(3

)%

247.1

 

246.5

 

Diluted

 

250.3

 

253.5

 

248.0

 

246.4

 

246.3

 

(2

)%

247.2

 

248.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value

 

$

7,687

 

$

7,341

 

$

7,235

 

$

7,753

 

$

7,925

 

3

%

$

7,687

 

$

7,925

 

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

 

7,838

 

7,783

 

7,901

 

7,979

 

8,134

 

4

%

7,838

 

8,134

 

Book value per common share outstanding

 

30.76

 

30.05

 

29.64

 

32.02

 

32.83

 

7

%

30.76

 

32.83

 

Book value per common share outstanding, excluding the impact of OCI

 

31.37

 

31.86

 

32.37

 

32.96

 

33.70

 

7

%

31.37

 

33.70

 

 


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

 

#          Variance of 100% or greater.

 

1



 

Ameriprise Financial, Inc.

Consolidated Income Statements

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

651

 

$

710

 

$

721

 

$

720

 

$

814

 

25

%

$

2,578

 

$

2,965

 

Distribution fees

 

277

 

301

 

325

 

300

 

374

 

35

%

1,150

 

1,300

 

Net investment income

 

574

 

574

 

522

 

542

 

566

 

(1

)%

2,241

 

2,204

 

Premiums

 

228

 

220

 

229

 

244

 

239

 

5

%

979

 

932

 

Other revenues

 

139

 

144

 

256

 

171

 

168

 

21

%

536

 

739

 

Total revenues

 

1,869

 

1,949

 

2,053

 

1,977

 

2,161

 

16

%

7,484

 

8,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field

 

374

 

423

 

436

 

428

 

478

 

28

%

1,515

 

1,765

 

Non-field

 

281

 

316

 

330

 

328

 

374

 

33

%

1,135

 

1,348

 

Total compensation and benefits

 

655

 

739

 

766

 

756

 

852

 

30

%

2,650

 

3,113

 

Interest credited to account values

 

334

 

324

 

307

 

317

 

316

 

(5

)%

1,310

 

1,264

 

Benefits, claims, losses and settlement expenses

 

234

 

227

 

225

 

233

 

245

 

5

%

880

 

930

 

Amortization of deferred acquisition costs

 

112

 

128

 

153

 

87

 

104

 

(7

)%

431

 

472

 

Interest and debt expense

 

21

 

23

 

28

 

32

 

33

 

57

%

73

 

116

 

Other expenses

 

261

 

250

 

304

 

248

 

285

 

9

%

1,102

 

1,087

 

Total expenses before separation costs (1)

 

1,617

 

1,691

 

1,783

 

1,673

 

1,835

 

13

%

6,446

 

6,982

 

Income before income tax provision, discontinued
operations and separation costs (1)

 

252

 

258

 

270

 

304

 

326

 

29

%

1,038

 

1,158

 

Income tax provision before tax benefit attributable to separation costs (1)

 

59

 

69

 

75

 

73

 

75

 

27

%

289

 

292

 

Income before discontinued operations and separation costs (1)

 

193

 

189

 

195

 

231

 

251

 

30

%

749

 

866

 

Separation costs, after-tax (1)

 

82

 

44

 

54

 

57

 

80

 

(2

)%

191

 

235

 

Income before discontinued operations

 

111

 

145

 

141

 

174

 

171

 

54

%

558

 

631

 

Discontinued operations, net of tax

 

 

 

 

 

 

 

16

 

 

Net income

 

$

111

 

$

145

 

$

141

 

$

174

 

$

171

 

54

%

$

574

 

$

631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), after-tax

 

$

3

 

$

3

 

$

4

 

$

9

 

$

17

 

 

#

$

43

 

$

33

 

Dividends paid

 

$

27

 

$

28

 

$

27

 

$

27

 

$

26

 

(5

)%

$

244

 

$

108

 

Contribution margin

 

49.6

%

50.0

%

52.8

%

50.5

%

51.9

%

 

 

50.5

%

51.4

%

 


(1)         See non-GAAP Financial Information.

 

#          Variance of 100% or greater.

 

2



 

Ameriprise Financial, Inc.

Adjusted Consolidated Income Statements

Excluding AMEX Assurance and Separation Costs

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

651

 

$

710

 

$

721

 

$

720

 

$

814

 

25

%

$

2,575

 

$

2,965

 

Distribution fees

 

277

 

301

 

325

 

300

 

374

 

35

%

1,150

 

1,300

 

Net investment income

 

574

 

574

 

522

 

542

 

566

 

(1

)%

2,232

 

2,204

 

Premiums

 

228

 

220

 

229

 

244

 

239

 

5

%

852

 

932

 

Other revenues

 

139

 

144

 

256

 

171

 

168

 

21

%

537

 

739

 

Total revenues

 

1,869

 

1,949

 

2,053

 

1,977

 

2,161

 

16

%

7,346

 

8,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field

 

374

 

423

 

436

 

428

 

478

 

28

%

1,478

 

1,765

 

Non-field

 

281

 

316

 

330

 

328

 

374

 

33

%

1,135

 

1,348

 

Total compensation and benefits

 

655

 

739

 

766

 

756

 

852

 

30

%

2,613

 

3,113

 

Interest credited to account values

 

334

 

324

 

307

 

317

 

316

 

(5

)%

1,310

 

1,264

 

Benefits, claims, losses and settlement expenses

 

234

 

227

 

225

 

233

 

245

 

5

%

892

 

930

 

Amortization of deferred acquisition costs

 

112

 

128

 

153

 

87

 

104

 

(7

)%

414

 

472

 

Interest and debt expense

 

21

 

23

 

28

 

32

 

33

 

57

%

73

 

116

 

Other expenses

 

261

 

250

 

304

 

248

 

285

 

9

%

1,088

 

1,087

 

Total expenses before separation costs

 

1,617

 

1,691

 

1,783

 

1,673

 

1,835

 

13

%

6,390

 

6,982

 

Income before income tax provision, discontinued operations and separation costs

 

252

 

258

 

270

 

304

 

326

 

29

%

956

 

1,158

 

Income tax provision before tax benefit attributable to separation costs

 

59

 

69

 

75

 

73

 

75

 

27

%

263

 

292

 

Adjusted earnings

 

$

193

 

$

189

 

$

195

 

$

231

 

$

251

 

30

%

$

693

 

$

866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net investment gains (losses), pretax

 

$

5

 

$

4

 

$

6

 

$

14

 

$

27

 

 

#

$

66

 

$

51

 

Adjusted contribution margin

 

49.6

%

50.0

%

52.8

%

50.5

%

51.9

%

 

 

49.9

%

51.4

%

 


#          Variance of 100% or greater.

 

3



 

Ameriprise Financial, Inc.

Financial Advisor and Client Metrics

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

3,268

 

3,075

 

3,056

 

3,063

 

3,178

 

(3

)%

3,268

 

3,178

 

Franchisee advisors

 

7,392

 

7,491

 

7,499

 

7,571

 

7,651

 

4

%

7,392

 

7,651

 

Total branded financial advisors

 

10,660

 

10,566

 

10,555

 

10,634

 

10,829

 

2

%

10,660

 

10,829

 

Securities America, Inc. registered representatives

 

1,780

 

1,813

 

1,817

 

1,793

 

1,763

 

(1

)%

1,780

 

1,763

 

Total financial advisors

 

12,440

 

12,379

 

12,372

 

12,427

 

12,592

 

1

%

12,440

 

12,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisor retention

 

64

%

62

%

60

%

63

%

63

%

 

 

64

%

63

%

Franchisee advisor retention

 

91

%

91

%

91

%

93

%

93

%

 

 

91

%

93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross dealer concession per branded advisor (in thousands)

 

$

38.7

 

$

43.8

 

$

44.7

 

$

45.0

 

$

49.2

 

27

%

$

154.7

 

$

182.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client Relationships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total clients (in thousands)

 

2,776

 

2,762

 

2,770

 

2,779

 

2,786

 

 

2,776

 

2,786

 

Client retention

 

94

%

92

%

93

%

93

%

93

%

 

 

94

%

93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor clients (in thousands)

 

1,991

 

1,990

 

1,950

 

1,925

 

1,933

 

(3

)%

1,991

 

1,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clients with a financial plan percentage

 

44

%

44

%

44

%

44

%

45

%

 

 

44

%

45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial plans sold (in thousands)

 

55

 

63

 

58

 

55

 

61

 

11

%

233

 

237

 

 


#          Variance of 100% or greater.

 

4



 

Ameriprise Financial, Inc.

Corporate Volumes

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions unless otherwise noted, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Owned, managed and administered assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets

 

$

86.9

 

$

89.1

 

$

89.1

 

$

92.7

 

$

97.2

 

12

%

$

86.9

 

$

97.2

 

Managed assets

 

264.0

 

276.2

 

276.1

 

283.4

 

299.8

 

14

%

264.0

 

299.8

 

Administered assets

 

77.3

 

80.4

 

62.7

 

63.9

 

69.1

 

(11

)%

77.3

 

69.1

 

Total owned, managed and administered assets

 

$

428.2

 

$

445.7

 

$

427.9

 

$

440.0

 

$

466.1

 

9

%

$

428.2

 

$

466.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending RiverSource Managed Assets (in billions)

 

$

153.5

 

$

154.3

 

$

151.0

 

$

152.4

 

$

156.7

 

2

%

$

153.5

 

$

156.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds and non-proprietary SPS wrap net flows

 

$

7,962

 

$

9,524

 

$

9,145

 

$

8,028

 

$

8,574

 

8

%

$

32,118

 

$

35,271

 

Annuities

 

2,394

 

2,870

 

3,475

 

3,341

 

3,257

 

36

%

9,287

 

12,943

 

Investment certificates

 

526

 

435

 

373

 

382

 

696

 

32

%

3,194

 

1,886

 

Life and other insurance products

 

262

 

289

 

265

 

273

 

274

 

5

%

1,013

 

1,101

 

Institutional products and services

 

2,013

 

2,250

 

1,790

 

1,912

 

2,485

 

23

%

7,136

 

8,437

 

Other

 

597

 

755

 

948

 

826

 

1,518

 

 

#

3,405

 

4,047

 

Total

 

$

13,754

 

$

16,123

 

$

15,996

 

$

14,762

 

$

16,804

 

22

%

$

56,153

 

$

63,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By channel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor cash sales and wrap net flows

 

$

7,043

 

$

8,498

 

$

8,707

 

$

7,761

 

$

9,465

 

34

%

$

30,467

 

$

34,431

 

Securities America, Inc.

 

1,722

 

2,037

 

2,124

 

1,950

 

1,805

 

5

%

6,371

 

7,916

 

Third-party distribution

 

266

 

305

 

398

 

427

 

427

 

61

%

1,015

 

1,557

 

Institutional

 

1,613

 

2,442

 

1,647

 

1,568

 

2,060

 

28

%

6,695

 

7,717

 

Threadneedle

 

2,755

 

2,420

 

2,758

 

2,705

 

2,676

 

(3

)%

9,491

 

10,559

 

All other (AEB, etc.)

 

355

 

421

 

362

 

351

 

371

 

5

%

2,114

 

1,505

 

Total

 

$

13,754

 

$

16,123

 

$

15,996

 

$

14,762

 

$

16,804

 

22

%

$

56,153

 

$

63,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross dealer concession

 

$

469

 

$

527

 

$

545

 

$

545

 

$

596

 

27

%

$

1,879

 

$

2,213

 

 


#          Variance of 100% or greater.

 

5



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

 

 

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

December 31,

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,474

 

$

1,650

 

$

2,101

 

$

3,309

 

$

2,717

 

Investments

 

39,100

 

38,100

 

37,027

 

36,198

 

35,553

 

Receivables

 

2,172

 

2,382

 

2,441

 

2,504

 

2,960

 

Deferred acquisition costs

 

4,182

 

4,280

 

4,342

 

4,423

 

4,499

 

Separate account assets

 

41,561

 

45,220

 

45,751

 

48,834

 

53,848

 

Restricted and segregated cash

 

1,067

 

1,084

 

1,002

 

1,059

 

1,236

 

Other assets

 

2,565

 

3,105

 

3,385

 

3,177

 

3,359

 

Total assets

 

$

93,121

 

$

95,821

 

$

96,049

 

$

99,504

 

$

104,172

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

32,731

 

$

32,200

 

$

31,546

 

$

30,794

 

$

30,033

 

Customer deposits

 

6,641

 

6,100

 

5,711

 

6,391

 

6,525

 

Accounts payable and accrued expenses

 

1,757

 

1,823

 

2,097

 

1,952

 

1,984

 

Debt

 

1,833

 

1,921

 

2,419

 

2,254

 

2,225

 

Separate account liabilities

 

41,561

 

45,220

 

45,751

 

48,834

 

53,848

 

Other liabilities

 

911

 

1,216

 

1,290

 

1,526

 

1,632

 

Total liabilities

 

85,434

 

88,480

 

88,814

 

91,751

 

96,247

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

2

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

4,091

 

4,208

 

4,254

 

4,291

 

4,353

 

Retained earnings

 

3,745

 

3,862

 

3,976

 

4,123

 

4,268

 

Treasury stock

 

 

(290

)

(332

)

(438

)

(490

)

Accumulated other comprehensive income (loss), net of tax

 

(151

)

(442

)

(666

)

(226

)

(209

)

Total shareholders’ equity

 

7,687

 

7,341

 

7,235

 

7,753

 

7,925

 

Total liabilities and shareholders’ equity

 

$

93,121

 

$

95,821

 

$

96,049

 

$

99,504

 

$

104,172

 

 

6



 

Ameriprise Financial, Inc.

Investment Detail

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions unless otherwise noted, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

550

 

$

543

 

$

522

 

$

524

 

$

531

 

(3

)%

$

2,162

 

$

2,120

 

Realized gains (losses)

 

5

 

4

 

6

 

14

 

27

 

 

#

66

 

51

 

Income related to interest credited and benefits line hedges

 

11

 

1

 

(13

)

18

 

15

 

36

%

20

 

21

 

Other (including seed money)

 

8

 

26

 

7

 

(14

)

(7

)

 

#

(7

)

12

 

Total net investment income

 

$

574

 

$

574

 

$

522

 

$

542

 

$

566

 

(1

)%

$

2,241

 

$

2,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity by Legal Entity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

$

5,162

 

$

5,009

 

$

4,818

 

$

5,227

 

$

5,270

 

2

%

 

 

 

 

IDS Property Casualty Insurance Company

 

506

 

513

 

506

 

534

 

557

 

10

%

 

 

 

 

Ameriprise Certificate Company

 

276

 

225

 

199

 

234

 

230

 

(17

)%

 

 

 

 

Ameriprise Bank, FSB

 

 

 

 

172

 

169

 

 

 

 

 

 

Other

 

1,743

 

1,594

 

1,712

 

1,586

 

1,699

 

(3

)%

 

 

 

 

Total equity by legal entity

 

$

7,687

 

$

7,341

 

$

7,235

 

$

7,753

 

$

7,925

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage and Other Asset-Backed Securities
Portfolio Detail - Fair Value (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

6.5

 

$

6.2

 

$

6.0

 

$

5.7

 

$

5.4

 

(17

)%

 

 

 

 

Commercial mortgage backed securities

 

3.0

 

3.0

 

3.0

 

3.0

 

2.9

 

(3

)%

 

 

 

 

Asset backed securities

 

1.2

 

1.2

 

1.0

 

0.9

 

1.0

 

(17

)%

 

 

 

 

Total

 

$

10.7

 

$

10.4

 

$

10.0

 

$

9.6

 

$

9.3

 

(13

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

8.8

 

$

8.4

 

$

8.0

 

$

7.8

 

$

7.7

 

(13

)%

 

 

 

 

Commercial mortgage backed securities

 

3.5

 

3.5

 

3.4

 

3.4

 

3.4

 

(3

)%

 

 

 

 

Asset backed securities

 

1.6

 

1.5

 

1.4

 

1.3

 

1.2

 

(25

)%

 

 

 

 

Total

 

$

13.9

 

$

13.4

 

$

12.8

 

$

12.5

 

$

12.3

 

(12

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loans on Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans on real estate

 

$

3,190

 

$

3,147

 

$

3,129

 

$

3,111

 

$

3,096

 

(3

)%

 

 

 

 

Allowance for loan losses

 

(44

)

(41

)

(40

)

(40

)

(40

)

9

%

 

 

 

 

Mortgage loans on real estate, net

 

$

3,146

 

$

3,106

 

$

3,089

 

$

3,071

 

$

3,056

 

(3

)%

 

 

 

 

 


#          Variance of 100% or greater.

 

7



 

Ameriprise Financial, Inc.

