EX-99.2 3 a07-19807_1ex99d2.htm EX-99.2

Exhibit 99.2

 

 

Statistical Supplement

(unaudited)

 

Second Quarter 2007

 



 

Ameriprise Financial, Inc.

Table of Contents

 

 

 

Page

Ameriprise Financial, Inc.

 

 

Financial Summary

1

 

Consolidated Income Statements

2

 

Financial Advisor and Client Metrics

3

 

Corporate Volumes

4

 

Consolidated Balance Sheets

5

 

Investment Detail

6

 

Selected Balance Sheet Information

7

 

Adjusted Segment Information

8

Asset Accumulation and Income Segment

 

 

Income Statements

9

 

Revenues by Product

10

 

Retail Managed Assets Rollforwards

11

 

Institutional Managed Assets Rollforwards

12

 

Financial Advisor Managed Assets Rollforwards

13

 

Owned Assets Related to Variable Products

14

 

Net Investment Income and Spread Products

15

 

Selected Asset Management Ranking Information

16

 

Deferred Acquisition Costs Rollforwards

17

Protection Segment

 

 

Income Statements

18

 

Revenues by Product

19

 

Selected Statistical Information

20

 

Product Rollforwards

21

Corporate and Other and Eliminations Segment

 

 

Income Statements

22

Capital and Ratings Information

23

Non-GAAP Financial Information and Reclassification

24

Glossary of Selected Terminology

25-27

Exhibit A

 

 

RiverSourceSM Mutual Fund Performance and Lipper Ranking

A1 - A5

Exhibit B

 

 

Adjusted Earnings Reconciliation Tables

B1 - B10

Exhibit C

 

 

Prior Statistical Supplement Reconciliation Tables

C1

 



 

Ameriprise Financial, Inc.

Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

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

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

EPS - Basic: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

0.57

 

$

0.71

 

$

0.70

 

$

0.69

 

$

0.83

 

46

%

 

$

1.15

 

$

1.51

 

Separation costs, after-tax

 

0.22

 

0.23

 

0.33

 

0.22

 

0.17

 

(23

)%

 

0.39

 

0.40

 

Adjusted earnings, after-tax

 

$

0.79

 

$

0.94

 

$

1.03

 

$

0.91

 

$

1.00

 

27

%

 

$

1.54

 

$

1.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS - Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

0.57

 

$

0.71

 

$

0.69

 

$

0.68

 

$

0.81

 

42

%

 

$

1.14

 

$

1.49

 

Separation costs, after-tax

 

0.22

 

0.23

 

0.33

 

0.22

 

0.17

 

(23

)%

 

0.39

 

0.39

 

Adjusted earnings, after-tax

 

$

0.79

 

$

0.94

 

$

1.02

 

$

0.90

 

$

0.98

 

24

%

 

$

1.53

 

$

1.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management’s financial targets and performance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenue growth: Target 6 - 8%

 

12.9

%

4.9

%

15.6

%

5.8

%

6.3

%

 

 

 

11.4

%

6.1

%

Adjusted earnings per diluted share growth: Target 12 - 15%

 

21.5

%

28.8

%

32.5

%

20.0

%

24.1

%

 

 

 

17.7

%

22.9

%

Adjusted return on equity: Target 12 - 15%

 

10.7

%

11.2

%

11.8

%

12.2

%

12.5

%

 

 

 

10.7

%

12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution margin

 

52.8 %

 

50.5

%

51.9

%

51.9

%

50.9

%

 

 

 

51.5

%

51.4

%

Net income margin

 

6.9 %

 

8.8

%

7.9

%

8.0

%

9.0

%

 

 

 

7.1

%

8.5

%

Effective tax rate on net income

 

24.3 %

 

19.8

%

15.5

%

23.6

%

20.0

%

 

 

 

24.2

%

21.7

%

Effective tax rate on adjusted earnings

 

27.8 %

 

24.0

%

23.0

%

26.9

%

23.1

%

 

 

 

27.3

%

25.0

%

Return on equity

 

7.1 %

 

7.6

%

8.3

%

8.6

%

9.2

%

 

 

 

7.1

%

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital

 

25.1 %

 

22.5

%

21.9

%

22.3

%

22.4

%

 

 

 

25.1

%

22.4

%

Debt to total capital excluding non-recourse debt

 

21.7 %

 

20.5

%

20.2

%

20.6

%

20.8

%

 

 

 

21.7

%

20.8

%

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

 

17.6 %

 

16.7

%

16.4

%

16.7

%

16.9

%

 

 

 

17.6

%

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business metrics summary:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, managed and administered assets (in billions)

 

$

427.9

 

$

440.0

 

$

466.1

 

$

473.9

 

$

483.9

 

13

%

 

$

427.9

 

$

483.9

 

Total financial advisors

 

12,372

 

12,427

 

12,592

 

12,342

 

12,076

 

(2

)%

 

12,372

 

12,076

 

Clients with a financial plan percentage

 

44

%

44

%

45

%

45

%

45

%

 

 

 

44

%

45

%

Total clients (in thousands)

 

2,770

 

2,779

 

2,786

 

2,774

 

2,781

 

 

 

2,770

 

2,781

 

Gross dealer concession

 

$

545

 

$

545

 

$

596

 

$

624

 

$

653

 

20

%

 

$

1,072

 

$

1,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee base:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field (employee advisors)

 

3,056

 

3,063

 

3,178

 

2,987

 

2,731

 

(11

)%

 

3,056

 

2,731

 

Non-field

 

8,607

 

8,647

 

8,680

 

8,960

 

8,904

 

3

%

 

8,607

 

8,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

244.1

 

242.1

 

241.4

 

236.6

 

235.3

 

(4

)%

 

244.1

 

235.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

246.3

 

244.5

 

243.3

 

240.7

 

237.4

 

(4

)%

 

249.3

 

239.0

 

Diluted

 

248.0

 

246.4

 

246.3

 

244.1

 

241.0

 

(3

)%

 

250.8

 

242.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value

 

$

7,235

 

$

7,753

 

$

7,925

 

$

7,731

 

$

7,600

 

5

%

 

$

7,235

 

$

7,600

 

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

 

7,901

 

7,979

 

8,134

 

7,874

 

7,955

 

1

%

 

7,901

 

7,955

 

Book value per common share outstanding

 

29.64

 

32.02

 

32.83

 

32.68

 

32.30

 

9

%

 

29.64

 

32.30

 

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

 

$

32.37

 

$

32.96

 

$

33.70

 

$

33.28

 

$

33.81

 

4

%

 

$

32.37

 

$

33.81

 

 


(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

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

721

 

$

720

 

$

814

 

$

791

 

$

863

 

20

%

 

$

1,431

 

$

1,654

 

Distribution fees

 

325

 

300

 

374

 

344

 

415

 

28

%

 

626

 

759

 

Net investment income

 

522

 

542

 

566

 

518

 

485

 

(7)

%

 

1,096

 

1,003

 

Premiums

 

229

 

244

 

239

 

236

 

243

 

6

%

 

449

 

479

 

Other revenues

 

256

 

171

 

168

 

174

 

176

 

(31

)%

 

400

 

350

 

Total revenues

 

2,053

 

1,977

 

2,161

 

2,063

 

2,182

 

6

%

 

4,002

 

4,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Field

 

436

 

428

 

478

 

486

 

538

 

23

%

 

859

 

1,024

 

Non-field

 

330

 

328

 

374

 

356

 

367

 

11

%

 

646

 

723

 

Total compensation and benefits

 

766

 

756

 

852

 

842

 

905

 

18

%

 

1,505

 

1,747

 

Interest credited to account values

 

307

 

317

 

316

 

287

 

303

 

(1

)%

 

631

 

590

 

Benefits, claims, losses and settlement expenses

 

225

 

233

 

245

 

219

 

230

 

2

%

 

452

 

449

 

Amortization of deferred acquisition costs

 

153

 

87

 

104

 

134

 

125

 

(18

)%

 

281

 

259

 

Interest and debt expense

 

28

 

32

 

33

 

32

 

32

 

14

%

 

51

 

64

 

Other expenses

 

304

 

248

 

285

 

248

 

279

 

(8

)%

 

554

 

527

 

Total expenses before separation costs (1)

 

1,783

 

1,673

 

1,835

 

1,762

 

1,874

 

5

%

 

3,474

 

3,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs (1)

 

270

 

304

 

326

 

301

 

308

 

14

%

 

528

 

609

 

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

 

75

 

73

 

75

 

81

 

71

 

(5

)%

 

144

 

152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs (1)

 

195

 

231

 

251

 

220

 

237

 

22

%

 

384

 

457

 

Separation costs, after-tax (1)

 

54

 

57

 

80

 

55

 

41

 

(24

)%

 

98

 

96

 

Net income

 

$

141

 

$

174

 

$

171

 

$

165

 

$

196

 

39

%

 

$

286

 

$

361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), after-tax

 

$

4

 

$

9

 

$

17

 

$

6

 

$

1

 

(75

)%

 

$

7

 

$

7

 

Dividends paid

 

$

27

 

$

27

 

$

26

 

$

27

 

$

36

 

33

%

 

$

55

 

$

63

 

Contribution margin

 

52.8

%

50.5

%

51.9

%

51.9

%

50.9

%

 

 

 

51.5

%

51.4

%

 


(1) See non-GAAP Financial Information.

 

# Variance of 100% or greater.

 

2



 

Ameriprise Financial, Inc.

Financial Advisor and Client Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

3,056

 

3,063

 

3,178

 

2,987

 

2,731

 

(11

)%

 

3,056

 

2,731

 

Franchisee advisors

 

7,499

 

7,571

 

7,651

 

7,611

 

7,642

 

2

%

 

7,499

 

7,642

 

Total branded financial advisors

 

10,555

 

10,634

 

10,829

 

10,598

 

10,373

 

(2

)%

 

10,555

 

10,373

 

Securities America, Inc. registered representatives

 

1,817

 

1,793

 

1,763

 

1,744

 

1,703

 

(6

)%

 

1,817

 

1,703

 

Total financial advisors

 

12,372

 

12,427

 

12,592

 

12,342

 

12,076

 

(2

)%

 

12,372

 

12,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisor retention

 

60

%

63

%

63

%

63

%

62

%

 

 

 

60

%

62

%

Franchisee advisor retention

 

91

%

93

%

93

%

93

%

93

%

 

 

 

91

%

93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross dealer concession per branded advisor (in thousands)

 

$

44.7

 

$

45.0

 

$

49.2

 

$

51.1

 

$

54.3

 

21

%

 

$

88.5

 

$

105.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client Relationships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total clients (in thousands)

 

2,770

 

2,779

 

2,786

 

2,774

 

2,781

 

 

 

2,770

 

2,781

 

Client retention

 

93

%

93

%

93

%

93

%

94

%

 

 

 

93

%

94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor clients (in thousands)

 

2,480

 

2,480

 

2,482

 

2,466

 

2,466

 

(1

)%

 

2,480

 

2,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clients with a financial plan percentage

 

44

%

44

%

45

%

45

%

45

%

 

 

 

44

%

45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial plans sold (in thousands)

 

58

 

55

 

61

 

66

 

59

 

2

%

 

121

 

125

 

 


# Variance of 100% or greater.

 

3



 

Ameriprise Financial, Inc.

Corporate Volumes

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Owned, managed and administered assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned assets

 

$

89.1

 

$

92.7

 

$

97.2

 

$

98.2

 

$

100.9

 

13

%

 

$

89.1

 

$

100.9

 

Managed assets

 

276.1

 

283.4

 

299.8

 

305.3

 

310.5

 

12

%

 

276.1

 

310.5

 

Administered assets

 

62.7

 

63.9

 

69.1

 

70.4

 

72.5

 

16

%

 

62.7

 

72.5

 

Total owned, managed and administered assets

 

$

427.9

 

$

440.0

 

$

466.1

 

$

473.9

 

$

483.9

 

13

%

 

$

427.9

 

$

483.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending RiverSource Managed Assets (in billions)

 

$

151.0

 

$

152.4

 

$

156.7

 

$

156.3

 

$

159.2

 

5

%

 

$

151.0

 

$

159.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds and non-proprietary SPS wrap net flows

 

$

9,145

 

$

8,028

 

$

8,574

 

$

10,617

 

$

11,590

 

27

%

 

$

18,669

 

$

22,207

 

Annuities

 

3,475

 

3,341

 

3,257

 

3,296

 

3,594

 

3

%

 

6,345

 

6,890

 

Investment certificates

 

373

 

382

 

696

 

236

 

220

 

(41

)%

 

808

 

456

 

Life and other insurance products

 

265

 

273

 

274

 

274

 

278

 

5

%

 

554

 

552

 

Institutional products and services

 

1,790

 

1,912

 

2,485

 

2,517

 

1,159

 

(35

)%

 

4,040

 

3,676

 

Other

 

518

 

455

 

1,275

 

731

 

1,295

 

#

 

 

840

 

2,026

 

Total

 

$

15,566

 

$

14,391

 

$

16,561

 

$

17,671

 

$

18,136

 

17

%

 

$

31,256

 

$

35,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By channel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded advisor cash sales and wrap net flows

 

$

8,707

 

$

7,761

 

$

9,465

 

$

9,706

 

$

11,318

 

30

%

 

$

17,205

 

$

21,024

 

Securities America, Inc.

 

2,124

 

1,950

 

1,805

 

2,234

 

2,257

 

6

%

 

4,161

 

4,491

 

Third-party distribution

 

398

 

427

 

427

 

407

 

470

 

18

%

 

703

 

877

 

Institutional

 

1,217

 

1,197

 

1,817

 

1,834

 

921

 

(24

)%

 

3,226

 

2,755

 

Threadneedle

 

2,758

 

2,705

 

2,676

 

3,094

 

2,789

 

1

%

 

5,178

 

5,883

 

All other (AEB, etc.)

