EX-99.2 3 a08-3271_1ex99d2.htm EX-99.2

Exhibit 99.2

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

1



 

Ameriprise Financial, Inc.

Statistical Supplement Information

Table of Contents

 

 

 

Page

Ameriprise Financial, Inc.

 

 

 

Highlights

 

4

 

Financial Summary

 

5

 

Consolidated Income Statements

 

6

 

Consolidated, Per Share Summary

 

8

 

Advice & Wealth Management Segment

 

 

 

Segment Income Statements - Historical, YTD

 

10

 

Segment Metrics

 

11

 

Asset Management Segment

 

 

 

Segment Income Statements - Historical, YTD

 

13

 

Segment Metrics

 

14

 

RiverSource Asset Management Products

 

15

 

Threadneedle Asset Management Products

 

16

 

Annuities Segment

 

 

 

Segment Income Statements - Historical, YTD

 

18

 

Segment Metrics

 

19

 

Protection Segment

 

 

 

Segment Income Statements - Historical, YTD

 

21

 

Segment Metrics

 

22

 

Corporate & Other Segment

 

 

 

Segment Income Statements - Historical, YTD

 

24

 

Eliminations

 

 

 

Income Statements - Historical, YTD

 

25

 

Balance Sheet and Ratings Information

 

 

 

Consolidated Balance Sheets

 

27

 

Capital and Ratings Information

 

28

 

Investments

 

29

 

Non-GAAP Financial Information

 

30

 

Glossary of Selected Terminology

 

 

 

Glossary of Selected Terminology - Segments

 

31

 

Glossary of Selected Terminology

 

32

 

Exhibit A

 

 

 

RiverSource Mutual Fund Performance and Lipper Ranking

 

35

 

Exhibit B

 

 

 

Reconciliation Tables

 

44

 

Return on Equity

 

45

 

Exhibit C

 

 

 

Disclosed Items

 

46

 

 

2



Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Consolidated Results

 

3



 

Ameriprise Financial, Inc.

Highlights

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

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

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Management Targets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth: Target 6 - 8%

 

NA

 

5.5

%

5.6

%

12.1

%

8.4

%

10.5

%

7.9

%

 

 

 

 

(2.6

)%

 

 

 

(3.7

)%

 

 

 

Adjusted return on equity: Target 12 - 15% (1)

 

11.8

%

12.2

%

12.5

%

12.4

%

12.6

%

11.8

%

12.6

%

0.8

%

 

 

 

0.8

%

 

 

 

0.2

%

 

 

 

Adjusted earnings per diluted share growth: Target 12 - 15% (1)

 

NA

 

20.0

%

24.1

%

5.3

%

13.7

%

24.3

%

15.8

%

 

 

 

 

(8.5

)%

 

 

 

8.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income margin

 

8.0

%

8.1

%

9.2

%

9.1

%

11.0

%

7.9

%

9.4

%

3.0

%

 

 

 

1.5

%

 

 

 

1.9

%

 

 

 

Adjusted pretax margin (1)

 

15.2

%

14.8

%

14.4

%

12.8

%

15.8

%

14.4

%

14.5

%

0.6

%

 

 

 

0.1

%

 

 

 

3.0

%

 

 

 

Adjusted earnings margin (1)

 

11.7

%

10.9

%

11.1

%

10.9

%

11.8

%

10.8

%

11.2

%

0.1

%

 

 

 

0.4

%

 

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.70

 

$

0.69

 

$

0.83

 

$

0.84

 

$

1.10

 

$

2.56

 

$

3.45

 

$

0.40

 

57

%

 

$

0.89

 

35

%

 

$

0.26

 

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.69

 

$

0.68

 

$

0.81

 

$

0.83

 

$

1.08

 

$

2.54

 

$

3.39

 

$

0.39

 

57

%

 

$

0.85

 

33

%

 

$

0.25

 

30

%

 

Separation costs, after-tax

 

0.33

 

0.22

 

0.17

 

0.16

 

0.08

 

0.94

 

0.64

 

(0.25

)

(76

)%

 

(0.30

)

(32

)%

 

(0.08

)

(50

)%

 

Adjusted diluted earnings per share

 

$

1.02

 

$

0.90

 

$

0.98

 

$

0.99

 

$

1.16

 

$

3.48

 

$

4.03

 

$

0.14

 

14

%

 

$

0.55

 

16

%

 

$

0.17

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common outstanding

 

241.4

 

236.6

 

235.3

 

232.4

 

227.7

 

241.4

 

227.7

 

(13.7

)

(6

)%

 

(13.7

)

(6

)%

 

(4.7

)

(2

)%

 

Nonforfeitable restricted stock units

 

1.4

 

1.9

 

1.3

 

1.3

 

1.4

 

1.4

 

1.4

 

 

0

%

 

 

0

%

 

0.1

 

8

%

 

Total potentially dilutive

 

3.4

 

3.2

 

3.8

 

3.9

 

3.9

 

3.4

 

3.9

 

0.5

 

15

%

 

0.5

 

15

%

 

 

0

%

 

Total diluted shares

 

246.2

 

241.7

 

240.4

 

237.6

 

233.0

 

246.2

 

233.0

 

(13.2

)

(5

)%

 

(13.2

)

(5

)%

 

(4.6

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

243.3

 

240.7

 

237.4

 

235.4

 

231.4

 

246.5

 

236.2

 

(11.9

)

(5

)%

 

(10.3

)

(4

)%

 

(4.0

)

(2

)%

 

Diluted

 

246.3

 

244.1

 

241.0

 

239.2

 

235.4

 

248.5

 

239.9

 

(10.9

)

(4

)%

 

(8.6

)

(3

)%

 

(3.8

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - end of period

 

$

7,925

 

$

7,731

 

$

7,600

 

$

7,758

 

$

7,810

 

$

7,925

 

$

7,810

 

$

(115

)

(1

)%

 

$

(115

)

(1

)%

 

$

52

 

1

%

 

Total client assets (at period end)

 

271,598

 

278,722

 

292,271

 

297,856

 

293,899

 

271,598

 

293,899

 

22,301

 

8

%

 

22,301

 

8

%

 

(3,957

)

(1

)%

 

Total Advice & Wealth Management cash sales

 

$

11,114

 

$

11,467

 

$

13,047

 

$

10,342

 

$

9,111

 

$

42,611

 

$

43,967

 

$

(2,003

)

(18

)%

 

$

1,356

 

3

%

 

$

(1,231

)

(12

)%

 

Total financial advisors

 

12,592

 

12,342

 

12,076

 

12,003

 

11,824

 

12,592

 

11,824

 

(768

)

(6

)%

 

(768

)

(6

)%

 

(179

)

(1

)%

 

Net revenue per financial advisor (in thousands)

 

$

72

 

$

73

 

$

83

 

$

79

 

$

80

 

$

268

 

$

315

 

$

8

 

11

%

 

$

47

 

18

%

 

$

1

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, Managed, and Administered Assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned

 

$

38.4

 

$

40.4

 

$

43.0

 

$

44.0

 

$

43.5

 

$

38.4

 

$

43.5

 

$

5.1

 

13

%

 

$

5.1

 

13

%

 

$

(0.5

)

(1

)%

 

Managed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External clients

 

299.8

 

305.3

 

310.5

 

315.4

 

307.0

 

299.8

 

307.0

 

7.2

 

2

%

 

7.2

 

2

%

 

(8.4

)

(3

)%

 

Owned

 

59.1

 

58.1

 

58.2

 

59.0

 

58.7

 

59.1

 

58.7

 

(0.4

)

(1

)%

 

(0.4

)

(1

)%

 

(0.3

)

(1

)%

 

Total managed

 

358.9

 

363.4

 

368.7

 

374.4

 

365.7

 

358.9

 

365.7

 

6.8

 

2

%

 

6.8

 

2

%

 

(8.7

)

(2

)%

 

Administered

 

69.0

 

70.3

 

72.5

 

73.5

 

71.0

 

69.0

 

71.0

 

2.0

 

3

%

 

2.0

 

3

%

 

(2.5

)

(3

)%

 

Total OMA assets

 

$

466.3

 

$

474.1

 

$

484.2

 

$

491.9

 

$

480.2

 

$

466.3

 

$

480.2

 

$

13.9

 

3

%

 

$

13.9

 

3

%

 

$

(11.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

$

26

 

$

27

 

$

36

 

$

35

 

$

35

 

$

108

 

$

133

 

$

9

 

35

%

 

$

25

 

23

%

 

$

 

0

%

 

Common stock share repurchases

 

$

48

 

$

352

 

$

142

 

$

171

 

$

283

 

$

470

 

$

948

 

$

235

 

#

 

 

$

478

 

#

 

 

$

112

 

65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital

 

22.1

%

22.5

%

22.6

%

22.2

%

20.5

%

22.1

%

20.5

%

(1.6

)%

 

 

 

(1.6

)%

 

 

 

(1.7

)%

 

 

 

Debt to total capital excluding non-recourse debt

 

20.2

%

20.6

%

20.8

%

20.5

%

20.4

%

20.2

%

20.4

%

0.2

%

 

 

 

0.2

%

 

 

 

(0.1

)%

 

 

 

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

 

16.4

%

16.7

%

16.9

%

16.7

%

16.6

%

16.4

%

16.6

%

0.2

%

 

 

 

0.2

%

 

 

 

(0.1

)%

 

 

 

 


(1) See non-GAAP Financial Information.

 

# Variance of 100% or greater.

 

4



 

Ameriprise Financial, Inc.

Financial Summary

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Segment Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

910

 

$

906

 

$

1,007

 

$

953

 

$

947

 

$

3,335

 

$

3,813

 

$

37

 

4

%

 

$

478

 

14

%

 

$

(6

)

(1

)%

 

Asset Management

 

464

 

411

 

449

 

410

 

492

 

1,751

 

1,762

 

28

 

6

%

 

11

 

1

%

 

82

 

20

%

 

Annuities

 

569

 

526

 

520

 

619

 

639

 

2,196

 

2,304

 

70

 

12

%

 

108

 

5

%

 

20

 

3

%

 

Protection

 

483

 

481

 

485

 

495

 

524

 

1,891

 

1,985

 

41

 

8

%

 

94

 

5

%

 

29

 

6

%

 

Corporate & Other

 

13

 

14

 

 

(6

)

16

 

28

 

24

 

3

 

23

%

 

(4

)

(14

)%

 

22

 

#

 

 

Eliminations

 

(300

)

(311

)

(323

)

(301

)

(299

)

(1,181

)

(1,234

)

1

 

 

 

(53

)

(4

)%

 

2

 

1

%

 

Total net revenues

 

2,139

 

2,027

 

2,138

 

2,170

 

2,319

 

8,020

 

8,654

 

180

 

8

%

 

634

 

8

%

 

149

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

873

 

850

 

906

 

859

 

913

 

3,139

 

3,528

 

40

 

5

%

 

389

 

12

%

 

54

 

6

%

 

Asset Management

 

387

 

365

 

368

 

338

 

384

 

1,498

 

1,455

 

(3

)

(1

)%

 

(43

)

(3

)%

 

46

 

14

%

 

Annuities

 

422

 

408

 

434

 

528

 

511

 

1,732

 

1,881

 

89

 

21

%

 

149

 

9

%

 

(17

)

(3

)%

 

Protection

 

373

 

361

 

367

 

402

 

370

 

1,457

 

1,500

 

(3

)

(1

)%

 

43

 

3

%

 

(32

)

(8

)%

 

Corporate & Other

 

58

 

53

 

78

 

67

 

74

 

217

 

272

 

16

 

28

%

 

55

 

25

%

 

7

 

10

%

 

Eliminations

 

(300

)

(311

)

(323

)

(301

)

(299

)

(1,181

)

(1,234

)

1

 

 

 

(53

)

(4

)%

 

2

 

1

%

 

Total expenses before separation costs

 

1,813

 

1,726

 

1,830

 

1,893

 

1,953

 

6,862

 

7,402

 

140

 

8

%

 

540

 

8

%

 

60

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

123

 

85

 

63

 

60

 

28

 

361

 

236

 

(95

)

(77

)%

 

(125

)

(35

)%

 

(32

)

(53

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Segment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

37

 

56

 

101

 

94

 

34

 

196

 

285

 

(3

)

(8

)%

 

89

 

45

%

 

(60

)

(64

)%

 

Asset Management

 

77

 

46

 

81

 

72

 

108

 

253

 

307

 

31

 

40

%

 

54

 

21

%

 

36

 

50

%

 

Annuities

 

147

 

118

 

86

 

91

 

128

 

464

 

423

 

(19

)

(13

)%

 

(41

)

(9

)%

 

37

 

41

%

 

Protection

 

110

 

120

 

118

 

93

 

154

 

434

 

485

 

44

 

40

%

 

51

 

12

%

 

61

 

66

%

 

Corporate & Other

 

(168

)

(124

)

(141

)

(133

)

(86

)

(550

)

(484

)

82

 

49

%

 

66

 

12

%

 

47

 

35

%

 

Eliminations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total pretax segment income

 

$

203

 

$

216

 

$

245

 

$

217

 

$

338

 

$

797

 

$

1,016

 

$

135

 

67

%

 

$

219

 

27

%

 

$

121

 

56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Income Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

4.1

%

6.2

%

10.0

%

9.9

%

3.6

%

5.9

%

7.5

%

(0.5

)%

 

 

 

1.6

%

 

 

 

(6.3

)%

 

 

 

Asset Management

 

16.6

%

11.2

%

18.0

%

17.6

%

22.0

%

14.4

%

17.4

%

5.4

%

 

 

 

3.0

%

 

 

 

4.4

%

 

 

 

Annuities

 

25.8

%

22.4

%

16.5

%

14.7

%

20.0

%

21.1

%

18.4

%

(5.8

)%

 

 

 

(2.7

)%

 

 

 

5.3

%

 

 

 

Protection

 

22.8

%

24.9

%

24.3

%

18.8

%

29.4

%

23.0

%

24.4

%

6.6

%

 

 

 

1.4

%

 

 

 

10.6

%

 

 

 

Ameriprise Financial, Inc.

 

9.5

%

10.7

%

11.5

%

10.0

%

14.6

%

9.9

%

11.7

%

5.1

%

 

 

 

1.8

%

 

 

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

$

973

 

$

959

 

$

952

 

$

942

 

$

930

 

$

973

 

$

930

 

$

(43

)

(4

)%

 

$

(43

)

(4

)%

 

$

(12

)

(1

)%

 

Asset Management

 

869

 

863

 

865

 

862

 

878

 

869

 

878

 

9

 

1

%

 

9

 

1

%

 

16

 

2

%

 

Annuities

 

2,422

 

2,292

 

2,151

 

2,128

 

2,100

 

2,422

 

2,100

 

(322

)

(13

)%

 

(322

)

(13

)%

 

(28

)

(1

)%

 

Protection

 

2,155

 

2,174

 

2,145

 

2,308

 

2,318

 

2,155

 

2,318

 

163

 

8

%

 

163

 

8

%

 

10

 

 

 

Corporate & Other

 

1,715

 

1,586

 

1,842

 

1,767

 

1,751

 

1,715

 

1,751

 

36

 

2

%

 

36

 

2

%

 

(16

)

(1

)%

 

Total allocated equity

 

$

8,134

 

$

7,874

 

$

7,955

 

$

8,007

 

$

7,977

 

$

8,134

 

$

7,977

 

$

(157

)

(2

)%

 

$

(157

)

(2

)%

 

$

(30

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Return on Allocated Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advice & Wealth Management

 

22.4

%

22.4

%

26.3

%

30.1

%

30.0

%

22.4

%

30.0

%

7.6

%

 

 

 

7.6

%

 

 

 

(0.1

)%

 

 

 

Asset Management

 

28.8

%

29.4

%

29.7

%

31.9

%

35.4

%

28.8

%

35.4

%

6.6

%

 

 

 

6.6

%

 

 

 

3.5

%

 

 

 

Annuities

 

18.2

%

18.2

%

18.8

%

19.2

%

19.1

%

18.2

%

19.1

%

0.9

%

 

 

 

0.9

%

 

 

 

(0.1

)%

 

 

 

Protection

 

20.6

%

22.1

%

23.1

%

20.2

%

21.8

%

20.6

%

21.8

%

1.2

%

 

 

 

1.2

%

 

 

 

1.6

%

 

 

 

 


# Variance of 100% or greater.

 

5



 

Ameriprise Financial, Inc.