Selected Balance Sheet Information

 

 

 

4Q 2005

 

1Q 2006

 

2Q 2006

 

3Q 2006

 

4Q 2006

 

(in billions, unaudited)

 

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

%

Fixed income

 

39.5

%

39.4

%

37.6

%

37.2

%

36.8

%

36.1

%

34.2

%

33.9

%

31.9

%

31.7

%

Separate accounts

 

47.8

%

47.8

%

50.4

%

50.8

%

50.8

%

51.4

%

52.4

%

52.6

%

55.2

%

55.4

%

Other

 

12.7

%

12.8

%

12.0

%

12.0

%

12.3

%

12.4

%

13.3

%

13.4

%

12.8

%

12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale (AFS) Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

18.6

 

$

18.6

 

$

18.5

 

$

18.1

 

$

18.1

 

$

17.5

 

$

17.5

 

$

17.3

 

$

17.0

 

$

16.8

 

Mortgage and other asset-backed securities

 

14.1

 

13.9

 

13.7

 

13.4

 

13.2

 

12.8

 

12.7

 

12.5

 

12.5

 

12.3

 

State and municipal obligations

 

0.9

 

0.9

 

0.9

 

0.9

 

1.0

 

1.0

 

1.0

 

1.1

 

1.0

 

1.1

 

U.S. government and agencies obligations

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

0.4

 

Foreign government bonds and obligations

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

Common and preferred stocks

 

 

 

 

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

0.1

 

Other debt

 

0.2

 

0.3

 

0.2

 

0.3

 

0.3

 

0.3

 

0.1

 

 

0.1

 

0.1

 

Total AFS investments

 

$

34.3

 

$

34.2

 

$

33.8

 

$

33.2

 

$

33.2

 

$

32.2

 

$

31.9

 

$

31.5

 

$

31.2

 

$

30.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

44

%

 

 

43

%

 

 

43

%

 

 

43

%

 

 

43

%

 

 

AA

 

7

%

 

 

8

%

 

 

8

%

 

 

8

%

 

 

9

%

 

 

A

 

19

%

 

 

19

%

 

 

18

%

 

 

18

%

 

 

17

%

 

 

BBB

 

23

%

 

 

23

%

 

 

24

%

 

 

24

%

 

 

24

%

 

 

Below investment grade

 

7

%

 

 

7

%

 

 

7

%

 

 

7

%

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SFAS 115 related mark-to-market amount in assets, pretax

 

$

(0.1

)

 

 

$

(0.6

)

 

 

$

(1.0

)

 

 

$

(0.4

)

 

 

$

(0.3

)

 

 

 

8



 

Ameriprise Financial, Inc.

Adjusted Segment Information

Excluding AMEX Assurance and Separation Costs

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions unless otherwise noted, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

1,343

 

$

1,422

 

$

1,493

 

$

1,423

 

$

1,590

 

18

%

$

5,350

 

$

5,928

 

Adjusted Protection

 

471

 

473

 

496

 

498

 

502

 

7

%

1,810

 

1,969

 

Corporate and Other and Eliminations

 

55

 

54

 

64

 

56

 

69

 

25

%

186

 

243

 

Total adjusted revenues

 

1,869

 

1,949

 

2,053

 

1,977

 

2,161

 

16

%

7,346

 

8,140

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

1,156

 

1,194

 

1,271

 

1,231

 

1,341

 

16

%

4,634

 

5,037

 

Adjusted Protection

 

393

 

399

 

404

 

347

 

396

 

1

%

1,439

 

1,546

 

Adjusted Corporate and Other and Eliminations

 

68

 

98

 

108

 

95

 

98

 

44

%

317

 

399

 

Total adjusted expenses

 

1,617

 

1,691

 

1,783

 

1,673

 

1,835

 

13

%

6,390

 

6,982

 

Pretax Segment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

187

 

228

 

222

 

192

 

249

 

33

%

716

 

891

 

Adjusted Protection

 

78

 

74

 

92

 

151

 

106

 

36

%

371

 

423

 

Adjusted Corporate and Other and Eliminations

 

(13

)

(44

)

(44

)

(39

)

(29

)

 

#

(131

)

(156

)

Total adjusted pretax segment income

 

$

252

 

$

258

 

$

270

 

$

304

 

$

326

 

29

%

$

956

 

$

1,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

3,864

 

$

3,851

 

$

3,767

 

$

3,910

 

$

3,811

 

(1

)%

$

3,864

 

$

3,811

 

Protection

 

2,162

 

2,173

 

2,234

 

2,246

 

2,261

 

5

%

2,162

 

2,261

 

Corporate and Other and Eliminations

 

1,812

 

1,759

 

1,900

 

1,823

 

2,062

 

14

%

1,812

 

2,062

 

Other comprehensive income

 

(151

)

(442

)

(666

)

(226

)

(209

)

(38

)%

(151

)

(209

)

Total shareholders’ equity

 

$

7,687

 

$

7,341

 

$

7,235

 

$

7,753

 

$

7,925

 

3

%

$

7,687

 

$

7,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Dealer Concession

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

371

 

$

423

 

$

443

 

$

446

 

$

487

 

31

%

$

1,494

 

$

1,799

 

Protection

 

53

 

52

 

52

 

51

 

54

 

2

%

205

 

209

 

Corporate and Other and Eliminations

 

45

 

52

 

50

 

48

 

55

 

22

%

180

 

205

 

Total gross dealer concession

 

$

469

 

$

527

 

$

545

 

$

545

 

$

596

 

27

%

$

1,879

 

$

2,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, Managed and Administered Assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

72.1

 

$

74.4

 

$

72.6

 

$

76.0

 

$

79.7

 

11

%

$

72.1

 

$

79.7

 

Protection

 

12.5

 

13.0

 

14.1

 

14.6

 

15.2

 

22

%

12.5

 

15.2

 

Corporate and Other and Eliminations

 

2.3

 

1.7

 

2.4

 

2.1

 

2.3

 

 

2.3

 

2.3

 

Total owned assets

 

86.9

 

89.1

 

89.1

 

92.7

 

97.2

 

12

%

86.9

 

97.2

 

Managed Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

264.0

 

276.2

 

276.1

 

283.4

 

299.8

 

14

%

264.0

 

299.8

 

Total managed assets

 

264.0

 

276.2

 

276.1

 

283.4

 

299.8

 

14

%

264.0

 

299.8

 

Administered Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

77.3

 

80.4

 

62.7

 

63.9

 

69.1

 

(11

)%

77.3

 

69.1

 

Total administered assets

 

77.3

 

80.4

 

62.7

 

63.9

 

69.1

 

(11

)%

77.3

 

69.1

 

Total owned, managed and administered assets

 

$

428.2

 

$

445.7

 

$

427.9

 

$

440.0

 

$

466.1

 

9

%

$

428.2

 

$

466.1

 

 


#          Variance of 100% or greater.

 

9



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Income Statements

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

592

 

$

646

 

$

654

 

$

657

 

$

749

 

27

%

$

2,316

 

$

2,706

 

Distribution fees

 

249

 

273

 

297

 

272

 

344

 

38

%

1,041

 

1,186

 

Net investment income

 

486

 

475

 

427

 

443

 

454

 

(7

)%

1,923

 

1,799

 

Other revenues

 

16

 

28

 

115

 

51

 

43

 

 

#

70

 

237

 

Total revenues

 

1,343

 

1,422

 

1,493

 

1,423

 

1,590

 

18

%

5,350

 

5,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

316

 

366

 

376

 

370

 

425

 

34

%

1,266

 

1,537

 

Interest credited to account values

 

297

 

288

 

271

 

281

 

279

 

(6

)%

1,164

 

1,119

 

Benefits, claims, losses and settlement expenses

 

21

 

4

 

12

 

3

 

22

 

5

%

52

 

41

 

Amortization of deferred acquisition costs

 

73

 

87

 

91

 

98

 

63

 

(14

)%

323

 

339

 

Interest and debt expense

 

 

3

 

5

 

4

 

3

 

 

 

15

 

Other expenses

 

449

 

446

 

516

 

475

 

549

 

22

%

1,829

 

1,986

 

Total expenses

 

1,156

 

1,194

 

1,271

 

1,231

 

1,341

 

16

%

4,634

 

5,037

 

Pretax segment income

 

$

187

 

$

228

 

$

222

 

$

192

 

$

249

 

33

%

$

716

 

$

891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

6

 

$

1

 

$

6

 

$

12

 

$

21

 

 

#

$

42

 

$

40

 

Contribution margin

 

52.8

%

53.7

%

55.9

%

54.0

%

54.3

%

 

 

53.6

%

54.5

%

Allocated equity

 

$

3,864

 

$

3,851

 

$

3,767

 

$

3,910

 

$

3,811

 

(1

)%

$

3,864

 

$

3,811

 

Return on allocated equity for pretax segment income

 

19.3

%

20.5

%

21.7

%

21.8

%

23.2

%

 

 

19.3

%

23.2

%

 


#          Variance of 100% or greater.

 

10



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Revenues by Product

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

$

290

 

$

293

 

$

296

 

$

294

 

$

347

 

20

%

$

1,217

 

$

1,230

 

Variable annuities

 

134

 

138

 

146

 

150

 

171

 

28

%

481

 

605

 

Fixed annuities

 

2

 

1

 

2

 

2

 

1

 

(50

)%

5

 

6

 

Brokerage, banking and other

 

166

 

214

 

210

 

211

 

230

 

39

%

613

 

865

 

Total management, financial advice and service fees

 

592

 

646

 

654

 

657

 

749

 

27

%

2,316

 

2,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

40

 

46

 

42

 

37

 

39

 

(3

)%

178

 

164

 

Variable annuities

 

8

 

10

 

10

 

10

 

8

 

 

35

 

38

 

Fixed annuities

 

2

 

3

 

3

 

2

 

2

 

 

10

 

10

 

Brokerage, banking and other

 

199

 

214

 

242

 

223

 

295

 

48

%

818

 

974

 

Total distribution fees

 

249

 

273

 

297

 

272

 

344

 

38

%

1,041

 

1,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

7

 

11

 

4

 

22

 

3

 

(57

)%

23

 

40

 

Variable annuities

 

86

 

71

 

68

 

67

 

63

 

(27

)%

343

 

269

 

Fixed annuities

 

293

 

304

 

278

 

267

 

288

 

(2

)%

1,211

 

1,137

 

Certificates

 

78

 

74

 

60

 

70

 

70

 

(10

)%

296

 

274

 

Brokerage, banking and other

 

22

 

15

 

17

 

17

 

30

 

36

%

50

 

79

 

Total net investment income

 

486

 

475

 

427

 

443

 

454

 

(7

)%

1,923

 

1,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

1

 

8

 

99

 

28

 

20

 

 

#

12

 

155

 

Variable annuities

 

5

 

10

 

11

 

12

 

14

 

 

#

26

 

47

 

Brokerage, banking and other

 

10

 

10

 

5

 

11

 

9

 

(10

)%

32

 

35

 

Total other revenues

 

16

 

28

 

115

 

51

 

43

 

 

#

70

 

237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

1,343

 

$

1,422

 

$

1,493

 

$

1,423

 

$

1,590

 

18

%

$

5,350

 

$

5,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

$

338

 

$

358

 

$

441

 

$

381

 

$

409

 

21

%

$

1,430

 

$

1,589

 

Variable annuities

 

233

 

229

 

235

 

239

 

256

 

10

%

885

 

959

 

Fixed annuities

 

297

 

308

 

283

 

271

 

291

 

(2

)%

1,226

 

1,153

 

Certificates

 

78

 

74

 

60

 

70

 

70

 

(10

)%

296

 

274

 

Brokerage, banking and other

 

397

 

453

 

474

 

462

 

564

 

42

%

1,513

 

1,953

 

Total revenues

 

$

1,343

 

$

1,422

 

$

1,493

 

$

1,423

 

$

1,590

 

18

%

$

5,350

 

$

5,928

 

 


#          Variance of 100% or greater.

 

11



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Retail Managed Assets Rollforwards

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in billions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

RiverSource Managed Mutual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

59.4

 

$

58.1

 

$

58.8

 

$

56.8

 

$

57.6

 

(3

)%

$

65.3

 

$

58.1

 

Sales

 

2.0

 

2.5

 

2.7

 

2.9

 

2.7

 

35

%

8.1

 

10.8

 

Redemptions

 

(4.2

)

(4.7

)

(3.7

)

(3.6

)

(4.2

)

 

(18.1

)

(16.2

)

Market appreciation (depreciation)

 

1.0

 

2.9

 

(0.9

)

1.6

 

3.4

 

 

#

3.1

 

7.0

 

Other

 

(0.1

)

 

(0.1

)

(0.1

)

 

 

#

(0.3

)

(0.2

)

Total ending assets

 

$

58.1

 

$

58.8

 

$

56.8

 

$

57.6

 

$

59.5

 

2

%

$

58.1

 

$

59.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of Ending Assets Subadvised by Others

 

11

%

13

%

12

%

12

%

13

%

 

 

11

%

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Managed Mutual Funds by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity mutual funds

 

$

38.0

 

$

39.1

 

$

37.2

 

$

37.4

 

$

39.0

 

3

%

$

38.0

 

$

39.0

 

Taxable fixed income mutual funds

 

8.4

 

8.1

 

7.9

 

8.1

 

8.0

 

(5

)%

8.4

 

8.0

 

Tax-exempt fixed income mutual funds

 

5.6

 

5.3

 

5.0

 

4.9

 

4.8

 

(14

)%

5.6

 

4.8

 

Money market mutual funds

 

3.5

 

3.6

 

3.9

 

4.3

 

4.5

 

29

%

3.5

 

4.5

 

Hybrid and other mutual funds

 

2.6

 

2.7

 

2.8

 

2.9

 

3.2

 

23

%

2.6

 

3.2

 

Total ending assets

 

$

58.1

 

$

58.8

 

$

56.8

 

$

57.6

 

$

59.5

 

2

%

$

58.1

 

$

59.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Mutual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

13.4

 

$

14.0

 

$

15.3

 

$

14.9

 

$

15.6

 

16

%

$

12.2

 

$

14.0

 

Sales

 

1.5

 

1.3

 

1.3

 

1.2

 

1.3

 

(13

)%

5.2

 

5.1

 

Redemptions

 

(1.3

)

(1.4

)

(1.6

)

(1.5

)

(1.9

)

(46

)%

(4.4

)

(6.4

)

Market appreciation (depreciation)

 

0.8

 

1.1

 

(0.8

)

0.6

 

0.9

 

13

%

2.4

 

1.8

 

Foreign currency translation

 

(0.2

)

0.1

 

0.7

 

0.4

 

0.7

 

 

#

(1.2

)

1.9

 

Other

 

(0.2

)

0.2

 

 

 

 

 

#

(0.2

)

0.2

 

Total ending assets

 

$

14.0

 

$

15.3

 

$

14.9

 

$

15.6

 

$

16.6

 

19

%

$

14.0

 

$

16.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Mutual Funds by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity mutual funds

 

$

10.4

 

$

11.5

 

$

11.0

 

$

11.5

 

$

12.2

 

17

%

$

10.4

 

$

12.2

 

Fixed income mutual funds

 

2.9

 

2.9

 

3.0

 

3.1

 

3.3

 

14

%

2.9

 

3.3

 

Money market mutual funds

 

0.2

 

0.3

 

0.3

 

0.3

 

0.3

 

50

%

0.2

 

0.3

 

Hybrid and other mutual funds

 

0.5

 

0.6

 

0.6

 

0.7

 

0.8

 

60

%

0.5

 

0.8

 

Total ending assets

 

$

14.0

 

$

15.3

 

$

14.9

 

$

15.6

 

$

16.6

 

19

%

$

14.0

 

$

16.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Collective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

11.3

 

$

11.2

 

$

10.8

 

$

10.6

 

$

10.7

 

(5

)%

$

12.1

 

$

11.2

 

Sales

 

0.3

 

0.4

 

0.5

 

0.3

 

0.3

 

 

1.6

 

1.5

 

Redemptions

 

(0.8

)

(1.2

)

(0.6

)

(0.6

)

(1.3

)

(63

)%

(3.4

)

(3.7

)

Market appreciation (depreciation)

 

0.2

 

0.4

 

 

0.2

 

0.3

 

50

%

0.5

 

0.9

 

Other

 

0.2

 

 

(0.1

)

0.2

 

0.1

 

(50

)%

0.4

 

0.2

 

Total ending assets

 

$

11.2

 

$

10.8

 

$

10.6

 

$

10.7

 

$

10.1

 

(10

)%

$

11.2

 

$

10.1

 

 


#          Variance of 100% or greater.

 

12



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment
Institutional Managed Assets Rollforwards

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in billions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

RiverSource Managed Institutional Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

27.3

 

$

27.2

 

$

27.5

 

$

27.3

 

$

26.9

 

(1

)%

$

30.8

 

$

27.2

 

Sales

 

1.0

 

1.4

 

0.6

 

0.9

 

1.8

 

80

%

3.8

 

4.7

 

Redemptions

 

(0.6

)

(0.8

)

(0.6

)

(1.7

)

(0.9

)

(50

)%

(7.3

)