 

362

 

351

 

371

 

396

 

381

 

5

%

 

783

 

777

 

Total

 

$

15,566

 

$

14,391

 

$

16,561

 

$

17,671

 

$

18,136

 

17

%

 

$

31,256

 

$

35,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross dealer concession

 

$

545

 

$

545

 

$

596

 

$

624

 

$

653

 

20

%

 

$

1,072

 

$

1,277

 

 


# Variance of 100% or greater.

 

4



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

 

 

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

June 30,

 

(in millions, unaudited)

 

2006

 

2006

 

2006

 

2007

 

2007

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,101

 

$

3,309

 

$

2,717

 

$

2,413

 

$

3,303

 

Investments

 

37,027

 

36,198

 

35,553

 

34,446

 

31,704

 

Receivables

 

2,441

 

2,504

 

2,960

 

3,022

 

3,207

 

Deferred acquisition costs

 

4,342

 

4,423

 

4,499

 

4,337

 

4,462

 

Separate account assets

 

45,751

 

48,834

 

53,848

 

56,281

 

60,470

 

Restricted and segregated cash

 

1,002

 

1,059

 

1,236

 

1,175

 

1,277

 

Other assets

 

3,385

 

3,177

 

3,359

 

3,486

 

3,709

 

Total assets

 

$

96,049

 

$

99,504

 

$

104,172

 

$

105,160

 

$

108,132

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

31,546

 

$

30,794

 

$

30,033

 

$

29,153

 

$

28,318

 

Customer deposits

 

5,871

 

6,563

 

6,707

 

6,483

 

6,055

 

Accounts payable and accrued expenses

 

1,921

 

1,735

 

1,788

 

1,672

 

1,850

 

Debt

 

2,419

 

2,254

 

2,225

 

2,225

 

2,197

 

Separate account liabilities

 

45,751

 

48,834

 

53,848

 

56,281

 

60,470

 

Other liabilities

 

1,306

 

1,571

 

1,646

 

1,615

 

1,642

 

Total liabilities

 

88,814

 

91,751

 

96,247

 

97,429

 

100,532

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

4,254

 

4,291

 

4,353

 

4,468

 

4,533

 

Retained earnings

 

3,976

 

4,123

 

4,268

 

4,268

 

4,428

 

Treasury stock

 

(332

)

(438

)

(490

)

(865

)

(1,009

)

Accumulated other comprehensiveincome (loss), net of tax

 

(666

)

(226

)

(209

)

(143

)

(355

)

Total shareholders’ equity

 

7,235

 

7,753

 

7,925

 

7,731

 

7,600

 

Total liabilities and shareholders’ equity

 

$

96,049

 

$

99,504

 

$

104,172

 

$

105,160

 

$

108,132

 

 

5



 

Ameriprise Financial, Inc.

Investment Detail

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

522

 

$

524

 

$

531

 

$

515

 

$

493

 

(6

)%

 

$

1,065

 

$

1,008

 

Realized gains (losses)

 

6

 

14

 

27

 

9

 

2

 

(67

)%

 

10

 

11

 

Income related to interest credited and benefits line hedges

 

(13

)

18

 

15

 

(3

)

(6

)

54

 %

 

(12

)

(9

)

Other (including seed money)

 

7

 

(14

)

(7

)

(3

)

(4

)

 

#

 

33

 

(7

Total net investment income

 

$

522

 

$

542

 

$

566

 

$

518

 

$

485

 

(7

)%

 

$

1,096

 

$

1,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity by Legal Entity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

$

4,818

 

$

5,227

 

$

5,270

 

$

5,167

 

$

5,000

 

4

 %

 

 

 

 

 

IDS Property Casualty Insurance Company

 

506

 

534

 

557

 

575

 

569

 

12

%

 

 

 

 

 

Ameriprise Certificate Company

 

199

 

234

 

230

 

229

 

199

 

 

 

 

 

 

 

Ameriprise Bank, FSB

 

 

172

 

169

 

172

 

172

 

 

 

 

 

 

 

Other

 

1,712

 

1,586

 

1,699

 

1,588

 

1,660

 

(3

)%

 

 

 

 

 

Total equity by legal entity

 

$

7,235

 

$

7,753

 

$

7,925

 

$

7,731

 

$

7,600

 

5

 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

6.0

 

$

5.7

 

$

5.4

 

$

5.2

 

$

4.4

 

(27

)%

 

 

 

 

 

Commercial mortgage backed securities

 

3.0

 

3.0

 

2.9

 

2.9

 

2.7

 

(10

)%

 

 

 

 

 

Asset backed securities

 

1.0

 

0.9

 

1.0

 

0.8

 

0.8

 

(20

)%

 

 

 

 

 

Total

 

$

10.0

 

$

9.6

 

$

9.3

 

$

8.9

 

$

7.9

 

(21

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

8.0

 

$

7.8

 

$

7.7

 

$

7.4

 

$

6.5

 

(19

)%

 

 

 

 

 

Commercial mortgage backed securities

 

3.4

 

3.4

 

3.4

 

3.3

 

3.2

 

(6

)%

 

 

 

 

 

Asset backed securities

 

1.4

 

1.3

 

1.2

 

1.3

 

1.0

 

(29

)%

 

 

 

 

 

Total

 

$

12.8

 

$

12.5

 

$

12.3

 

$

12.0

 

$

10.7

 

(16

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loans on Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans on real estate

 

$

3,129

 

$

3,111

 

$

3,096

 

$

3,031

 

$

3,004

 

(4

)%

 

 

 

 

 

Allowance for loan losses

 

(40

)

(40

)

(40

)

(40

)

(40

)

 

 

 

 

 

 

Mortgage loans on real estate, net

 

$

3,089

 

$

3,071

 

$

3,056

 

$

2,991

 

$

2,964

 

(4

)%

 

 

 

 

 

 


# Variance of 100% or greater.

 

6



 

Ameriprise Financial, Inc.

Selected Balance Sheet Information

 

 

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

(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

%

0.1

%

0.1

%

0.1

%

0.1

%

Fixed income

 

36.8

%

36.1

%

34.2

%

33.9

%

31.9

%

31.7

%

30.4

%

30.3

%

27.2

%

26.8

%

Separate accounts

 

50.8

%

51.4

%

52.4

%

52.6

%

55.2

%

55.4

%

57.2

%

57.3

%

59.5

%

59.9

%

Other

 

12.3

%

12.4

%

13.3

%

13.4

%

12.8

%

12.8

%

12.3

%

12.3

%

13.2

%

13.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale (AFS) Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

18.1

 

$

17.5

 

$

17.5

 

$

17.3

 

$

17.0

 

$

16.8

 

$

16.3

 

$

16.1

 

$

15.1

 

$

14.7

 

Mortgage and other asset-backed securities

 

13.2

 

12.8

 

12.7

 

12.5

 

12.5

 

12.3

 

12.1

 

12.0

 

11.0

 

10.7

 

State and municipal obligations

 

1.0

 

1.0

 

1.0

 

1.1

 

1.0

 

1.1

 

1.1

 

1.1

 

1.1

 

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

 

 

0.1

 

 

0.1

 

Other debt

 

0.3

 

0.3

 

0.1

 

 

0.1

 

0.1

 

 

 

 

 

Total AFS investments

 

$

33.2

 

$

32.2

 

$

31.9

 

$

31.5

 

$

31.2

 

$

30.9

 

$

30.0

 

$

29.8

 

$

27.7

 

$

27.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

43

%

 

 

43

%

 

 

43

%

 

 

44

%

 

 

44

%

 

 

AA

 

8

%

 

 

8

%

 

 

9

%

 

 

10

%

 

 

10

%

 

 

A

 

18

%

 

 

18

%

 

 

17

%

 

 

16

%

 

 

16

%

 

 

BBB

 

24

%

 

 

24

%

 

 

24

%

 

 

24

%

 

 

24

%

 

 

Below investment grade

 

7

%

 

 

7

%

 

 

7

%

 

 

6

%

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(1.0

)

 

 

$

(0.4

)

 

 

$

(0.3

)

 

 

$

(0.2

)

 

 

$

(0.6

)

 

 

 

7



 

Ameriprise Financial, Inc.

Adjusted Segment Information

Excluding Separation Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

1,493

 

$

1,423

 

$

1,590

 

$

1,497

 

$

1,616

 

8

%

 

$

2,915

 

$

3,113

 

Protection

 

496

 

498

 

502

 

500

 

508

 

2

%

 

969

 

1,008

 

Corporate and Other and Eliminations

 

64

 

56

 

69

 

66

 

58

 

(9

)%

 

118

 

124

 

Total revenues

 

2,053

 

1,977

 

2,161

 

2,063

 

2,182

 

6

%

 

4,002

 

4,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

1,271

 

1,231

 

1,341

 

1,265

 

1,338

 

5

%

 

2,465

 

2,603

 

Protection

 

404

 

347

 

396

 

399

 

406

 

 

 

803

 

805

 

Adjusted Corporate and Other and Eliminations

 

108

 

95

 

98

 

98

 

130

 

20

%

 

206

 

228

 

Total adjusted expenses

 

1,783

 

1,673

 

1,835

 

1,762

 

1,874

 

5

%

 

3,474

 

3,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Segment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

222

 

192

 

249

 

232

 

278

 

25

%

 

450

 

510

 

Protection

 

92

 

151

 

106

 

101

 

102

 

11

%

 

166

 

203

 

Adjusted Corporate and Other and Eliminations

 

(44

)

(39

)

(29

)

(32

)

(72

)

(64

)%

 

(88

)

(104

)

Total adjusted pretax segment income

 

$

270

 

$

304

 

$

326

 

$

301

 

$

308

 

14

%

 

$

528

 

$

609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

3,767

 

$

3,910

 

$

3,811

 

$

3,640

 

$

3,556

 

(6

)%

 

$

3,767

 

$

3,556

 

Protection

 

2,234

 

2,246

 

2,261

 

2,280

 

2,251

 

1

%

 

2,234

 

2,251

 

Corporate and Other and Eliminations

 

1,900

 

1,823

 

2,062

 

1,954

 

2,148

 

13

%

 

1,900

 

2,148

 

Other comprehensive income

 

(666

)

(226

)

(209

)

(143

)

(355

)

47

%

 

(666

)

(355

)

Total shareholders’ equity

 

$

7,235

 

$

7,753

 

$

7,925

 

$

7,731

 

$

7,600

 

5

%

 

$

7,235

 

$

7,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Dealer Concession

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

443

 

$

446

 

$

487

 

$

514

 

$

545

 

23

%

 

$

866

 

$

1,059

 

Protection

 

52

 

51

 

54

 

51

 

53

 

2

%

 

104

 

104

 

Corporate and Other and Eliminations

 

50

 

48

 

55

 

59

 

55

 

10

%

 

102

 

114

 

Total gross dealer concession

 

$

545

 

$

545

 

$

596

 

$

624

 

$

653

 

20

%

 

$

1,072

 

$

1,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, Managed and Administered Assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

$

72.6

 

$

76.0

 

$

79.7

 

$

80.3

 

$

83.1

 

14

%

 

$

72.6

 

$

83.1

 

Protection

 

14.1

 

14.6

 

15.2

 

16.0

 

15.8

 

12

%

 

14.1

 

15.8

 

Corporate and Other and Eliminations

 

2.4

 

2.1

 

2.3

 

1.9

 

2.0

 

(17

)%

 

2.4

 

2.0

 

Total owned assets

 

89.1

 

92.7

 

97.2

 

98.2

 

100.9

 

13

%

 

89.1

 

100.9

 

Managed Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

276.1

 

283.4

 

299.8

 

305.3

 

310.5

 

12

%

 

276.1

 

310.5

 

Total managed assets

 

276.1

 

283.4

 

299.8

 

305.3

 

310.5

 

12

%

 

276.1

 

310.5

 

Administered Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Accumulation and Income

 

62.7

 

63.9

 

69.1

 

70.4

 

72.5

 

16

%

 

62.7

 

72.5

 

Total administered assets

 

62.7

 

63.9

 

69.1

 

70.4

 

72.5

 

16

%

 

62.7

 

72.5

 

Total owned, managed and administered assets

 

$

427.9

 

$

440.0

 

$

466.1

 

$

473.9

 

$

483.9

 

13

%

 

$

427.9

 

$

483.9

 

 


# Variance of 100% or greater.

 

8



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

654

 

$

657

 

$

749

 

$

718

 

$

788

 

20

%

 

$

1,300

 

$

1,506

 

Distribution fees

 

297

 

272

 

344

 

317

 

386

 

30

%

 

570

 

703

 

Net investment income

 

427

 

443

 

454

 

415

 

392

 

(8

)%

 

902

 

807

 

Other revenues

 

115

 

51

 

43

 

47

 

50

 

(57

)%

 

143

 

97

 

Total revenues

 

1,493

 

1,423

 

1,590

 

1,497

 

1,616

 

8

%

 

2,915

 

3,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

376

 

370

 

425

 

419

 

472

 

26

%

 

742

 

891

 

Interest credited to account values

 

271

 

281

 

279

 

253

 

267

 

(1

)%

 

559

 

520

 

Benefits, claims, losses and settlement expenses

 

12

 

3

 

22

 

(8

)

7

 

(42

)%

 

16

 

(1

)

Amortization of deferred acquisition costs

 

91

 

98

 

63

 

99

 

85

 

(7

)%

 

178

 

184

 

Interest and debt expense

 

5

 

4

 

3

 

3

 

3

 

(40

)%

 

8

 

6

 

Other expenses

 

516

 

475

 

549

 

499

 

504

 

(2

)%

 

962

 

1,003

 

Total expenses

 

1,271

 

1,231

 

1,341

 

1,265

 

1,338

 

5

%

 

2,465

 

2,603

 

Pretax segment income

 

$

222

 

$

192

 

$

249

 

$

232

 

$

278

 

25

%

 

$

450

 

$

510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

6

 

$

12

 

$

21

 

$

8

 

$

1

 

(83

)%

 

$

7

 

$

9

 

Contribution margin

 

55.9

%

54.0

%

54.3

%

55.6

%

53.8

%

 

 

 

54.8

%

54.7

Allocated equity

 

$

3,767

 

$

3,910

 

$

3,811

 

$

3,640

 

$

3,556

 

(6

)%

 

$

3,767

 

$

3,556

 

Return on allocated equity for pretax segment income

 

21.7

%

21.8

%

23.2

%

23.6

%

25.4

%

 

 

 

21.7

%

25.4

%

 


# Variance of 100% or greater.

 

9



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Revenues by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

$

296

 

$

294

 

$

347

 

$

294

 

$

325

 

10

%

 

$

589

 

$

619

 

Variable annuities

 

146

 

150

 

171

 

177

 

194

 

33

%

 

284

 

371

 

Fixed annuities

 

2

 