Consolidated Income Statements

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

745

 

$

722

 

$

788

 

$

798

 

$

930

 

$

2,700

 

$

3,238

 

$

185

 

25

%

 

$

538

 

20

%

 

$

132

 

17

%

 

Distribution fees

 

444

 

418

 

494

 

435

 

415

 

1,569

 

1,762

 

(29

)

(7

)%

 

193

 

12

%

 

(20

)

(5

)%

 

Net investment income

 

593

 

532

 

501

 

565

 

524

 

2,247

 

2,122

 

(69

)

(12

)%

 

(125

)

(6

)%

 

(41

)

(7

)%

 

Premiums

 

275

 

257

 

266

 

269

 

271

 

1,070

 

1,063

 

(4

)

(1

)%

 

(7

)

(1

)%

 

2

 

1

%

 

Other revenues

 

163

 

167

 

164

 

165

 

228

 

707

 

724

 

65

 

40

%

 

17

 

2

%

 

63

 

38

%

 

Total revenues

 

2,220

 

2,096

 

2,213

 

2,232

 

2,368

 

8,293

 

8,909

 

148

 

7

%

 

616

 

7

%

 

136

 

6

%

 

Banking and deposit interest expense

 

81

 

69

 

75

 

62

 

49

 

273

 

255

 

(32

)

(40

)%

 

(18

)

(7

)%

 

(13

)

(21

)%

 

Total net revenues

 

2,139

 

2,027

 

2,138

 

2,170

 

2,319

 

8,020

 

8,654

 

180

 

8

%

 

634

 

8

%

 

149

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

474

 

478

 

533

 

519

 

527

 

1,728

 

2,057

 

53

 

11

%

 

329

 

19

%

 

8

 

2

%

 

Interest credited to fixed accounts

 

238

 

217

 

224

 

214

 

195

 

968

 

850

 

(43

)

(18

)%

 

(118

)

(12

)%

 

(19

)

(9

)%

 

Benefits, claims, losses and settlement expenses

 

292

 

251

 

264

 

417

 

342

 

1,113

 

1,274

 

50

 

17

%

 

161

 

14

%

 

(75

)

(18

)%

 

Amortization of deferred acquisition costs

 

104

 

134

 

125

 

128

 

164

 

472

 

551

 

60

 

58

%

 

79

 

17

%

 

36

 

28

%

 

Interest and debt expense

 

29

 

29

 

29

 

27

 

27

 

101

 

112

 

(2

)

(7

)%

 

11

 

11

%

 

 

0

%

 

Separation costs

 

123

 

85

 

63

 

60

 

28

 

361

 

236

 

(95

)

(77

)%

 

(125

)

(35

)%

 

(32

)

(53

)%

 

General and administrative expense

 

676

 

617

 

655

 

588

 

698

 

2,480

 

2,558

 

22

 

3

%

 

78

 

3

%

 

110

 

19

%

 

Total expenses

 

1,936

 

1,811

 

1,893

 

1,953

 

1,981

 

7,223

 

7,638

 

45

 

2

%

 

415

 

6

%

 

28

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

203

 

216

 

245

 

217

 

338

 

797

 

1,016

 

135

 

67

%

 

219

 

27

%

 

121

 

56

%

 

Income tax provision

 

32

 

51

 

49

 

19

 

83

 

166

 

202

 

51

 

#

 

 

36

 

22

%

 

64

 

#

 

 

Net income

 

$

171

 

$

165

 

$

196

 

$

198

 

$

255

 

$

631

 

$

814

 

$

84

 

49

%

 

$

183

 

29

%

 

$

57

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings Reconciliation (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

171

 

$

165

 

$

196

 

$

198

 

$

255

 

$

631

 

$

814

 

$

84

 

49

%

 

$

183

 

29

%

 

$

57

 

29

%

 

Separation costs, after-tax (2)

 

80

 

55

 

41

 

39

 

19

 

235

 

154

 

(61

)

(76

)%

 

(81

)

(34

)%

 

(20

)

(51

)%

 

Adjusted earnings

 

$

251

 

$

220

 

$

237

 

$

237

 

$

274

 

$

866

 

$

968

 

$

23

 

9

%

 

$

102

 

12

%

 

$

37

 

16

%

 

 


(1) See non-GAAP Financial Information.

 

(2) In GAAP financial statements, separation costs are part of continuing operations. For this non-GAAP presentation, after-tax separation costs are calculated using the statutory tax rate of 35%.

 

# Variance of 100% or greater.

 

6



 

Ameriprise Financial, Inc.

Consolidated Income Statements

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Income Statement Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income margin

 

9.5

%

10.7

%

11.5

%

10.0

%

14.6

%

9.9

%

11.7

%

5.1

%

 

 

 

1.8

%

 

 

 

4.6

%

 

 

 

Net income margin

 

8.0

%

8.1

%

9.2

%

9.1

%

11.0

%

7.9

%

9.4

%

3.0

%

 

 

 

1.5

%

 

 

 

1.9

%

 

 

 

Adjusted pretax margin (1)

 

15.2

%

14.8

%

14.4

%

12.8

%

15.8

%

14.4

%

14.5

%

0.6

%

 

 

 

0.1

%

 

 

 

3.0

%

 

 

 

Adjusted earnings margin (1)

 

11.7

%

10.9

%

11.1

%

10.9

%

11.8

%

10.8

%

11.2

%

0.1

%

 

 

 

0.4

%

 

 

 

0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

500

 

$

484

 

$

461

 

$

444

 

$

441

 

$

2,033

 

$

1,830

 

$

(59

)

(12

)%

 

$

(203

)

(10

)%

 

$

(3

)

(1

)%

 

Realized gains (losses)

 

27

 

9

 

2

 

15

 

18

 

51

 

44

 

(9

)

(33

)%

 

(7

)

(14

)%

 

3

 

20

%

 

Hedges related to certificate deposits

 

11

 

2

 

9

 

5

 

(10

)

28

 

6

 

(21

)

#

 

 

(22

)

(79

)%

 

(15

)

#

 

 

Hedges related to interest credited

 

8

 

(1

)

9

 

2

 

(7

)

13

 

3

 

(15

)

#

 

 

(10

)

(77

)%

 

(9

)

#

 

 

Hedges related to variable annuities benefits

 

(3

)

(4

)

(24

)

57

 

66

 

(19

)

95

 

69

 

#

 

 

114

 

#

 

 

9

 

16

%

 

Affordable housing amortization

 

(10

)

(8

)

(9

)

(7

)

(8

)

(44

)

(32

)

2

 

20

%

 

12

 

27

%

 

(1

)

(14

)%

 

Other (including seed money)

 

60

 

50

 

53

 

49

 

24

 

185

 

176

 

(36

)

(60

)%

 

(9

)

(5

)%

 

(25

)

(51

)%

 

Total net investment income

 

$

593

 

$

532

 

$

501

 

$

565

 

$

524

 

$

2,247

 

$

2,122

 

$

(69

)

(12

)%

 

$

(125

)

(6

)%

 

$

(41

)

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue growth: Target 6 - 8%

 

NA

 

5.5

%

5.6

%

12.1

%

8.4

%

10.5

%

7.9

%

NA

 

 

 

 

(2.6

)%

 

 

 

(3.7

)%

 

 

 

Adjusted return on equity: Target 12 - 15% (1)

 

11.8

%

12.2

%

12.5

%

12.4

%

12.6

%

11.8

%

12.6

%

0.8

%

 

 

 

0.8

%

 

 

 

0.2

%

 

 

 

Adjusted earnings per diluted share growth: Target 12 - 15% (1)

 

NA

 

20.0

%

24.1

%

5.3

%

13.7

%

24.3

%

15.8

%

NA

 

 

 

 

(8.5

)%

 

 

 

8.4

%

 

 

 

Goodwill and intangible assets

 

$

871

 

$

868

 

$

873

 

$

878

 

$

863

 

$

871

 

$

863

 

$

(8

)

(1

)%

 

$

(8

)

(1

)%

 

$

(15

)

(2

)%

 

Dividends paid

 

26

 

27

 

36

 

35

 

35

 

108

 

133

 

9

 

35

%

 

25

 

23

%

 

 

 

 

Common stock share repurchases

 

$

48

 

$

352

 

$

142

 

$

171

 

$

283

 

$

470

 

$

948

 

$

235

 

#

 

 

$

478

 

#

 

 

$

112

 

65

%

 

Return on equity

 

8.3

%

8.6

%

9.2

%

9.4

%

10.5

%

8.3

%

10.5

%

2.2

%

 

 

 

2.2

%

 

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned, Managed and Administered Assets (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned

 

$

38.4

 

$

40.4

 

$

43.0

 

$

44.0

 

$

43.5

 

$

38.4

 

$

43.5

 

$

5.1

 

13

%

 

$

5.1

 

13

%

 

$

(0.5

)

(1

)%

 

Managed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

External clients

 

299.8

 

305.3

 

310.5

 

315.4

 

307.0

 

299.8

 

307.0

 

7.2

 

2

%

 

7.2

 

2

%

 

(8.4

)

(3

)%

 

Owned

 

59.1

 

58.1

 

58.2

 

59.0

 

58.7

 

59.1

 

58.7

 

(0.4

)

(1

)%

 

(0.4

)

(1

)%

 

(0.3

)

(1

)%

 

Total managed

 

358.9

 

363.4

 

368.7

 

374.4

 

365.7

 

358.9

 

365.7

 

6.8

 

2

%

 

6.8

 

2

%

 

(8.7

)

(2

)%

 

Administered

 

69.0

 

70.3

 

72.5

 

73.5

 

71.0

 

69.0

 

71.0

 

2.0

 

3

%

 

2.0

 

3

%

 

(2.5

)

(3

)%

 

Total OMA assets

 

$

466.3

 

$

474.1

 

$

484.2

 

$

491.9

 

$

480.2

 

$

466.3

 

$

480.2

 

$

13.9

 

3

%

 

$

13.9

 

3

%

 

$

(11.7

)

(2

)%

 

 


(1) See non-GAAP Financial Information.

 

# Variance of 100% or greater.

 

7



 

Ameriprise Financial, Inc.

Consolidated, Common Share and Per Share Summary

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions, except earnings per share amounts)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.70

 

$

0.69

 

$

0.83

 

$

0.84

 

$

1.10

 

$

2.56

 

$

3.45

 

$

0.40

 

57

%

 

$

0.89

 

35

%

 

$

0.26

 

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share

 

$

0.69

 

$

0.68

 

$

0.81

 

$

0.83

 

$

1.08

 

$

2.54

 

$

3.39

 

$

0.39

 

57

%

 

$

0.85

 

33

%

 

$

0.25

 

30

%

 

Separation costs, after-tax

 

0.33

 

0.22

 

0.17

 

0.16

 

0.08

 

0.94

 

0.64

 

(0.25

)

(76

)%

 

(0.30

)

(32

)%

 

(0.08

)

(50

)%

 

Adjusted earnings per diluted share (1)

 

$

1.02

 

$

0.90

 

$

0.98

 

$

0.99

 

$

1.16

 

$

3.48

 

$

4.03

 

$

0.14

 

14

%

 

$

0.55

 

16

%

 

$

0.17

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

242.1

 

241.4

 

236.6

 

235.3

 

232.4

 

249.9

 

241.4

 

(9.7

)

(4

)%

 

(8.5

)

(3

)%

 

(2.9

)

(1

)%

 

Repurchases

 

(1.0

)

(5.9

)

(2.3

)

(2.9

)

(4.8

)

(10.7

)

(15.9

)

(3.8

)

#

 

 

(5.2

)

(49

)%

 

(1.9

)

(66

)%

 

Issuances

 

0.3

 

1.5

 

1.2

 

0.1

 

0.2

 

2.9

 

3.0

 

(0.1

)

(33

)%

 

0.1

 

3

%

 

0.1

 

#

 

 

Other

 

 

(0.4

)

(0.2

)

(0.1

)

(0.1

)

(0.7

)

(0.8

)

(0.1

)

 

 

(0.1

)

(14

)%

 

 

0

%

 

Total common outstanding

 

241.4

 

236.6

 

235.3

 

232.4

 

227.7

 

241.4

 

227.7

 

(13.7

)

(6

)%

 

(13.7

)

(6

)%

 

(4.7

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common outstanding

 

241.4

 

236.6

 

235.3

 

232.4

 

227.7

 

241.4

 

227.7

 

(13.7

)

(6

)%

 

(13.7

)

(6

)%

 

(4.7

)

(2

)%

 

Nonforfeitable restricted stock units

 

1.4

 

1.9

 

1.3

 

1.3

 

1.4

 

1.4

 

1.4

 

 

0

%

 

 

0

%

 

0.1

 

8

%

 

Total basic common shares

 

242.8

 

238.5

 

236.6

 

233.7

 

229.1

 

242.8

 

229.1

 

(13.7

)

(6

)%

 

(13.7

)

(6

)%

 

(4.6

)

(2

)%

 

Total potentially dilutive

 

3.4

 

3.2

 

3.8

 

3.9

 

3.9

 

3.4

 

3.9

 

0.5

 

15

%

 

0.5

 

15

%

 

 

0

%

 

Total diluted shares

 

246.2

 

241.7

 

240.4

 

237.6

 

233.0

 

246.2

 

233.0

 

(13.2

)

(5

)%

 

(13.2

)

(5

)%

 

(4.6

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

243.3

 

240.7

 

237.4

 

235.4

 

231.4

 

246.5

 

236.2

 

(11.9

)

(5

)%

 

(10.3

)

(4

)%

 

(4.0

)

(2

)%

 

Diluted

 

246.3

 

244.1

 

241.0

 

239.2

 

235.4

 

248.5

 

239.9

 

(10.9

)

(4

)%

 

(8.6

)

(3

)%

 

(3.8

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - end of period

 

$

7,925

 

$

7,731

 

$

7,600

 

$

7,758

 

$

7,810

 

$

7,925

 

$

7,810

 

$

(115

)

(1

)%

 

$

(115

)

(1

)%

 

$

52

 

1

%

 

Average equity - 5 point

 

7,588

 

7,597

 

7,649

 

7,753

 

7,765

 

7,588

 

7,765

 

177

 

2

%

 

177

 

2

%

 

11

 

0

%

 

Book Value per Share

 

$

32.64

 

$

32.42

 

$

32.12

 

$

33.20

 

$

34.09

 

$

32.64

 

$

34.09

 

$

1.45

 

4

%

 

$

1.45

 

4

%

 

$

0.89

 

3

%

 

 


(1) See non-GAAP Financial Information.

 

# Variance of 100% or greater.

 

8



Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Advice & Wealth Management Segment

 

9



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

283

 

$

306

 

$

327

 

$

348

 

$

369

 

$

1,080

 

$

1,350

 

$

86

 

30

%

 

$

270

 

25

%

 

$

21

 

6

%

 

Distribution fees

 

563

 

540

 

620

 

541

 

517

 

2,034

 

2,218

 

(46

)

(8

)%

 

184

 

9

%

 

(24

)

(4

)%

 

Net investment income

 

119

 

108

 

112

 

101

 

84

 

405

 

405

 

(35

)

(29

)%

 

 

0

%

 

(17

)

(17

)%

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

18

 

16

 

18

 

21

 

21

 

62

 

76

 

3

 

17

%

 

14

 

23

%

 

 

0

%

 

Total revenues

 

983

 

970

 

1,077

 

1,011

 

991

 

3,581

 

4,049

 

8

 

1

%

 

468

 

13

%

 

(20

)

(2

)%

 

Banking and deposit interest expense

 

73

 

64

 

70

 

58

 

44

 

246

 

236

 

(29

)

(40

)%

 

(10

)

(4

)%

 

(14

)

(24

)%

 

Total net revenues

 

910

 

906

 

1,007

 

953

 

947

 

3,335

 

3,813

 

37

 

4

%

 

478

 

14

%

 

(6

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

552

 

562

 

615

 

585

 

587

 

2,068

 

2,349

 

35

 

6

%

 

281

 

14

%

 

2

 

0

%

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

321

 

288

 

291

 

274

 

326

 

1,071

 

1,179

 

5

 

2

%

 

108

 

10

%

 

52

 

19

%

 

Total expenses

 

873

 

850

 

906

 

859

 

913

 

3,139

 

3,528

 

40

 

5

%

 

389

 

12

%

 

54

 

6

%

 

Pretax income

 

$

37

 

$

56

 

$

101

 

$

94

 

$

34

 

$

196

 

$

285

 

$

(3

)

(8

)%

 

$

89

 

45

%

 

$

(60

)

(64

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income margin

 

4.1

%

6.2

%

10.0

%

9.9

%

3.6

%

5.9

%

7.5

%

(0.5

)%

 

 

 

1.6

%

 

 

 

(6.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

77

 

$

74

 

$

69

 

$

64

 

$

67

 

$

289

 

$

274

 

$

(10

)

(13

)%

 

$

(15

)

(5

)%

 

$

3

 

5

%

 

Realized gains (losses)

 

 

 

(1

)

 

 

(1

)

(1

)

 

 

 

 

0

%

 

 

 

 

Hedges related to certificate deposits

 

11

 

2

 

9

 

5

 

(10

)

28

 

6

 

(21

)

#

 

 

(22

)

(79

)%

 

(15

)

#

 

 

Other (including seed money)

 

31

 

32

 

35

 

32

 

27

 

89

 

126

 

(4

)

(13

)%

 

37

 

42

%

 

(5

)

(16

)%

 

Total net investment income

 

$

119

 

$

108

 

$

112

 

$

101

 

$

84

 

$

405

 

$

405

 

$

(35

)

(29

)%

 

$

 

0

%

 

$

(17

)

(17

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

973

 

$

959

 

$

952

 

$

942

 

$

930

 

$

973

 

$

930

 

$

(43

)

(4

)%

 

$

(43

)

(4

)%

 

$

(12

)

(1

)%

 

Pretax return on allocated equity

 

22.4

%

22.4

%

26.3

%

30.1

%

30.0

%

22.4

%

30.0

%

7.6

%

 

 

 

7.6

%

 

 

 

(0.1

)%

 

 

 

On-balance sheet deposits

 

$

6,594

 

$

6,323

 

$

5,916

 

$

5,887

 

$

6,011

 

$

6,594

 

$

6,011

 

$

(583

)

(9

)%

 

$

(583

)

(9

)%

 

$

124

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branded financial plan net cash sales

 

$

49

 

$

55

 

$

50

 

$

44

 

$

53

 

$

184

 

$

202

 

$

4

 

8

%

 

$

18

 

10

%

 

$

9

 

20

%

 

Financial planning penetration

 

45

%

45

%

45

%

45

%

45

%

45

%

45

%

0

%

 

 

 

0

%

 

 

 

0

%

 

 

 

 


# Variance of 100% or greater.

 

10



 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Financial Advisors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee advisors

 

3,178

 

2,987

 

2,731

 

2,541

 

2,453

 

3,178

 

2,453

 

(725

)

(23

)%

 

(725

)

(23

)%

 

(88

)

(3

)%

 

Franchisee advisors

 

7,651

 

7,611

 

7,642

 

7,712

 

7,757

 

7,651

 

7,757

 

106

 

1

%

 

106

 

1

%

 

45

 

1

%

 

Total branded financial advisors

 

10,829

 

10,598

 

10,373

 

10,253

 

10,210

 

10,829

 

10,210

 

(619

)

(6

)%

 

(619

)

(6

)%

 

(43

)

0

%

 

SAI independent advisors

 

1,763

 

1,744

 