(4.0

)

Market appreciation (depreciation)

 

0.1

 

0.1

 

(0.1

)

0.3

 

0.2

 

 

#

0.2

 

0.5

 

Other

 

(0.6

)

(0.4

)

(0.1

)

0.1

 

(0.1

)

83

%

(0.3

)

(0.5

)

Total ending assets

 

$

27.2

 

$

27.5

 

$

27.3

 

$

26.9

 

$

27.9

 

3

%

$

27.2

 

$

27.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Managed Institutional Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity ending assets

 

$

2.7

 

$

2.5

 

$

2.5

 

$

2.6

 

$

2.9

 

7

%

$

2.7

 

$

2.9

 

Fixed income ending assets

 

23.8

 

24.8

 

24.3

 

23.8

 

24.1

 

1

%

23.8

 

24.1

 

Money market ending assets

 

0.6

 

0.2

 

0.4

 

0.4

 

0.8

 

33

%

0.6

 

0.8

 

Other ending assets

 

0.1

 

 

0.1

 

0.1

 

0.1

 

 

0.1

 

0.1

 

Total ending assets

 

$

27.2

 

$

27.5

 

$

27.3

 

$

26.9

 

$

27.9

 

3

%

$

27.2

 

$

27.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Institutional Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

99.6

 

$

99.6

 

$

104.1

 

$

105.2

 

$

108.0

 

8

%

$

100.6

 

$

99.6

 

Sales

 

7.0

 

4.6

 

5.8

 

5.4

 

5.9

 

(16

)%

20.9

 

21.7

 

Redemptions

 

(7.9

)

(5.5

)

(6.8

)

(7.6

)

(7.9

)

 

(25.9

)

(27.8

)

Market appreciation (depreciation)

 

2.8

 

4.0

 

(3.3

)

1.6

 

3.0

 

7

%

11.1

 

5.3

 

Foreign currency translation

 

(1.4

)

0.7

 

4.4

 

2.8

 

5.0

 

 

#

(9.4

)

12.9

 

Other

 

(0.5

)

0.7

 

1.0

 

0.6

 

1.1

 

 

#

2.3

 

3.4

 

Total ending assets

 

$

99.6

 

$

104.1

 

$

105.2

 

$

108.0

 

$

115.1

 

16

%

$

99.6

 

$

115.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Institutional Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity ending assets

 

$

49.9

 

$

53.9

 

$

52.5

 

$

54.0

 

$

57.8

 

16

%

$

49.9

 

$

57.8

 

Fixed income ending assets

 

33.6

 

33.7

 

35.9

 

36.9

 

38.4

 

14

%

33.6

 

38.4

 

Money market ending assets

 

5.8

 

5.8

 

5.3

 

5.1

 

6.0

 

3

%

5.8

 

6.0

 

Other ending assets

 

10.3

 

10.7

 

11.5

 

12.0

 

12.9

 

25

%

10.3

 

12.9

 

Total ending assets

 

$

99.6

 

$

104.1

 

$

105.2

 

$

108.0

 

$

115.1

 

16

%

$

99.6

 

$

115.1

 

 


#          Variance of 100% or greater.

 

13



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment
Financial Advisor Managed Assets Rollforwards

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in billions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Ameriprise Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

47.0

 

$

49.7

 

$

54.9

 

$

56.7

 

$

59.9

 

27

%

$

37.3

 

$

49.7

 

Mutual fund net flows

 

1.3

 

1.9

 

1.9

 

1.2

 

1.3

 

 

6.0

 

6.3

 

Market appreciation (depreciation) and other

 

1.4

 

3.3

 

(0.1

)

2.0

 

4.7

 

 

#

6.4

 

9.9

 

Total ending assets

 

$

49.7

 

$

54.9

 

$

56.7

 

$

59.9

 

$

65.9

 

33

%

$

49.7

 

$

65.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market Funds as a % of Ending Assets

 

6.1

%

4.3

%

6.2

%

5.9

%

6.4

%

 

 

6.1

%

6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAI Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

6.7

 

$

8.0

 

$

9.1

 

$

9.8

 

$

10.2

 

52

%

$

5.1

 

$

8.0

 

Net flows

 

1.5

 

0.6

 

0.6

 

0.3

 

0.3

 

(80

)%

2.9

 

1.8

 

Market appreciation (depreciation) and other

 

(0.2

)

0.5

 

0.1

 

0.1

 

 

 

#

 

0.7

 

Total ending assets

 

$

8.0

 

$

9.1

 

$

9.8

 

$

10.2

 

$

10.5

 

31

%

$

8.0

 

$

10.5

 

 


#          Variance of 100% or greater.

 

14



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment
Owned Assets Related to Variable Products

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in billions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Variable Annuities (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

31.6

 

$

33.2

 

$

36.1

 

$

36.7

 

$

39.3

 

24

%

$

28.3

 

$

33.2

 

Deposits

 

1.7

 

2.1

 

2.5

 

2.4

 

2.6

 

53

%

6.2

 

9.6

 

Withdrawals and surrenders

 

(0.8

)

(1.0

)

(1.2

)

(1.0

)

(1.1

)

(38

)%

(3.3

)

(4.3

)

Net flows

 

0.9

 

1.1

 

1.3

 

1.4

 

1.5

 

67

%

2.9

 

5.3

 

Investment performance and interest credited

 

0.7

 

1.9

 

(0.8

)

1.1

 

2.5

 

 

#

2.0

 

4.7

 

Other

 

 

(0.1

)

0.1

 

0.1

 

0.2

 

 

 

0.3

 

Total ending balance - contract reserves

 

$

33.2

 

$

36.1

 

$

36.7

 

$

39.3

 

$

43.5

 

31

%

$

33.2

 

$

43.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Managed by RiverSource

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuity separate account assets

 

$

16.4

 

$

17.2

 

$

17.3

 

$

18.1

 

$

19.7

 

20

%

 

 

 

 

Variable universal life assets (2)

 

2.2

 

2.3

 

2.3

 

2.4

 

2.6

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Managed by Threadneedle

 

3.6

 

4.0

 

4.0

 

4.2

 

4.6

 

28

%

 

 

 

 

 


(1)     The fixed portion of the Variable annuities product is included in the Fixed annuities product account values on page 16.

(2)     Revenue associated with this product is included in the Protection segment.

 

#      Variance of 100% or greater.

 

15



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Net Investment Income and Spread Products

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains (losses)

 

$

6

 

$

1

 

$

6

 

$

12

 

$

21

 

 

#

$

42

 

$

40

 

Income related to interest credited and benefits line hedges

 

11

 

1

 

(13

)

18

 

15

 

36

%

20

 

21

 

Net investment income

 

$

486

 

$

475

 

$

427

 

$

443

 

$

454

 

(7

)%

$

1,923

 

$

1,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates (Excluding Discontinued Operations)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

6,392

 

$

5,649

 

$

5,180

 

$

4,863

 

$

4,608

 

(28

)%

$

5,831

 

$

5,649

 

Deposits

 

538

 

471

 

378

 

390

 

706

 

31

%

3,244

 

1,945

 

Withdrawals and surrenders

 

(1,337

)

(993

)

(738

)

(700

)

(653

)

51

%

(3,628

)

(3,084

)

Net flows

 

(799

)

(522

)

(360

)

(310

)

53

 

 

#

(384

)

(1,139

)

Interest credited

 

56

 

55

 

42

 

56

 

58

 

4

%

199

 

211

 

Other

 

 

(2

)

1

 

(1

)

1

 

 

3

 

(1

)

Total ending balance

 

$

5,649

 

$

5,180

 

$

4,863

 

$

4,608

 

$

4,720

 

(16

)%

$

5,649

 

$

4,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset earnings rate

 

4.83

%

4.89

%

4.93

%

4.92

%

4.90

%

 

 

4.67

%

4.91

%

Crediting rate

 

(3.34

)%

(3.48

)%

(3.66

)%

(3.92

)%

(4.15

)%

 

 

(2.99

)%

(3.79

)%

Spread (1)

 

1.49

%

1.41

%

1.27

%

1.00

%

0.75

%

 

 

1.68

%

1.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities Fixed Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

26,460

 

$

26,126

 

$

25,529

 

$

24,801

 

$

23,977

 

(9

)%

$

26,979

 

$

26,126

 

Deposits

 

207

 

237

 

221

 

232

 

183

 

(12

)%

1,148

 

873

 

Withdrawals and surrenders

 

(782

)

(1,060

)

(1,176

)

(1,238

)

(1,237

)

(58

)%

(2,989

)

(4,711

)

Net flows

 

(575

)

(823

)

(955

)

(1,006

)

(1,054

)

(83

)%

(1,841

)

(3,838

)

Policyholder interest credited

 

242

 

236

 

230

 

228

 

223

 

(8

)%

980

 

917

 

Other

 

(1

)

(10

)

(3

)

(46

)

(13

)

#

 

8

 

(72

)

Total ending balance

 

$

26,126

 

$

25,529

 

$

24,801

 

$

23,977

 

$

23,133

 

(11

)%

$

26,126

 

$

23,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Interest

 

$

1

 

$

3

 

$

2

 

$

3

 

$

2

 

 

#

$

15

 

$

10

 

Ending Balance Attributable to Variable Annuities Fixed Sub-Accounts

 

$

6,999

 

$

6,810

 

$

6,572

 

$

6,277

 

$

5,975

 

(15

)%

$

6,999

 

$

5,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset earnings rate

 

5.60

%

5.83

%

5.64

%

5.21

%

5.57

%

 

 

5.66

%

5.57

%

Crediting rate

 

(3.54

)%

(3.54

)%

(3.54

)%

(3.56

)%

(3.57

)%

 

 

(3.58

)%

(3.55

)%

Spread (2)

 

2.06

%

2.29

%

2.10

%

1.65

%

2.00

%

 

 

2.08

%

2.02

%

 


(1)      The investment income effect of options backing the Stock Market Certificate and the corresponding credited amounts to certificate holders has been excluded from these rates.

(2)      Attributable to interest sensitive products only, which has ranged between 87% to 89% of the total ending annuities fixed accounts balance in the periods reported.  The asset earnings rate is a calculated theoretical yield obtained from the assignment of investment income using the investment year method of allocation.

 

#       Variance of 100% or greater.

 

16



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Selected Asset Management Performance Information

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

 

 

2005

 

2006

 

2006

 

2006

 

2006

 

RiverSource Mutual Fund Performance (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

69

%

73

%

69

%

73

%

77

%

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income - 12 month

 

50

%

50

%

44

%

78

%

72

%

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Fixed Income - 12 month

 

80

%

78

%

67

%

78

%

67

%

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Fixed Income - 12 month

 

20

%

22

%

22

%

78

%

78

%

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 3 year

 

38

%

56

%

53

%

58

%

63

%

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income - 3 year

 

38

%

43

%

41

%

47

%

53

%

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Fixed Income - 3 year

 

67

%

80

%

63

%

75

%

75

%

 

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Fixed Income - 3 year

 

20

%

22

%

22

%

22

%

33

%

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Mutual Fund Performance (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

69

%

84

%

83

%

72

%

63

%

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income - 12 month

 

78

%

78

%

44

%

67

%

56

%

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 3 year

 

19

%

41

%

59

%

64

%

57

%

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income - 3 year

 

56

%

56

%

56

%

78

%

67

%

 


(1)              Percent of funds, equal weighted in top 2 Lipper quartiles.

(2)              Percent of funds, equal weighted in top 2 S&P quartiles.

 

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 current quarter end.  Refer to Exhibit A for RiverSource individual mutual fund performance rankings and other important disclosures.

 

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

 

17



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Deferred Acquisition Costs Rollforwards

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,641

 

$

1,719

 

$

1,809

 

$

1,887

 

$

1,926

 

17

%

$

1,446

 

$

1,719

 

Capitalization

 

105

 

112

 

113

 

119

 

121

 

15

%

385

 

465

 

Amortization

 

(40

)

(48

)

(56

)

(69

)

(34

)

15

%

(166

)

(207

)

Other (FAS 115)

 

13

 

26

 

21

 

(11

)

(9

)

 

#

54

 

27

 

Total ending balance

 

$

1,719

 

$

1,809

 

$

1,887

 

$

1,926

 

$

2,004

 

17

%

$

1,719

 

$

2,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

409

 

$

396

 

$

391

 

$

381

 

$

359

 

(12

)%

$

426

 

$

396

 

Capitalization

 

4

 

6

 

5

 

5

 

3

 

(25

)%

32

 

19

 

Amortization

 

(21

)

(21

)

(22

)

(17

)

(20

)

5

%

(78

)

(80

)

Other (FAS 115)

 

4

 

10

 

7

 

(10

)

1

 

(75

)%

16

 

8

 

Total ending balance

 

$

396

 

$

391

 

$

381

 

$

359

 

$

343

 

(13

)%

$

396

 

$

343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

106

 

$

109

 

$

95

 

$

88

 

$

80

 

(25

)%

$

166

 

$

109

 

Capitalization

 

4

 

5

 

5

 

4

 

4

 

 

19

 

18

 

Amortization

 

(12

)

(18

)

(13

)

(12

)

(9

)

25

%

(78

)

(52

)

Other (FAS 115)

 

11

 

(1

)

1

 

 

(1

)

 

#

2

 

(1

)

Total ending balance

 

$

109

 

$

95

 

$

88

 

$

80

 

$

74

 

(32

)%

$

109

 

$

74

 

 


#          Variance of 100% or greater.

 

18



 

Ameriprise Financial, Inc.

Protection Segment

Income Statements

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

18

 

$

19

 

$

19

 

$

20

 

$

22

 

22

%

$

67

 

$

80

 

Distribution fees

 

25

 

28

 

27

 

27

 

29

 

16

%

106

 

111

 

Net investment income

 

81

 

89

 

86

 

87

 

92

 

14

%

339

 

354

 

Premiums

 

234

 

226

 

234

 

249

 

246

 

5

%

1,001

 

955

 

Other revenues

 

113

 

111

 

130

 

115

 

113

 

 

435

 

469

 

Total revenues

 

471

 

473

 

496

 

498

 

502

 

7

%

1,948

 

1,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

23

 

23

 

22

 

22

 

21

 

(9

)%

115

 

88

 

Interest credited to account values

 

37

 

36

 

36

 

36

 

37

 

 

146

 

145

 

Benefits, claims, losses and settlement expenses

 

213

 

223

 

213

 

230

 

223

 

5

%

828

 

889

 

Amortization of deferred acquisition costs

 

39

 

41

 

62

 

(11

)

41

 

5

%

108

 

133

 

Other expenses

 

81

 

76

 

71

 

70

 

74

 

(9

)%

298

 

291

 

Total expenses

 

393

 

399

 

404

 

347

 

396

 

1

%

1,495

 

1,546

 

Pretax segment income

 

$

78

 

$

74

 

$

92

 

$

151

 

$

106

 

36

%

$

453

 

$

423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

(2

)

$

2

 

$

 

$

2

 

$

6

 

 

#

$

10

 

$

10

 

Contribution margin

 

42.0

%

40.4

%

45.4

%

42.2

%

44.0

%

 

 

44.1

%

43.0

%

Allocated equity

 

$

2,162

 

$

2,173

 

$

2,234

 

$

2,246

 

$

2,261

 

5

%

$

2,162

 

$

2,261

 

Return on allocated equity for pretax segment income

 

21.9

%

19.7

%

17.7

%

18.1

%

19.1

%

 

 

21.9

%

19.1

%

 


#           Variance of 100% or greater.

 

19



 

Ameriprise Financial, Inc.

Protection Segment

Adjusted Income Statements

Excluding AMEX Assurance

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

18

 

$

19

 

$

19

 

$

20

 

$

22

 

22

%

$

64

 

$

80

 

Distribution fees

 

25

 

28

 

27

 

27

 

29

 

16

%

106

 

111

 

Net investment income

 

81

 

89

 

86

 

87

 

92

 

14

%

330

 

354

 

Premiums

 

234

 

226

 

234

 

249

 

246

 

5

%

874

 

955

 

Other revenues

 

113

 

111

 

130

 

115

 

113

 

 

436

 

469

 

Total revenues

 

471

 

473

 

496

 

498

 

502

 

7

%

1,810

 

1,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

23

 

23

 

22

 

22

 

21

 

(9

)%

78

 

88

 

Interest credited to account values

 

37

 

36

 

36

 

36

 

37

 

 

146

 

145

 

Benefits, claims, losses and settlement expenses

 

213

 

223

 

213

 

230

 

223

 

5

%

840

 

889

 

Amortization of deferred acquisition costs

 

39

 

41

 

62

 

(11

)

41

 

5

%

91

 

133

 

Other expenses

 

81

 

76

 

71

 

70

 

74

 

(9

)%

284

 

291

 

Total expenses

 

393

 

399

 

404

 

347

 

396

 

1

%

1,439

 

1,546

 

Adjusted pretax segment income

 

$

78

 

$

74

 

$

92

 

$

151

 

$

106

 

36

%

$

371

 

$

423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net investment gains (losses), pretax

 

$

(2

)

$

2

 

$

 

$

2

 

$

6

 

 

#

$

10

 

$

10

 

Adjusted contribution margin

 

42.0

%

40.4

%

45.4

%

42.2

%

44.0

%

 

 

41.2

%

43.0

%

Allocated equity

 

$

2,162

 

$

2,173

 

$

2,234

 

$

2,246

 

$

2,261

 

5

%

$

2,162

 

$

2,261

 

Return on allocated equity for adjusted pretax segment income

 

17.9

%

17.7

%

17.3

%

18.1

%

19.1

%

 

 

17.9

%

19.1

%

 


#           Variance of 100% or greater.

 

20



 

Ameriprise Financial, Inc.