2

 

1

 

2

 

2

 

 

 

3

 

4

 

Brokerage, banking and other

 

210

 

211

 

230

 

245

 

267

 

27

%

 

424

 

512

 

Total management, financial advice and service fees

 

654

 

657

 

749

 

718

 

788

 

20

%

 

1,300

 

1,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

42

 

37

 

39

 

39

 

40

 

(5

)%

 

88

 

79

 

Variable annuities

 

10

 

10

 

8

 

10

 

10

 

 

 

20

 

20

 

Fixed annuities

 

3

 

2

 

2

 

2

 

2

 

(33

)%

 

6

 

4

 

Brokerage, banking and other

 

242

 

223

 

295

 

266

 

334

 

38

%

 

456

 

600

 

Total distribution fees

 

297

 

272

 

344

 

317

 

386

 

30

%

 

570

 

703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

4

 

22

 

3

 

12

 

15

 

 

#

 

15

 

27

 

Variable annuities

 

68

 

67

 

63

 

54

 

26

 

(62

)%

 

139

 

80

 

Fixed annuities

 

278

 

267

 

288

 

258

 

254

 

(9

)%

 

582

 

512

 

Certificates

 

60

 

70

 

70

 

61

 

64

 

7

%

 

134

 

125

 

Brokerage, banking and other

 

17

 

17

 

30

 

30

 

33

 

94

%

 

32

 

63

 

Total net investment income

 

427

 

443

 

454

 

415

 

392

 

(8

)%

 

902

 

807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

99

 

28

 

20

 

18

 

16

 

(84

)%

 

107

 

34

 

Variable annuities

 

11

 

12

 

14

 

16

 

23

 

 

#

 

21

 

39

 

Brokerage, banking and other

 

5

 

11

 

9

 

13

 

11

 

 

#

 

15

 

24

 

Total other revenues

 

115

 

51

 

43

 

47

 

50

 

(57

)%

 

143

 

97

 

Total revenues

 

$

1,493

 

$

1,423

 

$

1,590

 

$

1,497

 

$

1,616

 

8

%

 

$

2,915

 

$

3,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset management

 

$

441

 

$

381

 

$

409

 

$

363

 

$

396

 

(10

)%

 

$

799

 

$

759

 

Variable annuities

 

235

 

239

 

256

 

257

 

253

 

8

%

 

464

 

510

 

Fixed annuities

 

283

 

271

 

291

 

262

 

258

 

(9

)%

 

591

 

520

 

Certificates

 

60

 

70

 

70

 

61

 

64

 

7

%

 

134

 

125

 

Brokerage, banking and other

 

474

 

462

 

564

 

554

 

645

 

36

%

 

927

 

1,199

 

Total revenues

 

$

1,493

 

$

1,423

 

$

1,590

 

$

1,497

 

$

1,616

 

8

%

 

$

2,915

 

$

3,113

 

 


# Variance of 100% or greater.

 

10



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Retail Managed Assets Rollforwards

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in billions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

RiverSource Managed Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

78.2

 

$

76.4

 

$

78.2

 

$

81.7

 

$

82.1

 

5

%

 

$

76.6

 

$

81.7

 

Sales

 

4.0

 

4.5

 

4.2

 

4.4

 

5.5

 

38

%

 

7.5

 

9.9

 

Redemptions

 

(4.6

)

(4.9

)

(5.1

)

(4.9

)

(5.1

)

(11

)%

 

(10.2

)

(10.0

)

Market appreciation (depreciation)

 

(1.2

)

2.4

 

4.6

 

1.2

 

4.2

 

 

#

 

2.5

 

5.4

 

Other

 

 

(0.2

)

(0.2

)

(0.3

)

0.3

 

 

 

 

 

Total ending assets

 

$

76.4

 

$

78.2

 

$

81.7

 

$

82.1

 

$

87.0

 

14

%

 

$

76.4

 

$

87.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of Ending Assets Subadvised by Others

 

10

%

10

%

11

%

11

%

11

%

 

 

 

10 

%

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Managed Funds by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity mutual funds

 

$

37.2

 

$

37.4

 

$

39.0

 

$

38.6

 

$

41.1

 

10

%

 

$

37.2

 

$

41.1

 

Variable product funds(1)

 

19.6

 

20.6

 

22.2

 

22.8

 

24.7

 

26

%

 

19.6

 

24.7

 

Taxable fixed income mutual funds

 

7.9

 

8.1

 

8.0

 

8.2

 

8.4

 

6

%

 

7.9

 

8.4

 

Tax-exempt fixed income mutual funds

 

5.0

 

4.9

 

4.8

 

4.6

 

4.4

 

(12

)%

 

5.0

 

4.4

 

Money market mutual funds

 

3.9

 

4.3

 

4.5

 

4.6

 

4.9

 

26

%

 

3.9

 

4.9

 

Hybrid and other mutual funds

 

2.8

 

2.9

 

3.2

 

3.3

 

3.5

 

25

%

 

2.8

 

3.5

 

Total ending assets

 

$

76.4

 

$

78.2

 

$

81.7

 

$

82.1

 

$

87.0

 

14

%

 

$

76.4

 

$

87.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Mutual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

15.3

 

$

14.9

 

$

15.6

 

$

16.6

 

$

16.8

 

10

%

 

$

14.0

 

$

16.6

 

Sales

 

1.3

 

1.2

 

1.3

 

1.7

 

1.9

 

46

%

 

2.6

 

3.6

 

Redemptions

 

(1.6

)

(1.5

)

(1.9

)

(1.9

)

(1.8

)

(13

)%

 

(3.0

)

(3.7

)

Market appreciation (depreciation)

 

(0.8

)

0.6

 

0.9

 

0.4

 

0.5

 

 

#

 

0.4

 

0.9

 

Foreign currency translation

 

0.7

 

0.4

 

0.7

 

0.1

 

0.4

 

(43

)%

 

0.7

 

0.5

 

Other

 

 

 

 

(0.1

)

0.1

 

 

 

0.2

 

 

Total ending assets

 

$

14.9

 

$

15.6

 

$

16.6

 

$

16.8

 

$

17.9

 

20

%

 

$

14.9

 

$

17.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Mutual Funds by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity mutual funds

 

$

11.0

 

$

11.5

 

$

12.2

 

$

12.3

 

$

13.1

 

19

%

 

$

11.0

 

$

13.1

 

Fixed income mutual funds

 

3.0

 

3.1

 

3.3

 

3.4

 

3.3

 

10

%

 

3.0

 

3.3

 

Money market mutual funds

 

0.3

 

0.3

 

0.3

 

0.2

 

0.4

 

33

%

 

0.3

 

0.4

 

Hybrid and other mutual funds

 

0.6

 

0.7

 

0.8

 

0.9

 

1.1

 

83

%

 

0.6

 

1.1

 

Total ending assets

 

$

14.9

 

$

15.6

 

$

16.6

 

$

16.8

 

$

17.9

 

20

%

 

$

14.9

 

$

17.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Collective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

11.0

 

$

10.9

 

$

11.0

 

$

10.2

 

$

10.0

 

(9

)%

 

$

11.3

 

$

10.2

 

Net flows

 

 

(0.2

)

(1.1

)

(0.3

)

(0.6

)

 

 

(0.6

)

(0.9

)

Market appreciation (depreciation)

 

 

0.2

 

0.3

 

0.1

 

0.2

 

 

 

0.3

 

0.3

 

Other

 

(0.1

)

0.1

 

 

 

 

 

#

 

(0.1

)

 

Total ending assets

 

$

10.9

 

$

11.0

 

$

10.2

 

$

10.0

 

$

9.6

 

(12

)%

 

$

10.9

 

$

9.6

 

 


(1)  Difference between Variable product funds and Variable product liabilities, as shown on page 14, represents a timing difference of dividends declared and reinvested into the funds.

 

#  Variance of 100% or greater.

11



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Institutional Managed Assets Rollforwards

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in billions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

RiverSource Managed Institutional Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

27.5

 

$

27.3

 

$

26.9

 

$

27.9

 

$

28.7

 

4

%

 

$

27.2

 

$

27.9

 

Sales

 

0.6

 

0.9

 

1.8

 

1.8

 

1.4

 

 

#

 

2.0

 

3.2

 

Redemptions

 

(0.6

)

(1.7

)

(0.9

)

(1.1

)

(1.0

)

(67

)%

 

(1.4

)

(2.1

)

Market appreciation (depreciation)

 

(0.1

)

0.3

 

0.2

 

0.1

 

 

 

#

 

 

0.1

 

Other

 

(0.1

)

0.1

 

(0.1

)

 

 

 

#

 

(0.5

)

 

Total ending assets

 

$

27.3

 

$

26.9

 

$

27.9

 

$

28.7

 

$

29.1

 

7

%

 

$

27.3

 

$

29.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Managed Institutional Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity ending assets

 

$

2.5

 

$

2.6

 

$

2.9

 

$

3.0

 

$

3.1

 

24

%

 

$

2.5

 

$

3.1

 

Fixed income ending assets

 

24.3

 

23.8

 

24.1

 

25.2

 

25.4

 

5

%

 

24.3

 

25.4

 

Money market ending assets

 

0.4

 

0.4

 

0.8

 

0.4

 

0.6

 

50

%

 

0.4

 

0.6

 

Other ending assets

 

0.1

 

0.1

 

0.1

 

0.1

 

 

 

#

 

0.1

 

 

Total ending assets

 

$

27.3

 

$

26.9

 

$

27.9

 

$

28.7

 

$

29.1

 

7

%

 

$

27.3

 

$

29.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Institutional Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

104.1

 

$

105.2

 

$

108.0

 

$

115.1

 

$

115.5

 

11

%

 

$

99.6

 

$

115.1

 

Sales

 

5.8

 

5.4

 

5.9

 

5.3

 

5.4

 

(7

)%

 

10.4

 

10.7

 

Redemptions

 

(6.8

)

(7.6

)

(7.9

)

(7.4

)

(15.7

)

 

#

 

(12.3

)

(23.1

)

Market appreciation (depreciation)

 

(3.3

)

1.6

 

3.0

 

1.1

 

1.9

 

 

#

 

0.7

 

3.0

 

Foreign currency translation

 

4.4

 

2.8

 

5.0

 

0.5

 

2.4

 

(45

)%

 

5.1

 

2.9

 

Other

 

1.0

 

0.6

 

1.1

 

0.9

 

1.2

 

20

%

 

1.7

 

2.1

 

Total ending assets

 

$

105.2

 

$

108.0

 

$

115.1

 

$

115.5

 

$

110.7

 

5

%

 

$

105.2

 

$

110.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Managed Institutional Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity ending assets

 

$

52.5

 

$

54.0

 

$

57.8

 

$

57.8

 

$

57.7

 

10

%

 

$

52.5

 

$

57.7

 

Fixed income ending assets

 

35.9

 

36.9

 

38.4

 

39.8

 

32.2

 

(10

)%

 

35.9

 

32.2

 

Money market ending assets

 

5.3

 

5.1

 

6.0

 

4.6

 

6.9

 

30

%

 

5.3

 

6.9

 

Other ending assets

 

11.5

 

12.0

 

12.9

 

13.3

 

13.9

 

21

%

 

11.5

 

13.9

 

Total ending assets

 

$

105.2

 

$

108.0

 

$

115.1

 

$

115.5

 

$

110.7

 

5

%

 

$

105.2

 

$

110.7

 

 


#  Variance of 100% or greater.

 

12



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Financial Advisor Managed Assets Rollforwards

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in billions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Ameriprise Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

54.9

 

$

56.7

 

$

59.9

 

$

65.9

 

$

69.9

 

27

%

 

$

49.7

 

$

65.9

 

Mutual fund net flows

 

1.9

 

1.2

 

1.3

 

2.5

 

2.9

 

53

%

 

3.8

 

5.4

 

Market appreciation (depreciation) and other

 

(0.1

)

2.0

 

4.7

 

1.5

 

3.4

 

 

#

 

3.2

 

4.9

 

Total ending assets

 

$

56.7

 

$

59.9

 

$

65.9

 

$

69.9

 

$

76.2

 

34

%

 

$

56.7

 

$

76.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-fee earning cash balances as a percentage of ending assets

 

6.0

%

5.8

%

6.2

%

5.8

%

5.4

%

 

 

 

6.0

%

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAI Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

9.1

 

$

9.8

 

$

10.2

 

$

10.5

 

$

11.9

 

31

%

 

$

8.0

 

$

10.5

 

Net flows

 

0.6

 

0.3

 

0.3

 

0.5

 

0.6

 

 

 

1.2

 

1.1

 

Market appreciation (depreciation) and other

 

0.1

 

0.1

 

 

0.9

 

0.4

 

 

#

 

0.6

 

1.3

 

Total ending assets

 

$

9.8

 

$

10.2

 

$

10.5

 

$

11.9

 

$

12.9

 

32

%

 

$

9.8

 

$

12.9

 

 


#  Variance of 100% or greater.

 

13



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Owned Assets Related to Variable Products

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in billions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Variable Annuities (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

36.1

 

$

36.7

 

$

39.3

 

$

43.5

 

$

45.8

 

27

%

 

$

33.2

 

$

43.5

 

Deposits

 

2.5

 

2.4

 

2.6

 

2.6

 

2.8

 

12

%

 

4.6

 

5.5

 

Withdrawals and surrenders

 

(1.2

)

(1.0

)

(1.1

)

(1.2

)

(1.3

)

(8

)%

 

(2.2

)

(2.5

)

Net flows

 

1.3

 

1.4

 

1.5

 

1.4

 

1.5

 

15

%

 

2.4

 

3.0

 

Investment performance and interest credited

 

(0.8

)

1.1

 

2.5

 

0.7

 

2.2

 

 

#

 

1.1

 

2.9

 

Other

 

0.1

 

0.1

 

0.2

 

0.2

 

0.2

 

 

#

 

 

0.3

 

Total ending balance - contract reserves

 

$

36.7

 

$

39.3

 

$

43.5

 

$

45.8

 

$

49.7

 

35

%

 

$

36.7

 

$

49.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Managed by RiverSource

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuity separate account liabilities

 

$

17.3

 

$

18.1

 

$

19.7

 

$

20.5

 

$

21.9

 

27

%

 

 

 

 

 

Variable universal life liabilities (2)

 

2.3

 

2.4

 

2.6

 

2.6

 

2.8

 

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Managed by Threadneedle

 

$

4.0

 

$

4.2

 

$

4.6

 

$

4.5

 

$

4.5

 

13

%

 

 

 

 

 

 


(1)  The fixed portion of the Variable annuities product is included in the Fixed annuities product account values on page 15.