1,703

 

1,750

 

1,614

 

1,763

 

1,614

 

(149

)

(8

)%

 

(149

)

(8

)%

 

(136

)

(8

)%

 

Total financial advisors

 

12,592

 

12,342

 

12,076

 

12,003

 

11,824

 

12,592

 

11,824

 

(768

)

(6

)%

 

(768

)

(6

)%

 

(179

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue per financial advisor (in
thousands) (1)

 

$

72

 

$

73

 

$

83

 

$

79

 

$

80

 

$

268

 

$

315

 

$

8

 

11

%

 

$

47

 

18

%

 

$

1

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Retention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee

 

63.1

%

63.1

%

62.2

%

61.0

%

58.9

%

63.1

%

58.9

%

(4.2

)%

 

 

 

(4.2

)%

 

 

 

(2.1

)%

 

 

 

Franchisee

 

93.4

%

93.1

%

93.2

%

93.3

%

93.2

%

93.4

%

93.2

%

(0.2

)%

 

 

 

(0.2

)%

 

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates and Banking - Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

(1

)

$

2

 

$

(2

)

$

3

 

$

(8

)

$

26

 

$

(5

)

$

(7

)

#

 

 

$

(31

)

#

 

 

$

(11

)

#

 

 

Allocated equity

 

$

430

 

$

409

 

$

389

 

$

375

 

$

367

 

$

430

 

$

367

 

$

(63

)

(15

)%

 

$

(63

)

(15

)%

 

$

(8

)

(2

)%

 

Pretax return on allocated equity

 

7.6

%

5.0

%

1.8

%

0.5

%

(1.3

)%

7.6

%

(1.3

)%

(8.9

)%

 

 

 

(8.9

)%

 

 

 

(1.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth Management & Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

38

 

$

54

 

$

103

 

$

91

 

$

42

 

$

170

 

$

290

 

$

4

 

11

%

 

$

120

 

71

%

 

$

(49

)

(54

)%

 

Allocated equity

 

$

543

 

$

550

 

$

563

 

$

567

 

$

563

 

$

543

 

$

563

 

$

20

 

4

%

 

$

20

 

4

%

 

$

(4

)

(1

)%

 

Pretax return on allocated equity

 

31.8

%

34.0

%

43.6

%

51.8

%

52.0

%

31.8

%

52.0

%

20.2

%

 

 

 

20.2

%

 

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisor Cash Sales by Product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wrap net flows

 

$

2,339

 

$

3,355

 

$

3,811

 

$

2,697

 

$

1,802

 

$

10,935

 

$

11,665

 

$

(537

)

(23

)%

 

$

730

 

7

%

 

$

(895

)

(33

)%

 

Total mutual funds (non-wrap)

 

3,972

 

4,323

 

4,581

 

3,939

 

3,884

 

15,844

 

16,727

 

(88

)

(2

)%

 

883

 

6

%

 

(55

)

(1

)%

 

Annuities (proprietary and non-proprietary)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable

 

2,661

 

2,761

 

3,002

 

2,688

 

2,498

 

10,556

 

10,949

 

(163

)

(6

)%

 

393

 

4

%

 

(190

)

(7

)%

 

Fixed

 

146

 

103

 

107

 

107

 

109

 

698

 

426

 

(37

)

(25

)%

 

(272

)

(39

)%

 

2

 

2

%

 

Investment certificates

 

697

 

236

 

220

 

174

 

181

 

1,887

 

811

 

(516

)

(74

)%

 

(1,076

)

(57

)%

 

7

 

4

%

 

Insurance (proprietary and non-proprietary)

 

134

 

125

 

131

 

124

 

122

 

513

 

502

 

(12

)

(9

)%

 

(11

)

(2

)%

 

(2

)

(2

)%

 

Other

 

1,165

 

564

 

1,195

 

613

 

515

 

2,178

 

2,887

 

(650

)

(56

)%

 

709

 

33

%

 

(98

)

(16

)%

 

Total advisor cash sales

 

$

11,114

 

$

11,467

 

$

13,047

 

$

10,342

 

$

9,111

 

$

42,611

 

$

43,967

 

$

(2,003

)

(18

)%

 

$

1,356

 

3

%

 

$

(1,231

)

(12

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (at period end)

 

$

271,598

 

$

278,722

 

$

292,271

 

$

297,856

 

$

293,899

 

$

271,598

 

$

293,899

 

$

22,301

 

8

%

 

$

22,301

 

8

%

 

$

(3,957

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

70,096

 

$

76,365

 

$

81,812

 

$

89,150

 

$

92,944

 

$

57,712

 

$

76,365

 

$

22,848

 

33

%

 

$

18,653

 

32

%

 

$

3,794

 

4

%

 

Net flows

 

2,339

 

3,355

 

3,811

 

2,697

 

1,802

 

10,935

 

11,665

 

(537

)

(23

)%

 

730

 

7

%

 

(895

)

(33

)%

 

Market appreciation (depreciation) and other

 

3,930

 

2,092

 

3,527

 

1,097

 

(895

)

7,718

 

5,821

 

(4,825

)

#

 

 

(1,897

)

(25

)%

 

(1,992

)

#

 

 

Total wrap ending assets

 

$

76,365

 

$

81,812

 

$

89,150

 

$

92,944

 

$

93,851

 

$

76,365

 

$

93,851

 

$

17,486

 

23

%

 

$

17,486

 

23

%

 

$

907

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily average

 

1,389

 

1,425

 

1,497

 

1,489

 

1,494

 

1,310

 

1,476

 

105

 

8

%

 

166

 

13

%

 

5

 

0

%

 

Period end

 

1,418

 

1,421

 

1,503

 

1,527

 

1,468

 

1,418

 

1,468

 

50

 

4

%

 

50

 

4

%

 

(59

)

(4

)%

 

 


(1) Year-to-date is sum of current year prior quarters.

 

# Variance of 100% or greater.

 

11



Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Asset Management Segment

 

12



 

Ameriprise Financial, Inc.

Asset Management Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

350

 

$

297

 

$

330

 

$

316

 

$

419

 

$

1,221

 

$

1,362

 

$

69

 

20

%

 

$

141

 

12

%

 

$

103

 

33

%

 

Distribution fees

 

80

 

82

 

84

 

78

 

78

 

336

 

322

 

(2

)

(3

)%

 

(14

)

(4

)%

 

 

 

 

Net investment income

 

18

 

17

 

22

 

5

 

4

 

63

 

48

 

(14

)

(78

)%

 

(15

)

(24

)%

 

(1

)

(20

)%

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

22

 

19

 

19

 

14

 

(2

)

157

 

50

 

(24

)

#

 

 

(107

)

(68

)%

 

(16

)

#

 

 

Total revenues

 

470

 

415

 

455

 

413

 

499

 

1,777

 

1,782

 

29

 

6

%

 

5

 

 

 

86

 

21

%

 

Banking and deposit interest expense

 

6

 

4

 

6

 

3

 

7

 

26

 

20

 

1

 

17

%

 

(6

)

(23

)%

 

4

 

#

 

 

Total net revenues

 

464

 

411

 

449

 

410

 

492

 

1,751

 

1,762

 

28

 

6

%

 

11

 

1

%

 

82

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

107

 

113

 

116

 

117

 

118

 

415

 

464

 

11

 

10

%

 

49

 

12

%

 

1

 

1

%

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

10

 

10

 

9

 

7

 

7

 

52

 

33

 

(3

)

(30

)%

 

(19

)

(37

)%

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

270

 

242

 

243

 

214

 

259

 

1,031

 

958

 

(11

)

(4

)%

 

(73

)

(7

)%

 

45

 

21

%

 

Total expenses

 

387

 

365

 

368

 

338

 

384

 

1,498

 

1,455

 

(3

)

(1

)%

 

(43

)

(3

)%

 

46

 

14

%

 

Pretax income

 

$

77

 

$

46

 

$

81

 

$

72

 

$

108

 

$

253

 

$

307

 

$

31

 

40

%

 

$

54

 

21

%

 

$

36

 

50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income margin

 

16.6

%

11.2

%

18.0

%

17.6

%

22.0

%

14.4

%

17.4

%

5.4

%

 

 

 

3.0

%

 

 

 

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

869

 

$

863

 

$

865

 

$

862

 

$

878

 

$

869

 

$

878

 

$

9

 

1

%

 

$

9

 

1

%

 

$

16

 

2

%

 

Pretax return on allocated equity

 

28.8

%

29.4

%

29.7

%

31.9

%

35.4

%

28.8

%

35.4

%

6.6

%

 

 

 

6.6

%

 

 

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource managed assets

 

$

158,102

 

$

157,009

 

$

159,864

 

$

161,811

 

$

157,865

 

$

158,102

 

$

157,865

 

$

(237

)

 

 

$

(237

)

 

 

$

(3,946

)

(2

)%

 

Threadneedle managed assets

 

141,352

 

142,099

 

138,398

 

139,804

 

134,358

 

141,352

 

134,358

 

(6,994

)

(5

)%

 

(6,994

)

(5

)%

 

(5,446

)

(4

)%

 

Less: RiverSource assets sub-advised by Threadneedle

 

(5,147

)

(5,203

)

(5,325

)

(5,614

)

(5,577

)

(5,147

)

(5,577

)

(430

)

(8

)%

 

(430

)

(8

)%

 

37

 

1

%

 

Total managed assets

 

$

294,307

 

$

293,905

 

$

292,937

 

$

296,001

 

$

286,646

 

$

294,307

 

$

286,646

 

$

(7,661

)

(3

)%

 

$

(7,661

)

(3

)%

 

$

(9,355

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed assets - external clients

 

$

235,243

 

$

235,794

 

$

234,688

 

$

236,972

 

$

227,974

 

$

235,243

 

$

227,974

 

$

(7,269

)

(3

)%

 

$

(7,269

)

(3

)%

 

$

(8,998

)

(4

)%

 

Managed assets - owned

 

59,064

 

58,111

 

58,249

 

59,029

 

58,672

 

59,064

 

58,672

 

(392

)

(1

)%

 

(392

)

(1

)%

 

(357)

 

(1

)%

 

Total managed assets

 

$

294,307

 

$

293,905

 

$

292,937

 

$

296,001

 

$

286,646

 

$

294,307

 

$

286,646

 

$

(7,661

)

(3

)%

 

$

(7,661

)

(3

)%

 

$

(9,355

)

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Managed Assets by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

$

130,049

 

$

129,913

 

$

134,014

 

$

133,292

 

$

126,985

 

$

130,049

 

$

126,985

 

$

(3,064

)

(2

)%

 

$

(3,064

)

(2

)%

 

$

(6,307

)

(5

)%

 

Fixed income

 

123,106

 

122,912

 

114,406

 

117,170

 

117,280

 

123,106

 

117,280

 

(5,826

)

(5

)%

 

(5,826

)

(5

)%

 

110

 

0

%

 

Money market

 

12,159

 

10,849

 

13,590

 

14,134

 

13,112

 

12,159

 

13,112

 

953

 

8

%

 

953

 

8

%

 

(1,022

)

(7

)%

 

Alternative

 

9,866

 

10,936

 

10,873

 

11,484

 

11,624

 

9,866

 

11,624

 

1,758

 

18

%

 

1,758

 

18

%

 

140

 

1

%

 

Hybrid and other

 

19,127

 

19,295

 

20,054

 

19,921

 

17,645

 

19,127

 

17,645

 

(1,482

)

(8

)%

 

(1,482

)

(8

)%

 

(2,276

)

(11

)%

 

Total managed assets by type

 

$

294,307

 

$

293,905

 

$

292,937

 

$

296,001

 

$

286,646

 

$

294,307

 

$

286,646

 

$

(7,661

)

(3

)%

 

$

(7,661

)

(3

)%

 

$

(9,355

)

(3

)%

 

 


# Variance of 100% or greater.

 

13



 

Ameriprise Financial, Inc.

Asset Management Segment

Fourth Quarter 2007

 

 

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

Mutual Fund Performance

 

 

 

 

 

 

 

 

 

 

 

RiverSource

 

 

 

 

 

 

 

 

 

 

 

Equal Weighted Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

77

%

56

%

70

%

65

%

45

%

Fixed income - 12 month

 

72

%

83

%

88

%

83

%

42

%

Equity - 3 year

 

63

%

65

%

65

%

73

%

69

%

Fixed income - 3 year

 

53

%

44

%

44

%

39

%

50

%

Equity - 5 year

 

40

%

53

%

44

%

44

%

40

%

Fixed income - 5 year

 

15

%

36

%

29

%

29

%

36

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Weighted Mutual Fund Rankings in top 2 Lipper Quartiles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

89

%

58

%

87

%

67

%

57

%

Fixed income - 12 month

 

87

%

97

%

97

%

93

%

30

%

Equity - 3 year

 

70

%

72

%

74

%

93

%

68

%

Fixed income - 3 year

 

48

%

46

%

46

%

46

%

54

%

Equity - 5 year

 

67

%

81

%

61

%

57

%

58

%

Fixed income - 5 year

 

10

%

28

%

44

%

44

%

45

%

 

 

 

 

 

 

 

 

 

 

 

 

Threadneedle

 

 

 

 

 

 

 

 

 

 

 

Equal Weighted Mutual Fund Rankings in top 2 S&P Quartiles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity - 12 month

 

63

%

57

%

63

%

77

%

80

%

Fixed income - 12 month

 

56

%

44

%

44

%

22

%

22

%

Equity - 3 year

 

57

%

50

%

64

%

76

%

83

%

Fixed income - 3 year

 

67

%

56

%

56

%

22

%

22

%

Equity - 5 year

 

46

%

42

%

29

%

46

%

58

%

Fixed income - 5 year

 

67

%

56

%

56

%

33

%

22

%

 

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 sub-advised 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 sub-advised 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 sub-advised by non-affiliated advisors for general reference although not included in the summary above.

 

14



 

Ameriprise Financial, Inc.

Asset Management Segment - RiverSource

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

RiverSource - Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

78,178

 

$

81,691

 

$

82,085

 

$

86,988

 

$

88,575

 

$

76,645

 

$

81,691

 

$

10,397

 

13

%

 

$

5,046

 

7

%

 

$

1,587

 

2

%

 

Net flows

 

(1,116

)

(836

)

721

 

399

 

225

 

(4,428

)

509

 

1,341

 

#

 

 

4,937

 

#

 

 

(174

)

(44

)%

 

Market appreciation (depreciation)

 

4,629

 

1,230

 

4,182

 

1,188

 

(1,936

)

9,474

 

4,664

 

(6,565

)

#

 

 

(4,810

)

(51

)%

 

(3,124

)

#

 

 

Total ending assets

 

81,691

 

82,085

 

86,988

 

88,575

 

86,864

 

81,691

 

86,864

 

5,173

 

6

%

 

5,173

 

6

%

 

(1,711

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

59,077

 

59,131

 

57,238

 

55,827

 

56,007

 

62,164

 

59,131

 

(3,070

)

(5

)%

 

(3,033

)

(5

)%

 

180

 

 

 

Net flows

 

(360

)

(2,163

)

(996

)

(358

)

(1,403

)

(3,598

)

(4,920

)

(1,043

)

#

 

 

(1,322

)

(37

)%

 

(1,045

)

#

 

 

Market appreciation (depreciation)

 

414

 

270

 

(415

)

538

 

217

 

565

 

610

 

(197

)

(48

)%

 

45

 

8

%

 

(321

)

(60

)%

 

Total ending assets

 

59,131

 

57,238

 

55,827

 

56,007

 

54,821

 

59,131

 

54,821

 

(4,310

)

(7

)%

 

(4,310

)

(7

)%

 

(1,186

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

7,482

 

7,777

 

8,520

 

8,185

 

8,605

 

6,800

 

7,777

 

1,123

 

15

%

 

977

 

14

%

 

420

 

5

%

 

Net flows

 

289

 

739

 

(332

)

426

 

(516

)

960

 

317

 

(805

)

#

 

 

(643

)

(67

)%

 

(942

)

#

 

 

Market appreciation (depreciation)

 

6

 

4

 

(3

)

(6

)

(4

)

17

 

(9

)

(10

)

#

 

 

(26

)

#

 

 

2

 

33

%

 

Total ending assets

 

7,777

 

8,520

 

8,185

 

8,605

 

8,085

 

7,777

 

8,085

 

308

 

4

%

 

308

 

4

%

 

(520

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

10,963

 

10,219

 

9,983

 

9,632

 

9,342

 

11,308

 

10,219

 

(1,621

)

(15

)%

 

(1,089

)

(10

)%

 

(290

)

(3

)%

 

Net flows

 

(1,053

)

(322

)

(604

)

(415

)

(542

)

(1,896

)

(1,883

)

511

 

49

%

 

13

 

1

%

 

(127

)

(31

)%

 

Market appreciation (depreciation)

 

309

 

86

 

253

 

125

 

4

 

807

 

468

 

(305

)

(99

)%

 

(339

)

(42

)%

 

(121

)

(97

)%

 

Total ending assets

 

10,219

 

9,983

 

9,632

 

9,342

 

8,804

 

10,219

 

8,804

 

(1,415

)

(14

)%

 

(1,415

)

(14

)%

 

(538

)

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other and Eliminations

 

(716

)

(817

)

(768

)

(718

)

(709

)

(716

)

(709

)

7

 

1

%

 

7

 

1

%

 

9

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total RiverSource managed assets

 

$

158,102

 

$

157,009

 

$

159,864

 

$

161,811

 

$

157,865

 

$

158,102

 

$

157,865

 

$

(237

)

0

%

 

$

(237

)

0

%

 

$

(3,946

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Flows - RiverSource

 

$

(2,240

)

$

(2,582

)

$

(1,211

)

$

52

 

$

(2,236

)

$

(8,962

)

$

(5,977

)

$

4

 

0

%

 

$

2,985

 

33

%

 

$

(2,288

)

#

 

 

 


# Variance of 100% or greater.

 

15



 

Ameriprise Financial, Inc.