Protection Segment

Adjusted Revenues by Product

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

16

 

$

18

 

$

18

 

$

19

 

$

21

 

31

%

$

60

 

$

76

 

Auto and Home

 

1

 

1

 

1

 

1

 

 

 

#

3

 

3

 

Disability income, LTC and other

 

1

 

 

 

 

1

 

 

1

 

1

 

Adjusted management, financial advice and service fees

 

18

 

19

 

19

 

20

 

22

 

22

%

64

 

80

 

AMEX Assurance

 

 

 

 

 

 

 

3

 

 

Total management, financial advice and service fees

 

18

 

19

 

19

 

20

 

22

 

22

%

67

 

80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

17

 

18

 

19

 

18

 

18

 

6

%

70

 

73

 

Auto and Home

 

 

1

 

 

 

1

 

 

1

 

2

 

Disability income, LTC and other

 

8

 

9

 

8

 

9

 

10

 

25

%

35

 

36

 

Total distribution fees

 

25

 

28

 

27

 

27

 

29

 

16

%

106

 

111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

31

 

31

 

29

 

27

 

30

 

(3

)%

120

 

117

 

Traditional life

 

4

 

4

 

4

 

4

 

4

 

 

16

 

16

 

Auto and Home

 

9

 

10

 

10

 

14

 

11

 

22

%

29

 

45

 

Disability income, LTC and other

 

37

 

44

 

43

 

42

 

47

 

27

%

165

 

176

 

Adjusted net investment income

 

81

 

89

 

86

 

87

 

92

 

14

%

330

 

354

 

AMEX Assurance

 

 

 

 

 

 

 

9

 

 

Total net investment income

 

81

 

89

 

86

 

87

 

92

 

14

%

339

 

354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional life

 

22

 

18

 

18

 

19

 

18

 

(18

)%

75

 

73

 

Auto and Home(1)

 

136

 

133

 

139

 

140

 

147

 

8

%

504

 

559

 

Disability income, LTC and other

 

76

 

75

 

77

 

90

 

81

 

7

%

295

 

323

 

Adjusted premiums

 

234

 

226

 

234

 

249

 

246

 

5

%

874

 

955

 

AMEX Assurance

 

 

 

 

 

 

 

127

 

 

Total premiums

 

234

 

226

 

234

 

249

 

246

 

5

%

1,001

 

955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

110

 

111

 

132

 

111

 

114

 

4

%

435

 

468

 

Auto and Home

 

 

(1

)

 

1

 

 

 

(2

)

 

Disability income, LTC and other

 

3

 

1

 

(2

)

3

 

(1

)

 

#

3

 

1

 

Adjusted other revenues

 

113

 

111

 

130

 

115

 

113

 

 

436

 

469

 

AMEX Assurance

 

 

 

 

 

 

 

(1

)

 

Total other revenues

 

113

 

111

 

130

 

115

 

113

 

 

435

 

469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

471

 

$

473

 

$

496

 

$

498

 

$

502

 

7

%

$

1,948

 

$

1,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues by product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

174

 

$

178

 

$

198

 

$

175

 

$

183

 

5

%

$

685

 

$

734

 

Traditional life

 

26

 

22

 

22

 

23

 

22

 

(15

)%

91

 

89

 

Auto and Home

 

146

 

144

 

150

 

156

 

159

 

9

%

535

 

609

 

Disability income, LTC and other

 

125

 

129

 

126

 

144

 

138

 

10

%

499

 

537

 

Adjusted total revenues by product

 

471

 

473

 

496

 

498

 

502

 

7

%

1,810

 

1,969

 

AMEX Assurance

 

 

 

 

 

 

 

138

 

 

Total revenues by product

 

$

471

 

$

473

 

$

496

 

$

498

 

$

502

 

7

%

$

1,948

 

$

1,969

 

 


(1)      Includes intercompany E&O premiums which are eliminated in the Corporate and Other and Eliminations Segment.

#        Variance of 100% or greater.

 

21



 

Ameriprise Financial, Inc.

Protection Segment

Selected Statistical Information

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions unless otherwise noted, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL(1)

 

$

92

 

$

90

 

$

86

 

$

84

 

$

90

 

(2

)%

$

340

 

$

350

 

Term and whole life

 

5

 

5

 

5

 

4

 

6

 

20

%

20

 

20

 

Disability income

 

6

 

5

 

5

 

5

 

5

 

(17

)%

21

 

20

 

Brokered insurance and other

 

10

 

10

 

10

 

11

 

9

 

(10

)%

41

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lapse Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

5.0

%

5.7

%

5.6

%

6.1

%

5.8

%

 

 

5.2

%

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Face Amount Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

105,924

 

$

107,531

 

$

108,974

 

$

110,419

 

$

111,889

 

6

%

$

105,924

 

$

111,889

 

Term and whole life

 

52,163

 

54,346

 

56,517

 

58,293

 

60,278

 

16

%

52,163

 

60,278

 

Other (2)

 

1,931

 

1,906

 

1,882

 

1,867

 

1,855

 

(4

)%

1,931

 

1,855

 

Total face amount outstanding

 

$

160,018

 

$

163,783

 

$

167,373

 

$

170,579

 

$

174,022

 

9

%

$

160,018

 

$

174,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policyholder Reserves (net)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

7,327

 

$

7,708

 

$

7,653

 

$

7,882

 

$

8,334

 

14

%

$

7,327

 

$

8,334

 

Term and whole life

 

234

 

234

 

237

 

235

 

234

 

 

234

 

234

 

Disability income

 

356

 

368

 

374

 

381

 

386

 

8

%

356

 

386

 

Long term care and other

 

2,107

 

2,133

 

2,147

 

2,167

 

2,197

 

4

%

2,107

 

2,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

48,804

 

$

48,047

 

$

47,731

 

$

47,019

 

$

46,327

 

(5

)%

$

48,804

 

$

46,327

 

Term and whole life

 

15,616

 

15,449

 

15,435

 

15,091

 

15,039

 

(4

)%

15,616

 

15,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count (in thousands)

 

451

 

459

 

469

 

481

 

490

 

9

%

451

 

490

 

Loss ratio

 

82.6

%

82.8

%

74.4

%

82.8

%

76.1

%

 

 

82.4

%

79.0

%

Expense ratio

 

17.2

%

14.9

%

15.7

%

15.8

%

15.4

%

 

 

15.5

%

15.4

%

 


(1)      Includes lump sum deposits.

(2)      Includes only other life insurance.

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

 

#       Variance of 100% or greater.

 

22



 

Ameriprise Financial, Inc.

Protection Segment

Product Rollforwards

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Future Policy Benefits and Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

7,131

 

$

7,327

 

$

7,708

 

$

7,653

 

$

7,882

 

11

%

$

6,686

 

$

7,327

 

Premiums and deposits

 

259

 

266

 

264

 

263

 

278

 

7

%

1,003

 

1,071

 

Investment performance and interest credited

 

139

 

339

 

(98

)

183

 

407

 

 

#

447

 

831

 

Withdrawals and surrenders

 

(221

)

(242

)

(244

)

(237

)

(257

)

(16

)%

(865

)

(980

)

Other

 

19

 

18

 

23

 

20

 

24

 

26

%

56

 

85

 

Total ending balance

 

$

7,327

 

$

7,708

 

$

7,653

 

$

7,882

 

$

8,334

 

14

%

$

7,327

 

$

8,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Acquisition Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,350

 

$

1,371

 

$

1,397

 

$

1,422

 

$

1,492

 

11

%

$

1,239

 

$

1,371

 

Capitalization

 

34

 

34

 

31

 

30

 

31

 

(9

)%

130

 

126

 

Amortization

 

(16

)

(14

)

(10

)

38

 

(14

)

13

%

(8

)

 

Other (FAS 115)

 

3

 

6

 

4

 

2

 

(2

)

 

#

10

 

10

 

Total ending balance

 

$

1,371

 

$

1,397

 

$

1,422

 

$

1,492

 

$

1,507

 

10

%

$

1,371

 

$

1,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and Whole Life

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

100

 

$

101

 

$

102

 

$

104

 

$

105

 

5

%

$

92

 

$

101

 

Capitalization

 

6

 

6

 

6

 

6

 

7

 

17

%

25

 

25

 

Amortization

 

(6

)

(6

)

(4

)

(4

)

(3

)

50

%

(17

)

(17

)

Other

 

1

 

1

 

 

(1

)

 

 

#

1

 

 

Total ending balance

 

$

101

 

$

102

 

$

104

 

$

105

 

$

109

 

8

%

$

101

 

$

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disability Income, LTC and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

445

 

$

448

 

$

446

 

$

447

 

$

448

 

1

%

$

436

 

$

448

 

Capitalization

 

16

 

15

 

12

 

13

 

12

 

(25

)%

61

 

52

 

Amortization

 

(12

)

(16

)

(13

)

(11

)

(12

)

 

(47

)

(52

)

Other

 

(1

)

(1

)

2

 

(1

)

 

 

#

(2

)

 

Total ending balance

 

$

448

 

$

446

 

$

447

 

$

448

 

$

448

 

 

$

448

 

$

448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

37

 

$

38

 

$

40

 

$

13

 

$

13

 

(65

)%

$

32

 

$

38

 

Capitalization

 

6

 

7

 

8

 

12

 

12

 

 

#

25

 

39

 

Amortization

 

(5

)

(5

)

(35

)

(12

)

(12

)

 

#

(19

)

(64

)

Other

 

 

 

 

 

1

 

 

 

1

 

Total ending balance

 

$

38

 

$

40

 

$

13

 

$

13

 

$

14

 

(63

)%

$

38

 

$

14

 

 


#           Variance of 100% or greater.

 

23



 

Ameriprise Financial, Inc.

Corporate and Other and Eliminations Segment

Income Statements

 

 

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

4Q’06 vs.
4Q’05

 

YTD

 

YTD

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

% Change

 

2005

 

2006

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

41

 

$

45

 

$

48

 

$

43

 

$

43

 

5

%

$

195

 

$

179

 

Distribution fees

 

3

 

 

1

 

1

 

1

 

(67

)%

3

 

3

 

Net investment income (loss)

 

7

 

10

 

9

 

12

 

20

 

 

#

(21

)

51

 

Premiums(1)

 

(6

)

(6

)

(5

)

(5

)

(7

)

(17

)%

(22

)

(23

)

Other revenues

 

10

 

5

 

11

 

5

 

12

 

20

%

31

 

33

 

Total revenues

 

55

 

54

 

64

 

56

 

69

 

25

%

186

 

243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

35

 

34

 

38

 

36

 

32

 

(9

)%

134

 

140

 

Interest and debt expense

 

21

 

20

 

23

 

28

 

30

 

43

%

73

 

101

 

Other expenses

 

12

 

44

 

47

 

31

 

36

 

 

#

110

 

158

 

Total expenses before separation costs

 

68

 

98

 

108

 

95

 

98

 

44

%

317

 

399

 

Pretax segment loss before separation costs

 

(13

)

(44

)

(44

)

(39

)

(29

)

 

#

(131

)

(156

)

Separation costs, pretax

 

125

 

67

 

84

 

87

 

123

 

(2

)%

293

 

361

 

Pretax segment loss

 

$

(138

)

$

(111

)

$

(128

)

$

(126

)

$

(152

)

(10

)%

$

(424

)

$

(517

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

1

 

$

1

 

$

 

$

 

$

 

 

#

$

14

 

$

1

 

Allocated equity

 

1,812

 

1,759

 

1,900

 

1,823

 

2,062

 

14

%

1,812

 

2,062

 

 


(1)        Represents the elimination of intercompany E&O premiums recorded in the Protection segment.

 

#           Variance of 100% or greater.

 

24



 

Ameriprise Financial, Inc.

Capital and Ratings Information

 

 

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

December 31,

 

(in millions, unaudited)

 

2005

 

2006

 

2006

 

2006

 

2006

 

Balance Sheet Detail

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

1,500

 

$

1,500

 

$

1,500

 

$

1,500

 

$

1,500

 

Medium term notes

 

50

 

 

 

 

 

Junior subordinated notes (1)

 

 

 

500

 

500

 

500

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recourse debt

 

 

 

 

 

 

 

 

 

 

 

Debt of CDO

 

283

 

284

 

254

 

254

 

225

 

Debt of property fund limited partnerships

 

 

137

 

165

 

 

 

Subtotal non-recourse debt

 

283

 

421

 

419

 

254

 

225

 

Total debt

 

$

1,833

 

$

1,921

 

$

2,419

 

$

2,254

 

$

2,225

 

Total debt excluding non-recourse debt

 

$

1,550

 

$

1,500

 

$

2,000

 

$

2,000

 

$

2,000

 

Total debt excluding non-recourse debt and 75% equity credit (1)

 

$

1,550

 

$

1,500

 

$

1,625

 

$

1,625

 

$

1,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

2

 

$

3

 

$

3

 

$

3

 

$

3

 

Additional paid-in capital

 

4,091

 

4,208

 

4,254

 

4,291

 

4,353

 

Retained earnings

 

3,745

 

3,862

 

3,976

 

4,123

 

4,268

 

Treasury stock

 

 

(290

)

(332

)

(438

)

(490

)

Accumulated other comprehensive income (loss), net of tax

 

(151

)

(442

)

(666

)

(226

)

(209

)

Total shareholders’ equity

 

$

7,687

 

$

7,341

 

$

7,235

 

$

7,753

 

$

7,925

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital

 

$

9,520

 

$

9,262

 

$

9,654

 

$

10,007

 

$

10,150

 

Total capital excluding non-recourse debt

 

9,237

 

8,841

 

9,235

 

9,753

 

9,925

 

Junior subordinated notes 75% equity credit (1)

 

$

 

$

 

$

375

 

$

375

 

$

375

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

5.1

x

6.6

x

5.8

x

6.1

x

6.0

x

Ratio of earnings to fixed charges without non-recourse debt interest

 

5.1

x

7.8

x

7.0

x

7.0

x

6.5

x

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital

 

19.3

%

20.7

%

25.1

%

22.5

%

21.9

%

Debt to total capital excluding non-recourse debt

 

16.8

%

17.0

%

21.7

%

20.5

%

20.2

%

Debt to total capital excluding non-recourse debt and 75% equity credit

 

16.8

17.0

17.6

%

16.7

%

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Double Leverage

 

103.7

%

105.9

%

105.8

%

106.7

%

105.1

%

 

 

 

A.M. Best

 

S & P

 

Moody’s

 

Fitch

 

Financial Strength (as of 12/31/06)

 

 

 

 

 

 

 

 

 

Claims Paying Rating

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

A+

 

AA-

 

Aa3

 

AA-

 

IDS Property Casualty Ins. Company

 

A

 

NR

 

NR

 

NR

 

 

 

 

 

 

 

 

 

 

 

Debt Ratings

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

a-

 

A-

 

A3

 

A-

 

 


(1)        The Company’s junior subordinated notes receive an equity credit of at least 75% by the majority of rating agencies.

 

25



 

Ameriprise Financial, Inc.

 

Non-GAAP Financial Information

 

Ameriprise Financial, Inc. (the Company) follows accounting principles generally accepted in the United States (GAAP). This report includes information on both a GAAP and non-GAAP basis.

 

Certain non-GAAP measures in this report exclude items that are a direct result of the separation from American Express Company, which consist of discontinued operations, AMEX Assurance and non-recurring separation costs. These non-GAAP financial measures, which management views as important indicators of financial performance, include:

 

Consolidated income statements adjusted to exclude AMEX Assurance and separation costs;

Protection segment income statements adjusted to exclude AMEX Assurance;

Total expenses before separation costs;

Adjusted net investment gains (losses), pretax (adjusted to exclude AMEX Assurance);

Adjusted earnings (adjusted to exclude AMEX Assurance) and separation costs;

Adjusted contribution margin (adjusted to exclude AMEX Assurance);

Income before income tax provision, discontinued operations and separation costs;

Income tax provision before tax benefit attributable to separation costs;

Income before discontinued operations and separation costs;

Separation cost, after-tax;

Adjusted pretax segment income (adjusted to exclude AMEX Assurance);

Adjusted return on allocated equity (adjusted to exclude AMEX Assurance); and

Pretax segment loss before separation costs.