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

 

#  Variance of 100% or greater.

 

14



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Net Investment Income and Spread Products

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gains (losses)

 

$

6

 

$

12

 

$

21

 

$

8

 

$

1

 

(83

)%

 

$

7

 

$

9

 

Income related to interest credited and benefits line hedges

 

(13

)

18

 

15

 

(3

)

(6

)

54

%

 

(12

)

(9

)

Net investment income

 

$

427

 

$

443

 

$

454

 

$

415

 

$

392

 

(8

)%

 

$

902

 

$

807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,180

 

$

4,863

 

$

4,608

 

$

4,720

 

$

4,561

 

(12

)%

 

$

5,649

 

$

4,720

 

Deposits

 

378

 

390

 

706

 

238

 

224

 

(41

)%

 

849

 

462

 

Withdrawals and surrenders

 

(738

)

(700

)

(653

)

(447

)

(673

)

9

%

 

(1,731

)

(1,120

)

Net flows

 

(360

)

(310

)

53

 

(209

)

(449

)

(25

)%

 

(882

)

(658

)

Interest credited

 

42

 

56

 

58

 

51

 

55

 

31

%

 

97

 

106

 

Other

 

1

 

(1

)

1

 

(1

)

 

 

#

 

(1

)

(1

)

Total ending balance

 

$

4,863

 

$

4,608

 

$

4,720

 

$

4,561

 

$

4,167

 

(14

)%

 

$

4,863

 

$

4,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset earnings rate

 

4.93

%

4.92

%

4.90

%

4.97

%

5.00

%

 

 

 

4.91

%

4.98

%

Crediting rate

 

(3.66

)%

(3.92

)%

(4.15

)%

(4.28

)%

(4.29

)%

 

 

 

(3.57

)%

(4.28

)%

Spread (1)

 

1.27

%

1.00

%

0.75

%

0.69

%

0.71

%

 

 

 

1.34

%

0.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annuities Fixed Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

25,529

 

$

24,801

 

$

23,977

 

$

23,133

 

$

22,218

 

(13

)%

 

$

26,126

 

$

23,133

 

Deposits

 

221

 

232

 

183

 

129

 

173

 

(22

)%

 

458

 

302

 

Withdrawals and surrenders

 

(1,176

)

(1,238

)

(1,237

)

(1,247

)

(1,254

)

(7

)%

 

(2,236

)

(2,501

)

Net flows

 

(955

)

(1,006

)

(1,054

)

(1,118

)

(1,081

)

(13

)%

 

(1,778

)

(2,199

)

Policyholder interest credited

 

230

 

228

 

223

 

205

 

214

 

(7

)%

 

466

 

419

 

Other

 

(3

)

(46

)

(13

)

(2

)

(35

)

 

#

 

(13

)

(37

)

Total ending balance

 

$

24,801

 

$

23,977

 

$

23,133

 

$

22,218

 

$

21,316

 

(14

)%

 

$

24,801

 

$

21,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Interest

 

$

2

 

$

3

 

$

2

 

$

2

 

$

2

 

 

 

$

5

 

$

4

 

Ending Balance Attributable to Variable Annuities Fixed Sub-Accounts

 

$

6,572

 

$

6,277

 

$

5,975

 

$

5,674

 

$

5,416

 

(18

)%

 

$

6,572

 

$

5,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset earnings rate

 

5.64

%

5.21

%

5.57

%

5.56

%

5.48

%

 

 

 

5.73

%

5.52

%

Crediting rate

 

(3.54

)%

(3.56

)%

(3.57

)%

(3.56

)%

(3.56

)%

 

 

 

(3.54

)%

(3.56

)%

Spread (2)

 

2.10

%

1.65

%

2.00

%

2.00

%

1.92

%

 

 

 

2.19

%

1.96

%

 


(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.

 

15



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Selected Asset Management Ranking Information

 

 

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

RiverSource Mutual Fund Performance Ranking in Top 2 Lipper Quartiles

 

 

 

 

 

 

 

 

 

 

 

Equal Weighted

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

69%

 

73%

 

77%

 

56%

 

70%

 

Fixed Income - 12 month

 

44%

 

78%

 

72%

 

83%

 

88%

 

Taxable Fixed Income - 12 month

 

67%

 

78%

 

67%

 

86%

 

87%

 

Tax-exempt Fixed Income - 12 month

 

22%

 

78%

 

78%

 

78%

 

89%

 

Equity - 3 year

 

53%

 

58%

 

63%

 

65%

 

65%

 

Fixed Income - 3 year

 

41%

 

47%

 

53%

 

44%

 

44%

 

Taxable Fixed Income - 3 year

 

63%

 

75%

 

75%

 

67%

 

67%

 

Tax-exempt Fixed Income - 3 year

 

22%

 

22%

 

33%

 

22%

 

22%

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Weighted

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

56%

 

70%

 

89%

 

58%

 

87%

 

Fixed Income - 12 month

 

44%

 

87%

 

87%

 

97%

 

97%

 

Taxable Fixed Income - 12 month

 

82%

 

94%

 

93%

 

96%

 

96%

 

Tax-exempt Fixed Income - 12 month

 

5%

 

79%

 

82%

 

98%

 

99%

 

Equity - 3 year

 

54%

 

67%

 

70%

 

72%

 

74%

 

Fixed Income - 3 year

 

44%

 

51%

 

48%

 

46%

 

46%

 

Taxable Fixed Income - 3 year

 

82%

 

95%

 

87%

 

84%

 

84%

 

Tax-exempt Fixed Income - 3 year

 

5%

 

5%

 

6%

 

5%

 

6%

 

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle Mutual Fund Performance Ranking in Top 2 S&P Quartiles

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

83%

 

72%

 

63%

 

57%

 

63%

 

Fixed Income - 12 month

 

44%

 

67%

 

56%

 

44%

 

44%

 

Equity - 3 year

 

59%

 

64%

 

57%

 

50%

 

64%

 

Fixed Income - 3 year

 

56%

 

78%

 

67%

 

56%

 

56%

 

 


Equal Weighted Rankings in Top 2 Quartiles: Counts the number of Class A funds with above median ranking divided by the total number of Class A funds. Asset size is not a factor.

 

Asset Weighted Rankings in Top 2 Quartiles: Sums the assets of the Class A funds with above median ranking divided by the total Class A assets. Funds with more assets will receive a greater share of the total percentage above or below median.

 

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., RiverSource S&P 500 Index Fund, RiverSource Cash Management Fund and RiverSource Tax Free Money Market Fund.

 

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.

 

16



 

Ameriprise Financial, Inc.

Asset Accumulation and Income Segment

Deferred Acquisition Costs Rollforwards

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,809

 

$

1,887

 

$

1,926

 

$

2,004

 

$

1,898

 

5

%

 

$

1,719

 

$

2,004

 

Capitalization

 

113

 

119

 

121

 

121

 

124

 

10

%

 

225

 

245

 

Amortization

 

(56

)

(69

)

(34

)

(68

)

(56

)

 

 

(104

)

(124

)

SOP 05-1 (cumulative pretax impact)

 

 

 

 

(146

)

 

 

 

 

(146

)

Other (FAS 115)

 

21

 

(11

)

(9

)

(13

)

22

 

5

%

 

47

 

9

 

Total ending balance

 

$

1,887

 

$

1,926

 

$

2,004

 

$

1,898

 

$

1,988

 

5

%

 

$

1,887

 

$

1,988

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

391

 

$

381

 

$

359

 

$

343

 

$

315

 

(19

)%

 

$

396

 

343

 

Capitalization

 

5

 

5

 

3

 

2

 

1

 

(80

)%

 

11

 

3

 

Amortization

 

(22

)

(17

)

(20

)

(21

)

(20

)

9

%

 

(43

)

(41

)

SOP 05-1 (cumulative pretax impact)

 

 

 

 

(7

)

 

 

 

 

(7

)

Other (FAS 115)

 

7

 

(10

)

1

 

(2

)

13

 

86

%

 

17

 

11

 

Total ending balance

 

$

381

 

$

359

 

$

343

 

$

315

 

$

309

 

(19

)%

 

$

381

 

$

309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

95

 

$

88

 

$

80

 

$

74

 

$

69

 

(27

)%

 

$

109

 

$

74

 

Capitalization

 

5

 

4

 

4

 

5

 

6

 

20

%

 

10

 

11

 

Amortization

 

(13

)

(12

)

(9

)

(10

)

(9

)

31

%

 

(31

)

(19

)

Other (FAS 115)

 

1

 

 

(1

)

 

 

 

#

 

 

 

Total ending balance

 

$

88

 

$

80

 

$

74

 

$

69

 

$

66

 

(25

)%

 

$

88

 

$

66

 

 


# Variance of 100% or greater.

 

17



 

Ameriprise Financial, Inc.

Protection Segment

Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

19

 

$

20

 

$

22

 

$

22

 

$

24

 

26

%

 

$

38

 

$

46

 

Distribution fees

 

27

 

27

 

29

 

28

 

29

 

7

%

 

55

 

57

 

Net investment income

 

86

 

87

 

92

 

89

 

88

 

2

%

 

175

 

177

 

Premiums

 

234

 

249

 

246

 

245

 

251

 

7

%

 

460

 

496

 

Other revenues

 

130

 

115

 

113

 

116

 

116

 

(11

)%

 

241

 

232

 

Total revenues

 

496

 

498

 

502

 

500

 

508

 

2

%

 

969

 

1,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

22

 

22

 

21

 

25

 

24

 

9

%

 

45

 

49

 

Interest credited to account values

 

36

 

36

 

37

 

34

 

36

 

 

 

72

 

70

 

Benefits, claims, losses and settlement expenses

 

213

 

230

 

223

 

227

 

223

 

5

%

 

436

 

450

 

Amortization of deferred acquisition costs

 

62

 

(11

)

41

 

35

 

40

 

(35

)%

 

103

 

75

 

Other expenses

 

71

 

70

 

74

 

78

 

83

 

17

%

 

147

 

161

 

Total expenses

 

404

 

347

 

396

 

399

 

406

 

 

 

803

 

805

 

Pretax segment income

 

$

92

 

$

151

 

$

106

 

$

101

 

$

102

 

11

%

 

$

166

 

$

203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains (losses), pretax

 

$

 

$

2

 

$

6

 

$

1

 

$

 

 

 

$

2

 

$

1

 

Contribution margin

 

45.4

%

42.2

%

44.0

%

42.8

%

44.3

%

 

 

 

42.9

%

43.6

%

Allocated equity

 

$

2,234

 

$

2,246

 

$

2,261

 

$

2,280

 

$

2,251

 

1

%

 

$

2,234

 

$

2,251

 

Return on allocated equity for pretax segment income

 

17.7

%

18.1

%

19.1

%

20.1

%

20.4

%

 

 

 

17.7

%

20.4

%

Return on allocated equity for adjusted pretax segment income

 

17.3

%

18.1

%

19.1

%

20.1

%

20.4

%

 

 

 

17.3

%

20.4

%

 


#  Variance of 100% or greater.

 

18



 

Ameriprise Financial, Inc.

Protection Segment

Revenues by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

18

 

$

19

 

$

21

 

$

21

 

$

23

 

28

%

 

$

36

 

$

44

 

Auto and Home

 

1

 

1

 

 

1

 

1

 

 

 

2

 

2

 

Disability income, LTC and other

 

 

 

1

 

 

 

 

 

 

 

Total management, financial advice and service fees

 

19

 

20

 

22

 

22

 

24

 

26

%

 

38

 

46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

19

 

18

 

18

 

19

 

19

 

 

 

37

 

38

 

Auto and Home

 

 

 

1

 

 

1

 

 

 

1

 

1

 

Disability income, LTC and other

 

8

 

9

 

10

 

9

 

9

 

13

%

 

17

 

18

 

Total distribution fees

 

27

 

27

 

29

 

28

 

29

 

7

%

 

55

 

57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

29

 

27

 

30

 

29

 

29

 

 

 

60

 

58

 

Traditional life

 

4

 

4

 

4

 

4

 

4

 

 

 

8

 

8

 

Auto and Home

 

10

 

14

 

11

 

11

 

11

 

10

%

 

20

 

22

 

Disability income, LTC and other

 

43

 

42

 

47

 

45

 

44

 

2

%

 

87

 

89

 

Total net investment income

 

86

 

87

 

92

 

89

 

88

 

2

%

 

175

 

177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional life

 

18

 

19

 

18

 

19

 

22

 

22

%

 

36

 

41

 

Auto and Home

 

134

 

135

 

140

 

141

 

144

 

7

%

 

261

 

285

 

Intercompany premiums (1)

 

5

 

5

 

7

 

9

 

8

 

60

%

 

11

 

17

 

Disability income, LTC and other

 

77

 

90

 

81

 

76

 

77

 

 

 

152

 

153

 

Total premiums

 

234

 

249

 

246

 

245

 

251

 

7

%

 

460

 

496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

132

 

111

 

114

 

116

 

116

 

(12

)%

 

243

 

232

 

Auto and Home

 

 

1

 

 

 

 

 

 

(1

)

 

Disability income, LTC and other

 

(2

)

3

 

(1

)

 

 

 

#

 

(1

)

 

Total other revenues

 

130

 

115

 

113

 

116

 

116

 

(11

)%

 

241

 

232

 

Total revenues

 

$

496

 

$

498

 

$

502

 

$

500

 

$

508

 

2

%

 

$

969

 

$

1,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues by product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

198

 

$

175

 

$

183

 

$

185

 

$

187

 

(6

)%

 

$

376

 

$

372

 

Traditional life

 

22

 

23

 

22

 

23

 

26

 

18

%

 

44

 

49

 

Auto and Home

 

145

 

151

 

152

 

153

 

157

 

8

%

 

283

 

310

 

Intercompany premiums (1)

 

5

 

5

 

7

 

9

 

8

 

60

%

 

11

 

17

 

Disability income, LTC and other

 

126

 

144

 

138

 

130

 

130

 

3

%

 

255

 

260

 

Total revenues by product

 

$

496

 

$

498

 

$

502

 

$

500

 

$

508

 

2

%

 

$

969

 

$

1,008

 

 


(1)  Intercompany E&O premiums are eliminated in the Corporate and Other and Eliminations segment.