Asset Management Segment - Threadneedle

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Threadneedle Managed Assets Rollforward Threadneedle Retail Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

$

25,742

 

$

28,112

 

$

28,741

 

$

30,494

 

$

31,540

 

$

22,510

 

$

28,112

 

$

5,798

 

23

%

 

$

5,602

 

25

%

 

$

1,046

 

3

%

 

Net flows

 

(216

)

(130

)

64

 

98

 

(211

)

(297

)

(179

)

5

 

2

%

 

118

 

40

%

 

(309

)

#

 

 

Market appreciation (depreciation)

 

1,334

 

592

 

936

 

287

 

379

 

2,642

 

2,194

 

(955

)

(72

)%

 

(448

)

(17

)%

 

92

 

32

%

 

Foreign currency translation (1)

 

1,207

 

128

 

613

 

573

 

(964

)

3,049

 

350

 

(2,171

)

#

 

 

(2,699

)

(89

)%

 

(1,537

)

#

 

 

Other

 

45

 

39

 

140

 

88

 

78

 

208

 

345

 

33

 

73

%

 

137

 

66

%

 

(10

)

(11

)%

 

Total ending assets

 

28,112

 

28,741

 

30,494

 

31,540

 

30,822

 

28,112

 

30,822

 

2,710

 

10

%

 

2,710

 

10

%

 

(718

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

104,795

 

111,151

 

110,960

 

105,247

 

105,450

 

97,229

 

111,151

 

655

 

1

%

 

13,922

 

14

%

 

203

 

 

 

Net flows

 

(2,548

)

(2,475

)

(11,037

)

(3,313

)

(4,516

)

(7,646

)

(21,341

)

(1,968

)

(77

)%

 

(13,695

)

#

 

 

(1,203

)

(36

)%

 

Market appreciation (depreciation)

 

2,932

 

936

 

1,838

 

585

 

1,468

 

5,209

 

4,827

 

(1,464

)

(50

)%

 

(382

)

(7

)%

 

883

 

#

 

 

Foreign currency translation (1)

 

4,875

 

504

 

2,332

 

1,987

 

(3,167

)

12,554

 

1,656

 

(8,042

)

#

 

 

(10,898

)

(87

)%

 

(5,154

)

#

 

 

Other

 

1,097

 

844

 

1,154

 

944

 

822

 

3,805

 

3,764

 

(275

)

(25

)%

 

(41

)

(1

)%

 

(122

)

(13

)%

 

Total ending assets

 

111,151

 

110,960

 

105,247

 

105,450

 

100,057

 

111,151

 

100,057

 

(11,094

)

(10

)%

 

(11,094

)

(10

)%

 

(5,393

)

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets

 

1,917

 

2,089

 

2,398

 

2,657

 

2,814

 

1,902

 

2,089

 

897

 

47

%

 

187

 

10

%

 

157

 

6

%

 

Net flows

 

15

 

235

 

156

 

46

 

(2

)

(120

)

435

 

(17

)

#

 

 

555

 

#

 

 

(48

)

#

 

 

Market appreciation (depreciation)

 

68

 

64

 

52

 

59

 

262

 

77

 

437

 

194

 

#

 

 

360

 

#

 

 

203

 

#

 

 

Foreign currency translation (1)

 

89

 

10

 

51

 

52

 

(108

)

230

 

5

 

(197

)

#

 

 

(225

)

(98

)%

 

(160

)

#

 

 

Other

 

 

 

 

 

513

 

 

513

 

513

 

 

 

513

 

 

 

513

 

 

 

Total ending assets

 

2,089

 

2,398

 

2,657

 

2,814

 

3,479

 

2,089

 

3,479

 

1,390

 

67

%

 

1,390

 

67

%

 

665

 

24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Threadneedle managed assets

 

$

141,352

 

$

142,099

 

$

138,398

 

$

139,804

 

$

134,358

 

$

141,352

 

$

134,358

 

$

(6,994

)

(5

)%

 

$

(6,994

)

(5

)%

 

$

(5,446

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Flows - Threadneedle

 

$

(2,749

)

$

(2,370

)

$

(10,817

)

$

(3,169

)

$

(4,729

)

$

(8,063

)

$

(21,085

)

$

(1,980

)

(72

)%

 

$

(13,022

)

#

 

 

$

(1,560

)

(49

)%

 

 


(1) Amounts represent UK Pound to US dollar conversion.

 

# Variance of 100% or greater.

 

16



Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Annuities Segment

 

17



 

Ameriprise Financial, Inc.

Annuities Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

110

 

$

115

 

$

127

 

$

130

 

$

138

 

$

392

 

$

510

 

$

28

 

25

%

 

$

118

 

30

%

 

$

8

 

6

%

 

Distribution fees

 

57

 

61

 

66

 

70

 

70

 

213

 

267

 

13

 

23

%

 

54

 

25

%

 

 

 

 

Net investment income

 

352

 

311

 

280

 

370

 

333

 

1,403

 

1,294

 

(19

)

(5

)%

 

(109

)

(8

)%

 

(37

)

(10

)%

 

Premiums

 

35

 

22

 

24

 

24

 

25

 

138

 

95

 

(10

)

(29

)%

 

(43

)

(31

)%

 

1

 

4

%

 

Other revenues

 

15

 

17

 

23

 

25

 

73

 

50

 

138

 

58

 

#

 

 

88

 

#

 

 

48

 

#

 

 

Total revenues

 

569

 

526

 

520

 

619

 

639

 

2,196

 

2,304

 

70

 

12

%

 

108

 

5

%

 

20

 

3

%

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

569

 

526

 

520

 

619

 

639

 

2,196

 

2,304

 

70

 

12

%

 

108

 

5

%

 

20

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

43

 

45

 

51

 

50

 

48

 

158

 

194

 

5

 

12

%

 

36

 

23

%

 

(2

)

(4

)%

 

Interest credited to fixed accounts

 

201

 

183

 

189

 

177

 

160

 

823

 

709

 

(41

)

(20

)%

 

(114

)

(14

)%

 

(17

)

(10

)%

 

Benefits, claims, losses and settlement expenses

 

78

 

33

 

53

 

192

 

146

 

261

 

424

 

68

 

87

%

 

163

 

62

%

 

(46

)

(24

)%

 

Amortization of deferred acquisition costs

 

52

 

89

 

76

 

53

 

100

 

287

 

318

 

48

 

92

%

 

31

 

11

%

 

47

 

89

%

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

48

 

58

 

65

 

56

 

57

 

203

 

236

 

9

 

19

%

 

33

 

16

%

 

1

 

2

%

 

Total expenses

 

422

 

408

 

434

 

528

 

511

 

1,732

 

1,881

 

89

 

21

%

 

149

 

9

%

 

(17

)

(3

)%

 

Pretax income

 

$

147

 

$

118

 

$

86

 

$

91

 

$

128

 

$

464

 

$

423

 

$

(19

)

(13

)%

 

$

(41

)

(9

)%

 

$

37

 

41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

147

 

$

118

 

$

86

 

$

91

 

$

128

 

$

464

 

$

423

 

$

(19

)

(13

)%

 

$

(41

)

(9

)%

 

$

37

 

41

%

 

Realized (gains) losses

 

(21

)

(6

)

 

(12

)

(15

)

(41

)

(33

)

6

 

29

%

 

8

 

20

%

 

(3

)

(25

)%

 

Hedge investment (gains) losses (1)

 

3

 

4

 

24

 

(57

)

(66

)

19

 

(95

)

(69

)

#

 

 

(114

)

#

 

 

(9

)

(16

)%

 

Mark-to-market for liability derivatives (1)

 

7

 

(28

)

(25

)

128

 

67

 

(41

)

142

 

60

 

#

 

 

183

 

#

 

 

(61

)

(48

)%

 

Total pretax operating earnings

 

$

136

 

$

88

 

$

85

 

$

150

 

$

114

 

$

401

 

$

437

 

$

(22

)

(16

)% 

 

$

36

 

9

%

 

$

(36

)

(24

)% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income margin

 

25.8

%

22.4

%

16.5

%

14.7

%

20.0

%

21.1

%

18.4

%

(5.8

)%

 

 

 

(2.7

)%

 

 

 

5.3

%

 

 

 

Pretax operating earnings margin

 

23.9

%

16.7

%

16.3

%

24.2

%

17.8

%

18.3

%

19.0

%

(6.1

)%

 

 

 

0.7

%

 

 

 

(6.4

)% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

324

 

$

308

 

$

290

 

$

279

 

$

267

 

$

1,358

 

$

1,144

 

$

(57

)

(18

)%

 

$

(214

)

(16

)%

 

$

(12

)

(4

)%

 

Realized gains (losses)

 

21

 

6

 

 

12

 

15

 

41

 

33

 

(6

)

(29

)%

 

(8

)

(20

)%

 

3

 

25

%

 

Hedges related to interest credited

 

8

 

(1

)

9

 

2

 

(7

)

13

 

3

 

(15

)

#

 

 

(10

)

(77

)%

 

(9

)

#

 

 

Hedges related to variable annuities benefits

 

(3

)

(4

)

(24

)

57

 

66

 

(19

)

95

 

69

 

#

 

 

114

 

#

 

 

9

 

16

%

 

Other (including seed money)

 

2

 

2

 

5

 

20

 

(8

)

10

 

19

 

(10

)

#

 

 

9

 

90

%

 

(28

)

#

 

 

Total net investment income

 

$

352

 

$

311

 

$

280

 

$

370

 

$

333

 

$

1,403

 

$

1,294

 

$

(19

)

(5

)%

 

$

(109

)

(8

)%

 

$

(37

)

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,422

 

$

2,292

 

$

2,151

 

$

2,128

 

$

2,100

 

$

2,422

 

$

2,100

 

$

(322

)

(13

)%

 

$

(322

)

(13

)%

 

$

(28

)

(1

)%

 

Pretax return on allocated equity

 

18.2

%

18.2

%

18.8

%

19.2

%

19.1

%

18.2

%

19.1

%

0.9

%

 

 

 

0.9

%

 

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total annuity net flows

 

$

591

 

$

483

 

$

609

 

$

465

 

$

403

 

$

1,857

 

$

1,960

 

$

(188

)

(32

)%

 

$

103

 

6

%

 

$

(62

)

(13

)%

 

 


(1) GMWB and GMAB only.

 

# Variance of 100% or greater.

 

18



 

Ameriprise Financial, Inc.

Annuities Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

68

 

$

57

 

$

41

 

$

35

 

$

52

 

$

197

 

$

185

 

$

(16

)

(24

)%

 

$

(12

)

(6

)%

 

$

17

 

49

%

 

Allocated equity

 

$

1,023

 

$

944

 

$

905

 

$

919

 

$

919

 

$

1,023

 

$

919

 

$

(104

)

(10

)%

 

$

(104

)

(10

)%

 

$

 

 

 

Pretax return on allocated equity

 

18.4

%

19.2

%

20.6

%

20.8

%

19.6

%

18.4

%

19.6

%

1.2

%

 

 

 

1.2

%

 

 

 

(1.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

79

 

$

61

 

$

45

 

$

56

 

$

76

 

$

267

 

$

238

 

$

(3

)

(4

)%

 

$

(29

)

(11

)%

 

$

20

 

36

%

 

Allocated equity

 

$

1,399

 

$

1,348

 

$

1,246

 

$

1,209

 

$

1,181

 

$

1,399

 

$

1,181

 

$

(218

)

(16

)%

 

$

(218

)

(16

)%

 

$

(28

)

(2

)%

 

Pretax return on allocated equity

 

18.0

%

17.4

%

17.4

%

18.1

%

18.6

%

18.0

%

18.6

%

0.7

%

 

 

 

0.7

%

 

 

 

0.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

45,606

 

$

49,489

 

$

51,475

 

$

55,092

 

$

57,127

 

$

40,150

 

$

49,489

 

$

11,521

 

25

%

 

$

9,339

 

23

%

 

$

2,035

 

4

%

 

Deposits

 

2,691

 

2,706

 

2,982

 

2,649

 

2,474

 

10,055

 

10,811

 

(217

)

(8

)%

 

756

 

8

%

 

(175

)

(7

)%

 

Withdrawals and terminations

 

(1,424

)

(1,494

)

(1,634

)

(1,458

)

(1,368

)

(5,693

)

(5,954

)

56

 

4

%

 

(261

)

(5

)%

 

90

 

6

%

 

Net flows

 

1,267

 

1,212

 

1,348

 

1,191

 

1,106

 

4,362

 

4,857

 

(161

)

(13

)%

 

495

 

11

%

 

(85

)

(7

)%

 

Investment performance and interest credited

 

2,617

 

770

 

2,265

 

847

 

(1,043

)

4,948

 

2,839

 

(3,660

)

#

 

 

(2,109

)

(43

)%

 

(1,890

)

#

 

 

Other

 

(1

)

4

 

4

 

(3

)

(8

)

29

 

(3

)

(7

)

#

 

 

(32

)

#

 

 

(5

)

#

 

 

Total ending balance - contract accumulation values

 

$

49,489

 

$

51,475

 

$

55,092

 

$

57,127

 

$

57,182

 

$

49,489

 

$

57,182

 

$

7,693

 

16

%

 

$

7,693

 

16

%

 

$

55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Variable annuities fixed sub-accounts

 

$

5,975

 

$

5,674

 

$

5,416

 

$

5,542

 

$

5,419

 

$

5,975

 

$

5,419

 

$

(556

)

(9

)%

 

$

(556

)

(9

)%

 

$

(123

)

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Annuities Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

15,423

 

$

14,884

 

$

14,285

 

$

13,652

 

$

13,046

 

$

16,861

 

$

14,884

 

$

(2,377

)

(15

)%

 

$

(1,977

)

(12

)%

 

$

(606

)

(4

)%

 

Deposits

 

113

 

83

 

77

 

81

 

76

 

565

 

317

 

(37

)

(33

)%

 

(248

)

(44

)%

 

(5

)

(6

)%

 

Withdrawals and terminations

 

(789

)

(812

)

(816

)

(807

)

(779

)

(3,070

)

(3,214

)

10

 

1

%

 

(144

)

(5

)%

 

28

 

3

%

 

Net flows

 

(676

)

(729

)

(739

)

(726

)

(703

)

(2,505

)

(2,897

)

(27

)

(4

)%

 

(392

)

(16

)%

 

23

 

3

%

 

Policyholder interest credited

 

147

 

128

 

143

 

120

 

108

 

591

 

499

 

(39

)

(27

)%

 

(92

)

(16

)%

 

(12

)

(10

)%

 

Other

 

(10

)

2

 

(37

)

 

12

 

(63

)

(23

)

22

 

#

 

 

40

 

63

%

 

12

 

 

 

Total ending balance - contract accumulation values

 

$

14,884

 

$

14,285

 

$

13,652

 

$

13,046

 

$

12,463

 

$

14,884

 

$

12,463

 

$

(2,421

)

(16

)%

 

$

(2,421

)

(16

)%

 

$

(583

)

(4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized Interest

 

$

2

 

$

2

 

$

2

 

$

2

 

$

1

 

$

10

 

$

7

 

$

(1

)

(50

)%

 

$

(3

)

(30

)%

 

$

(1

)

(50

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Annuities Reserve Balance

 

$

2,275

 

$

2,260

 

$

2,249

 

$

2,238

 

$

2,226

 

$

2,275

 

$

2,226

 

$

(49

)

(2

)%

 

$

(49

)

(2

)%

 

$

(12

)

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Spread - Fixed Annuities (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross rate of return on invested assets

 

5.7

%

5.7

%

5.6

%

5.6

%

5.6

%

5.7

%

5.6

%

(0.1

)%

 

 

 

(0.1

)%

 

 

 

 

 

 

 

Crediting rate

 

(3.7

)%

(3.7

)%

(3.7

)%

(3.7

)%

(3.7

)%

(3.7

)%

(3.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent margin spread

 

2.0

%

2.0

%

1.9

%

1.9

%

1.9

%

2.1

%

1.9

%

(0.1

)%

 

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Variable Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,926

 

$

2,004

 

$

1,898

 

$

1,988

 

$

2,067

 

$

1,719

 

$

2,004

 

$

141

 

7

%

 

$

285

 

17

%

 

$

79

 

4

%

 

Capitalization

 

121

 

121

 

124

 

113

 

111

 

465

 

469

 

(10

)

(8

)%

 

4

 

1

%

 

(2

)

(2

)%

 

Amortization per income statement

 

(32

)

(68

)

(56

)

(20

)

(80

)

(207

)

(224

)

(48

)

#

 

 

(17

)

(8

)%

 

(60

)

#

 

 

SOP 05-1 (Cumulative pretax impact)

 

 

(146

)

 

 

 

 

(146

)

 

 

 

(146

)

 

 

 

 

 

Other (FAS 115)

 

(11

)

(13

)

22

 

(14

)

(12

)

27

 

(17

)

(1

)

(9

)%

 

(44

)

#

 

 

2

 

14

%

 

Total ending balance

 

$

2,004

 

$

1,898

 

$

1,988

 

$

2,067

 

$

2,086

 

$

2,004

 

$

2,086

 

$

82

 

4

%

 

$

82

 

4

%

 

$

19

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Annuities DAC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

359

 

$

343

 

$

315

 

$

309

 

$

272

 

$

396

 

$

343

 

$

(87

)

(24

)%

 

$

(53

)

(13

)%

 

$

(37

)

(12

)%

 

Capitalization

 

3

 

2

 

1

 

2

 

2

 

19

 

7

 

(1

)

(33

)%

 

(12

)

(63

)%

 

 

 

 

Amortization per income statement

 

(20

)

(21

)

(20

)

(33

)

(20

)

(80

)

(94

)

 

 

 

(14

)

(18

)%

 

13

 

39

%

 

SOP 05-1 (Cumulative pretax impact)

 

 

(7

)

 

 

 

 

(7

)

 

 

 

(7

)

 

 

 

 

 

Other (FAS 115)

 

1

 

(2

)

13

 

(6

)

(4

)

8

 

1

 

(5

)

#

 

 

(7

)

(88

)%

 

2

 

33

%

 

Total ending balance

 

$

343

 

$

315

 

$

309

 

$

272

 

$

250

 

$

343

 

$

250

 

$

(93

)

(27

)%

 

$

(93

)

(27

)%

 

$

(22

)

(8

)%

 

 


(1) Includes payout annuities.