 

Management believes that the presentation of these non-GAAP financial measures excluding these specific income statement impacts better reflect the underlying performance of the Company’s ongoing operations and facilitates a more meaningful trend analysis. These non-GAAP measures are also used for goal setting, certain compensation related to the Company’s annual incentive award program and evaluating the Company’s performance on a basis comparable to that used by securities analysts.

 

The Company presents a debt to capital ratio excluding non-recourse debt of a CDO consolidated in accordance with FIN 46(R) and non-recourse debt of property fund limited partnerships managed by Threadneedle consolidated in accordance with EITF 04-5. Management believes that the debt to capital ratio excluding this non-recourse debt better represents the Company’s capital structure.

 

Reclassification

 

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

 

26



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Adjusted Contribution Margin - 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. Amounts exclude AMEX Assurance.

 

Adjusted Earnings - Income before discontinued operations, non-recurring separation costs and excluding AMEX Assurance.

 

Adjusted Net Investment Gains (Losses), Pretax - Represents the net investment gains (losses) adjusted to exclude AMEX Assurance.

 

Adjusted Return on Equity - Adjusted return on equity (“ROE”) is calculated using as the numerator adjusted earnings for the last twelve months and as the denominator a five point average of equity excluding both the assets and liabilities of discontinued operations and equity allocated to expected non-recurring separation costs as of the last day of the preceding four quarters and the current quarter.

 

Administered Assets - Administered assets include assets for which the Company provides administrative services such as assets of its clients invested in other companies’ products that the Company offers outside of its wrap accounts. These assets include those held in customers’ brokerage accounts. The Company does not exercise management discretion over these assets and does not earn a management fee. These assets are not reported on the Company’s Consolidated Balance Sheets.

 

Allocated Equity - The internal allocation of consolidated shareholders’ equity, excluding accumulated other comprehensive income (loss), 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.

 

AMEX Assurance Company - A legal entity owned by IDS Property Casualty Insurance Company that offers travel and other card insurance to American Express customers. This business had historically been reported in the Travel Related Services segment of American Express Company (American Express). Under the separation agreement with American Express, 100 percent of this business was ceded to an American Express subsidiary in return for an arm’s length ceding fee. Ameriprise Financial expects to sell the legal entity of AMEX Assurance to American Express within two years after September 30, 2005 for a fixed price equal to the net book value of AMEX Assurance.

 

Asset Accumulation and Income Segment - This segment offers products and services, both the Company’s and other companies’, to help the Company’s retail clients address identified financial objectives related to asset accumulation and income management. Products and services in this segment are related to asset management, brokerage and banking, and include mutual funds, wrap accounts, variable and fixed annuities, brokerage accounts and investment certificates. This operating segment also serves institutional clients by providing investment management services in separately managed accounts, sub-advisory, and alternative investments. The Company earns revenues in this segment primarily through fees it receives based on managed assets and annuity separate account assets. These fees are impacted by both market movements and net asset flows. The Company also earns net investment

income on owned assets, principally supporting the fixed annuity and certificate businesses and capital supporting the business, and distribution fees on sales of mutual funds and other products. This segment includes the results of SAFC, which through its operating subsidiary, Securities America, Inc. (“SAI”), operates its own separately branded distribution network.

 

Auto and Home Insurance - Personal auto and home protection products marketed directly to customers through marketing alliances such as with Costco Wholesale and Ford Motor Credit Company. The Company sells these products through its auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home).

 

Book Value per Share - Total shareholders’ equity divided by the number of common shares outstanding and nonforfeitable restricted stock rights vested at period-end.

 

Branded Advisor Clients - Individual, business, or institutional clients that receive investment advice and other services from an Ameriprise employee or franchisee-based financial advisor excluding Financial Service Center clients.

 

Cash Sales - Cash Sales is the dollar value volume indicator that captures gross new cash inflows which generate product revenue streams to Ameriprise. This includes primarily “client initiated” activity that results in an incremental increase in assets (owned, managed or administered) or premiums inforce (but doesn’t need to result in time of sale revenue), or activity that doesn’t increase assets or premiums inforce, but generates “fee revenue” (e.g. transaction related such as Financial Planning Fees).

 

Client Group - In general, a client group consists of accounts for an individual, spouse or domestic partner and any accounts owned for, by or with the individual's unmarried children under the age of 21.

 

Clients With a Financial Plan Percentage - The period-end number of current clients who have received a financial plan, or have entered into an agreement to receive and have paid for a financial plan, divided by the number of active retail client groups, serviced by branded employees, franchise advisors and the Company’s customer service organization.

 

Company - Ameriprise Financial, Inc. and consolidated subsidiaries. Effective August 1, 2005, the Company 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 the separation agreement with American Express. The assets, liabilities and results of operations of AEIDC are reported as discontinued operations.

 

Contribution Margin - 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.

 

Corporate and Other and Eliminations Segment - This segment consists of income derived from financial planning fees, investment income on corporate level assets including unallocated equity and unallocated corporate expenses. This segment also includes non-recurring costs associated with the Company’s separation from American Express. For purposes of presentation in the statistical supplement, this segment also includes eliminations.

 

27



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Debt to Capital Ratio - A ratio comprised of total debt divided by total capital. This ratio is also presented excluding non-recourse debt of a Collaterized Debt Obligation (“CDO”) consolidated in accordance with FIN 46(R) and non-recourse debt of property fund limited partnerships managed by Threadneedle consolidated in accordance with EITF 04-5. In addition, we provide debt to capital ratio information excluding, non-recourse debt  that reflects an equity credit on our junior subordinated notes we issued on May 26, 2006. These junior subordinated notes receive an equity credit of at least 75% by the majority of rating agencies.

 

Deferred Acquisition Costs and Amortization - Deferred acquisition costs (“DAC”) represents the costs of acquiring new protection, annuity and certain mutual fund business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life, disability income and long term care insurance and, to a lesser extent, deferred marketing and promotion expenses on auto and home insurance and deferred distribution costs on certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits.

 

Double Leverage - A ratio reflecting parent-company equity investments, including goodwill, in consolidated operating subsidiaries divided by total shareholders’ equity.

 

Effective Tax Rate on Adjusted Earnings - Represents the ratio of the adjusted income tax provision before tax benefit attributable to separation costs divided by adjusted income (excluding AMEX Assurance) before income tax provision, discontinued operations and separation costs.

 

Emerging Issues Task Force (“EITF”) Issue No. 04-5, “Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights” (“EITF 04-5”) - EITF 04-5 provides guidance on whether a partnership should be consolidated by one of its partners. The Company’s adoption of EITF 04-5 effective January 1, 2006 resulted in the consolidation of certain limited partnerships for which the Company is the general partner. As a result, the Company consolidates certain property fund limited partnerships managed by Threadneedle Investments and certain hedge funds managed by RiverSource Investments.

 

Financial Plans Sold - The number of financial plans that, during the period, have been paid for and have been or will be provided to a client based on an agreement, less financial plans sold in prior periods not delivered within 14 months.

 

Gross Dealer Concession - An internal measure, commonly used in the financial services industry, of the sales production of the advisor channel.

 

Life Insurance in-Force - The total amount of all life insurance death benefits currently insured by the Company.

 

Managed Assets - Managed assets includes client assets for which the Company provides investment management and other services, such as the assets of the RiverSource family of mutual funds, assets of institutional clients and assets held in its wrap accounts (retail accounts for which the Company receives a fee based on assets held in the account). Managed assets also include assets managed by sub-advisors selected by the Company. Managed assets do not include owned assets or administered assets. These assets are not reported on the Company’s Consolidated Balance Sheets.

 

Mass Affluent - Individuals with $100,000 to $1 million in investable assets.

 

Mass Affluent and Affluent Client Groups - Client groups with $100,000 or more in invested assets or comparable product values with the Company.

 

Net Flows - Sales less redemptions plus other. Other includes reinvested dividends.

 

Net Income Margin - A ratio representing net income as a percentage of total revenues.

 

Owned Assets - Owned assets include certain financial assets on the Company’s Consolidated Balance Sheet, principally investments in the general and separate accounts of its life insurance subsidiaries, as well as cash and cash equivalents, restricted and segregated cash and receivables.

 

Pretax Segment Income (Loss) - Segment income (loss) before income tax provision (benefit) and discontinued operations.

 

Protection Segment - This segment offers a variety of protection products, both the Company’s and other companies’, including life, disability income, long term care and auto and home insurance to address the identified protection and risk management needs of the Company’s retail clients. The Company earns revenues in this operating segment primarily through premiums, fees and charges that the Company receives to assume insurance-related risk, fees the Company receives on assets supporting variable universal life separate account balances, and net investment income on owned assets supporting insurance reserves and capital supporting the business.

 

Ratio of Earnings to Fixed Charges - A ratio comprised of earnings divided by fixed charges. Earnings are defined as income before income tax provision, discontinued operations and accounting change plus interest and debt expense, interest portion of rental expense, amortization of capitalized interest and adjustments related to equity investments and minority interests in consolidated entities. Fixed charges are defined as interest and debt expense, the interest portion of rental expense and capitalized interest. The ratio is also presented excluding the effect of interest on non-recourse debt of a Collaterized Debt Obligation consolidated in accordance with FIN 46(R) and the Threadneedle managed property fund limited partnerships consolidated in accordance with EITF 04-5.

 

Return on Allocated Equity for Pretax Segment Income or Adjusted Pretax Segment Income - Calculated using pretax segment income or adjusted pretax segment income for the last twelve months and the average allocated equity as of the last day of the trailing four quarters. Estimates of pretax segment income for the last quarter of 2004 were used in these calculations.

 

RiverSource Managed Assets - Managed client assets of RiverSource Investments, LLC, an SEC-registered investment adviser that offers investment products and services under the names RiverSource Institutional Advisors, RiverSource Alternative Investments, RiverSource Capital Management and RiverSource Insurance Assets.

 

28



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Securities America Financial Corporation - Securities America Financial Corporation (“SAFC”) is a corporation whose sole function is to hold the stock of its operating subsidiaries, Securities America, Inc. (“SAI”) and Securities America Advisors, Inc. (“SAA”). SAI is a registered broker-dealer and an insurance agency. SAA is an SEC registered investment advisor.

 

Separate Accounts - Represent assets and liabilities that are maintained and established primarily for the purpose of funding variable annuity and insurance products. The assets of the separate account are only available to fund the liabilities of the variable annuity contract holders and others with contracts requiring premiums or other deposits to the separate account. Clients elect to invest premiums in stock, bond and/or money market funds depending on their risk tolerance. All investment performance, net of fees, is passed through to the client.

 

Separation Costs- The Company has incurred significant non-recurring separation costs as a result of the separation from American Express. Separation costs generally consist of costs associated with separating and reestablishing the Company’s technology platforms, establishing the Ameriprise Financial brand and advisor and employee retention programs.

 

Separation Costs, After-Tax - For this non-GAAP presentation of non-recurring separation costs, after-tax is calculated in each quarter using the statutory tax rate of 35%, adjusted for permanent differences, if any.

 

Strategic Portfolio Services - Strategic Portfolio Services (“SPS”)  is a non-discretionary investment advisory wrap account program offering mutual funds, publicly traded securities and other financial account features. SPS provides execution of securities transactions for an asset-based fee, periodic portfolio reviews and ongoing investment advice.

 

Third Party Distribution - Distribution of RiverSource products, which include a variety of equity and fixed income mutual funds, annuities and insurance products, to retail clients through unaffiliated financial institutions and broker-dealers. The Third Party channel is separate from the Branded Advisor, Threadneedle, SAFC, and Institutional sales channels.

 

Total Clients - The sum of all clients, individual, business, and institutional, that receive investment management and/or other services, excluding those clients serviced by SAFC and Threadneedle.

 

Total Capital - Total shareholders’ equity plus total debt excluding non-recourse debt. Total capital is also presented excluding non-recourse debt.

 

Wrap Accounts - Wrap accounts enable the Company’s clients to purchase securities such as mutual funds in connection with investment advisory fee-based “wrap account” programs or services. The Company offers clients the opportunity to select proprietary and non-proprietary funds. The Company currently offers discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or an investment management subsidiary, RiverSource Investments, LLC chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in the Company’s wrap accounts generally pay an asset based fee based on the assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses including Rule 12b-1 fees.

 

29



 

EXHIBIT A

 

 

RiverSourceSM Mutual Fund Performance and Lipper Ranking

 



 

Equity Fund Performance & Lipper Ranking

As of December 31, 2006

Source of Data:  Lipper

 

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/funds.

 

 

 

Total Net

 

Total Net

 

Rankings and Annualized Returns at NAV

 

 

 

Assets

 

Assets

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

615.90

 

12/29/2006

 

34.25

 

31

%

30.85

 

34

%

25.01

 

68

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

67 / 220

 

 

 

61 / 179

 

 

 

101 / 148

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

7,530.40

 

12/29/2006

 

19.66

 

35

%

17.04

 

3

%

13.17

 

7

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

81 / 237

 

 

 

4 / 188

 

 

 

8 / 127

 

RiverSourceSM Dividend Opportunity Fund

 

1,633.70

 

12/29/2006

 

23.25

 

8

%

14.61

 

13

%

6.63

 

83

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

17 / 237

 

 

 

23 / 188

 

 

 

105 / 127

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

124.10

 

12/29/2006

 

32.83

 

54

%

18.30

 

80

%

11.35

 

83

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

53 / 98

 

 

 

74 / 92

 

 

 

67 / 80

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

1,618.80

 

12/29/2006

 

16.15

 

13

%

12.10

 

15

%

8.08

 

24

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

16 / 128

 

 

 

15 / 100

 

 

 

19 / 81

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

766.50

 

12/29/2006

 

19.15

 

24

%

17.87

 

6

%

9.45

 

23

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

17 / 72

 

 

 

3 / 50

 

 

 

9 / 39

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund

 

118.00

 

12/29/2006

 

35.41

 

36

%

13.33

 

72

%

30.15

 

70

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

19 / 53

 

 

 

36 / 49

 

 

 

27 / 38

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

681.90

 

12/29/2006

 

23.76

 

61

%

17.81

 

57

%

10.84

 

82

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

124 / 203

 

 

 

110 / 193

 

 

 

134 / 164

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined International Equity Fund

 

87.10

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund *

 

534.60

 

12/29/2006

 

26.22

 

20

%

21.51

 

12

%

15.25

 

23

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

36 / 184

 

 

 

16 / 143

 

 

 

26 / 116

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund *

 

208.60

 

12/29/2006

 

23.02

 

78

%

18.14

 

82

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

84 / 108

 

 

 

73 / 89

 

 

 

 

 

RiverSourceSM International Select Value Fund *

 

2,226.60

 

12/29/2006

 

28.31

 

30

%

23.99

 

14

%

19.21

 

22

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

32 / 108

 

 

 

12 / 89

 

 

 

14 / 64

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund *

 

105.10

 

12/29/2006

 

22.70

 

72

%

18.37

 

85

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

36 / 49

 

 

 

38 / 44

 

 

 

 

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

7,343.60

 

12/29/2006

 

14.95

 

37

%

8.66

 

58

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

294 / 814

 

 

 

390 / 682

 

 

 

 

 

RiverSourceSM Fundamental Growth Fund *

 

271.60

 

12/29/2006

 

5.99

 

97

%

3.49

 

99

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

786 / 814

 

 

 

675 / 682

 

 

 

 

 

RiverSourceSM Disciplined Equity Fund

 

2,181.40

 

12/29/2006

 

16.47

 

17

%

10.79

 

17

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

132 / 814

 

 

 

113 / 682

 

 

 

 

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

3,557.00

 

12/29/2006

 

10.91

 

8

%

9.27

 

10

%

3.64

 

21

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

56 / 723

 

 

 

59 / 616

 

 

 

104 / 505

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

1,272.30

 

12/29/2006

 

20.27

 

20

%

15.56

 

4

%

8.61

 

30

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

99 / 496

 

 

 

13 / 425

 

 

 

92 / 307

 

RiverSourceSM Large Cap Value Fund

 

102.50

 

12/29/2006

 

19.15

 

37

%

11.42

 

61

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

180 / 496

 

 

 

256 / 425

 

 

 

 

 

RiverSourceSM Value Fund *

 

403.10

 

12/29/2006

 

17.65

 

56

%

10.60

 

75

%

7.52

 

56

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

275 / 496

 

 

 

319 / 425

 

 

 

171 / 307

 

Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small and Mid-Cap Equity Fund

 

31.00

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

1,237.60

 

12/29/2006

 

-0.23

 

99

%

6.27

 

92

%

4.94

 

64

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

614 / 621

 

 

 

446 / 489

 

 

 

247 / 385

 

RiverSourceSM Aggressive Growth Fund *

 

564.50

 

12/29/2006

 

7.61

 

55

%

9.84

 

58

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

341 / 621

 

 

 

282 / 489

 

 

 

 

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

2,058.60

 

12/29/2006

 

17.00

 

32

%

19.11

 

5

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

94 / 297

 

 

 

10 / 222

 

 

 

 

 

 

A1



 

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/funds.