 

#  Variance of 100% or greater.

 

19



 

Ameriprise Financial, Inc.

Protection Segment

Selected Statistical Information

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL(1)

 

$

86

 

$

84

 

$

90

 

$

83

 

$

89

 

3

%

 

$

176

 

$

172

 

Term and whole life

 

5

 

4

 

6

 

5

 

5

 

 

 

10

 

10

 

Disability income

 

5

 

5

 

5

 

5

 

5

 

 

 

10

 

10

 

Brokered insurance and other

 

$

10

 

$

11

 

$

9

 

$

9

 

$

9

 

(10

)%

 

$

20

 

$

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lapse Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

5.6

%

6.1

%

5.8

%

5.6

%

5.8

%

 

 

 

5.6

%

5.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Face Amount Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

108,974

 

$

110,419

 

$

111,889

 

$

113,104

 

$

114,513

 

5

%

 

$

108,974

 

$

114,513

 

Term and whole life

 

56,517

 

58,293

 

60,278

 

62,438

 

64,751

 

15

%

 

56,517

 

64,751

 

Other(2)

 

1,882

 

1,867

 

1,855

 

1,832

 

1,816

 

(4

)%

 

1,882

 

1,816

 

Total face amount outstanding

 

$

167,373

 

$

170,579

 

$

174,022

 

$

177,374

 

$

181,080

 

8

%

 

$

167,373

 

$

181,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policyholder Reserves (net)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

7,653

 

$

7,882

 

$

8,334

 

$

8,480

 

$

8,878

 

16

%

 

$

7,653

 

$

8,878

 

Term and whole life

 

237

 

235

 

234

 

234

 

234

 

(1

)%

 

237

 

234

 

Disability income

 

374

 

381

 

386

 

408

 

414

 

11

%

 

374

 

414

 

Long term care and other

 

$

2,147

 

$

2,167

 

$

2,197

 

$

2,215

 

$

2,233

 

4

%

 

$

2,147

 

$

2,233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

$

47,731

 

$

47,019

 

$

46,327

 

$

45,939

 

$

45,197

 

(5

)%

 

$

47,731

 

$

45,197

 

Term and whole life

 

$

15,435

 

$

15,091

 

$

15,039

 

$

14,936

 

$

14,893

 

(4

)%

 

$

15,435

 

$

14,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy count  (in thousands)

 

469

 

481

 

490

 

496

 

505

 

8

%

 

469

 

505

 

Loss ratio

 

74.4

%

82.8

%

76.1

%

71.0

%

78.8

%

 

 

 

78.5

%

74.9

%

Expense ratio

 

15.7

%

15.8

%

15.4

%

18.2

%

17.1

%

 

 

 

15.3

%

17.4

%

 


(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.

 

20



 

Ameriprise Financial, Inc.

Protection Segment

Product Rollforwards

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Future Policy Benefits and Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

7,708

 

$

7,653

 

$

7,882

 

$

8,334

 

$

8,480

 

10

%

 

$

7,327

 

$

8,334

 

Premiums and deposits

 

264

 

263

 

278

 

275

 

283

 

7

%

 

530

 

558

 

Investment performance and interest credited

 

(98

)

183

 

407

 

121

 

362

 

 

#

 

241

 

483

 

Withdrawals and surrenders

 

(244

)

(237

)

(257

)

(257

)

(262

)

(7

)%

 

(486

)

(519

)

Other

 

23

 

20

 

24

 

7

 

15

 

(35

)%

 

41

 

22

 

Total ending balance

 

$

7,653

 

$

7,882

 

$

8,334

 

$

8,480

 

$

8,878

 

16

%

 

$

7,653

 

$

8,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Acquisition Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,397

 

$

1,422

 

$

1,492

 

$

1,507

 

$

1,478

 

6

%

 

$

1,371

 

$

1,507

 

Capitalization

 

31

 

30

 

31

 

36

 

37

 

19

%

 

65

 

73

 

Amortization

 

(10

)

38

 

(14

)

(10

)

(12

)

(20

)%

 

(24

)

(22

)

SOP 05-1 (cumulative pretax impact)

 

 

 

 

(51

)

 

 

 

 

(51

)

Other (FAS 115)

 

4

 

2

 

(2

)

(4

)

10

 

 

#

 

10

 

6

 

Total ending balance

 

$

1,422

 

$

1,492

 

$

1,507

 

$

1,478

 

$

1,513

 

6

%

 

$

1,422

 

$

1,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and Whole Life

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

102

 

$

104

 

$

105

 

$

109

 

$

114

 

12

%

 

$

101

 

$

109

 

Capitalization

 

6

 

6

 

7

 

7

 

8

 

33

%

 

12

 

15

 

Amortization

 

(4

)

(4

)

(3

)

(2

)

(4

)

 

 

(10

)

(6

)

Other

 

 

(1

)

 

 

 

 

 

1

 

 

Total ending balance

 

$

104

 

$

105

 

$

109

 

$

114

 

$

118

 

13

%

 

$

104

 

$

118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disability Income, LTC and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

446

 

$

447

 

$

448

 

$

448

 

$

450

 

1

%

 

$

448

 

$

448

 

Capitalization

 

12

 

13

 

12

 

14

 

15

 

25

%

 

27

 

29

 

Amortization

 

(13

)

(11

)

(12

)

(12

)

(12

)

8

%

 

(29

)

(24

)

Other

 

2

 

(1

)

 

 

1

 

(50

)%

 

1

 

1

 

Total ending balance

 

$

447

 

$

448

 

$

448

 

$

450

 

$

454

 

2

%

 

$

447

 

$

454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

40

 

$

13

 

$

13

 

$

14

 

$

13

 

(68

)%

 

$

38

 

$

14

 

Capitalization

 

8

 

12

 

12

 

11

 

12

 

50

%

 

15

 

23

 

Amortization

 

(35

)

(12

)

(12

)

(11

)

(12

)

66

%

 

(40

)

(23

)

Other

 

 

 

1

 

(1

)

1

 

 

 

 

 

Total ending balance

 

$

13

 

$

13

 

$

14

 

$

13

 

$

14

 

8

%

 

$

13

 

$

14

 

 


#  Variance of 100% or greater.

 

21



 

Ameriprise Financial, Inc.

Corporate and Other and Eliminations Segment

Income Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q 07 vs. 2Q 06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management, financial advice and service fees

 

$

48

 

$

43

 

$

43

 

$

51

 

$

51

 

6

%

 

$

93

 

$

102

 

Distribution fees

 

1

 

1

 

1

 

(1

)

 

 

#

 

1

 

(1

)

Net investment income

 

9

 

12

 

20

 

14

 

5

 

(44

)%

 

19

 

19

 

Premiums (1)

 

(5

)

(5

)

(7

)

(9

)

(8

)

(60

)%

 

(11

)

(17

)

Other revenues

 

11

 

5

 

12

 

11

 

10

 

(9

)%

 

16

 

21

 

Total revenues

 

64

 

56

 

69

 

66

 

58

 

(9

)%

 

118

 

124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits - field

 

38

 

36

 

32

 

42

 

42

 

11

%

 

72

 

84

 

Interest and debt expense

 

23

 

28

 

30

 

29

 

29

 

26

%

 

43

 

58

 

Other expenses

 

47

 

31

 

36

 

27

 

59

 

26

%

 

91

 

86

 

Total expenses before separation costs

 

108

 

95

 

98

 

98

 

130

 

20

%

 

206

 

228

 

Pretax segment loss before separation costs

 

(44

)

(39

)

(29

)

(32

)

(72

)

(64

)%

 

(88

)

(104

)

Separation costs, pretax

 

84

 

87

 

123

 

85

 

63

 

(25

)%

 

151

 

148

 

Pretax segment loss

 

$

(128

)

$

(126

)

$

(152

)

$

(117

)

$

(135

)

(5

)%

 

$

(239

)

$

(252

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment gains, pretax

 

$

 

$

 

$

 

$

 

$

1

 

 

 

$

1

 

$

1

 

Allocated equity

 

$

1,900

 

$

1,823

 

$

2,062

 

$

1,954

 

$

2,148

 

13

%

 

$

1,900

 

$

2,148

 

 


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

 

#  Variance of 100% or greater.

 

22



 

Ameriprise Financial, Inc.

Capital and Ratings Information

 

 

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

June 30,

 

(in millions, unaudited)

 

2006

 

2006

 

2006

 

2007

 

2007

 

Balance Sheet Detail

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

1,500

 

$

1,500

 

$

1,500

 

$

1,500

 

$

1,500

 

Junior subordinated notes (1)

 

500

 

500

 

500

 

500

 

500

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recourse debt

 

 

 

 

 

 

 

 

 

 

 

Debt of CDO

 

254

 

254

 

225

 

225

 

197

 

Debt of property fund limited partnerships

 

165

 

 

 

 

 

Subtotal non-recourse debt

 

419

 

254

 

225

 

225

 

197

 

Total debt

 

$

2,419

 

$

2,254

 

$

2,225

 

$

2,225

 

$

2,197

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt excluding non-recourse debt

 

$

2,000

 

$

2,000

 

$

2,000

 

$

2,000

 

$

2,000

 

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

 

$

1,625

 

$

1,625

 

$

1,625

 

$

1,625

 

$

1,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

$

3

 

$

3

 

$

3

 

$

3

 

$

3

 

Additional paid-in capital

 

4,254

 

4,291

 

4,353

 

4,468

 

4,533

 

Retained earnings

 

3,976

 

4,123

 

4,268

 

4,268

 

4,428

 

Treasury stock

 

(332

)

(438

)

(490

)

(865

)

(1,009

)

Accumulated other comprehensive income (loss), net of tax

 

(666

)

(226

)

(209

)

(143

)

(355

)

Total shareholders’ equity

 

$

7,235

 

$

7,753

 

$

7,925

 

$

7,731

 

$

7,600

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital

 

$

9,654

 

$

10,007

 

$

10,150

 

$

9,956

 

$

9,797

 

Total capital excluding non-recourse debt

 

9,235

 

9,753

 

9,925

 

9,731

 

9,600

 

Junior subordinated notes 75% equity credit (1)

 

$

375

 

$

375

 

$

375

 

$

375

 

$

375

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

5.8

6.1

6.0

6.4

6.9

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

 

7.0

7.0

6.5

7.0

7.6

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital

 

25.1

%

22.5

%

21.9

%

22.3

%

22.4

%

Debt to total capital excluding non-recourse debt

 

21.7

%

20.5

%

20.2

%

20.6

%

20.8

%

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

 

17.6

%

16.7

%

16.4

%

16.7

%

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Double Leverage

 

106

%

107

%

105

%

110

%

109

%

 

 

 

A.M. Best

 

S&P

 

Moody’s

 

Fitch

 

Financial Strength (as of 6/30/07)

 

 

 

 

 

 

 

 

 

Claims Paying Ratings

 

 

 

 

 

 

 

 

 

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.

 

23



 

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  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 separation costs;

  Total expenses before separation costs;

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

  Income before income tax provision and separation costs;

  Income tax provision before tax benefit attributable to separation costs;

 Income before separation costs;

  Separation cost, after-tax;

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

  Pretax segment income (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.

 

24



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

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

 

Adjusted Return on Equity - Adjusted return on equity (“ROE”) is calculated using adjusted earnings in the numerator for the last twelve months 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.

 

Administered Assets - Administered assets include assets for which we provide administrative services such as assets of our clients invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in customers’ brokerage accounts. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our 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 (“IDS Property Casualty”) that offers travel and other card insurance to American Express Company (“American Express”) customers. This business prior to our separation from American Express had historically been reported in the Travel Related Services segment of American Express. Under the separation agreement with American Express, 100% of this business was ceded to an American Express subsidiary in return for an arm’s length ceding fee. We expect to sell the legal entity of AMEX Assurance to American Express on or before September 30, 2007 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 our own and other companies’, to help our 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. We earn revenues in this segment primarily through fees we receive based on managed assets and annuity separate account assets. These fees are impacted by both market movements and net asset flows. We also earn 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 affiliates such as Costco Wholesale Corporation, Delta Loyalty Management Services, Inc. and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).

 

Book Value per Share - Total shareholders’ equity divided by the number of common shares outstanding.

 

Branded Advisor Clients - Individual, business, or institutional clients that receive investment advice and other services from an employee of our company or franchisee-based financial advisor including our company’s client service organization and includes temporarily unassigned clients.

 

Cash Sales - Cash Sales are the dollar value volume indicator that captures gross new cash inflows which generate product revenue streams to our company. This includes primarily “client initiated” activity that results in an incremental increase in assets (owned, managed or administered) or premiums in-force (but doesn’t need to result in time of sale revenue), or activity that doesn’t increase assets or premiums in-force, but generates “fee revenue”.

 

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, franchisee advisors and our company’s client service organization.

 

Company - Ameriprise Financial, Inc. and consolidated subsidiaries. Effective August 1, 2005, we transferred our 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.

 

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.

 

25



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

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 our separation from American Express. For purposes of presentation in the statistical supplement, this segment also includes eliminations.

 

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 Collateralized 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 before income tax provision 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. Our adoption of EITF 04-5 effective January 1, 2006 resulted in the consolidation of certain limited partnerships for which we are the general partner. As a result, we consolidate 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 based upon the weighted average production of advisor activity used to represent financial results attributable to advisor activity and to determine advisor compensation.

 

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

 

Managed Assets - Managed assets includes client assets for which we provide 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 we receive a fee based on assets held in the account). Managed assets also include assets managed by sub-advisors selected by us. Managed assets do not include owned assets or administered assets. These assets are not reported on our 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 our 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 assets on our Consolidated Balance Sheets, principally investments in the general and separate accounts of our life insurance subsidiaries, as well as cash and cash equivalents, restricted and segregated cash and receivables.

 

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

 

26



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Protection Segment - This segment offers a variety of protection products, both our 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 our company’s retail clients. We earn revenues in this operating segment primarily through premiums, fees and charges that we receive to assume insurance-related risk, fees we receive 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 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 Collateralized 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 five quarters.

 

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

 

Securities America - 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 - Our 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 our 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.