 

(2) Attributable to interest sensitive products only, which have been 97% of the total ending fixed annuities accumulation values 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.

 

19



Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Protection Segment

 

20



 

Ameriprise Financial, Inc.

Protection Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

15

 

$

16

 

$

17

 

$

17

 

$

18

 

$

56

 

$

68

 

$

3

 

20%

 

$

12

 

21%

 

$

1

 

6%

 

Distribution fees

 

25

 

25

 

26

 

25

 

26

 

96

 

102

 

1

 

4%

 

6

 

6%

 

1

 

4%

 

Net investment income

 

93

 

89

 

87

 

93

 

92

 

355

 

361

 

(1

)

(1)%

 

6

 

2%

 

(1

)

(1)%

 

Premiums

 

245

 

243

 

251

 

253

 

255

 

954

 

1,002

 

10

 

4%

 

48

 

5%

 

2

 

1%

 

Other revenues

 

106

 

108

 

105

 

107

 

133

 

431

 

453

 

27

 

25%

 

22

 

5%

 

26

 

24%

 

Total revenues

 

484

 

481

 

486

 

495

 

524

 

1,892

 

1,986

 

40

 

8%

 

94

 

5%

 

29

 

6%

 

Banking and deposit interest expense

 

1

 

 

1

 

 

 

1

 

1

 

(1

)

#

 

 

 

 

 

Total net revenues

 

483

 

481

 

485

 

495

 

524

 

1,891

 

1,985

 

41

 

8%

 

94

 

5%

 

29

 

6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

27

 

14

 

18

 

17

 

13

 

94

 

62

 

(14

)

(52)%

 

(32

)

(34)%

 

(4

)

(24)%

 

Interest credited to fixed accounts

 

37

 

34

 

35

 

37

 

35

 

145

 

141

 

(2

)

(5)%

 

(4

)

(3)%

 

(2

)

(5)%

 

Benefits, claims, losses and settlement expenses

 

214

 

218

 

211

 

225

 

196

 

852

 

850

 

(18

)

(8)%

 

(2

)

 

(29

)

(13)%

 

Amortization of deferred acquisition costs

 

42

 

35

 

40

 

68

 

57

 

133

 

200

 

15

 

36%

 

67

 

50%

 

(11

)

(16)%

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

53

 

60

 

63

 

55

 

69

 

233

 

247

 

16

 

30%

 

14

 

6%

 

14

 

25%

 

Total expenses

 

373

 

361

 

367

 

402

 

370

 

1,457

 

1,500

 

(3

)

(1)%

 

43

 

3%

 

(32

)

(8)%

 

Pretax income

 

$

110

 

$

120

 

$

118

 

$

93

 

$

154

 

$

434

 

$

485

 

$

44

 

40%

 

$

51

 

12%

 

$

61

 

66%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

110

 

$

120

 

$

118

 

$

93

 

$

154

 

$

434

 

$

485

 

$

44

 

40%

 

$

51

 

12%

 

$

61

 

66%

 

Realized (gains) losses

 

(5

)

(1

)

 

(3

)

(3

)

(9

)

(7

)

2

 

40%

 

2

 

22%

 

 

 

Total pretax operating earnings

 

$

105

 

$

119

 

$

118

 

$

90

 

$

151

 

$

425

 

$

478

 

$

46

 

44%

 

$

53

 

12%

 

$

61

 

68%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income margin

 

22.8

%

24.9

%

24.3

%

18.8

%

29.4

%

23.0

%

24.4

%

6.6

%

 

 

1.4

%

 

 

10.6

%

 

 

Pretax operating earnings margin

 

21.7

%

24.7

%

24.3

%

18.2

%

28.8

%

22.5

%

24.1

%

7.1

%

 

 

1.6

%

 

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income on fixed maturities

 

$

79

 

$

81

 

$

81

 

$

81

 

$

82

 

$

311

 

$

325

 

$

3

 

4%

 

$

14

 

5%

 

$

1

 

1%

 

Realized gains (losses)

 

5

 

1

 

 

3

 

3

 

9

 

7

 

(2

)

(40)%

 

(2

)

(22)%

 

 

 

Other (including seed money)

 

9

 

7

 

6

 

9

 

7

 

35

 

29

 

(2

)

(22)%

 

(6

)

(17)%

 

(2

)

(22)%

 

Total net investment income

 

$

93

 

$

89

 

$

87

 

$

93

 

$

92

 

$

355

 

$

361

 

$

(1

)

(1)%

 

$

6

 

2%

 

$

(1

)

(1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

2,155

 

$

2,174

 

$

2,145

 

$

2,308

 

$

2,318

 

$

2,155

 

$

2,318

 

$

163

 

8%

 

$

163

 

8%

 

$

10

 

 

Pretax return on allocated equity

 

20.6

%

22.1

%

23.1

%

20.2

%

21.8

%

20.6

%

21.8

%

1.2

%

 

 

1.2

%

 

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

1

 

$

7

 

$

7

 

$

3

 

$

2

 

$

28

 

$

19

 

$

1

 

#

 

$

(9

)

(32)%

 

$

(1

)

(33)%

 

Allocated equity

 

$

553

 

$

564

 

$

542

 

$

552

 

$

550

 

$

553

 

$

550

 

$

(3

)

(1)%

 

$

(3

)

(1)%

 

$

(2

)

 

Pretax return on allocated equity

 

5.2

%

6.2

%

6.0

%

3.3

%

3.4

%

5.2

%

3.4

%

(1.8

)%

 

 

(1.8

)%

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Protection excluding Long Term Care

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

109

 

$

113

 

$

111

 

$

90

 

$

152

 

$

406

 

$

466

 

$

43

 

39%

 

$

60

 

15%

 

$

62

 

69%

 

Allocated equity

 

$

1,602

 

$

1,610

 

$

1,603

 

$

1,756

 

$

1,768

 

$

1,602

 

$

1,768

 

$

166

 

10%

 

$

166

 

10%

 

$

12

 

1%

 

Pretax return on allocated equity

 

25.8

%

27.5

%

29.0

%

25.9

%

27.9

%

25.8

%

27.9

%

2.1

%

 

 

2.1

%

 

 

2.0

%

 

 

 


# Variance of 100% or greater.

 

21



 

Ameriprise Financial, Inc.

Protection Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL (1)

 

$

90

 

$

84

 

$

88

 

$

88

 

$

82

 

$

351

 

$

342

 

$

(8

)

(9)%

 

$

(9

)

(3)%

 

$

(6

)

(7)%

 

Term and whole life

 

6

 

5

 

5

 

5

 

5

 

20

 

20

 

(1

)

(17)%

 

 

 

 

 

Disability insurance

 

5

 

5

 

5

 

4

 

4

 

20

 

18

 

(1

)

(20)%

 

(2

)

(10)%

 

 

 

Auto and Home

 

140

 

149

 

147

 

157

 

145

 

588

 

598

 

5

 

4%

 

10

 

2%

 

(12

)

(8)%

 

Total cash sales

 

$

241

 

$

243

 

$

245

 

$

254

 

$

236

 

$

979

 

$

978

 

$

(5

)

(2)%

 

$

(1

)

 

$

(18

)

(7)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL Policyholder Account Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

8,888

 

$

9,329

 

$

9,473

 

$

9,858

 

$

9,976

 

$

8,375

 

$

9,329

 

$

1,088

 

12%

 

$

954

 

11%

 

$

118

 

1%

 

Premiums and deposits

 

278

 

275

 

283

 

277

 

280

 

1,073

 

1,115

 

2

 

1%

 

42

 

4%

 

3

 

1%

 

Investment performance and interest

 

418

 

131

 

372

 

115

 

(156

)

873

 

462

 

(574

)

#

 

(411

)

(47)%

 

(271

)

#

 

Withdrawals and surrenders

 

(279

)

(276

)

(285

)

(287

)

(275

)

(1,078

)

(1,123

)

4

 

1%

 

(45

)

(4)%

 

12

 

4%

 

Other

 

24

 

14

 

15

 

13

 

11

 

86

 

53

 

(13

)

(54)%

 

(33

)

(38)%

 

(2

)

(15)%

 

Total ending balance

 

$

9,329

 

$

9,473

 

$

9,858

 

$

9,976

 

$

9,836

 

$

9,329

 

$

9,836

 

$

507

 

5%

 

$

507

 

5%

 

$

(140

)

(1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums by product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term and whole life

 

$

18

 

$

18

 

$

21

 

$

21

 

$

19

 

$

72

 

$

79

 

$

1

 

6%

 

$

7

 

10%

 

$

(2

)

(10)%

 

Disability insurance

 

41

 

41

 

42

 

42

 

42

 

159

 

167

 

1

 

2%

 

8

 

5%

 

 

 

Long term care

 

40

 

35

 

35

 

36

 

38

 

164

 

144

 

(2

)

(5)%

 

(20

)

(12)%

 

2

 

6%

 

Auto and Home

 

141

 

141

 

144

 

146

 

147

 

537

 

578

 

6

 

4%

 

41

 

8%

 

1

 

1%

 

Intercompany premiums

 

5

 

8

 

9

 

8

 

9

 

22

 

34

 

4

 

80%

 

12

 

55%

 

1

 

13%

 

Total premiums

 

$

245

 

$

243

 

$

251

 

$

253

 

$

255

 

$

954

 

$

1,002

 

$

10

 

4%

 

$

48

 

5%

 

$

2

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto and Home Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy Count (thousands)

 

490

 

496

 

505

 

512

 

517

 

490

 

517

 

27

 

6%

 

27

 

6%

 

5

 

1%

 

Loss ratio

 

76.1

%

71.0

%

78.8

%

78.1

%

69.3

%

79.0

%

74.3

%

(6.8

)%

 

 

(4.7

)%

 

 

(8.8

)%

 

 

Expense ratio

 

15.4

%

18.2

%

17.1

%

18.0

%

15.5

%

15.4

%

17.1

%

0.1

%

 

 

1.7

%

 

 

(2.5

)%

 

 

Combined ratio

 

91.5

%

89.2

%

95.9

%

96.1

%

84.8

%

94.4

%

91.4

%

(6.7

)%

 

 

(3.0

)%

 

 

(11.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life and Health

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

2,045

 

$

2,064

 

$

2,042

 

$

2,085

 

$

2,086

 

$

1,920

 

$

2,064

 

$

41

 

2%

 

$

144

 

8%

 

$

1

 

 

Capitalization

 

50

 

57

 

60

 

54

 

57

 

203

 

228

 

7

 

14%

 

25

 

12%

 

3

 

6%

 

Amortization per income statement

 

(29

)

(24

)

(28

)

(54

)

(46

)

(69

)

(152

)

(17

)

(59)%

 

(83

)

#

 

8

 

15%

 

SOP 05-1 (Cumulative pretax impact)

 

 

(51

)

 

 

 

 

(51

)

 

 

(51

)

 

 

— 

 

Other (FAS 115)

 

(2

)

(4

)

11

 

1

 

(4

)

10

 

4

 

(2

)

#

 

(6

)

(60)%

 

(5

)

#

 

Total ending balance

 

$

2,064

 

$

2,042

 

$

2,085

 

$

2,086

 

$

2,093

 

$

2,064

 

$

2,093

 

$

29

 

1%

 

$

29

 

1%

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Insurance in-Force

 

$

174,022

 

$

177,374

 

$

181,080

 

$

184,304

 

$

187,095

 

$

174,022

 

$

187,095

 

$

13,073

 

8%

 

$

13,073

 

8%

 

$

2,791

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Amount at Risk

 

$

61,458

 

$

60,967

 

$

60,185

 

$

59,516

 

$

59,100

 

$

61,458

 

$

59,100

 

$

(2,358

)

(4)%

 

$

(2,358

)

(4)%

 

$

(416

)

(1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Policyholder Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VUL / UL

 

$

8,243

 

$

8,388

 

$

8,783

 

$

8,915

 

$

8,780

 

$

8,243

 

$

8,780

 

$

537

 

7%

 

$

537

 

7%

 

$

(135

)

(2)%

 

Term and whole life

 

234

 

234

 

234

 

233

 

233

 

234

 

233

 

(1

)

 

(1

)

 

 

 

Disability insurance

 

386

 

408

 

414

 

419

 

426

 

386

 

426

 

40

 

10%

 

40

 

10%

 

7

 

2%

 

Long term care and other

 

2,238

 

2,257

 

2,275

 

2,300

 

2,320

 

2,238

 

2,320

 

82

 

4%

 

82

 

4%

 

20

 

1%

 

Auto and Home loss and LAE reserves

 

364

 

352

 

360

 

361

 

339

 

364

 

339

 

(25

)

(7)%

 

(25

)

(7)%

 

(22

)

(6)%

 

Total net policyholder reserves

 

$

11,465

 

$

11,639

 

$

12,066

 

$

12,228

 

$

12,098

 

$

11,465

 

$

12,098

 

$

633

 

6%

 

$

633

 

6%

 

$

(130

)

(1)%

 

 


(1) Includes lump sum deposits.

 

# Variance of 100% or greater.

 

22



Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Corporate & Other Segment

 

23



 

Ameriprise Financial, Inc.

Corporate & Other Segment

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

1

 

$

 

$

 

$

1

 

$

 

 

$

1

 

 

$

(1

)

#

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

14

 

9

 

2

 

(3

)

14

 

29

 

22

 

 

 

(7

)

(24)%

 

17

 

#

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

1

 

7

 

(1

)

(2

)

3

 

6

 

7

 

2

 

#

 

1

 

17%

 

5

 

#

 

Total revenues

 

15

 

16

 

1

 

(4

)

17

 

35

 

30

 

2

 

13%

 

(5

)

(14)%

 

21

 

#

 

Banking and deposit interest expense

 

2

 

2

 

1

 

2

 

1

 

7

 

6

 

(1

)

(50)%

 

(1

)

(14)%

 

(1

)

(50)%

 

Total net revenues

 

13

 

14

 

 

(6

)

16

 

28

 

24

 

3

 

23%

 

(4

)

(14)%

 

22

 

#

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

1

 

 

 

 

1

 

 

 

1

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

29

 

29

 

29

 

27

 

27

 

101

 

112

 

(2

)

(7)%

 

11

 

11%

 

 

 

General and administrative expense

 

29

 

24

 

48

 

40

 

47

 

116

 

159

 

18

 

62%

 

43

 

37%

 

7

 

18%

 

Total expenses before separation costs (1)

 

58

 

53

 

78

 

67

 

74

 

217

 

272

 

16

 

28%

 

55

 

25%

 

7

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Separation costs

 

123

 

85

 

63

 

60

 

28

 

361

 

236

 

(95

)

(77)%

 

(125

)

(35)%

 

(32

)

(53)%

 

Total expenses

 

181

 

138

 

141

 

127

 

102

 

578

 

508

 

(79

)

(44)%

 

(70

)

(12)%

 

(25

)

(20)%

 

Pretax loss

 

$

(168

)

$

(124

)

$

(141

)

$

(133

)

$

(86

)

$

(550

)

$

(484

)

$

82

 

49%

 

$

66

 

12%

 

$

47

 

35%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocated equity

 

$

1,715

 

$

1,586

 

$

1,842

 

$

1,767

 

$

1,751

 

$

1,715

 

$

1,751

 

$

36

 

2%

 

$

36

 

2%

 

$

(16

)

(1)%

 

 


(1) See non-GAAP Financial Information.

 

#  Variance of 100% or greater.

 

24



 

Ameriprise Financial, Inc.

Eliminations Segment (1)

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year Comparisons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

Qtr Chg - 4Q

 

YTD Chg - 4Q

 

Seq Qtr Chg - 4Q

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

$

 

%

 

$

 

%

 

$

 

%

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

(13

)

$

(12

)

$

(13

)

$

(14

)

$

(14

)

$

(49

)

$

(53

)

$

(1

)

(8)%

 

$

(4

)

(8)%

 

$

 

 

Distribution fees

 

(281

)

(290

)

(302

)

(279

)

(276

)

(1,110

)

(1,147

)

5

 

2%

 

(37

)

(3)%

 

3

 

1%

 

Net investment income

 

(3

)

(2

)

(2

)

(1

)

(3

)

(8

)

(8

)

 

 

 

 

(2

)

#

 

Premiums

 

(5

)

(8

)

(9

)

(8

)

(9

)

(22

)

(34

)

(4

)

(80)%

 

(12

)

(55)%

 

(1

)

(13)%

 

Other revenues

 

1

 

 

 

 

 

1

 

 

(1

)

#

 

(1

)

#

 

 

 

Total revenues

 

(301

)

(312

)

(326

)

(302

)

(302

)

(1,188

)

(1,242

)

(1

)

 

(54

)

(5)%

 

 

 

Banking and deposit interest expense

 

(1

)

(1

)

(3

)

(1

)

(3

)

(7

)

(8

)

(2

)

#

 

(1

)

(14)%

 

(2

)

#

 

Total net revenues

 

(300

)

(311

)

(323

)

(301

)

(299

)

(1,181

)

(1,234

)

1

 

 

(53

)

(4)%

 

2

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

(255

)

(256

)

(268

)

(250

)

(239

)

(1,007

)

(1,013

)

16

 

6%

 

(6

)

(1)%

 

11

 

4%

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

(45

)

(55

)

(55

)

(51

)

(60

)

(174

)

(221

)

(15

)

(33)%

 

(47

)

(27)%

 

(9

)

(18)%

 

Total expenses

 

(300

)

(311

)

(323

)

(301

)

(299

)

(1,181

)

(1,234

)

1

 

 

(53

)

(4)%

 

2

 

1%

 

Pretax income

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

 

$

 

 

$

 

 

 


(1) The majority of the amounts above represent the impact of inter-segment transfer pricing for both revenues and expenses.