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking

 

Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

10.06

 

51

%

11/13/1996

 

10.19

 

11/14/1996

 

48

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

37 / 72

 

 

 

 

 

 

 

32 / 66

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

10.63

 

15

%

10/15/1990

 

13.21

 

10/18/1990

 

34

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

12 / 80

 

 

 

 

 

 

 

9 / 26

 

RiverSourceSM Dividend Opportunity Fund

 

7.90

 

72

%

8/1/1988

 

10.20

 

8/4/1988

 

72

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

58 / 80

 

 

 

 

 

 

 

15 / 20

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

 

 

 

 

6/26/2000

 

3.09

 

6/26/2000

 

85

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

51 / 59

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

6.46

 

77

%

1/23/1985

 

11.20

 

1/24/1985

 

34

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

32 / 41

 

 

 

 

 

 

 

2 / 5

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

5.65

 

64

%

5/29/1990

 

6.40

 

5/31/1990

 

75

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

12 / 18

 

 

 

 

 

 

 

3 / 3

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund

 

5.14

 

76

%

4/22/1985

 

8.33

 

4/25/1985

 

37

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

19 / 24

 

 

 

 

 

 

 

4 / 10

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

4.13

 

94

%

11/15/1984

 

9.08

 

11/15/1984

 

80

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

70 / 74

 

 

 

 

 

 

 

4 / 4

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined International Equity Fund

 

 

 

 

 

5/18/2006

 

14.49

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund *

 

 

 

 

 

9/28/2001

 

16.02

 

9/28/2001

 

32

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

36 / 114

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund *

 

 

 

 

 

10/3/2002

 

21.38

 

10/3/2002

 

90

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

67 / 74

 

RiverSourceSM International Select Value Fund *

 

 

 

 

 

9/28/2001

 

19.31

 

9/28/2001

 

28

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

18 / 64

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund *

 

 

 

 

 

10/3/2002

 

26.09

 

10/3/2002

 

66

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

25 / 37

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

 

 

 

 

3/28/2002

 

5.51

 

3/28/2002

 

40

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

238 / 594

 

RiverSourceSM Fundamental Growth Fund *

 

 

 

 

 

4/24/2003

 

7.68

 

4/24/2003

 

98

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

635 / 649

 

RiverSourceSM Disciplined Equity Fund

 

 

 

 

 

4/24/2003

 

15.17

 

4/24/2003

 

20

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

125 / 649

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

3.21

 

87

%

3/1/1972

 

11.92

 

3/2/1972

 

26

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

161 / 186

 

 

 

 

 

 

 

7 / 26

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

8.07

 

60

%

3/20/1995

 

10.40

 

3/23/1995

 

64

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

82 / 136

 

 

 

 

 

 

 

66 / 103

 

RiverSourceSM Large Cap Value Fund

 

 

 

 

 

6/27/2002

 

10.85

 

6/27/2002

 

53

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

180 / 344

 

RiverSourceSM Value Fund *

 

 

 

 

 

6/18/2001

 

6.30

 

6/18/2001

 

51

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

142 / 282

 

Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small and Mid-Cap Equity Fund

 

 

 

 

 

5/18/2006

 

4.73

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

8.06

 

49

%

6/4/1957

 

 

^

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

74 / 153

 

 

 

 

 

 

 

 

 

RiverSourceSM Aggressive Growth Fund *

 

 

 

 

 

4/24/2003

 

17.57

 

4/24/2003

 

37

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

167 / 456

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

 

 

 

 

2/14/2002

 

16.16

 

2/14/2002

 

11

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

19 / 174

 

 

A2



 

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/funds.

 

 

 

Annualized Returns @ POP

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

5.75

 

26.53

 

28.29

 

23.54

 

9.41

 

9.55

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

5.75

 

12.78

 

14.75

 

11.83

 

9.98

 

12.80

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Dividend Opportunity Fund

 

5.75

 

16.16

 

12.37

 

5.38

 

7.26

 

9.84

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

5.75

 

25.19

 

15.99

 

10.04

 

 

 

2.15

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

5.75

 

9.47

 

9.91

 

6.80

 

5.83

 

10.90

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

5.75

 

12.30

 

15.57

 

8.16

 

5.02

 

6.02

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals Fund

 

5.75

 

27.62

 

11.11

 

28.62

 

4.52

 

8.04

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

5.75

 

16.64

 

15.51

 

9.53

 

3.52

 

8.79

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined International Equity Fund

 

5.75

 

 

 

 

 

 

 

 

 

7.90

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund *

 

5.75

 

18.97

 

19.13

 

13.89

 

 

 

14.72

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund *

 

5.75

 

15.95

 

15.83

 

 

 

 

 

19.69

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Select Value Fund *

 

5.75

 

20.93

 

21.57

 

17.81

 

 

 

17.97

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund *

 

5.75

 

15.64

 

16.06

 

 

 

 

 

24.34

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

5.75

 

8.34

 

6.53

 

 

 

 

 

4.21

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Growth Fund *

 

5.75

 

-0.11

 

1.46

 

 

 

 

 

5.97

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Equity Fund

 

5.75

 

9.77

 

8.63

 

 

 

 

 

13.33

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

5.75

 

4.53

 

7.13

 

2.42

 

2.61

 

11.73

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

5.75

 

13.36

 

13.30

 

7.33

 

7.43

 

9.85

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Value Fund

 

5.75

 

12.30

 

9.24

 

 

 

 

 

9.41

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Value Fund *

 

5.75

 

10.89

 

8.44

 

6.25

 

 

 

5.17

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small and Mid-Cap Equity Fund

 

5.75

 

 

 

 

 

 

 

 

 

-1.29

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

5.75

 

-5.96

 

4.19

 

3.70

 

7.43

 

 

^

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Aggressive Growth Fund *

 

5.75

 

1.42

 

7.70

 

 

 

 

 

15.70

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

5.75

 

10.27

 

16.78

 

 

 

 

 

14.76

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A3



 

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/funds.

 

 

 

Total Net

 

Total Net

 

Rankings and Annualized Returns at NAV

 

 

 

Assets

 

Assets

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Mixed-Asset Target 2010 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2010 Fund **

 

14.30

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2020 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2015 Fund **

 

13.60

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2020 Fund **

 

21.00

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2030 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2025 Fund **

 

16.10

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2030 Fund **

 

18.60

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2040 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2035 Fund **

 

11.20

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2040 Fund **

 

20.90

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2045 Fund **

 

4.70

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

124.60

 

12/29/2006

 

6.39

 

61

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

208 / 341

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

279.60

 

12/29/2006

 

9.00

 

17

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

57 / 341

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

1,003.70

 

12/29/2006

 

12.76

 

32

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

188 / 591

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Moderate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

1,137.80

 

12/29/2006

 

14.97

 

11

%

9.19

 

22

%

5.66

 

63

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

46 / 425

 

 

 

66 / 306

 

 

 

137 / 219

 

RiverSourceSM Portfolio Builder Moderate Fund

 

795.10

 

12/29/2006

 

11.24

 

43

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

180 / 425

 

 

 

 

 

 

 

 

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund *

 

1,169.90

 

12/29/2006

 

14.45

 

38

%

11.45

 

33

%

8.10

 

31

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

340 / 916

 

 

 

210 / 648

 

 

 

143 / 469

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

498.10

 

12/29/2006

 

14.72

 

34

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

310 / 916

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

451.30

 

12/29/2006

 

16.59

 

15

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

131 / 916

 

 

 

 

 

 

 

 

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund *

 

582.90

 

12/29/2006

 

18.32

 

43

%

10.98

 

77

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

190 / 444

 

 

 

263 / 341

 

 

 

 

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

255.80

 

12/29/2006

 

35.29

 

42

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

104 / 252

 

 

 

 

 

 

 

 

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund ***

 

256.60

 

12/29/2006

 

15.21

 

 

 

9.77

 

 

 

5.53

 

 

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

173.70

 

12/29/2006

 

20.00

 

8

%

11.25

 

10

%

6.61

 

8

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

23 / 291

 

 

 

26 / 262

 

 

 

17 / 238

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Equity Fund *

 

329.80

 

12/29/2006

 

9.87

 

87

%

12.28

 

68

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

607 / 703

 

 

 

367 / 543

 

 

 

 

 

RiverSourceSM Small Cap Value Fund *

 

978.80

 

12/29/2006

 

16.84

 

31

%

13.88

 

39

%

12.01

 

43

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

213 / 703

 

 

 

208 / 543

 

 

 

182 / 426

 

RiverSourceSM Small Cap Advantage Fund

 

639.80

 

12/29/2006

 

11.86

 

76

%

11.62

 

76

%

11.21

 

57

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

535 / 703

 

 

 

411 / 543

 

 

 

242 / 426

 

RiverSourceSM Small Company Index Fund

 

1,079.20

 

12/29/2006

 

14.29

 

55

%

14.02

 

37

%

11.54

 

51

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

384 / 703

 

 

 

199 / 543

 

 

 

217 / 426

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund *

 

218.30

 

12/29/2006

 

9.02

 

59

%

6.12

 

83

%

1.90

 

85

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

325 / 558

 

 

 

380 / 457

 

 

 

316 / 375

 

Small Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small Cap Value Fund **

 

21.30

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A4



 

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/funds.

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking

 

Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Mixed-Asset Target 2010 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2010 Fund **

 

 

 

 

 

5/18/2006

 

11.21

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2020 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2015 Fund **

 

 

 

 

 

5/18/2006

 

12.76

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2020 Fund **

 

 

 

 

 

5/18/2006

 

13.16

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2030 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2025 Fund **

 

 

 

 

 

5/18/2006

 

13.06

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2030 Fund **

 

 

 

 

 

5/18/2006

 

13.57

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2040 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2035 Fund **

 

 

 

 

 

5/18/2006

 

12.69

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2040 Fund **

 

 

 

 

 

5/18/2006

 

13.29

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2045 Fund **

 

 

 

 

 

5/18/2006

 

13.16

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

 

 

 

 

3/4/2004

 

4.85

 

3/4/2004

 

51

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

108 / 214

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

 

 

 

 

3/4/2004

 

6.72

 

3/4/2004

 

10

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

21 / 214

 

Mixed-Asset Target Allocation Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

 

 

 

 

3/4/2004

 

9.49

 

3/4/2004

 

21

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

103 / 492

 

Mixed-Asset Target Allocation Moderate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

3.62

 

92

%

4/16/1940

 

 

^

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

99 / 107

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Fund

 

 

 

 

 

3/4/2004

 

8.47

 

3/4/2004

 

23

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

73 / 319

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund *

 

 

 

 

 

6/18/2001

 

6.73

 

6/18/2001

 

31

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

131 / 428

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

 

 

 

 

3/4/2004

 

10.70

 

3/4/2004

 

29

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

194 / 676

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

 

 

 

 

3/4/2004

 

11.96

 

3/4/2004

 

13

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

87 / 676

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund *

 

 

 

 

 

3/8/2002

 

10.42

 

3/8/2002

 

15

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

39 / 268

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

 

 

 

 

3/4/2004

 

26.43

 

3/4/2004

 

22

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

44 / 203

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund ***

 

 

 

 

 

10/25/1999

 

2.23

 

10/28/1999

 

 

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

6.19

 

60

%

11/13/1996

 

5.97

 

11/14/1996

 

62

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

25 / 41

 

 

 

 

 

 

 

26 / 41

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Equity Fund *

 

 

 

 

 

3/8/2002

 

9.22

 

3/8/2002

 

77

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

338 / 440

 

RiverSourceSM Small Cap Value Fund *

 

 

 

 

 

6/18/2001

 

12.80

 

6/18/2001

 

26

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

98 / 381

 

RiverSourceSM Small Cap Advantage Fund

 

 

 

 

 

5/4/1999

 

8.56

 

5/6/1999

 

87

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

227 / 260

 

RiverSourceSM Small Company Index Fund

 

10.41

 

59

%

8/19/1996

 

10.98

 

8/22/1996

 

62

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

73 / 124

 

 

 

 

 

 

 

65 / 104

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund *

 

 

 

 

 

1/24/2001

 

0.28

 

1/24/2001

 

72

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

243 / 338

 

Small Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small Cap Value Fund **

 

 

 

 

 

2/16/2006

 

7.87

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A5



 

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/funds.

 

 

 

Annualized Returns @ POP

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Mixed-Asset Target 2010 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2010 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

4.82

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2020 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2015 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

6.28

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2020 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

6.65

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2030 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2025 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

6.56

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2030 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

7.04

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2040 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2035 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

6.21

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2040 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

6.78

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2045 Fund **

 

5.75

 

 

 

 

 

 

 

 

 

6.66

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

4.75

 

1.33

 

 

 

 

 

 

 

3.05

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

4.75

 

3.82

 

 

 

 

 

 

 

4.89

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

5.75

 

6.28

 

 

 

 

 

 

 

7.21

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Moderate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

5.75

 

8.36

 

7.05

 

4.42

 

3.00

 

 

^

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Fund

 

5.75

 

4.85

 

 

 

 

 

 

 

6.22

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund *

 

5.75

 

7.87

 

9.27

 

6.83

 

 

 

5.59

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

5.75

 

8.13

 

 

 

 

 

 

 

8.40

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

5.75

 

9.88

 

 

 

 

 

 

 

9.64

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund *

 

5.75

 

11.52

 

8.81

 

 

 

 

 

9.07

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

5.75

 

27.51

 

 

 

 

 

 

 

23.80

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund ***

 

 

15.21

 

9.77

 

5.53

 

 

 

2.23

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

5.75

 

13.10

 

9.08

 

5.35

 

5.57

 

5.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Equity Fund *

 

5.75

 

3.55

 

10.09

 

 

 

 

 

7.89

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Value Fund *

 

5.75

 

10.12

 

11.66

 

10.69

 

 

 

11.60

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Advantage Fund

 

5.75

 

5.43

 

9.44

 

9.90

 

 

 

7.73

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Company Index Fund

 

5.75

 

7.72

 

11.79

 

10.23

 

9.76

 

10.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund *

 

5.75

 

2.76

 

4.04

 

0.70

 

 

 

-0.72

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small Cap Value Fund **

 

5.75

 

 

 

 

 

 

 

 

 

1.66

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

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

**    Since inception returns are cumulative.

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

 

A6



 

Fixed Income Fund Performance & Lipper Ranking

As of December 31, 2006

Source of Data:  Lipper

 

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/funds.

 

 

 

Total Net

 

Total Net

 

Rankings and Annualized Returns at NAV

 

 

 

Assets

 

Assets

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Emerging Markets Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Bond Fund **

 

53.20

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Market Neutral Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Absolute Return Currency & Income Fund **

 

84.10

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

488.20

 

12/29/2006

 

6.87

 

22

%

3.63

 

48

%

7.53

 

39

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

23 / 104

 

 

 

45 / 94

 

 

 

31 / 79

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

2,001.90

 

12/29/2006

 

10.77

 

32

%

8.92

 

14

%

8.60

 

51

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

144 / 457

 

 

 

53 / 388

 

 

 

161 / 315

 

RiverSourceSM Income Opportunities Fund

 

349.10

 

12/29/2006

 

8.49

 

84

%

7.48

 

46

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

382 / 457

 

 

 

177 / 388

 

 

 

 

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

211.30

 

12/29/2006

 

3.78

 

62

%

3.13

 

60

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

298 / 486

 

 

 

248 / 419

 

 

 

 

 

RiverSourceSM Diversified Bond Fund

 

2,770.60

 

12/29/2006

 

5.39

 

7

%

3.95

 

14

%

4.42

 

57

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

34 / 486

 

 

 

57 / 419

 

 

 

202 / 357

 

Loan Participation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Floating Rate Fund **

 

504.40

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Basic Income Fund **

 

145.60

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Moderate Income Fund **

 

332.90

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Enhanced Income Fund **

 

207.20

 

12/29/2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

152.20

 

12/29/2006

 

4.10

 

27

%

2.95

 

20

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

40 / 150

 

 

 

26 / 133

 

 

 

 

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

877.50

 

12/29/2006

 

3.96

 

39

%

2.03

 

52

%

2.60

 

48

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

32 / 82

 

 

 

40 / 76

 

 

 

32 / 67

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

294.50

 

12/29/2006

 

0.00

 

45

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

52 / 117

 

 

 

 

 

 

 

 

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

260.30

 

12/29/2006

 

4.36

 

57

%

3.54

 

45

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

45 / 78

 

 

 

34 / 76

 

 

 

 

 

Tax-Exempt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

176.10

 

12/29/2006

 

4.67

 

43

%

4.31

 

48

%

4.86

 

58

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

50 / 116

 

 

 

53 / 111

 

 

 

55 / 95

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

3,134.80

 

12/29/2006

 

4.48

 

48

%

3.66

 

54

%

4.77

 

54

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

123 / 257

 

 

 

135 / 250

 

 

 

121 / 227

 

RiverSourceSM Tax-Exempt Bond Fund

 

820.90

 

12/29/2006

 

4.29

 

56

%

3.63

 

55

%

4.52

 

65

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

144 / 257

 

 

 

138 / 250

 

 

 

147 / 227

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

91.00

 

12/29/2006

 

3.79

 

35

%

2.69

 

45

%

4.06

 

55

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

55 / 160

 

 

 

63 / 139

 

 

 

59 / 108

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

56.70

 

12/29/2006

 

3.94

 

52

%

3.35

 

53

%

4.13

 

86

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

27 / 51

 

 

 

27 / 50

 

 

 

43 / 49

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

47.30

 

12/29/2006

 

4.11

 

40

%

3.57

 

50

%

4.59

 

54

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

12 / 29

 

 

 

15 / 29

 

 

 

16 / 29

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

341.60

 

12/29/2006

 

4.29

 

42

%

3.40

 

64

%

4.59

 

59

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

22 / 52

 

 

 

32 / 49

 

 

 

27 / 45

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

68.80

 

12/29/2006

 

4.57

 

43

%

3.58

 

53

%

4.75

 

57

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

43 / 99

 

 

 

53 / 99

 

 

 

50 / 88

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

47.30

 

12/29/2006

 

4.06

 

47

%

3.10

 

59

%

4.07

 

73

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

20 / 42

 

 

 

25 / 42

 

 

 

29 / 39

 

 

A7



 

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/funds.