 

SOP 05-1 (“Statement of Position”), “Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts” - SOP 05-1 provides guidance on accounting for DAC associated with any insurance or annuity contract that is significantly modified or internally replaced with another contract.

 

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

 

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

 

Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with investment advisory fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include proprietary and non-proprietary funds. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our 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 our 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 and Rule 12b-1 fees.

 

27



 

EXHIBIT A

 

RiverSourceSM Mutual Fund Performance and Lipper Ranking

 



Ameriprise Financial, Inc.

 

Equity Fund Performance & Lipper Ranking

As of June 30, 2007

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

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Fund

 

660.7

 

6/29/2007

 

1.81

 

43.94

 

63

%

36.47

 

56

%

27.66

 

65

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

149 / 239

 

 

 

106 / 189

 

 

 

104 / 159

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

8,134.7

 

6/29/2007

 

1.14

 

23.19

 

18

%

19.72

 

3

%

17.08

 

2

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

42 / 246

 

 

 

4 / 190

 

 

 

2 / 120

 

RiverSourceSM Dividend Opportunity Fund

 

2,025.2

 

6/29/2007

 

1.16

 

26.66

 

3

%

18.08

 

9

%

11.21

 

52

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

5 / 246

 

 

 

17 / 190

 

 

 

62 / 120

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

141.5

 

6/29/2007

 

1.52

 

28.48

 

76

%

22.92

 

74

%

14.60

 

88

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

78 / 102

 

 

 

68 / 91

 

 

 

70 / 79

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

2,057.4

 

6/29/2007

 

1.14

 

20.91

 

4

%

13.79

 

19

%

11.38

 

29

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

5 / 125

 

 

 

18 / 96

 

 

 

22 / 76

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

805.6

 

6/29/2007

 

1.51

 

23.77

 

29

%

21.17

 

5

%

14.66

 

22

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

25 / 86

 

 

 

3 / 61

 

 

 

11 / 49

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals and Mining Fund

 

120.8

 

6/29/2007

 

1.40

 

15.65

 

17

%

25.19

 

54

%

21.23

 

65

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

9 / 53

 

 

 

26 / 48

 

 

 

27 / 41

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

713.3

 

6/29/2007

 

1.48

 

23.00

 

85

%

20.47

 

56

%

13.34

 

85

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

180 / 213

 

 

 

109 / 196

 

 

 

149 / 175

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined International Equity Fund

 

341.2

 

6/29/2007

 

1.92

 

32.29

 

14

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

28 / 207

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund (2)

 

697.8

 

6/29/2007

 

1.61

 

28.96

 

32

%

24.19

 

23

%

18.26

 

31

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

66 / 207

 

 

 

34 / 148

 

 

 

40 / 129

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund (2)

 

217.2

 

6/29/2007

 

1.69

 

22.75

 

87

%

19.37

 

85

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

99 / 113

 

 

 

77 / 90

 

 

 

 

 

RiverSourceSM International Select Value Fund (2)

 

2,629.4

 

6/29/2007

 

1.47

 

31.26

 

14

%

25.82

 

15

%

21.00

 

20

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

15 / 113

 

 

 

13 / 90

 

 

 

12 / 62

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund (2)

 

125.2

 

6/29/2007

 

1.83

 

35.18

 

25

%

21.91

 

71

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

14 / 55

 

 

 

34 / 47

 

 

 

 

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

6,678.7

 

6/29/2007

 

1.06

 

20.32

 

35

%

10.32

 

60

%

9.35

 

51

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

280 / 806

 

 

 

398 / 671

 

 

 

279 / 556

 

RiverSourceSM Fundamental Growth Fund (2)

 

235.5

 

6/29/2007

 

1.42

 

16.90

 

82

%

6.71

 

93

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

660 / 806

 

 

 

624 / 671

 

 

 

 

 

RiverSourceSM Disciplined Equity Fund

 

2,828.9

 

6/29/2007

 

1.07

 

21.13

 

24

%

12.25

 

24

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

187 / 806

 

 

 

159 / 671

 

 

 

 

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

3,438.5

 

6/29/2007

 

1.14

 

18.54

 

26

%

10.76

 

11

%

8.49

 

29

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

185 / 717

 

 

 

66 / 614

 

 

 

140 / 494

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

1,300.3

 

6/29/2007

 

1.09

 

22.60

 

22

%

18.03

 

2

%

13.57

 

8

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

108 / 498

 

 

 

5 / 433

 

 

 

26 / 338

 

 

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 (1)

 

 

 

 

 

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

 

8.93

 

61

%

11/13/1996

 

11.09

 

11/14/1996

 

50

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

50 / 81

 

 

 

 

 

 

 

34 / 68

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

10.68

 

11

%

10/15/1990

 

13.54

 

10/18/1990

 

32

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

9 / 81

 

 

 

 

 

 

 

8 / 24

 

RiverSourceSM Dividend Opportunity Fund

 

7.98

 

53

%

8/1/1988

 

10.43

 

8/4/1988

 

70

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

43 / 81

 

 

 

 

 

 

 

14 / 19

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

 

 

 

 

6/26/2000

 

4.56

 

6/26/2000

 

87

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

52 / 59

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

6.16

 

70

%

1/23/1985

 

11.32

 

1/24/1985

 

34

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

30 / 42

 

 

 

 

 

 

 

2 / 5

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

5.92

 

71

%

5/29/1990

 

6.86

 

5/31/1990

 

80

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

19 / 26

 

 

 

 

 

 

 

4 / 4

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals and Mining Fund

 

9.15

 

72

%

4/22/1985

 

8.46

 

4/25/1985

 

40

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

18 / 24

 

 

 

 

 

 

 

4 / 9

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

4.22

 

92

%

11/15/1984

 

9.32

 

11/15/1984

 

80

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

85 / 92

 

 

 

 

 

 

 

4 / 4

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined International Equity Fund

 

 

 

 

 

5/18/2006

 

26.56

 

5/18/2006

 

11

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

22 / 202

 

RiverSourceSM International Aggressive Growth Fund (2)

 

 

 

 

 

9/28/2001

 

16.94

 

9/28/2001

 

39

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

45 / 116

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund (2)

 

 

 

 

 

10/3/2002

 

20.79

 

10/3/2002

 

92

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

66 / 71

 

RiverSourceSM International Select Value Fund (2)

 

 

 

 

 

9/28/2001

 

19.89

 

9/28/2001

 

25

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

15 / 61

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund (2)

 

 

 

 

 

10/3/2002

 

27.07

 

10/3/2002

 

61

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

23 / 37

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

 

 

 

 

3/28/2002

 

6.17

 

3/28/2002

 

49

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

267 / 544

 

RiverSourceSM Fundamental Growth Fund (2)

 

 

 

 

 

4/24/2003

 

8.71

 

4/24/2003

 

97

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

582 / 604

 

RiverSourceSM Disciplined Equity Fund

 

 

 

 

 

4/24/2003

 

15.20

 

4/24/2003

 

21

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

123 / 604

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

2.20

 

92

%

3/1/1972

 

11.92

 

3/2/1972

 

29

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

178 / 193

 

 

 

 

 

 

 

8 / 27

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

7.49

 

54

%

3/20/1995

 

10.79

 

3/23/1995

 

59

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

79 / 146

 

 

 

 

 

 

 

59 / 100

 

 

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.

 

 

 

Annualized Returns @ POP (1)

 

 

 

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

 

35.67

 

33.80

 

26.16

 

8.29

 

10.48

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Equity Income Fund

 

5.75

 

16.11

 

17.38

 

15.70

 

10.02

 

13.14

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Dividend Opportunity Fund

 

5.75

 

19.38

 

15.77

 

9.90

 

7.35

 

10.09

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM European Equity Fund

 

5.75

 

21.09

 

20.51

 

13.25

 

 

 

3.68

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Strategic Allocation Fund

 

5.75

 

13.96

 

11.57

 

10.07

 

5.53

 

11.03

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Equity Fund

 

5.75

 

16.66

 

18.80

 

13.31

 

5.30

 

6.49

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Precious Metals and Mining Fund

 

5.75

 

9.00

 

22.74

 

19.80

 

8.50

 

8.17

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Opportunity Fund

 

5.75

 

15.93

 

18.12

 

12.01

 

3.60

 

9.03

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined International Equity Fund

 

5.75

 

24.69

 

 

 

 

 

 

 

20.03

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Aggressive Growth Fund (2)

 

5.75

 

21.54

 

21.76

 

16.87

 

 

 

15.75

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Equity Fund (2)

 

5.75

 

15.69

 

17.04

 

 

 

 

 

19.29

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Select Value Fund (2)

 

5.75

 

23.71

 

23.36

 

19.57

 

 

 

18.66

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM International Small Cap Fund (2)

 

5.75

 

27.41

 

19.52

 

 

 

 

 

25.49

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Large Cap Equity Fund

 

5.75

 

13.40

 

8.16

 

8.06

 

 

 

4.98

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Growth Fund (2)

 

5.75

 

10.18

 

4.62

 

 

 

 

 

7.18

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Equity Fund

 

5.75

 

14.17

 

10.06

 

 

 

 

 

13.58

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Growth Fund

 

5.75

 

11.73

 

8.60

 

7.21

 

1.60

 

11.73

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Equity Value Fund

 

5.75

 

15.55

 

15.72

 

12.23

 

6.86

 

10.25

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

Total Net

 

Total Net

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

RiverSourceSM Large Cap Value Fund

 

101.5

 

6/29/2007

 

1.21

 

21.14

 

43

%

12.65

 

63

%

10.91

 

60

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

213 / 498

 

 

 

270 / 433

 

 

 

201 / 338

 

RiverSourceSM Value Fund (2)

 

358.0

 

6/29/2007

 

1.26

 

17.82

 

91

%

11.25

 

86

%

10.58

 

68

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

451 / 498

 

 

 

370 / 433

 

 

 

229 / 338

 

 

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 (1)

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

RiverSourceSM Large Cap Value Fund

 

 

 

 

 

6/27/2002

 

10.98

 

6/27/2002

 

63

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

212 / 338

 

RiverSourceSM Value Fund (2)

 

 

 

 

 

6/18/2001

 

6.67

 

6/18/2001

 

62

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

174 / 280

 

 

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.

 

 

 

Annualized Returns @ POP (1)

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

RiverSourceSM Large Cap Value Fund

 

5.75

 

14.18

 

10.45

 

9.60

 

 

 

9.67

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Value Fund (2)

 

5.75

 

11.04

 

9.07

 

9.27

 

 

 

5.62

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

Total Net

 

Total Net

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small and Mid-Cap Equity Fund

 

96.3

 

6/29/2007

 

5.83

 

10.94

 

98

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

323 / 329

 

 

 

 

 

 

 

 

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

1,133.9

 

6/29/2007

 

1.12

 

15.08

 

79

%

9.05

 

88

%

9.19

 

91

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

479 / 608

 

 

 

426 / 485

 

 

 

347 / 383

 

RiverSourceSM Aggressive Growth Fund (2)

 

591.5

 

6/29/2007

 

1.69

 

20.92

 

36

%

13.91

 

41

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

218 / 608

 

 

 

195 / 485

 

 

 

 

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

2,508.9

 

6/29/2007

 

1.33

 

24.36

 

33

%

21.78

 

7

%

19.54

 

8

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

96 / 297

 

 

 

14 / 232

 

 

 

14 / 177

 

Mixed-Asset Target 2010 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2010 Fund

 

18.9

 

6/29/2007

 

1.39

 

18.71

 

9

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

10 / 116

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2020 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2015 Fund

 

27.0

 

6/29/2007

 

1.40

 

20.57

 

8

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

11 / 145

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2020 Fund

 

40.2

 

6/29/2007

 

1.42

 

22.12

 

5

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

6 / 145

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2030 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2025 Fund

 

38.3

 

6/29/2007

 

1.42

 

22.23

 

7

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

8 / 129

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2030 Fund

 

37.4

 

6/29/2007

 

1.42

 

22.47

 

6

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

7 / 129

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2040 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2035 Fund

 

22.2

 

6/29/2007

 

1.42

 

22.35

 

7

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

11 / 170

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2040 Fund

 

27.7

 

6/29/2007

 

1.42

 

22.56

 

6

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

9 / 170

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2045 Fund

 

7.8

 

6/29/2007

 

1.42

 

22.20

 

8

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

13 / 170

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

129.9

 

6/29/2007

 

1.18

 

8.71

 

63

%

5.77

 

53

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

237 / 380

 

 

 

120 / 229

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

305.7

 

6/29/2007

 

1.17

 

11.63

 

14

%

8.01

 

10

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

52 / 380

 

 

 

22 / 229

 

 

 

 

 

Mixed-Asset Target Allocation Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

1,129.0

 

6/29/2007

 

1.28

 

16.40

 

37

%

11.38

 

27

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

226 / 611

 

 

 

137 / 507

 

 

 

 

 

Mixed-Asset Target Allocation Moderate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

1,081.2

 

6/29/2007

 

1.01

 

16.62

 

10

%

10.06

 

28

%

8.75

 

40

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

39 / 432

 

 

 

90 / 331

 

 

 

86 / 218

 

RiverSourceSM Portfolio Builder Moderate Fund

 

912.6

 

6/29/2007

 

1.21

 

14.21

 

42

%

9.96

 

29

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

180 / 432

 

 

 

95 / 331

 

 

 

 

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund (2)

 

1,164.6

 

6/29/2007

 

1.26

 

18.58

 

61

%

12.48

 

47

%

12.00

 

30

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

511 / 849

 

 

 

301 / 644

 

 

 

136 / 465

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

564.7

 

6/29/2007

 

1.33

 

18.84

 

58

%

13.01

 

37

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

487 / 849

 

 

 

237 / 644

 

 

 

 

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

522.0

 

6/29/2007

 

1.37

 

21.24

 

25

%

14.67

 

17

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

209 / 849

 

 

 

104 / 644

 

 

 

 

 

 

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 (1)

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small and Mid-Cap Equity Fund

 

 

 

 

 

5/18/2006

 

9.11

 

5/18/2006

 

99

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

320 / 325

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

7.80

 

64

%

6/4/1957

 

^

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

101 / 159

 

 

 

 

 

 

 

 

 

RiverSourceSM Aggressive Growth Fund (2)

 

 

 

 

 

4/24/2003

 

19.98

 

4/24/2003

 

25

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

105 / 431

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

 

 

 

 