 

#  Variance of 100% or greater.

 

25



Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Balance Sheet and Ratings Information

 

26



 

Ameriprise Financial, Inc.

Consolidated Balance Sheets

 

 

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

December 31,

 

(in millions, unaudited)

 

2006

 

2007

 

2007

 

2007

 

2007

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,760

 

$

2,444

 

$

3,333

 

$

4,002

 

$

3,836

 

Investments

 

35,504

 

34,411

 

31,669

 

31,126

 

30,625

 

Separate account assets

 

53,848

 

56,281

 

60,470

 

62,371

 

61,974

 

Receivables

 

3,161

 

3,264

 

3,559

 

3,323

 

3,441

 

Deferred acquisition costs

 

4,499

 

4,337

 

4,462

 

4,502

 

4,503

 

Restricted and segregated cash

 

1,254

 

1,193

 

1,296

 

1,225

 

1,332

 

Other assets

 

3,455

 

3,530

 

3,718

 

3,621

 

3,519

 

Total assets

 

$

104,481

 

$

105,460

 

$

108,507

 

$

110,170

 

$

109,230

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits and claims

 

$

30,031

 

$

29,149

 

$

28,316

 

$

28,048

 

$

27,446

 

Separate account liabilities

 

53,848

 

56,281

 

60,470

 

62,371

 

61,974

 

Customer Deposits

 

6,707

 

6,483

 

6,055

 

6,029

 

6,201

 

Debt

 

2,244

 

2,243

 

2,221

 

2,215

 

2,018

 

Accounts payable and accrued expenses

 

1,209

 

993

 

1,114

 

1,077

 

1,187

 

Other liabilities

 

2,517

 

2,580

 

2,731

 

2,672

 

2,594

 

Total liabilities

 

96,556

 

97,729

 

100,907

 

102,412

 

101,420

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Common shares ($.01 par)

 

3

 

3

 

3

 

3

 

3

 

Additional paid-in capital

 

4,353

 

4,468

 

4,533

 

4,593

 

4,630

 

Retained earnings

 

4,268

 

4,268

 

4,428

 

4,591

 

4,811

 

Treasury stock

 

(490

)

(865

)

(1,009

)

(1,180

)

(1,467

)

Accumulated other comprehensive income (loss), net of tax

 

(209

)

(143

)

(355

)

(249

)

(167

)

Total shareholders’ equity

 

7,925

 

7,731

 

7,600

 

7,758

 

7,810

 

Total liabilities and shareholders’ equity

 

$

104,481

 

$

105,460

 

$

108,507

 

$

110,170

 

$

109,230

 

 

27



 

 

Ameriprise Financial, Inc.

Capital and Ratings Information

 

 

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

December 31,

 

(in millions unless otherwise noted, unaudited)

 

2006

 

2007

 

2007

 

2007

 

2007

 

Debt Summary

 

 

 

 

 

 

 

 

 

 

 

Senior notes

 

$

1,500

 

$

1,500

 

$

1,500

 

$

1,500

 

$

1,500

 

Junior subordinated notes (2)

 

500

 

500

 

500

 

500

 

500

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recourse debt

 

 

 

 

 

 

 

 

 

 

 

Debt of CDO

 

225

 

225

 

197

 

197

 

 

Debt for inverse floaters

 

19

 

18

 

24

 

18

 

18

 

Total non-recourse debt

 

244

 

243

 

221

 

215

 

18

 

Total debt

 

$

2,244

 

$

2,243

 

$

2,221

 

$

2,215

 

$

2,018

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

2,244

 

$

2,243

 

$

2,221

 

$

2,215

 

$

2,018

 

Total non-recourse debt

 

(244

)

(243

)

(221

)

(215

)

(18

)

Total debt excluding non-recourse debt (1)

 

2,000

 

2,000

 

2,000

 

2,000

 

2,000

 

Junior subordinated notes 75% equity credit (2)

 

(375

)

(375

)

(375

)

(375

)

(375

)

Total debt excluding non-recourse debt and 75% equity credit (1),(2)

 

$

1,625

 

$

1,625

 

$

1,625

 

$

1,625

 

$

1,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

$

7,925

 

$

7,731

 

$

7,600

 

$

7,758

 

$

7,810

 

Total capital

 

10,169

 

9,974

 

9,821

 

9,973

 

9,828

 

Total capital excluding non-recourse debt (1)

 

$

9,925

 

$

9,731

 

$

9,600

 

$

9,758

 

$

9,810

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

Debt to total capital

 

22.1

%

22.5

%

22.6

%

22.2

%

20.5

%

Debt to total capital excluding non-recourse debt (1)

 

20.2

%

20.6

%

20.8

%

20.5

%

20.4

%

Debt to total capital excluding non-recourse debt and 75% equity credit (1)

 

16.4

%

16.7

%

16.9

%

16.7

%

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Ratings (as of December 31, 2007)

 

 

 

A.M. Best

 

S & P

 

Moody’s

 

Fitch

 

Claims Paying Ratings

 

 

 

 

 

 

 

 

 

 

 

RiverSource Life Insurance Company

 

 

 

A+

 

AA-

 

Aa3

 

AA-

 

IDS Property Casualty Ins. Company

 

 

 

A

 

N/R

 

N/R

 

N/R

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Ratings

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

 

 

 

a-

 

A-

 

A3

 

A-

 

 


(1) See non-GAAP Financial Information.

 

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

 

28



 

Ameriprise Financial, Inc.

Investments

 

 

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

December 31,

 

(in millions unless otherwise noted, unaudited)

 

2006

 

2007

 

2007

 

2007

 

2007

 

Cash and cash equivalents

 

$

2,760

 

$

2,444

 

$

3,333

 

$

4,002

 

$

3,836

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments - Ending Balances

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale Securities (“AFS”)

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

16,831

 

16,147

 

14,735

 

14,471

 

13,943

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

7,677

 

7,444

 

6,494

 

6,267

 

6,282

 

Commercial mortgage backed securities

 

3,387

 

3,322

 

3,151

 

3,075

 

3,043

 

Asset backed securities

 

1,266

 

1,192

 

1,042

 

1,044

 

1,068

 

Total mortgage and other asset backed securities

 

12,330

 

11,958

 

10,687

 

10,386

 

10,393

 

 

 

 

 

 

 

 

 

 

 

 

 

Structured investments

 

46

 

47

 

46

 

48

 

46

 

State and municipal obligations

 

1,070

 

1,085

 

1,069

 

1,054

 

1,035

 

US government and agencies obligations

 

378

 

362

 

355

 

360

 

328

 

Foreign government bonds and obligations

 

135

 

135

 

132

 

133

 

112

 

Common and preferred stocks

 

60

 

60

 

58

 

58

 

58

 

Other AFS

 

30

 

7

 

11

 

54

 

16

 

Total other

 

1,719

 

1,696

 

1,671

 

1,707

 

1,595

 

Total available-for-sale securities

 

30,880

 

29,801

 

27,093

 

26,564

 

25,931

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

3,096

 

3,031

 

3,004

 

3,025

 

3,115

 

Allowance for loan losses

 

(40

)

(40

)

(40

)

(18

)

(18

)

Commercial mortgage loans, net

 

3,056

 

2,991

 

2,964

 

3,007

 

3,097

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy loans

 

660

 

664

 

679

 

693

 

706

 

Trading securities

 

522

 

592

 

610

 

551

 

504

 

Other investments

 

386

 

363

 

323

 

311

 

387

 

Total investments

 

35,504

 

34,411

 

31,669

 

31,126

 

30,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash, cash equivalents and investments

 

$

38,264

 

$

36,855

 

$

35,002

 

$

35,128

 

$

34,461

 

 

 

 

 

 

 

 

 

 

 

 

 

SFAS 115 Mark-to-market AFS

 

$

(328

)

$

(203

)

$

(618

)

$

(434

)

$

(316

)

 

 

 

 

 

 

 

 

 

 

 

 

AFS Fixed Maturity Asset Quality - %

 

 

 

 

 

 

 

 

 

 

 

AAA

 

43

%

44

%

44

%

43

%

44

%

AA

 

9

%

10

%

10

%

11

%

10

%

AFS securities AA and above

 

52

%

54

%

54

%

54

%

54

%

A

 

17

%

16

%

16

%

16

%

16

%

BBB

 

24

%

24

%

24

%

24

%

24

%

Below investment grade

 

7

%

6

%

6

%

6

%

6

%

Total AFS fixed maturity asset quality -%

 

100

%

100

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value of Below Investment Grade as a % of Total cash and investments

 

6

%

6

%

6

%

5

%

6

%

 

29



 

Ameriprise Financial, Inc.

 

Non-GAAP Financial Information

 

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

 

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

 

· Adjusted earnings;

· Separation costs, after-tax;

· Adjusted pretax income;

· Adjusted pretax margin;

· Adjusted earnings margin;

· Adjusted return on equity;

· Adjusted earnings per diluted share;

· Total expenses before separation costs for the Corporate & Other segment; and

· Pretax income and separation costs (adjusted pretax income).

 

Management believes that the presentation of these non-GAAP financial measures excluding these specific income statement impacts best 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 debt to capital ratios excluding non-recourse debt of structured entities consolidated in accordance with FIN 46(R),  EITF 04-5 and other accounting literature and with a 75% equity credit for the Company’s junior subordinate debt.  Management believes that the debt to capital ratios 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.

 

30



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology - Segments

 

Advice & Wealth Management - This segment provides financial advice and full service brokerage and banking services, primarily to retail clients, through our financial advisors. Our advisors distribute a diversified selection of both proprietary and non-proprietary products to help clients meet their financial needs. A significant portion of revenues in this segment are fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on owned assets from primarily certificate and banking products. This segment earns revenues (Distribution fees) for distributing non-proprietary products and earns intersegment revenues (Distribution fees) for distributing our proprietary products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment.

 

Asset Management - This segment provides investment advice and investment products to retail and institutional clients. Threadneedle Investments predominantly provides international investment products and services, and RiverSource Investments predominantly provides domestic products and services. Domestic retail products are primarily distributed through our Advice & Wealth Management segment and also through third-party distribution. International retail products are primarily distributed through third parties. Products accessed by consumers on a retail basis include mutual funds, variable product funds underlying insurance and annuity separate accounts, separately managed accounts and collective funds. Asset Management products are also distributed directly to institutions through an institutional sales force. Institutional asset management products include traditional asset classes separate accounts, collateralized loan obligations, hedge funds and property funds. Revenues in this segment are primarily earned as fees based on managed asset balances which are impacted by both market movements and net asset flows.  This segment earns intersegment revenue for investment management services. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.

 

Annuities - This segment provides RiverSource Life variable and fixed annuity products to our retail clients primarily distributed through our Advice & Wealth Management segment and to the retail clients of unaffiliated distributors through third-party distribution. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on underlying account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting annuity benefits reserves and capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource funds under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.

 

Protection - This segment offers a variety of protection products to address the identified protection and risk management needs of our retail clients including life, disability income and property-casualty insurance. Life and disability income products are primarily distributed through our Advice & Wealth Management segment. Our property-casualty products are sold direct, primarily through affinity relationships. The primary sources of revenues for this segment are premiums, fees, and charges that we receive to assume insurance-related risk. We earn net investment income on owned assets supporting insurance reserves and capital supporting the business. We also receive fees based on the level of assets supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource funds under the variable universal life contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.

 

Corporate & Other - This segment consists of net investment income on corporate level assets, including unallocated equity and other revenues from various investments as well as unallocated corporate expenses. This segment also includes non-recurring costs associated with our separation from American Express, which ended in 2007.

 

31



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

Adjusted Earnings - Adjustment to net income including the after-tax effect on separation costs.

 

Adjusted Earnings Margin - A ratio using as the numerator adjusted earnings and as the denominator total net revenues.

 

Adjusted Pretax Income - Adjustments made to income before tax provision for separation costs.

 

Adjusted Pretax Margin - A ratio using as the numerator pretax income excluding separation costs and as the denominator total net revenues.

 

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 the 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 client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ 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.

 

Alternative Assets - Assets reported by the Company that include Hedge Funds and Collateralized Debt Obligations (“CDO”).

 

Allocated Equity - The internal allocation of consolidated shareholders’ equity, excluding accumulated other comprehensive income (loss), to our 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 us and certain of our subsidiaries. For the Corporate & Other segment, allocated equity also includes any excess capital.

 

Auto & 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 basic common shares outstanding at period-end.

 

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 inforce, but generates “fee revenue”.

 

Debt to Total Capital Ratio - A ratio comprised of total debt divided by total capital. We also present debt to capital ratios excluding non-recourse debt of structured entities consolidated in accordance with FIN 46(R),  EITF 04-5 and other accounting literature and with a 75% equity credit for our junior subordinate debt.

 

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.

 

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 Planning Penetration - 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 financial advisors.

 

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

 

Managed External Client Assets - Managed external client assets includes client assets for which we provide investment management services, such as the assets of the RiverSource family of mutual funds, assets of institutional clients and client assets held in wrap accounts (retail accounts for which we receive an advice fee based on assets held in the account).  Managed external client assets also include assets managed by sub-advisors selected by us. Managed external client assets are not reported on our Consolidated Balance Sheets.

 

Managed Owned Assets - Managed owned assets include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees, such as the assets of the general account and RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries.

 

Net Amount at Risk - Life insurance in-force less policyholder reserves net of re-insurance.

 

Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends.

 

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

 

Owned Assets - Owned assets include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-proprietary funds held in the separate accounts of our life insurance subsidiaries, as well as restricted and segregated cash and receivables.

 

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

 

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

 

Pretax Return on Allocated Equity - Calculated using pretax income for the last twelve months and the average allocated equity as of the last day of the trailing four quarters and current quarter end.

 

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 - Separation costs include expenses related to our separation from American Express Company. These costs are primarily associated with establishing the Ameriprise Financial brand, separating and reestablishing our technology platforms and advisor and employee retention programs.  These costs will end in 2007.

 

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.

 

32



 

Ameriprise Financial, Inc.

Glossary of Selected Terminology

 

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.

 

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.

 

Threadneedle - Threadneedle Asset Management Holdings Limited is our foreign operations in the United Kingdom.

 

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.

 

33



 

Exhibit A

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

RiverSource® Mutual Fund Performance and

Lipper Ranking

 

34



 

Ameriprise Financial, Inc.

 

Equity Fund Performance & Lipper Ranking

As of December 31, 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV (1)

 

Annualized Returns at POP (1)

 

 

 

Total Net

 

Total Net

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Emerging Market Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Emerging Markets Fund

 

747.20

 

12/31/2007

 

1.83

 

37.23

 

47

%

35.19

 

38

%

34.01

 

65

%

12.91

 

60

%

11/13/1996

 

12.39

 

11/14/1996

 

48

%

5.75

 

29.34

 

32.54

 

32.44

 

12.25

 

11.79

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

119 / 254

 

 

 

71 / 190

 

 

 

109 / 167

 

 

 

55 / 91

 

 

 

 

 

 

 

32 / 66

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Diversified Equity Income Fund

 

7,789.00

 

12/31/2007

 

1.00

 

7.99

 

24

%

13.56

 

11

%

19.69

 

2

%

9.43

 

11

%

10/15/1990

 

12.90

 

10/18/1990

 

28

%

5.75

 

1.78

 

11.34

 

18.29

 

8.79

 

12.51

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

63 / 271

 

 

 

22 / 204

 

 

 

2 / 138

 

 

 

10 / 90

 

 

 

 

 

 

 

7 / 24

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Dividend Opportunity Fund

 

2,025.30

 

12/31/2007

 

1.15

 

5.47

 

40

%

11.77

 

19

%

13.11

 

44

%

5.75

 

69

%

8/1/1988

 

9.95

 

8/4/1988

 

60

%

5.75

 

-0.60

 

9.58

 

11.78

 

5.12

 

9.61

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

108 / 271

 

 

 

37 / 204

 

 

 

61 / 138

 

 

 

62 / 90

 

 

 

 

 

 

 

12 / 19

 

 

 

 

 

 

 

 

 

 

 

 

 

European Region Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource European Equity Fund

 

142.70

 

12/31/2007

 

1.43

 

16.69

 

13

%

19.25

 

44

%

19.78

 

70

%

 

 

 

 

6/26/2000

 

4.80

 

6/26/2000

 

77

%

5.75

 

9.98

 

16.92

 

18.37

 

 

 

3.98

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

13 / 103

 

 

 

40 / 92

 

 

 

59 / 84

 

 

 

 

 

 

 

 

 

 

 

46 / 59

 

 

 

 

 

 

 

 

 

 

 

 

 

Flexible Portfolio Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Strategic Allocation Fund

 

2,201.60

 

12/31/2007

 

1.13

 

6.89

 

57

%

10.06

 

27

%

12.51

 

44

%

5.73

 

71

%

1/23/1985

 

11.01

 

1/31/1985

 

34

%

5.75

 

0.75

 

7.91

 

11.19

 

5.10

 

10.72

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

81 / 142

 

 

 

27 / 102

 

 

 

37 / 85

 

 

 

39 / 54

 

 

 

 

 

 

 

2 / 5

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Global Equity Fund

 

800.90

 

12/31/2007

 

1.39

 

13.60

 

38

%

17.03

 

11

%

18.42

 

25

%

6.27

 

58

%

5/29/1990

 

6.79

 

5/31/1990

 

80

%

5.75

 

7.06

 

14.74

 

17.02

 

5.64

 

6.43

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

38 / 99

 

 

 

7 / 66

 

 

 

14 / 55

 

 

 

16 / 27

 

 

 

 

 

 

 

4 / 4

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold-Oriented Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Precious Metals and Mining Fund

 

128.10

 

12/31/2007

 

1.40

 

15.36

 

90

%

25.17

 

64

%

21.79

 

76

%

14.14

 

76

%

4/22/1985

 

8.63

 

4/30/1985

 