 

 

 

Rankings and Annualized Returns at NAV

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking

 

Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Emerging Markets Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Bond Fund **

 

 

 

 

 

2/16/2006

 

8.16

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Market Neutral Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Absolute Return Currency & Income Fund **

 

 

 

 

 

6/15/2006

 

4.29

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

4.75

 

63

%

3/20/1989

 

7.43

 

3/23/1989

 

34

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

33 / 52

 

 

 

 

 

 

 

3 / 8

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

5.02

 

62

%

12/8/1983

 

8.33

 

12/8/1983

 

48

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

73 / 118

 

 

 

 

 

 

 

11 / 22

 

RiverSourceSM Income Opportunities Fund

 

 

 

 

 

6/19/2003

 

8.35

 

6/19/2003

 

55

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

202 / 373

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

 

 

 

 

6/19/2003

 

2.32

 

6/19/2003

 

71

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

283 / 402

 

RiverSourceSM Diversified Bond Fund

 

5.17

 

70

%

10/3/1974

 

9.18

 

10/3/1974

 

25

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

106 / 151

 

 

 

 

 

 

 

1 / 3

 

Loan Participation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Floating Rate Fund **

 

 

 

 

 

2/16/2006

 

6.29

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Basic Income Fund **

 

 

 

 

 

2/16/2006

 

8.63

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Moderate Income Fund **

 

 

 

 

 

2/16/2006

 

9.84

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Enhanced Income Fund **

 

 

 

 

 

2/16/2006

 

10.30

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

 

 

 

 

6/19/2003

 

2.39

 

6/19/2003

 

25

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

30 / 123

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

4.15

 

66

%

8/19/1985

 

6.27

 

8/22/1985

 

17

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

28 / 42

 

 

 

 

 

 

 

1 / 5

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

 

 

 

 

3/4/2004

 

2.10

 

3/4/2004

 

53

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

34 / 64

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

 

 

 

 

2/14/2002

 

4.24

 

2/14/2002

 

38

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

25 / 66

 

Tax-Exempt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

4.91

 

64

%

8/18/1986

 

5.91

 

8/31/1986

 

80

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

44 / 68

 

 

 

 

 

 

 

16 / 19

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

4.89

 

48

%

5/7/1979

 

6.88

 

5/31/1979

 

46

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

70 / 145

 

 

 

 

 

 

 

11 / 23

 

RiverSourceSM Tax-Exempt Bond Fund

 

4.91

 

48

%

11/24/1976

 

6.03

 

11/30/1976

 

78

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

69 / 145

 

 

 

 

 

 

 

7 / 8

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

4.14

 

87

%

11/13/1996

 

4.20

 

11/14/1996

 

82

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

62 / 71

 

 

 

 

 

 

 

59 / 71

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

4.47

 

78

%

7/2/1987

 

5.76

 

7/31/1987

 

93

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

31 / 39

 

 

 

 

 

 

 

12 / 12

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

4.57

 

60

%

7/2/1987

 

5.94

 

7/31/1987

 

88

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

15 / 24

 

 

 

 

 

 

 

7 / 7

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

4.79

 

48

%

8/18/1986

 

5.96

 

8/31/1986

 

58

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

20 / 41

 

 

 

 

 

 

 

4 / 6

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

4.83

 

60

%

8/18/1986

 

5.75

 

8/31/1986

 

77

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

38 / 63

 

 

 

 

 

 

 

13 / 16

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

4.43

 

71

%

7/2/1987

 

5.74

 

7/31/1987

 

89

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

24 / 33

 

 

 

 

 

 

 

8 / 8

 

 

A8



 

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/funds.

 

 

 

Annualized Returns @ POP

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Emerging Markets Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Bond Fund **

 

4.75

 

 

 

 

 

 

 

 

 

3.03

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Market Neutral Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Absolute Return Currency & Income Fund **

 

4.75

 

 

 

 

 

 

 

 

 

-0.66

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

4.75

 

1.79

 

1.96

 

6.49

 

4.25

 

7.14

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

4.75

 

5.51

 

7.17

 

7.55

 

4.51

 

8.11

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Opportunities Fund

 

4.75

 

3.34

 

5.75

 

 

 

 

 

6.87

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

4.75

 

-1.15

 

1.48

 

 

 

 

 

0.91

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Bond Fund

 

4.75

 

0.38

 

2.28

 

3.41

 

4.66

 

9.02

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Participation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Floating Rate Fund **

 

4.75

 

 

 

 

 

 

 

 

 

1.24

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Basic Income Fund **

 

4.75

 

 

 

 

 

 

 

 

 

3.47

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Moderate Income Fund **

 

4.75

 

 

 

 

 

 

 

 

 

4.62

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Enhanced Income Fund **

 

4.75

 

 

 

 

 

 

 

 

 

5.06

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

4.75

 

-0.84

 

1.30

 

 

 

 

 

0.99

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

4.75

 

-0.98

 

0.39

 

1.61

 

3.64

 

6.03

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

4.75

 

-4.75

 

 

 

 

 

 

 

0.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

4.75

 

-0.60

 

1.88

 

 

 

 

 

3.21

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

4.75

 

-0.30

 

2.63

 

3.85

 

4.40

 

5.66

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

4.75

 

-0.48

 

1.99

 

3.75

 

4.38

 

6.69

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt Bond Fund

 

4.75

 

-0.66

 

1.96

 

3.51

 

4.40

 

5.86

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

4.75

 

-1.14

 

1.04

 

3.05

 

3.63

 

3.70

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

4.75

 

-0.99

 

1.69

 

3.12

 

3.96

 

5.50

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

4.75

 

-0.84

 

1.90

 

3.58

 

4.06

 

5.67

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

4.75

 

-0.67

 

1.73

 

3.57

 

4.28

 

5.70

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

4.75

 

-0.39

 

1.91

 

3.74

 

4.32

 

5.50

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

4.75

 

-0.88

 

1.44

 

3.06

 

3.92

 

5.48

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 


**    Since inception returns are cumulative.

 

A9



 

Ameriprise Financial, Inc.

 

Fund Performance & Lipper Ranking

As of December 31, 2006

Source of Data:  Lipper

 

Rankings based on 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 POP return is calculated assuming a one-time purchase of the Fund at the maximum sales charge listed in the exhibit. 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, RiverSource Income Builder Funds and RiverSource Retirement Plus Funds are invested in other RiverSource Funds and therefore would be double counted if assets are summed to reach a total.

 

Fee waivers were in place for each subadvised fund shown and the return would have been lower for each Fund had fee waivers not been in place.

 

The performance information shown represents past performance and is not a guarantee of future results. 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.

 

A10



 

Important Disclosures

 

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, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about the funds, call (800) 297-3863, TTY: (800) 846-4852. Read the prospectus carefully before investing.

 

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

 

Investments in small- and mid-capitalization companies often involve greater risks and potential volatility than investments in larger, more established companies.

 

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 under perform 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. Non-investment grade securities, commonly called “high-yield” or “junk” bonds, generally have more volatile prices and carry more risk to principal and income than investment grade 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.

 

The RiverSource Portfolio Builder Funds, RiverSource Income Builder Funds and RiverSource Retirement Plus Funds are “funds of funds” comprised of holdings in several different RiverSource funds, which may include small cap, mid cap, large cap, money market, international, bond and/or other sector funds. Specific risk considerations are discussed in each fund’s prospectus. Each of the underlying funds in which the portfolio invests has its own investment risks, and those risks can affect the value of each portfolio’s shares and investments. See each fund’s prospectus for specific risks that may be associated with the underlying funds.

 

The Floating Rate Fund invests primarily in floating rate loans, the market value of which may fluctuate, sometimes rapidly and unpredictably. The principal risks of investing in the Fund include liquidity risk, interest rate risk, credit risk, counterparty risk, highly leveraged transactions risk, derivatives risk, confidential information access risk, and impairment of collateral risk. Generally, when interest rates rise, the prices of fixed income securities fall; however, securities or loans with floating interest rates can be less sensitive to interest rate changes, but they may decline in value if their interest rates do not rise as much as interest rates in general. Limited liquidity may affect the ability of the Fund to purchase or sell floating rate loans and may have a negative impact on fund performance. The floating rate loans and securities in which the Fund invests generally are lower-rated (non-investment grade) and are more likely to experience a default, which results in more volatile prices and more risk to principal and income than investment grade loans or securities. See the Fund’s prospectus for information on these and other risks associated with the Fund.

 

“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.

 

RiverSourceSM mutual funds are distributed by RiverSource Distributors, Inc. and Ameriprise Financial Services, Inc., Members NASD, and managed by RiverSource Investments, LLC. These companies are part of Ameriprise Financial, Inc.

 

A11



 

Investment 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.

 

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member NASD and SIPC. Ameriprise Bank, FSB, member FDIC, provides certain deposit and lending products and services for Ameriprise Financial Services, Inc. Ameriprise Bank, FSB deposit products are FDIC-insured up to $100,000 per customer.

 

RiverSource Distributors, Inc. (Distributor), Member NASD. Insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, NY. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance products in the state of NY.

 

RiverSourceSM mutual funds are distributed by RiverSource Distributors, Inc. and Ameriprise Financial Services, Inc., Members NASD, and managed by RiverSource Investments, LLC.

 

The Threadneedle group of companies constitutes the Ameriprise Financial international investment platform. The group consists of wholly owned subsidiaries of Ameriprise Financial, Inc. and provides services independent from Ameriprise Financial Services, Inc., including Ameriprise Financial Services’ broker-dealer business.

 

RiverSource Investments, LLC is an SEC-registered investment adviser that offers investment products and services under the names RiverSource Institutional Advisors, RiverSource Alternative Investments, RiverSource Capital Management and RiverSource Insurance Assets. RiverSource Investments LLC also serves as the Investment Manager for the RiverSource mutual funds.

 

Ameriprise Certificates are issued by Ameriprise Certificate Company and distributed by Ameriprise Financial Services, Inc. Member NASD.

 

Ameriprise Auto & Home Insurance issues auto, home and umbrella insurance underwritten by AMEX Assurance Company (AMEX Assurance) or IDS Property Casualty Insurance Company (IDS Property Casualty), DePere, WI.

 

Mortgages and home equity loans are provided by Ameriprise Bank, FSB, an FDIC-insured federal savings bank. Ameriprise Bank, FSB, an Equal Housing Lender, is an Ameriprise Financial Services, Inc. company.

 

These companies, including Securities America, Inc., Member NASD, are all affiliated with Ameriprise Financial, Inc., which is  no longer affiliated with the American Express Company.

 

A12


 


 

EXHIBIT B

 

 

RECONCILIATION TABLES

 



 

Ameriprise Financial, Inc.

Reconciliation Table: Adjusted Consolidated Income Statements Excluding AMEX Assurance

For the Year Ended December 31, 2005

 

(in millions, unaudited)

 

Adjusted
Consolidated
(1)

 

AMEX
Assurance

 

Adjusted to
Exclude AMEX
Assurance

 

Revenues

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

2,578

 

$

3

 

$

2,575

 

Distribution fees

 

1,150

 

 

1,150

 

Net investment income

 

2,241

 

9

 

2,232

 

Premiums

 

979

 

127

 

852

 

Other revenues

 

536

 

(1

)

537

 

Total revenues

 

7,484

 

138

 

7,346

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

Compensation and benefits:

 

 

 

 

 

 

 

Field

 

1,515

 

37

 

1,478

 

Non-field

 

1,135

 

 

1,135

 

Total compensation and benefits

 

2,650

 

37

 

2,613

 

Interest credited to account values

 

1,310

 

 

1,310

 

Benefits, claims, losses and settlement expenses

 

880

 

(12

)

892

 

Amortization of deferred acquisition costs

 

431

 

17

 

414

 

Interest and debt expense

 

73

 

 

73

 

Other expenses

 

1,102

 

14

 

1,088

 

Total expenses before separation costs (1)

 

6,446

 

56

 

6,390

 

Income before income tax provision, discontinued operations and separation costs (1),(2)

 

1,038

 

82

 

956

 

Income tax provision before tax benefit attributable to separation costs (1),(2)

 

289

 

26

 

263

 

Income before discontinued operations and separation costs (1)

 

749

 

$

56

 

$

693

 

Separation costs, after-tax (1)

 

191

 

 

 

 

 

Income before discontinued operations

 

558

 

 

 

 

 

Discontinued operations, net of tax

 

16

 

 

 

 

 

Net income

 

$

574

 

 

 

 

 

 


(1)    Consolidated adjusted for non-GAAP presentation of separation costs. See Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP included elsewhere in this Exhibit B and Non-GAAP Financial Information.

 

(2)    See definition of Effective Tax Rate on Adjusted Earnings included in this supplement.

 

B1



 

Ameriprise Financial, Inc.

Reconciliation Table: Protection Segment Income Statements To Adjusted

For the Year Ended December 31, 2005

 

(in millions, unaudited)

 

Protection
Segment

 

AMEX
Assurance

 

Adjusted

 

Revenues

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

67

 

$

3

 

$

64

 

Distribution fees

 

106

 

 

106

 

Net investment income

 

339

 

9

 

330

 

Premiums

 

1,001

 

127

 

874

 

Other revenues

 

435

 

(1

)

436

 

Total revenues

 

1,948

 

138

 

1,810

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

Compensation and benefits - field

 

115

 

37

 

78

 

Interest credited to account values

 

146

 

 

146

 

Benefits, claims, losses and settlement expenses

 

828

 

(12

)

840

 

Amortization of deferred acquisition costs

 

108

 

17

 

91

 

Other expenses

 

298

 

14

 

284

 

Total expenses

 

1,495

 

56

 

1,439

 

Pretax segment income

 

$

453

 

$

82

 

$

371

 

 

B2



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Three Months Ended December 31, 2005

 

 

 

Line item in non-GAAP presentation

 

Presented Before
Separation Cost
Impacts in Reported
Financials

 

Difference
Attributable to
Separation Costs

 

GAAP Equivalent

 

GAAP Line Item

 

 

 

 

 

 

 

 

 

 

 

Total revenues (GAAP measure)

 

$

1,869

 

$

 

$

1,869

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

1,617

 

125

 

1,742

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

252

 

(125

)

127

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

59

 

(43

)

16

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

111

 

 

 

$

111

 

Net income

 

 

B3



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Twelve Months Ended December 31, 2005

 

 

 

Line item in non-GAAP presentation

 

Presented Before
Separation Cost
Impacts in Reported
Financials

 

Difference
Attributable to
Separation Costs

 

GAAP Equivalent

 

GAAP Line Item

 

 

 

 

 

 

 

 

 

 

 

Total revenues (GAAP measure)

 

$

7,484

 

$

 

$

7,484

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

6,446

 

293

 

6,739

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

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

 

1,038

 

(293

)

745

 

Income before income tax provision and discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

289

 

(102

)

187

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income before discontinued operations and separation costs

 

749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before discontinued operations (GAAP measure)

 

$

558

 

 

 

$

558

 

Income before discontinued operations

 

 

B4



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Three Months Ended March 31, 2006

 

 

 

Line item in non-GAAP presentation

 

Presented Before
Separation Cost
Impacts in
Reported
Financials

 

Difference
Attributable to
Separation Costs

 

GAAP Equivalent

 

GAAP Line Item

 

 

 

 

 

 

 

 

 

 

 

Total revenues (GAAP measure)

 

$

1,949

 

$

 

$

1,949

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

1,691

 

67

 

1,758

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

258

 

(67

)

191

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

69

 

(23

)

46

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

145

 

 

 

$

145

 

Net income

 

 

B5



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Three Months Ended June 30, 2006

 

 

 

Line item in non-GAAP presentation

 

Presented Before
Separation Cost
Impacts in
Reported
Financials

 

Difference
Attributable to
Separation Costs

 

GAAP Equivalent

 

GAAP Line Item

 

 

 

 

 

 

 

 

 

 

 

Total revenues (GAAP measure)

 

$

2,053

 

$

 

$

2,053

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

1,783

 

84

 

1,867

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

270

 

(84

)

186

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

75

 

(30

)

45

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

141

 

 

 

$

141

 

Net income

 

 

B6



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Three Months Ended September 30, 2006

 

 

 

Line item in non-GAAP presentation

 

Presented Before
Separation Cost
Impacts in
Reported
Financials

 

Difference
Attributable to
Separation Costs

 

GAAP Equivalent

 

GAAP Line Item

 

 

 

 

 

 

 

 

 

 

 

Total revenues (GAAP measure)

 

$

1,977

 

$

 

$

1,977

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

1,673

 

87

 

1,760

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

304

 

(87

)

217

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

73

 

(30

)

43

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

174

 

 

 

$

174

 

Net income

 

 

B7



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Three Months Ended December 31, 2006

 

 

 

Line item in non-GAAP presentation

 

Presented Before
Separation Cost
Impacts in
Reported
Financials

 

Difference
Attributable to
Separation Costs

 

GAAP Equivalent

 

GAAP Line Item

 

 

 

 

 

 

 

 

 

 

 

Total revenues (GAAP measure)

 

$

2,161

 

$

 

$

2,161

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

1,835

 

123

 

1,958

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

326

 

(123

)

203

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

75

 

(43

)

32

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

171

 

 

 

$

171

 

Net income

 

 

B8



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Twelve Months Ended December 31, 2006

 

 

 

Line item in non-GAAP presentation

 

Presented Before
Separation Cost
Impacts in
Reported
Financials

 

Difference
Attributable to
Separation Costs

 

GAAP Equivalent

 

GAAP Line Item

 

 

 

 

 

 

 

 

 

 

 

Total revenues (GAAP measure)

 

$

8,140

 

$

 

$

8,140

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

6,982

 

361

 

7,343

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

1,158

 

(361

)

797

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

292

 

$

(126

)

166

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

631

 

 

 

$

631

 

Net income

 

 

B9



 

Ameriprise Financial, Inc.