2/14/2002

 

17.63

 

2/14/2002

 

11

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

18 / 166

 

Mixed-Asset Target 2010 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2010 Fund

 

 

 

 

 

5/18/2006

 

16.76

 

5/18/2006

 

2

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

2 / 105

 

Mixed-Asset Target 2020 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2015 Fund

 

 

 

 

 

5/18/2006

 

18.54

 

5/18/2006

 

3

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

4 / 135

 

RiverSourceSM Retirement Plus 2020 Fund

 

 

 

 

 

5/18/2006

 

19.68

 

5/18/2006

 

2

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

2 / 135

 

Mixed-Asset Target 2030 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2025 Fund

 

 

 

 

 

5/18/2006

 

19.66

 

5/18/2006

 

4

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

4 / 119

 

RiverSourceSM Retirement Plus 2030 Fund

 

 

 

 

 

5/18/2006

 

20.21

 

5/18/2006

 

2

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

2 / 119

 

Mixed-Asset Target 2040 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2035 Fund

 

 

 

 

 

5/18/2006

 

19.43

 

5/18/2006

 

6

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

8 / 147

 

RiverSourceSM Retirement Plus 2040 Fund

 

 

 

 

 

5/18/2006

 

20.06

 

5/18/2006

 

2

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

2 / 147

 

RiverSourceSM Retirement Plus 2045 Fund

 

 

 

 

 

5/18/2006

 

19.75

 

5/18/2006

 

4

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

5 / 147

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

 

 

 

 

3/4/2004

 

5.05

 

3/4/2004

 

50

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

107 / 216

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

 

 

 

 

3/4/2004

 

6.98

 

3/4/2004

 

9

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

18 / 216

 

Mixed-Asset Target Allocation Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

 

 

 

 

3/4/2004

 

10.03

 

3/4/2004

 

25

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

121 / 494

 

Mixed-Asset Target Allocation Moderate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

3.04

 

94

%

4/16/1940

 

^

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

109 / 116

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Fund

 

 

 

 

 

3/4/2004

 

8.81

 

3/4/2004

 

22

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

66 / 309

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund (2)

 

 

 

 

 

6/18/2001

 

7.31

 

6/18/2001

 

37

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

146 / 395

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

 

 

 

 

3/4/2004

 

11.44

 

3/4/2004

 

34

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

207 / 612

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

 

 

 

 

3/4/2004

 

12.85

 

3/4/2004

 

14

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

85 / 612

 

 

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.

 

 

 

Annualized Returns @ POP (1)

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small and Mid-Cap Equity Fund

 

5.75

 

4.56

 

 

 

 

 

 

 

3.48

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Growth Fund

 

5.75

 

8.46

 

6.92

 

7.90

 

7.17

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Aggressive Growth Fund (2)

 

5.75

 

13.97

 

11.68

 

 

 

 

 

18.29

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Mid Cap Value Fund

 

5.75

 

17.21

 

19.40

 

18.14

 

 

 

16.34

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2010 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2010 Fund

 

5.75

 

11.88

 

 

 

 

 

 

 

10.74

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2020 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2015 Fund

 

5.75

 

13.64

 

 

 

 

 

 

 

12.42

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2020 Fund

 

5.75

 

15.10

 

 

 

 

 

 

 

13.50

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2030 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2025 Fund

 

5.75

 

15.20

 

 

 

 

 

 

 

13.49

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2030 Fund

 

5.75

 

15.43

 

 

 

 

 

 

 

14.01

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2040 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2035 Fund

 

5.75

 

15.31

 

 

 

 

 

 

 

13.27

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2040 Fund

 

5.75

 

15.51

 

 

 

 

 

 

 

13.87

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Retirement Plus 2045 Fund

 

5.75

 

15.17

 

 

 

 

 

 

 

13.57

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Conservative Fund

 

4.75

 

3.54

 

4.07

 

 

 

 

 

3.53

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Conservative Fund

 

4.75

 

6.32

 

6.28

 

 

 

 

 

5.42

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Aggressive Fund

 

5.75

 

9.70

 

9.20

 

 

 

 

 

8.08

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Moderate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Balanced Fund

 

5.75

 

9.92

 

7.91

 

7.47

 

2.44

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Moderate Fund

 

5.75

 

7.64

 

7.81

 

 

 

 

 

6.88

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Fundamental Value Fund (2)

 

5.75

 

11.76

 

10.28

 

10.68

 

 

 

6.26

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Aggressive Fund

 

5.75

 

12.01

 

10.80

 

 

 

 

 

9.47

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Portfolio Builder Total Equity Fund

 

5.75

 

14.26

 

12.43

 

 

 

 

 

10.86

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

Total Net

 

Total Net

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund (2)

 

591.8

 

6/29/2007

 

1.30

 

21.18

 

42

%

13.57

 

55

%

14.19

 

19

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

176 / 424

 

 

 

176 / 324

 

 

 

45 / 245

 

 

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 (1)

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund (2)

 

 

 

 

 

3/8/2002

 

11.59

 

3/8/2002

 

13

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

30 / 236

 

 

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.

 

 

 

Annualized Returns @ POP (1)

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Select Value Fund (2)

 

5.75

 

14.21

 

11.35

 

12.85

 

 

 

10.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

Total Net

 

Total Net

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $)

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

273.1

 

6/29/2007

 

1.55

 

9.97

 

66

%

21.44

 

44

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

175 / 266

 

 

 

91 / 207

 

 

 

 

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund (3)

 

284.2

 

6/29/2007

 

0.79

 

19.81

 

 

 

11.02

 

 

 

10.04

 

 

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

170.0

 

6/29/2007

 

1.69

 

30.62

 

10

%

13.04

 

14

%

17.48

 

6

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

26 / 283

 

 

 

34 / 257

 

 

 

14 / 237

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Equity Fund (2)

 

314.2

 

6/29/2007

 

1.76

 

17.42

 

37

%

14.09

 

38

%

14.31

 

38

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

264 / 732

 

 

 

210 / 564

 

 

 

165 / 442

 

RiverSourceSM Small Cap Value Fund (2)

 

952.5

 

6/29/2007

 

1.49

 

16.34

 

47

%

14.16

 

37

%

13.34

 

56

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

341 / 732

 

 

 

208 / 564

 

 

 

247 / 442

 

RiverSourceSM Small Cap Advantage Fund

 

540.0

 

6/29/2007

 

1.32

 

12.07

 

85

%

11.67

 

83

%

13.27

 

58

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

623 / 732

 

 

 

468 / 564

 

 

 

254 / 442

 

RiverSourceSM Small Company Index Fund

 

1,011.4

 

6/29/2007

 

0.92

 

15.24

 

61

%

13.53

 

48

%

13.41

 

55

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

445 / 732

 

 

 

266 / 564

 

 

 

242 / 442

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund (2)

 

211.1

 

6/29/2007

 

1.76

 

16.60

 

51

%

11.11

 

59

%

9.84

 

82

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

284 / 565

 

 

 

269 / 458

 

 

 

312 / 380

 

Small Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small Cap Value Fund

 

42.2

 

6/29/2007

 

3.27

 

10.60

 

94

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

250 / 265

 

 

 

 

 

 

 

 

 

 

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 (1)

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

 

 

 

 

3/4/2004

 

19.55

 

3/4/2004

 

21

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

41 / 202

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund (3)

 

 

 

 

 

10/25/1999

 

2.94

 

10/28/1999

 

 

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

7.38

 

40

%

11/13/1996

 

6.48

 

11/14/1996

 

65

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

18 / 45

 

 

 

 

 

 

 

27 / 41

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Equity Fund (2)

 

 

 

 

 

3/8/2002

 

10.46

 

3/8/2002

 

71

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

298 / 424

 

RiverSourceSM Small Cap Value Fund (2)

 

 

 

 

 

6/18/2001

 

13.19

 

6/18/2001

 

30

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

110 / 366

 

RiverSourceSM Small Cap Advantage Fund

 

 

 

 

 

5/4/1999

 

8.85

 

5/6/1999

 

87

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

212 / 245

 

RiverSourceSM Small Company Index Fund

 

10.19

 

55

%

8/19/1996

 

11.25

 

8/22/1996

 

59

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

83 / 150

 

 

 

 

 

 

 

60 / 101

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund (2)

 

 

 

 

 

1/24/2001

 

2.28

 

1/24/2001

 

72

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

227 / 318

 

Small Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small Cap Value Fund

 

 

 

 

 

2/16/2006

 

7.25

 

2/16/2006

 

93

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

237 / 255

 

 

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.

 

 

 

Annualized Returns @ POP (1)

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Real Estate Fund

 

5.75

 

3.65

 

19.07

 

 

 

 

 

17.44

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM S&P 500 Index Fund (3)

 

N/A

 

19.81

 

11.02

 

10.04

 

 

 

2.94

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Technology Fund

 

5.75

 

23.11

 

10.83

 

16.10

 

6.75

 

5.89

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Equity Fund (2)

 

5.75

 

10.67

 

11.86

 

12.97

 

 

 

9.24

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Value Fund (2)

 

5.75

 

9.65

 

11.93

 

12.01

 

 

 

12.08

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Advantage Fund

 

5.75

 

5.63

 

9.49

 

11.93

 

 

 

8.06

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Company Index Fund

 

5.75

 

8.61

 

11.31

 

12.08

 

9.54

 

10.64

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Small Cap Growth Fund (2)

 

5.75

 

9.89

 

8.94

 

8.55

 

 

 

1.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Disciplined Small Cap Value Fund

 

5.75

 

4.24

 

 

 

 

 

 

 

2.71

 

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.

(1)  Since inception returns and rankings for periods less than one year in length are cumulative.

(2)  Mutual funds subadvised by advisors not affiliated with Ameriprise Financial, Inc.

(3)  RiverSourceSM S&P 500 Index Fund data is for D shares.

 

A1



Ameriprise Financial, Inc.

 

Fixed Income Fund Performance & Lipper Ranking

As of June 30, 2007

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

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Taxable Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Bond Fund

 

119.6

 

6/29/2007

 

1.81

 

16.50

 

20

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

12 / 60

 

 

 

 

 

 

 

 

 

Equity Market Neutral Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Absolute Return Currency & Income Fund

 

103.4

 

6/29/2007

 

1.59

 

11.70

 

10

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

5 / 49

 

 

 

 

 

 

 

 

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

485.6

 

6/29/2007

 

1.38

 

5.13

 

46

%

4.20

 

47

%

6.44

 

42

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

48 / 105

 

 

 

44 / 93

 

 

 

34 / 80

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

1,887.7

 

6/29/2007

 

1.07

 

11.00

 

34

%

9.45

 

15

%

11.52

 

27

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

150 / 447

 

 

 

54 / 376

 

 

 

83 / 311

 

RiverSourceSM Income Opportunities Fund

 

338.1

 

6/29/2007

 

1.14

 

9.89

 

67

%

7.80

 

59

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

298 / 447

 

 

 

219 / 376

 

 

 

 

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

245.1

 

6/29/2007

 

1.09

 

5.41

 

56

%

3.50

 

53

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

292 / 522

 

 

 

239 / 450

 

 

 

 

 

RiverSourceSM Diversified Bond Fund

 

2,813.5

 

6/29/2007

 

0.97

 

7.04

 

6

%

4.35

 

12

%

4.50

 

33

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

29 / 522

 

 

 

50 / 450

 

 

 

126 / 387

 

Loan Participation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Floating Rate Fund

 

753.3

 

6/29/2007

 

1.29

 

7.09

 

30

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

18 / 59

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Basic Income Fund

 

250.8

 

6/29/2007

 

4.42

 

11.60

 

15

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

54 / 380

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Moderate Income Fund

 

566.6

 

6/29/2007

 

2.73

 

13.72

 

3

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

11 / 380

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Enhanced Income Fund

 

326.1

 

6/29/2007

 

3.08

 

14.97

 

2

%

 

 

 

 

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

4 / 380

 

 

 

 

 

 

 

 

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

148.1

 

6/29/2007

 

1.05

 

5.37

 

25

%

3.33

 

26

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

35 / 143

 

 

 

35 / 136

 

 

 

 

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

782.1

 

6/29/2007

 

1.03

 

5.18

 

18

%

2.71

 

55

%

2.44

 

55

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

15 / 84

 

 

 

44 / 79

 

 

 

39 / 70

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

288.2

 

6/29/2007

 

0.96

 

3.43

 

30

%

3.19

 

41

%

 

 

 

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

36 / 121

 

 

 

29 / 70

 

 

 

 

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

409.2

 

6/29/2007

 

1.17

 

5.67

 

35

%

3.64

 

39

%

3.79

 

33

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

26 / 74

 

 

 

28 / 72

 

 

 

21 / 64

 

Tax-Exempt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

169.5

 

6/29/2007

 

0.87

 

4.55

 

35

%

4.58

 

46

%

4.22

 

55

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

40 / 114

 

 

 

48 / 105

 

 

 

51 / 92

 

 

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.