50

%

5.75

 

8.73

 

22.73

 

20.36

 

13.46

 

8.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

54 / 59

 

 

 

33 / 51

 

 

 

34 / 44

 

 

 

19 / 24

 

 

 

 

 

 

 

5 / 9

 

 

 

 

 

 

 

 

 

 

 

 

 

International Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource International Opportunity Fund

 

679.00

 

12/31/2007

 

1.34

 

12.33

 

40

%

16.39

 

44

%

18.51

 

64

%

5.15

 

89

%

11/15/1984

 

9.22

 

11/15/1984

 

80

%

5.75

 

5.87

 

14.12

 

17.11

 

4.53

 

8.94

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

82 / 206

 

 

 

80 / 182

 

 

 

108 / 168

 

 

 

83 / 93

 

 

 

 

 

 

 

4 / 4

 

 

 

 

 

 

 

 

 

 

 

 

 

International Multi Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Disciplined International Equity Fund

 

670.90

 

12/31/2007

 

1.46

 

14.08

 

63

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

17.94

 

5/18/2006

 

61

%

5.75

 

7.52

 

 

 

 

 

 

 

13.70

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

138 / 220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

122 / 200

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource International Aggressive Growth Fund (2)

 

720.70

 

12/31/2007

 

1.61

 

13.77

 

64

%

18.74

 

49

%

22.64

 

47

%

 

 

 

 

9/28/2001

 

15.66

 

9/28/2001

 

43

%

5.75

 

7.23

 

16.41

 

21.19

 

 

 

14.57

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

141 / 220

 

 

 

73 / 150

 

 

 

64 / 136

 

 

 

 

 

 

 

 

 

 

 

49 / 113

 

 

 

 

 

 

 

 

 

 

 

 

 

International Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource International Equity Fund

 

200.70

 

12/31/2007

 

1.58

 

10.48

 

20

%

16.15

 

50

%

19.19

 

77

%

 

 

 

 

10/3/2002

 

19.22

 

10/3/2002

 

81

%

5.75

 

4.12

 

13.88

 

17.79

 

 

 

17.88

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

26 / 131

 

 

 

45 / 90

 

 

 

58 / 75

 

 

 

 

 

 

 

 

 

 

 

58 / 71

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource International Select Value Fund (2)

 

2,380.60

 

12/31/2007

 

1.38

 

4.83

 

82

%

17.41

 

27

%

22.70

 

31

%

 

 

 

 

9/28/2001

 

16.87

 

9/28/2001

 

38

%

5.75

 

-1.20

 

15.11

 

21.26

 

 

 

15.77

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

107 / 131

 

 

 

24 / 90

 

 

 

23 / 75

 

 

 

 

 

 

 

 

 

 

 

23 / 61

 

 

 

 

 

 

 

 

 

 

 

 

 

International Small/Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource International Small Cap Fund (2)

 

121.40

 

12/31/2007

 

1.90

 

8.69

 

27

%

15.32

 

69

%

22.27

 

62

%

 

 

 

 

10/3/2002

 

22.57

 

10/3/2002

 

66

%

5.75

 

2.44

 

13.06

 

20.84

 

 

 

21.19

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

15 / 55

 

 

 

33 / 47

 

 

 

24 / 38

 

 

 

 

 

 

 

 

 

 

 

25 / 37

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Large Cap Equity Fund

 

5,753.00

 

12/31/2007

 

1.09

 

2.68

 

75

%

7.67

 

61

%

10.94

 

67

%

 

 

 

 

3/28/2002

 

5.01

 

3/28/2002

 

59

%

5.75

 

-3.23

 

5.57

 

9.63

 

 

 

3.94

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

623 / 836

 

 

 

423 / 703

 

 

 

380 / 572

 

 

 

 

 

 

 

 

 

 

 

313 / 537

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Fundamental Growth Fund

 

207.80

 

12/31/2007

 

1.41

 

7.36

 

37

%

5.42

 

87

%

 

 

 

 

 

 

 

 

4/24/2003

 

7.61

 

4/24/2003

 

98

%

5.75

 

1.18

 

3.36

 

 

 

 

 

6.26

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

302 / 836

 

 

 

610 / 703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

581 / 593

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Disciplined Equity Fund

 

3,562.80

 

12/31/2007

 

1.05

 

5.27

 

55

%

9.20

 

29

%

 

 

 

 

 

 

 

 

4/24/2003

 

12.98

 

4/24/2003

 

27

%

5.75

 

-0.79

 

7.06

 

 

 

 

 

11.56

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

457 / 836

 

 

 

201 / 703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

157 / 593

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Growth Fund

 

2,998.70

 

12/31/2007

 

1.19

 

2.87

 

99

%

7.35

 

69

%

10.14

 

76

%

1.58

 

93

%

3/1/1972

 

11.66

 

3/2/1972

 

32

%

5.75

 

-3.04

 

5.25

 

8.84

 

0.98

 

11.48

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

713 / 723

 

 

 

413 / 602

 

 

 

391 / 515

 

 

 

223 / 239

 

 

 

 

 

 

 

8 / 24

 

 

 

 

 

 

 

 

 

 

 

 

 

Large Cap Value Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Equity Value Fund

 

1,172.50

 

12/31/2007

 

1.09

 

6.81

 

17

%

12.82

 

7

%

16.87

 

5

%

6.46

 

47

%

3/20/1995

 

10.11

 

3/23/1995

 

55

%

5.75

 

0.67

 

10.61

 

15.50

 

5.83

 

9.61

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

83 / 514

 

 

 

30 / 442

 

 

 

17 / 362

 

 

 

70 / 151

 

 

 

 

 

 

 

52 / 94

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Large Cap Value Fund

 

84.20

 

12/31/2007

 

1.28

 

-0.56

 

72

%

7.29

 

70

%

11.98

 

73

%

 

 

 

 

6/27/2002

 

8.69

 

6/27/2002

 

70

%

5.75

 

-6.27

 

5.19

 

10.66

 

 

 

7.53

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

367 / 514

 

 

 

309 / 442

 

 

 

264 / 362

 

 

 

 

 

 

 

 

 

 

 

230 / 328

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Value Fund

 

298.30

 

12/31/2007

 

1.29

 

3.41

 

40

%

7.71

 

62

%

12.89

 

52

%

 

 

 

 

6/18/2001

 

5.86

 

6/18/2001

 

54

%

5.75

 

-2.54

 

5.61

 

11.56

 

 

 

4.90

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

201 / 514

 

 

 

271 / 442

 

 

 

187 / 362

 

 

 

 

 

 

 

 

 

 

 

145 / 271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35



 

Ameriprise Financial, Inc.

 

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)

 

Annualized Returns at POP (1)

 

 

 

Total Net

 

Total Net

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Long/Short Equity Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource 120/20 Contrarian Equity Fund

 

30.00

 

12/31/2007

 

2.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/18/2007

 

-7.11

 

 

 

 

 

5.75

 

 

 

 

 

 

 

 

 

-12.45

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource 130/30 U.S. Equity Fund

 

16.30

 

12/31/2007

 

2.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/18/2007

 

-4.88

 

 

 

 

 

5.75

 

 

 

 

 

 

 

 

 

-10.35

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Disciplined Small and Mid-Cap Equity Fund

 

78.60

 

12/31/2007

 

1.67

 

-10.20

 

98

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

-3.72

 

5/18/2006

 

100

%

5.75

 

-15.36

 

 

 

 

 

 

 

-7.18

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

337 / 346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

326 / 328

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Mid Cap Growth Fund

 

1,012.50

 

12/31/2007

 

1.12

 

14.04

 

59

%

7.73

 

86

%

10.98

 

97

%

6.66

 

68

%

6/4/1957

 

^

 

 

 

 

 

5.75

 

7.48

 

5.62

 

9.67

 

6.03

 

^

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

354 / 601

 

 

 

419 / 487

 

 

 

392 / 404

 

 

 

115 / 170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Aggressive Growth Fund (2)

 

630.60

 

12/31/2007

 

1.58

 

31.38

 

5

%

15.65

 

13

%

 

 

 

 

 

 

 

 

4/24/2003

 

20.40

 

4/24/2003

 

12

%

5.75

 

23.83

 

13.39

 

 

 

 

 

18.88

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

30 / 601

 

 

 

60 / 487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

48 / 418

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Mid Cap Value Fund

 

2,564.90

 

12/31/2007

 

1.23

 

10.26

 

10

%

14.60

 

7

%

22.44

 

7

%

 

 

 

 

2/14/2002

 

15.14

 

2/14/2002

 

9

%

5.75

 

3.92

 

12.36

 

21.00

 

 

 

13.98

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

29 / 313

 

 

 

16 / 242

 

 

 

12 / 194

 

 

 

 

 

 

 

 

 

 

 

15 / 166

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2010 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement PlusSM 2010 Fund

 

19.40

 

12/31/2007

 

2.03

 

5.55

 

62

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

10.69

 

5/18/2006

 

2

%

5.75

 

-0.52

 

 

 

 

 

 

 

6.72

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

87 / 140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 / 105

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2020 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement Plus 2015 Fund

 

28.70

 

12/31/2007

 

2.41

 

5.69

 

63

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

11.45

 

5/18/2006

 

9

%

5.75

 

-0.39

 

 

 

 

 

 

 

7.45

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

120 / 191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11 / 133

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement Plus 2020 Fund

 

40.50

 

12/31/2007

 

1.77

 

6.03

 

56

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

11.92

 

5/18/2006

 

3

%

5.75

 

-0.06

 

 

 

 

 

 

 

7.90

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

106 / 191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 / 133

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2030 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement Plus 2025 Fund

 

36.80

 

12/31/2007

 

2.14

 

5.73

 

69

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

11.65

 

5/18/2006

 

22

%

5.75

 

-0.35

 

 

 

 

 

 

 

7.64

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

118 / 171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25 / 117

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement Plus 2030 Fund

 

38.00

 

12/31/2007

 

2.12

 

5.79

 

68

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

12.01

 

5/18/2006

 

12

%

5.75

 

-0.29

 

 

 

 

 

 

 

7.98

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

116 / 171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 / 117

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target 2040 Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement Plus 2035 Fund

 

21.80

 

12/31/2007

 

3.69

 

5.75

 

73

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

11.45

 

5/18/2006

 

41

%

5.75

 

-0.33

 

 

 

 

 

 

 

7.44

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

172 / 237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 / 146

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement Plus 2040 Fund

 

27.20

 

12/31/2007

 

2.25

 

5.78

 

72

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

11.83

 

5/18/2006

 

26

%

5.75

 

-0.30

 

 

 

 

 

 

 

7.82

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

170 / 237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38 / 146

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Retirement Plus 2045 Fund

 

9.40

 

12/31/2007

 

5.57

 

5.61

 

75

%

 

 

 

 

 

 

 

 

 

 

 

 

5/18/2006

 

11.65

 

5/18/2006

 

35

%

5.75

 

-0.46

 

 

 

 

 

 

 

7.63

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

178 / 237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51 / 146

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Portfolio Builder Conservative Fund

 

145.10

 

12/31/2007

 

1.12

 

6.17

 

22

%

5.26

 

41

%

 

 

 

 

 

 

 

 

3/4/2004

 

5.19

 

3/4/2004

 

45

%

4.75

 

1.13

 

3.56

 

 

 

 

 

3.86

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

91 / 414

 

 

 

106 / 261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

96 / 216

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Portfolio Builder Moderate Conservative Fund

 

340.30

 

12/31/2007

 

1.13

 

6.70

 

16

%

6.57

 

9

%

 

 

 

 

 

 

 

 

3/4/2004

 

6.71

 

3/4/2004

 

8

%

4.75

 

1.63

 

4.86

 

 

 

 

 

5.36

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

63 / 414

 

 

 

23 / 261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17 / 216

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Portfolio Builder Moderate Aggressive Fund

 

1,159.80

 

12/31/2007

 

1.25

 

7.41

 

35

%

8.81

 

28

%

 

 

 

 

 

 

 

 

3/4/2004

 

8.94

 

3/4/2004

 

23

%

5.75

 

1.24

 

6.68

 

 

 

 

 

7.27

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

220 / 645

 

 

 

143 / 526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

109 / 484

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Moderate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Balanced Fund

 

978.60

 

12/31/2007

 

1.07

 

1.64

 

90

%

6.57

 

52

%

9.60

 

47

%

2.02

 

94

%

4/16/1940

 

^

 

 

 

 

 

5.75

 

-4.20

 

4.48

 

8.31

 

1.41

 

^

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

413 / 458

 

 

 

175 / 340

 

 

 

111 / 240

 

 

 

125 / 132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Portfolio Builder Moderate Fund

 

990.50

 

12/31/2007

 

1.18

 

6.96

 

29

%

7.82

 

25

%

 

 

 

 

 

 

 

 

3/4/2004

 

8.07

 

3/4/2004

 

19

%

5.75

 

0.81

 

5.72

 

 

 

 

 

6.41

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

131 / 458

 

 

 

85 / 340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57 / 300

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Disciplined Large Cap Growth Fund

 

124.50

 

12/31/2007

 

1.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5/17/2007

 

0.81

 

 

 

 

 

5.75

 

 

 

 

 

 

 

 

 

-4.99

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Fundamental Value Fund (2)

 

1,041.10

 

12/31/2007

 

1.18

 

4.27

 

69

%

9.16

 

41

%

13.28

 

51

%

 

 

 

 

6/18/2001

 

6.35

 

6/18/2001

 

37

%

5.75

 

-1.72

 

7.03

 

11.94

 

 

 

5.39

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

610 / 886

 

 

 

274 / 671

 

 

 

256 / 508

 

 

 

 

 

 

 

 

 

 

 

144 / 390

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Portfolio Builder Aggressive Fund

 

571.10

 

12/31/2007

 

1.31

 

7.46

 

40

%

9.91

 

31

%

 

 

 

 

 

 

 

 

3/4/2004

 

9.84

 

3/4/2004

 

30

%

5.75

 

1.28

 

7.76

 

 

 

 

 

8.15

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

346 / 886

 

 

 

204 / 671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

178 / 601

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Portfolio Builder Total Equity Fund

 

523.80

 

12/31/2007

 

1.35

 

7.48

 

39

%

10.96

 

21

%

 

 

 

 

 

 

 

 

3/4/2004

 

10.77

 

3/4/2004

 

18

%

5.75

 

1.30

 

8.80

 

 

 

 

 

9.07

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

343 / 886

 

 

 

141 / 671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105 / 601

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Select Value Fund (2)

 

504.90

 

12/31/2007

 

1.39

 

5.83

 

19

%

8.41

 

44

%

13.40

 

54

%

 

 

 

 

3/8/2002

 

9.62

 

3/8/2002

 

11

%

5.75

 

-0.26

 

6.29

 

12.06

 

 

 

8.51

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

80 / 440

 

 

 

145 / 331

 

 

 

143 / 266

 

 

 

 

 

 

 

 

 

 

 

25 / 227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36



 

Ameriprise Financial, Inc.

 

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)

 

Annualized Returns at POP (1)

 

 

 

Total Net

 

Total Net

 

Gross

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Real Estate Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Real Estate Fund

 

181.50

 

12/31/2007

 

1.51

 

-16.61

 

55

%

9.33

 

25

%

 

 

 

 

 

 

 

 

3/4/2004

 

13.39

 

3/4/2004

 

23

%

5.75

 

-21.41

 

7.19

 

 

 

 

 

11.64

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

168 / 309

 

 

 

55 / 226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45 / 203

 

 

 

 

 

 

 

 

 

 

 

 

 

S&P 500 Index Objective Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource S&P 500 Index Fund (3)

 

244.20

 

12/31/2007

 

0.79

 

4.77

 

 

 

7.92

 

 

 

12.11

 

 

 

 

 

 

 

10/25/1999

 

2.54

 

10/28/1999

 

 

 

 

4.77

 

7.92

 

12.11

 

 

 

2.54

 

Science & Technology Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Global Technology Fund

 

171.10

 

12/31/2007

 

1.60

 

12.30

 

65

%

12.27

 

28

%

21.70

 

10

%

6.65

 

52

%

11/13/1996

 

6.52

 

11/14/1996

 

65

%

5.75

 

5.84

 

10.07

 

20.27

 

6.02

 

5.96

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

174 / 269

 

 

 

66 / 242

 

 

 

22 / 223

 

 

 

29 / 55

 

 

 

 

 

 

 

27 / 41

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Core Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Small Cap Equity Fund (2)

 

254.50

 

12/31/2007

 

1.58

 

0.62

 

37

%

6.33

 

49

%

15.83

 

41

%

 

 

 

 

3/8/2002

 

7.69

 

3/8/2002

 

72

%

5.75

 

-5.16

 

4.25

 

14.46

 

 

 

6.60

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

280 / 774

 

 

 

294 / 611

 

 

 

193 / 478

 

 

 

 

 

 

 

 

 

 

 

300 / 420

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Small Cap Value Fund (2)

 

667.70

 

12/31/2007

 

1.59

 

-6.20

 

76

%

4.80

 

70

%

14.06

 

74

%

 

 

 

 

6/18/2001

 

9.66

 

6/18/2001

 

42

%

5.75

 

-11.59

 

2.75

 

12.72

 

 

 

8.67

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

586 / 774

 

 

 

428 / 611

 

 

 

350 / 478

 

 

 

 

 

 

 

 

 

 

 

151 / 360

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Small Cap Advantage Fund

 

382.20

 

12/31/2007

 

1.32

 

-4.28

 

66

%

3.88

 

82

%

14.57

 

66

%

 

 

 

 

5/4/1999

 

7.00

 

5/6/1999

 

86

%

5.75

 

-9.78

 

1.84

 

13.22

 

 

 

6.27

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

511 / 774

 

 

 

500 / 611

 

 

 

316 / 478

 

 

 

 

 

 

 

 

 

 

 

207 / 240

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Small Company Index Fund

 

799.30

 

12/31/2007

 

0.92

 

-0.98

 

46

%

6.51

 

47

%

15.11

 

57

%

8.03

 

55

%

8/19/1996

 

9.87

 

8/22/1996

 

60

%

5.75

 

-6.68

 

4.42

 

13.76

 

7.39

 

9.30

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

354 / 774

 

 

 

285 / 611

 

 

 

269 / 478

 

 

 

93 / 169

 

 

 

 

 

 

 

60 / 99

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Growth Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Small Cap Growth Fund (2)

 

196.30

 

12/31/2007

 

1.76

 

13.30

 

28

%

9.05

 

42

%

14.34

 

65

%

 

 

 

 

1/24/2001

 

2.06

 

1/24/2001

 

70

%

5.75

 

6.79

 

6.92

 

12.99

 

 

 

1.19

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

164 / 591

 

 

 

196 / 476

 

 

 

256 / 394

 

 

 

 

 

 

 

 

 

 

 

218 / 314

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Cap Value Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Disciplined Small Cap Value Fund

 

40.20

 

12/31/2007

 

1.73

 

-14.81

 

90

%

 

 

 

 

 

 

 

 

 

 

 

 

2/16/2006

 

-4.42

 

2/16/2006

 

90

%

5.75

 

-19.71

 

 

 

 

 

 

 

-7.41

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

266 / 296

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

237 / 265

 

 

 

 

 

 

 

 

 

 

 

 

 

 


^   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) RiverSource S&P 500 Index Fund data is for D shares.