Return on Equity Calculation

 

(in millions, unaudited)

 

ROE Excluding
Discontinued
Operations
(1)

 

Adjustments

 

Adjusted ROE (2)

 

 

 

 

 

 

 

 

 

Return on Equity Calculation for the Twelve Months Ended:

 

 

 

 

 

 

 

December 31, 2005

 

 

 

 

 

 

 

 

Return

 

$

558

 

$

135

 

$

693

 

 

Equity

 

$

6,980

 

$

(168

)

$

6,812

 

 

Return on Equity

 

8.0

%

 

 

10.2

%

 

 

 

 

 

 

 

 

March 31, 2006

 

 

 

 

 

 

 

 

Return

 

$

528

 

$

192

 

$

720

 

 

Equity

 

$

7,156

 

$

(235

)

$

6,921

 

 

Return on Equity

 

7.4

%

 

 

10.4

%

 

 

 

 

 

 

 

 

June 30, 2006

 

 

 

 

 

 

 

 

Return

 

$

520

 

$

236

 

$

756

 

 

Equity

 

$

7,348

 

$

(291

)

$

7,057

 

 

Return on Equity

 

7.1

%

 

 

10.7

%

 

 

 

 

 

 

 

 

September 30, 2006

 

 

 

 

 

 

 

 

Return

 

$

571

 

$

236

 

$

807

 

 

Equity

 

$

7,550

 

$

(336

)

$

7,214

 

 

Return on Equity

 

7.6

%

 

 

11.2

%

 

 

 

 

 

 

 

 

December 31, 2006

 

 

 

 

 

 

 

 

Return

 

$

631

 

$

235

 

$

866

 

 

Equity

 

$

7,588

 

$

(273

)

$

7,315

 

 

Return on Equity

 

8.3

%

 

 

11.8

%

 


(1)             Return on equity is calculated using the 12 month trailing income before discontinued operations in the numerator and the average of shareholders’ equity before the assets and liabilities of discontinued operations as of the last day of the preceding four quarters and the current quarter in the denominator.

 

(2)             Adjusted return on equity is calculated using adjusted earnings (income before discontinued operations excluding non-recurring separation costs and AMEX Assurance) in the numerator, and equity excluding both the assets and liabilities of discontinued operations and equity allocated to expected non-recurring separation costs as of the last day of the preceding four quarters and the current quarter in the denominator.

 

B10



 

Ameriprise Financial, Inc.

Ratio of Earnings to Fixed Charges

 

(in millions, unaudited)

 

4Q
2005

 

1Q
2006

 

2Q
2006

 

3Q
2006

 

4Q
2006

 

4Q’06
vs. 4Q’05
% Change

 

YTD
2005

 

YTD
2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

159

 

$

225

 

$

225

 

$

258

 

$

244

 

53

%

$

859

 

$

952

 

Fixed charges

 

$

31

 

$

34

 

$

39

 

$

42

 

$

41

 

32

%

$

113

 

$

156

 

Ratio of earnings to fixed charges

 

5.1

x

6.6

x

5.8

x

6.1

x

6.0

x

18

%

7.6

x

6.1

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges without interest expense on non-recourse debt (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

159

 

$

225

 

$

225

 

$

258

 

$

244

 

53

%

$

859

 

$

952

 

Interest expense on non-recourse debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on debt of CDO consolidated per FIN 46(R)

 

(5

)

(5

)

(5

)

(4

)

(4

)

20

%

(18

)

(18

)

Interest on debt of Threadneedle managed property fund limited partnerships consolidated per EITF 04-5

 

 

(1

)

(3

)

(2

)

 

 

 

(6

)

 

 

(5

)

(6

)

(8

)

(6

)

(4

)

20

%

(18

)

(24

)

Other

 

3

 

 

 

 

 

#

 

8

 

 

Total earnings

 

$

157

 

$

219

 

$

217

 

$

252

 

$

240

 

53

%

$

849

 

$

928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

$

31

 

$

34

 

$

39

 

$

42

 

$

41

 

32

%

$

113

 

$

156

 

Interest expense on non-recourse debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on debt of CDO consolidated per FIN 46(R)

 

(5

)

(5

)

(5

)

(4

)

(4

)

20

%

(18

)

(18

)

Interest on debt of Threadneedle managed property fund limited partnerships consolidated per EITF 04-5

 

 

(1

)

(3

)

(2

)

 

 

 

(6

)

 

 

(5

)

(6

)

(8

)

(6

)

(4

)

20

%

(18

)

(24

)

Other

 

5

 

 

 

 

 

#

 

10

 

 

Total fixed charges

 

$

31

 

$

28

 

$

31

 

$

36

 

$

37

 

19

%

$

105

 

$

132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges without interest expense on non-recourse debt

 

5.1

x

7.8

x

7.0

x

7.0

6.5

x

27

%

8.1

x

7.0

x

 


(1)       See definition of Ratio of Earnings to Fixed Charges included in this supplement.

 

#      Variance of 100% or greater.

 

B11



 

Ameriprise Financial, Inc.

Fourth Quarter 2006

Disclosed Items

 

 

 

Asset Accumulation & Income

 

Protection

 

 

 

(in millions, unaudited)

 

Investment
Gains
(1)

 

EITF 04-5 (2)

 

Legal &
Regulatory

 

Investment
Gains
(1)

 

Legal &
Regulatory

 

Auto and
Home
(3)

 

Consolidated(4)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

 

$

(4

)

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

Net investment income

 

21

 

(9

)

 

6

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

Other revenues

 

 

18

 

 

 

 

 

 

Total revenues

 

21

 

5

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits field

 

 

 

 

 

 

 

 

Compensation and benefits non-field

 

 

 

 

 

 

 

 

Interest credited to account values

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

(9

)

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

Other expenses

 

 

5

 

30

 

 

1

 

 

 

Total expenses

 

 

5

 

30

 

 

1

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before tax provision

 

$

21

 

$

 

$

(30

)

$

6

 

$

(1

)

$

9

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(16

)

 


(1)    Pretax realized net investment gains and (losses).

(2)    In accordance with EITF 04-5, reflects consolidation of certain property fund limited partnerships managed by Threadneedle and hedge fund limited partnerships managed by RiverSource.

(3)    Reserve release due to continued improvement in 2004 and 2005 accident year results in Auto and Home.

(4)    Tax benefit primarily due to a change in effective state income tax rate applied to deferred tax assets due to the separation from American Express.

 

C1



 

Ameriprise Financial, Inc.

Third Quarter 2006

Disclosed Items

 

 

 

Asset Accumulation & Income

 

Protection

 

 

 

(in millions, unaudited)

 

DAC (1)

 

EITF 04-5 (2)

 

Investment Gains (3)

 

Amaranth (4)

 

DAC (1)

 

LTC (5)

 

Investment
Gains
(3)

 

Amaranth (4)

 

Consolidated (6)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

 

$

(1

)

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

12

 

12

 

(15

)

 

 

2

 

(5

)

 

Premiums

 

 

 

 

 

 

15

 

 

 

 

Other revenues

 

 

28

 

 

 

(1

)

 

 

 

 

Total revenues

 

 

39

 

12

 

(15

)

(1

)

15

 

2

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits field

 

 

 

 

 

 

 

 

 

 

Compensation and benefits non-field

 

 

 

 

 

 

 

 

 

 

Interest credited to account values

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

12

 

 

 

 

 

Amortization of deferred acquisition costs

 

14

 

 

 

 

(52

)

 

 

 

 

Interest and debt expense

 

 

2

 

 

 

 

 

 

 

 

Other expenses

 

 

37

 

 

 

 

 

 

 

 

Total expenses

 

14

 

39

 

 

 

(40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before tax provision

 

$

(14

)

$

 

$

12

 

$

(15

)

$

39

 

$

15

 

$

2

 

$

(5

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(13

)

 


(1)       Annual DAC review (see below).

(2)       Consolidation of hedge fund limited partnerships managed by RiverSource and certain property fund limited partnerships managed by Threadneedle in accordance with EITF 04-5.

(3)       Pretax realized net investment gains and (losses).

(4)       Represents the pretax loss on a single externally-managed hedge fund investment.

(5)       Adjustment in premiums resulting from a review of the Company’s LTC reinsurance arrangement.

(6)       Decrease in tax expense as a result of the finalization of prior period tax returns.

 

The $25 million pretax benefit from DAC unlocking in the third quarter of 2006 consisted of:

•             a $25 million benefit from modeling improvements in increased product persistency;

•             a $15 million benefit from modeling improvements in mortality;

•             a $8 million increase from modeling lower variable product fund fee revenue;

•             a $8 million increase from modeling changes related to Variable Life Second to Die insurance; and

•             a $1 million benefit from other miscellaneous items.

 

C2



 

Ameriprise Financial, Inc.

Fourth Quarter 2005

Disclosed Items

 

 

 

Asset Accumulation & Income

 

Protection

 

Corporate

 

 

 

(in millions, unaudited)

 

Threadneedle (1)

 

Investment
Gains
(2)

 

Investment
Gains
(2)

 

Investment
Gains
(2)

 

Consolidated (3)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

(12

)

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

Net investment income

 

 

6

 

(2

)

1

 

 

Premiums

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

Total revenues

 

(12

)

6

 

(2

)

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits field

 

 

 

 

 

 

Compensation and benefits non-field

 

 

 

 

 

(9

)

Interest credited to account values

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

Other expenses

 

(9

)

 

 

 

 

Total expenses

 

(9

)

 

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before tax provision

 

$

(3

)

$

6

 

$

(2

)

$

1

 

$

9

 

 


(1)             Reduction in revenue and expense as a result of hedge fund performance.

(2)             Pretax realized net investment gains and (losses).

(3)             Consolidated income statements show compensation and benefits non-field, which is included in “Other expenses” in the segments. This amount pertains to Threadneedle.

 

C3



 

Ameriprise Financial, Inc.

Reconciliation of Adjustments Affecting Historical Statistical Supplement Presentations

 

(in millions unless otherwise noted, unaudited)

 

4Q
2005

 

YTD
2005

 

1Q
2006

 

2Q
2006

 

3Q
2006

 

Mutual funds and non-proprietary SPS wrap net flows (1)

 

 

 

 

 

 

 

 

 

 

 

Cash sales - as previously reported

 

$

7,630

 

$

31,045

 

$

9,302

 

$

8,993

 

$

7,714

 

SIB cash sales

 

332

 

1,073

 

222

 

152

 

314

 

Cash sales - current presentation

 

$

7,962

 

$

32,118

 

$

9,524

 

$

9,145

 

$

8,028

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle cash sales (1)

 

 

 

 

 

 

 

 

 

 

 

Cash sales - as previously reported

 

$

2,423

 

$

8,418

 

$

2,198

 

$

2,606

 

$

2,391

 

SIB cash sales

 

332

 

1,073

 

222

 

152

 

314

 

Cash sales - current presentation

 

$

2,755

 

$

9,491

 

$

2,420

 

$

2,758

 

$

2,705

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Mutual Funds (in billions) (2)

 

 

 

 

 

 

 

 

 

 

 

Previous presentation:

 

 

 

 

 

 

 

 

 

 

 

Market appreciation (depreciation)

 

$

0.7

 

$

2.3

 

$

1.1

 

$

(0.6

)

$

0.8

 

Other

 

(0.3

)

(1.3

)

0.3

 

0.5

 

0.2

 

Total

 

$

0.4

 

$

1.0

 

$

1.4

 

$

(0.1

)

$

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Current presentation:

 

 

 

 

 

 

 

 

 

 

 

Market appreciation (depreciation)

 

$

0.8

 

$

2.4

 

$

1.1

 

$

(0.8

)

$

0.6

 

Foreign currency translation

 

(0.2

)

(1.2

)

0.1

 

0.7

 

0.4

 

Other

 

(0.2

)

(0.2

)

0.2

 

 

 

Total

 

$

0.4

 

$

1.0

 

$

1.4

 

$

(0.1

)

$

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Institutional Accounts (in billions) (2)

 

 

 

 

 

 

 

 

 

 

 

Previous presentation:

 

 

 

 

 

 

 

 

 

 

 

Market appreciation (depreciation)

 

$

2.5

 

$

10.3

 

$

4.1

 

$

(2.5

)

$

2.0

 

Other

 

(1.6

)

(6.3

)

1.3

 

4.6

 

3.0

 

Total

 

$

0.9

 

$

 4.0

 

$

5.4

 

$

2.1

 

$

5.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Current presentation:

 

 

 

 

 

 

 

 

 

 

 

Market appreciation (depreciation)

 

$

2.8

 

$

11.1

 

$

4.0

 

$

(3.3

)

$

1.6

 

Foreign currency translation

 

(1.4

)

(9.4

)

0.7

 

4.4

 

2.8

 

Other

 

(0.5

)

2.3

 

0.7

 

1.0

 

0.6

 

Total

 

$

0.9

 

$

4.0

 

$

5.4

 

$

2.1

 

$

5.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAI Wrap Accounts (in billion) (3)

 

 

 

 

 

 

 

 

 

 

 

Previous presentation:

 

 

 

 

 

 

 

 

 

 

 

Net flows

 

$

1.5

 

$

2.9

 

$

0.8

 

$

0.8

 

$

0.6

 

Market appreciation (depreciation) and other

 

(0.2

)

 

0.3

 

(0.1

)

(0.2

)

Total

 

$

1.3

 

$

2.9

 

$

1.1

 

$

0.7

 

$

0.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current presentation:

 

 

 

 

 

 

 

 

 

 

 

Net Flows

 

$

1.5

 

$

2.9

 

$

0.6

 

$

0.6

 

$

0.3

 

Market appreciation (depreciation) and other

 

(0.2

)

 

0.5

 

0.1

 

0.1

 

Total

 

$

1.3

 

$

2.9

 

$

1.1

 

$

0.7

 

$

0.4

 

 


(1)             Mutual funds and non-proprietary SPS wrap net flows and Threadneedle cash sales appearing on page 5 have been adjusted to include the cash sales activity for Sterling Investment Bonds.

(2)             The net gain (loss) related to foreign currency translation of the underlying investments to Pounds Sterling was historically included in “Other.” They are now presented as part of “Market appreciation (depreciation).” The net gain (loss) related to the foreign currency translation from Pounds Sterling to US Dollars was historically included in “Other” and is now presented separately as “Foreign currency translation.” These revisions appear on pages 12 and 13, respectively.

(3)             SAI wrap Net flows and Market appreciation (depreciation) and other appearing on page 14 have been adjusted for all periods presented.

 

D1