 

 

 

Rankings and Annualized Returns at NAV (1)

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Taxable Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Bond Fund

 

 

 

 

 

2/16/2006

 

8.94

 

2/16/2006

 

13

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

7 / 54

 

Equity Market Neutral Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Absolute Return Currency & Income Fund

 

 

 

 

 

6/15/2006

 

10.51

 

6/15/2006

 

12

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

6 / 49

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

4.76

 

58

%

3/20/1989

 

7.26

 

3/23/1989

 

38

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

31 / 53

 

 

 

 

 

 

 

3 / 7

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

4.74

 

60

%

12/8/1983

 

8.30

 

12/8/1983

 

46

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

81 / 134

 

 

 

 

 

 

 

10 / 21

 

RiverSourceSM Income Opportunities Fund

 

 

 

 

 

6/19/2003

 

7.97

 

6/19/2003

 

59

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

207 / 353

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

 

 

 

 

6/19/2003

 

2.25

 

6/19/2003

 

66

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

270 / 411

 

RiverSourceSM Diversified Bond Fund

 

4.89

 

74

%

10/3/1974

 

9.07

 

10/3/1974

 

25

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

134 / 181

 

 

 

 

 

 

 

1 / 3

 

Loan Participation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Floating Rate Fund

 

 

 

 

 

2/16/2006

 

7.13

 

2/16/2006

 

13

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

7 / 55

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Basic Income Fund

 

 

 

 

 

2/16/2006

 

8.81

 

2/16/2006

 

12

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

40 / 362

 

RiverSourceSM Income Builder Moderate Income Fund

 

 

 

 

 

2/16/2006

 

10.29

 

2/16/2006

 

3

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

8 / 362

 

RiverSourceSM Income Builder Enhanced Income Fund

 

 

 

 

 

2/16/2006

 

11.10

 

2/16/2006

 

2

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

5 / 362

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

 

 

 

 

6/19/2003

 

2.36

 

6/19/2003

 

26

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

31 / 119

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

3.97

 

72

%

8/19/1985

 

6.21

 

8/22/1985

 

17

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

33 / 45

 

 

 

 

 

 

 

1 / 5

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

 

 

 

 

3/4/2004

 

2.23

 

3/4/2004

 

43

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

27 / 63

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

 

 

 

 

2/14/2002

 

4.01

 

2/14/2002

 

36

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

22 / 61

 

Tax-Exempt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

4.63

 

63

%

8/18/1986

 

5.76

 

8/31/1986

 

80

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

43 / 68

 

 

 

 

 

 

 

16 / 19

 

 

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 (1)

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Taxable Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Emerging Markets Bond Fund

 

4.75

 

10.96

 

 

 

 

 

 

 

5.14

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Market Neutral Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Absolute Return Currency & Income Fund

 

4.75

 

6.39

 

 

 

 

 

 

 

5.46

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Global Bond Fund

 

4.75

 

0.14

 

2.53

 

5.41

 

4.25

 

6.98

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM High Yield Bond Fund

 

4.75

 

5.73

 

7.69

 

10.44

 

4.23

 

8.07

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Opportunities Fund

 

4.75

 

4.67

 

6.07

 

 

 

 

 

6.68

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Core Bond Fund

 

4.75

 

0.40

 

1.84

 

 

 

 

 

1.02

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Diversified Bond Fund

 

4.75

 

1.95

 

2.67

 

3.49

 

4.38

 

8.91

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Participation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Floating Rate Fund

 

4.75

 

2.00

 

 

 

 

 

 

 

3.39

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Basic Income Fund

 

4.75

 

6.30

 

 

 

 

 

 

 

5.01

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Moderate Income Fund

 

4.75

 

8.32

 

 

 

 

 

 

 

6.44

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Income Builder Enhanced Income Fund

 

4.75

 

9.51

 

 

 

 

 

 

 

7.22

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Limited Duration Bond Fund

 

4.75

 

0.37

 

1.67

 

 

 

 

 

1.14

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Short Duration U.S. Government Fund

 

4.75

 

0.18

 

1.06

 

1.45

 

3.47

 

5.97

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Inflation Protected Securities Fund

 

4.75

 

-1.49

 

1.53

 

 

 

 

 

0.75

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM U.S. Government Mortgage Fund

 

4.75

 

0.65

 

1.97

 

2.78

 

 

 

3.07

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM California Tax-Exempt Fund

 

4.75

 

-0.41

 

2.90

 

3.21

 

4.12

 

5.52

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

Total Net

 

Total Net

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

2,869.1

 

6/29/2007

 

1.08

 

4.52

 

30

%

3.95

 

54

%

3.86

 

54

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

69 / 236

 

 

 

118 / 221

 

 

 

111 / 207

 

RiverSourceSM Tax-Exempt Bond Fund

 

756.1

 

6/29/2007

 

0.94

 

4.40

 

35

%

3.94

 

55

%

3.75

 

60

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

82 / 236

 

 

 

120 / 221

 

 

 

124 / 207

 

 

 

 

Rankings and Annualized Returns at NAV (1)

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

4.56

 

51

%

5/7/1979

 

6.75

 

5/31/1979

 

46

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

66 / 130

 

 

 

 

 

 

 

10 / 21

 

RiverSourceSM Tax-Exempt Bond Fund

 

4.54

 

52

%

11/24/1976

 

5.93

 

11/30/1976

 

75

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

67 / 130

 

 

 

 

 

 

 

6 / 7

 

 

 

 

Annualized Returns @ POP (1)

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt High Income Fund

 

4.75

 

-0.45

 

2.28

 

2.86

 

4.05

 

6.57

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Tax-Exempt Bond Fund

 

4.75

 

-0.56

 

2.27

 

2.74

 

4.04

 

5.76

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

Total Net

 

Total Net

 

Total

 

Rankings and Annualized Returns at NAV (1)

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

81.5

 

6/29/2007

 

0.91

 

3.92

 

33

%

2.98

 

50

%

3.19

 

55

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

51 / 158

 

 

 

71 / 141

 

 

 

62 / 112

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

49.0

 

6/29/2007

 

1.08

 

3.82

 

47

%

3.60

 

58

%

3.43

 

82

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

24 / 51

 

 

 

29 / 49

 

 

 

40 / 48

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

41.9

 

6/29/2007

 

1.11

 

4.01

 

46

%

3.70

 

63

%

3.82

 

52

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

15 / 32

 

 

 

18 / 28

 

 

 

15 / 28

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

322.9

 

6/29/2007

 

1.06

 

3.98

 

43

%

3.63

 

70

%

3.77

 

62

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

19 / 44

 

 

 

29 / 41

 

 

 

26 / 41

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

66.1

 

6/29/2007

 

1.20

 

4.18

 

51

%

3.77

 

66

%

3.90

 

53

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

48 / 94

 

 

 

62 / 94

 

 

 

45 / 84

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

43.5

 

6/29/2007

 

1.12

 

3.91

 

50

%

3.42

 

58

%

3.30

 

67

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

23 / 45

 

 

 

24 / 41

 

 

 

28 / 41

 

 

 

 

Rankings and Annualized Returns at NAV (1)

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

 

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Class A Shares by Lipper Category

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

3.94

 

82

%

11/13/1996

 

3.99

 

11/14/1996

 

82

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

61 / 74

 

 

 

 

 

 

 

58 / 70

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

4.14

 

76

%

7/2/1987

 

5.60

 

7/31/1987

 

93

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

31 / 40

 

 

 

 

 

 

 

12 / 12

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

4.31

 

54

%

7/2/1987

 

5.78

 

7/31/1987

 

88

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

14 / 25

 

 

 

 

 

 

 

7 / 7

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

4.45

 

50

%

8/18/1986

 

5.80

 

8/31/1986

 

67

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

17 / 33

 

 

 

 

 

 

 

4 / 5

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

4.50

 

59

%

8/18/1986

 

5.60

 

8/31/1986

 

77

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

38 / 64

 

 

 

 

 

 

 

13 / 16

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

4.14

 

69

%

7/2/1987

 

5.58

 

7/31/1987

 

89

%

Lipper Fund Ranking / Total Funds in Category

 

 

 

24 / 34

 

 

 

 

 

 

 

8 / 8

 

 

 

 

Annualized Returns @ POP (1)

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Intermediate Tax-Exempt Fund

 

4.75

 

-1.02

 

1.32

 

2.19

 

3.43

 

3.51

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Massachusetts Tax-Exempt Fund

 

4.75

 

-1.11

 

1.93

 

2.43

 

3.64

 

5.34

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Michigan Tax-Exempt Fund

 

4.75

 

-0.93

 

2.03

 

2.82

 

3.80

 

5.52

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Minnesota Tax-Exempt Fund

 

4.75

 

-0.96

 

1.97

 

2.76

 

3.94

 

5.55

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM New York Tax-Exempt Fund

 

4.75

 

-0.77

 

2.10

 

2.90

 

4.00

 

5.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSourceSM Ohio Tax-Exempt Fund

 

4.75

 

-1.03

 

1.76

 

2.30

 

3.63

 

5.32

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)  Since inception returns and rankings for periods less than one year in length are cumulative.

 

A2



 

Ameriprise Financial, Inc.

 

Fund Performance & Lipper Ranking

As of June 30, 2007

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.

 

A3



 

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 risk 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 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.

 

Portfolio Builder, Income Builder and Retirement Plus Series 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.

 

“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.

 

A4



 

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.

 

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.

 

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 and annuity products in the state of NY.

 

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.

 

A5



 

EXHIBIT B

 

RECONCILIATION TABLES

 



 

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

 

 

B1



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Six 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)

 

$

4,002

 

 

$

 

 

$

4,002

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

3,474

 

 

151

 

 

3,625

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

528

 

 

(151

)

 

377

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

144

 

 

(53

)

 

91

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

286

 

 

 

 

 

$

286

 

Net income

 

 

B2



 

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

 

 

B3



 

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

 

 

B4



 

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

 

 

B5



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Three Months Ended March 31, 2007

 

 

 

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)

 

$

2,063

 

 

$

 

 

$

2,063

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

1,762

 

 

85

 

 

1,847

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

301

 

 

(85

)

 

216

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

81

 

 

(30

)

 

51

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

165

 

 

 

 

 

$

165

 

Net income

 

 

B6



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Three Months Ended June 30, 2007

 

 

 

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)

 

$

2,182

 

 

$

 

 

$

2,182

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

1,874

 

 

63

 

 

1,937

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

308

 

 

(63

)

 

245

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

71

 

 

(22

)

 

49

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

196

 

 

 

 

 

$

196

 

Net income

 

 

B7



 

Ameriprise Financial, Inc.

Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP

 

(in millions, unaudited)

 

Six Months Ended June 30, 2007

 

 

 

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)

 

$

4,245

 

 

$

 

 

$

4,245

 

Total revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses before separation costs

 

3,636

 

 

148

 

 

3,784

 

Total expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision and separation costs

 

609

 

 

(148

)

 

461

 

Income before income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision before tax benefit attributable to separation costs

 

152

 

 

(52

)

 

100

 

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before separation costs

 

457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs, after-tax

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP measure)

 

$

361

 

 

 

 

 

$

361

 

Net income

 

 

B8



 

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:

 

 

 

 

 

 

 

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

%

 

 

 

 

 

 

 

 

March 31, 2007

 

 

 

 

 

 

 

Return

 

$

651

 

$

246

 

$

897

 

Equity

 

$

7,597

 

$

(215

)

$

7,382

 

Return on Equity

 

8.6

%

 

 

12.2

%

 

 

 

 

 

 

 

 

June 30, 2007

 

 

 

 

 

 

 

Return

 

$

706

 

$

233

 

$

939

 

Equity

 

$

7,649

 

$

(158

)

$

7,491

 

Return on Equity

 

9.2

%

 

 

12.5

%

 


(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.

 

B9



 

Ameriprise Financial, Inc.

Ratio of Earnings to Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q ’07 vs. 2Q ’06

 

Year-to-Date

 

(in millions, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

% Change

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

225

 

$

258

 

$

244

 

$

256

 

$

288

 

28

%

 

$

450

 

$

544

 

Fixed charges

 

$

39

 

$

42

 

$

41

 

$

40

 

$

42

 

8

%

 

$

73

 

$

82

 

Ratio of earnings to fixed charges

 

5.8

6.1

6.0

6.4

 x 

6.9

19

%

 

6.2

6.6

 x 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Earnings

 

$

225

 

$

258

 

$

244

 

$

256

 

$

288

 

28

%

 

$

450

 

$

544

 

Interest expense on non-recourse debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(5

)

(4

)

(4

)

(4

)

(5

)

 

 

(10

)

(9

)

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

 

(3

)

(2

)

 

 

 

 

#

 

(4

)

 

 

 

(8

)

(6

)

(4

)

(4

)

(5

)

38

%

 

(14

)

(9

)

Total earnings

 

$

217

 

$

252

 

$

240

 

$

252

 

$

283

 

30

%

 

$

436

 

$

535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

$

39

 

$

42

 

$

41

 

$

40

 

$

42

 

8

%

 

$

73

 

$

82

 

Interest expense on non-recourse debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(5

)

(4

)

(4

)

(4

)

(5

)

 

 

(10

)

(9

)

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

 

(3

)

(2

)

 

 

 

 

#

 

(4

)

 

 

 

(8

)

(6

)

(4

)

(4

)

(5

)

38

%

 

(14

)

(9

)

Total fixed charges

 

$

31

 

$

36

 

$

37

 

$

36

 

$

37

 

19

%

 

$

59

 

$

73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

7.0

7.0

6.5

7.0

 x 

7.6

9

%

 

7.4

7.3

 x 

 


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

 

#          Variance of 100% or greater.

 

B10



Ameriprise Financial, Inc.

Reconciliation of Adjustments Affecting Historical Statistical Supplement Presentations

 

(in millions, except share amounts, unaudited)

 

2 Qtr 2006

 

3 Qtr 2006

 

4 Qtr 2006

 

1 Qtr 2007

 

Future Policy Benefits and Policyholder Account Balances (1)

 

 

 

 

 

 

 

 

 

VUL/UL

 

 

 

 

 

 

 

 

 

Withdrawals and surrenders

 

 

 

 

 

 

 

 

 

Balance - as previously reported

 

$

(244

)

$

(237

)

$

(257

)

$

(264

)

Reclass

 

 

 

 

7

 

Balance - current presentation

 

$

(244

)

$

(237

)

$

(257

)

$

(257

)

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Balance - as previously reported

 

$

23

 

$

20

 

$

24

 

$

14

 

Reclass

 

 

 

 

(7

)

Balance - current presentation

 

$

23

 

$

20

 

$

24

 

$

7

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding (2)

 

 

 

 

 

 

 

 

 

Balance - as previously reported

 

244.1

 

242.1

 

241.4

 

237.1

 

Reclass

 

 

 

 

(0.5

)

Balance - current presentation

 

244.1

 

242.1

 

241.4

 

236.6

 

 

 

 

 

 

 

 

 

 

 

Branded advisor clients (in thousands) (3)

 

 

 

 

 

 

 

 

 

Balance - as previously reported

 

1,950

 

1,925

 

1,933

 

1,939

 

Change

 

530

 

555

 

549

 

527

 

Balance - current presentation

 

2,480

 

2,480

 

2,482

 

2,466

 

 


(1)  A reclass for SOP 05-1, which was included in "Withdrawals and surrenders", is now presented in "Other" for the rollforward on page 21.

 

(2)  A reclass was made in the Company's 1st Qtr 10-Q filing between Restricted stock awards and Nonforfeitable stock units. This revision appears on page 1.

 

(3)  Change reflects our company’s client service organization clients and temporarily unassigned clients which were not included previously. This revision appears on page 3.

 

 

C1