 

37



 

Ameriprise Financial, Inc.

 

Fixed Income Fund Performance & Lipper Ranking

As of December 31, 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rankings and Annualized Returns at NAV (1)

 

Annualized Returns @ POP (1)

 

 

 

Total Net

 

Total Net

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Taxable Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emerging Markets Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Emerging Markets Bond Fund

 

190.30

 

12/31/2007

 

1.33

 

5.76

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

2/16/2006

 

7.46

 

2/16/2006

 

31

%

4.75

 

0.74

 

 

 

 

 

 

 

4.70

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

21 / 69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18 / 58

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Market Neutral Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Absolute Return Currency & Income Fund

 

244.70

 

12/31/2007

 

1.36

 

6.02

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

6/15/2006

 

6.73

 

6/15/2006

 

26

%

3.00

 

2.84

 

 

 

 

 

 

 

4.65

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

24 / 63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12 / 46

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Global Bond Fund

 

588.10

 

12/31/2007

 

1.37

 

7.48

 

53

%

2.84

 

70

%

6.26

 

48

%

5.20

 

48

%

3/20/1989

 

7.44

 

3/23/1989

 

38

%

4.75

 

2.38

 

1.18

 

5.23

 

4.69

 

7.16

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

58 / 110

 

 

 

65 / 92

 

 

 

40 / 84

 

 

 

26 / 54

 

 

 

 

 

 

 

3 / 7

 

 

 

 

 

 

 

 

 

 

 

 

 

High Current Yield Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource High Yield Bond Fund

 

1,669.50

 

12/31/2007

 

1.08

 

2.03

 

45

%

5.66

 

17

%

10.65

 

23

%

3.96

 

60

%

12/8/1983

 

8.07

 

12/8/1983

 

46

%

4.75

 

-2.81

 

3.96

 

9.57

 

3.46

 

7.85

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

202 / 455

 

 

 

66 / 388

 

 

 

77 / 334

 

 

 

90 / 151

 

 

 

 

 

 

 

10 / 21

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Income Opportunities Fund

 

296.00

 

12/31/2007

 

1.14

 

2.74

 

25

%

4.96

 

39

%

 

 

 

 

 

 

 

 

6/19/2003

 

7.09

 

6/19/2003

 

50

%

4.75

 

-2.14

 

3.27

 

 

 

 

 

5.94

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

111 / 455

 

 

 

151 / 388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

173 / 351

 

 

 

 

 

 

 

 

 

 

 

 

 

Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Core Bond Fund

 

332.20

 

12/31/2007

 

1.09

 

5.36

 

49

%

3.66

 

54

%

 

 

 

 

 

 

 

 

6/19/2003

 

2.98

 

6/19/2003

 

65

%

4.75

 

0.35

 

1.99

 

 

 

 

 

1.88

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

267 / 546

 

 

 

249 / 467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

259 / 401

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Diversified Bond Fund

 

3,056.70

 

12/31/2007

 

0.97

 

5.05

 

58

%

4.17

 

26

%

4.30

 

36

%

4.69

 

77

%

10/3/1974

 

9.05

 

10/3/1974

 

25

%

4.75

 

0.06

 

2.49

 

3.29

 

4.18

 

8.90

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

314 / 546

 

 

 

119 / 467

 

 

 

141 / 394

 

 

 

142 / 184

 

 

 

 

 

 

 

1 / 3

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Participation Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Floating Rate Fund

 

613.10

 

12/31/2007

 

1.07

 

1.40

 

38

%

 

 

 

 

 

 

 

 

 

 

 

 

2/16/2006

 

4.09

 

2/16/2006

 

15

%

4.75

 

-3.42

 

 

 

 

 

 

 

1.41

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

25 / 66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8 / 56

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed-Asset Target Allocation Conservative Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Income Builder Basic Income Fund

 

312.10

 

12/31/2007

 

1.14

 

4.58

 

54

%

 

 

 

 

 

 

 

 

 

 

 

 

2/16/2006

 

7.07

 

2/16/2006

 

15

%

4.75

 

-0.38

 

 

 

 

 

 

 

4.31

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

221 / 414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52 / 357

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Income Builder Moderate Income Fund

 

655.30

 

12/31/2007

 

1.15

 

4.16

 

60

%

 

 

 

 

 

 

 

 

 

 

 

 

2/16/2006

 

7.47

 

2/16/2006

 

10

%

4.75

 

-0.78

 

 

 

 

 

 

 

4.71

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

245 / 414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34 / 357

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Income Builder Enhanced Income Fund

 

351.90

 

12/31/2007

 

1.22

 

3.67

 

69

%

 

 

 

 

 

 

 

 

 

 

 

 

2/16/2006

 

7.44

 

2/16/2006

 

11

%

4.75

 

-1.26

 

 

 

 

 

 

 

4.67

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

285 / 414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38 / 357

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Sector Income Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Strategic Income Allocation Fund

 

156.00

 

12/31/2007

 

1.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5/17/2007

 

0.80

 

 

 

 

 

4.75

 

 

 

 

 

 

 

 

 

-3.99

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Intermediate Investment Grade Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Limited Duration Bond Fund

 

160.70

 

12/31/2007

 

1.11

 

4.86

 

62

%

3.49

 

43

%

 

 

 

 

 

 

 

 

6/19/2003

 

2.93

 

6/19/2003

 

32

%

4.75

 

-0.12

 

1.82

 

 

 

 

 

1.83

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

86 / 139

 

 

 

57 / 133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37 / 116

 

 

 

 

 

 

 

 

 

 

 

 

 

Short U.S. Government Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Short Duration U.S. Government Fund

 

797.50

 

12/31/2007

 

1.03

 

5.27

 

69

%

3.51

 

65

%

2.47

 

67

%

3.89

 

79

%

8/19/1985

 

6.23

 

8/31/1985

 

17

%

4.75

 

0.27

 

1.84

 

1.48

 

3.39

 

6.00

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

60 / 86

 

 

 

52 / 80

 

 

 

50 / 74

 

 

 

40 / 50

 

 

 

 

 

 

 

1 / 5

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury Inflation Protected Securities Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Inflation Protected Securities Fund

 

389.70

 

12/31/2007

 

0.98

 

10.93

 

38

%

4.26

 

42

%

 

 

 

 

 

 

 

 

3/4/2004

 

4.34

 

3/4/2004

 

43

%

4.75

 

5.66

 

2.58

 

 

 

 

 

3.02

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

49 / 130

 

 

 

39 / 92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27 / 62

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mortgage Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource U.S. Government Mortgage Fund

 

420.80

 

12/31/2007

 

1.17

 

5.02

 

62

%

3.86

 

47

%

3.73

 

36

%

 

 

 

 

2/14/2002

 

4.37

 

2/14/2002

 

41

%

4.75

 

0.03

 

2.19

 

2.73

 

 

 

3.51

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

47 / 76

 

 

 

34 / 72

 

 

 

23 / 64

 

 

 

 

 

 

 

 

 

 

 

25 / 61

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-Exempt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

California Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource California Tax-Exempt Fund

 

166.90

 

12/31/2007

 

0.88

 

0.95

 

54

%

3.12

 

50

%

3.59

 

52

%

4.21

 

53

%

8/18/1986

 

5.67

 

8/31/1986

 

80

%

4.75

 

-3.84

 

1.47

 

2.59

 

3.71

 

5.43

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

63 / 117

 

 

 

53 / 107

 

 

 

52 / 99

 

 

 

39 / 73

 

 

 

 

 

 

 

16 / 19

 

 

 

 

 

 

 

 

 

 

 

 

 

General Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Tax-Exempt High Income Fund

 

2,638.30

 

12/31/2007

 

1.08

 

1.11

 

61

%

2.83

 

55

%

3.34

 

59

%

4.08

 

52

%

5/7/1979

 

6.67

 

5/31/1979

 

41

%

4.75

 

-3.69

 

1.17

 

2.34

 

3.57

 

6.49

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

144 / 237

 

 

 

121 / 220

 

 

 

124 / 211

 

 

 

74 / 143

 

 

 

 

 

 

 

9 / 21

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Tax-Exempt Bond Fund

 

709.00

 

12/31/2007

 

0.94

 

1.58

 

50

%

2.95

 

50

%

3.24

 

65

%

4.10

 

50

%

11/24/1976

 

5.89

 

11/30/1976

 

75

%

4.75

 

-3.25

 

1.29

 

2.24

 

3.59

 

5.72

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

117 / 237

 

 

 

109 / 220

 

 

 

136 / 211

 

 

 

72 / 143

 

 

 

 

 

 

 

6 / 7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38



 

Ameriprise Financial, Inc.

 

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)

 

Annualized Returns @ POP (1)

 

 

 

Total Net

 

Total Net

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund

 

Since

 

 

 

 

 

Max. Front

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

Assets

 

Expense

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Inception

 

Ranking Since

 

Sales

 

 

 

 

 

 

 

 

 

Since

 

Class A Shares by Lipper Category

 

(Mil $ )

 

Date

 

Ratio

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Return

 

Ranking

 

Date

 

Return

 

Date

 

Ranking

 

Charge

 

1 year

 

3 years

 

5 years

 

10 years

 

Inception

 

Intermediate Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Intermediate Tax-Exempt Fund

 

75.90

 

12/31/2007

 

0.91

 

1.84

 

91

%

2.32

 

79

%

2.72

 

73

%

3.82

 

80

%

11/13/1996

 

3.99

 

11/14/1996

 

85

%

4.75

 

-3.00

 

0.68

 

1.73

 

3.32

 

3.53

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

144 / 158

 

 

 

111 / 141

 

 

 

88 / 120

 

 

 

61 / 76

 

 

 

 

 

 

 

59 / 69

 

 

 

 

 

 

 

 

 

 

 

 

 

Massachusetts Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Massachusetts Tax-Exempt Fund

 

41.50

 

12/31/2007

 

1.06

 

2.21

 

56

%

2.78

 

66

%

3.19

 

72

%

3.87

 

75

%

7/2/1987

 

5.58

 

7/31/1987

 

93

%

4.75

 

-2.64

 

1.13

 

2.19

 

3.36

 

5.33

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

31 / 55

 

 

 

34 / 51

 

 

 

36 / 49

 

 

 

32 / 42

 

 

 

 

 

 

 

12 / 12

 

 

 

 

 

 

 

 

 

 

 

 

 

Michigan Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Michigan Tax-Exempt Fund

 

36.90

 

12/31/2007

 

1.08

 

2.69

 

32

%

3.17

 

41

%

3.54

 

38

%

4.09

 

55

%

7/2/1987

 

5.78

 

7/31/1987

 

88

%

4.75

 

-2.19

 

1.51

 

2.54

 

3.59

 

5.52

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

10 / 31

 

 

 

11 / 26

 

 

 

10 / 26

 

 

 

13 / 23

 

 

 

 

 

 

 

7 / 7

 

 

 

 

 

 

 

 

 

 

 

 

 

Minnesota Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Minnesota Tax-Exempt Fund

 

305.90

 

12/31/2007

 

1.06

 

1.74

 

48

%

2.77

 

64

%

3.38

 

59

%

4.13

 

45

%

8/18/1986

 

5.75

 

8/31/1986

 

67

%

4.75

 

-3.10

 

1.12

 

2.38

 

3.62

 

5.51

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

23 / 47

 

 

 

26 / 40

 

 

 

24 / 40

 

 

 

15 / 33

 

 

 

 

 

 

 

4 / 5

 

 

 

 

 

 

 

 

 

 

 

 

 

New York Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource New York Tax-Exempt Fund

 

60.20

 

12/31/2007

 

1.18

 

1.70

 

60

%

2.98

 

56

%

3.28

 

62

%

4.13

 

56

%

8/18/1986

 

5.56

 

8/31/1986

 

83

%

4.75

 

-3.13

 

1.32

 

2.28

 

3.63

 

5.32

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

60 / 99

 

 

 

53 / 94

 

 

 

58 / 93

 

 

 

38 / 68

 

 

 

 

 

 

 

14 / 16

 

 

 

 

 

 

 

 

 

 

 

 

 

Ohio Municipal Debt Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RiverSource Ohio Tax-Exempt Fund

 

40.90

 

12/31/2007

 

1.07

 

2.15

 

62

%

2.76

 

60

%

3.11

 

65

%

3.86

 

58

%

7/2/1987

 

5.57

 

7/31/1987

 

89

%

4.75

 

-2.70

 

1.10

 

2.11

 

3.36

 

5.32

 

Lipper Fund Ranking / Total Funds in Category

 

 

 

 

 

 

 

 

 

29 / 46

 

 

 

25 / 41

 

 

 

27 / 41

 

 

 

20 / 34

 

 

 

 

 

 

 

8 / 8

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 

39



 

Ameriprise Financial, Inc.

 

Fund Performance & Lipper Ranking

As of December 31, 2007

Source of Data:  Lipper

 

Important Disclosures

 

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.

 

40



 

Ameriprise Financial, Inc.

 

Important Disclosures - continued

 

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

 

You should consider the investment objectives, risks, and charges and expenses of mutual funds carefully before investing. For 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 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.

 

41



 

Ameriprise Financial, Inc.

 

Important Disclosures - continued

 

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 FINRA, 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 FINRA 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 FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, NY. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance products in the state of NY.

 

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 FINRA.

 

Ameriprise Auto & Home Insurance issues auto, home and umbrella insurance underwritten by 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 FINRA, are all affiliated with Ameriprise Financial, Inc.

 

42



 

Exhibit B

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Reconciliation Tables

 

43



 

Ameriprise Financial, Inc.

Reconciliation Table: Adjusted Pretax Income and Adjusted Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date

 

(in millions unless otherwise noted, unaudited)

 

4 Qtr 2006

 

1 Qtr 2007

 

2 Qtr 2007

 

3 Qtr 2007

 

4 Qtr 2007

 

2006

 

2007

 

Adjusted Pretax Income (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

$

203

 

$

216

 

$

245

 

$

217

 

$

338

 

$

797

 

$

1,016

 

Separation costs

 

123

 

85

 

63

 

60

 

28

 

361

 

236

 

Adjusted pretax income

 

$

326

 

$

301

 

$

308

 

$

277

 

$

366

 

$

1,158

 

$

1,252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

171

 

$

165

 

$

196

 

$

198

 

$

255

 

$

631

 

$

814

 

Separation costs, after-tax (2)

 

80

 

55

 

41

 

39

 

19

 

235

 

154

 

Adjusted earnings

 

$

251

 

$

220

 

$

237

 

$

237

 

$

274

 

$

866

 

$

968

 

 


(1)              See non-GAAP Financial Information.

 

(2)              In GAAP financial statements, separation costs are part of continuing operations. For this non-GAAP presentation, after-tax separation costs are calculated using the statutory tax rate of 35%.

 

44



 

Ameriprise Financial, Inc.

Return on Equity Calculation

 

(in millions, unaudited)

 

ROE (1)

 

Adjustments

 

Adjusted ROE (2)

 

 

 

 

 

 

 

 

 

Return on Equity Calculation for the Twelve Months Ended:

 

 

 

 

 

 

 

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

%

 

 

 

 

 

 

 

 

 

September 30, 2007

 

 

 

 

 

 

 

 

 

Return

 

$

730

 

$

215

 

$

945

 

 

Equity

 

$

7,753

 

$

(102

)

$

7,651

 

 

Return on Equity

 

9.4

%

 

 

12.4

%

 

 

 

 

 

 

 

 

 

December 31, 2007

 

 

 

 

 

 

 

 

 

Return

 

$

814

 

$

154

 

$

968

 

 

Equity

 

$

7,765

 

$

(58

)

$

7,707

 

 

Return on Equity

 

10.5

%

 

 

12.6

%

 


(1)              Return on equity is calculated using the trailing twelve months income in the numerator and equity, calculated using a five point average of quarter-end equity, in the denominator.

 

(2)              Adjusted return on equity is calculated using adjusted earnings (excluding non-recurring separation costs) in the numerator, and equity excluding the 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.

 

45



Exhibit 99.2

 

Exhibit C

 

Statistical Supplement Package

(unaudited)

 

Fourth Quarter 2007

 

Disclosed Items

 

46


 


 

Ameriprise Financial, Inc.

Disclosed  Items

Fourth Quarter 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A&WM

 

Asset Management

 

Annuities

 

Protection

 

Corporate

 

 

 

Summary Impacts

 

 

 

Increase

 

 

 

 

 

 

 

Mean

 

Investment

 

Investment

 

Increase

 

Mean

 

 

 

Increase

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, unaudited)

 

Reserves (1)

 

Wachovia (2)

 

EITF 04-5 (3)

 

VIE (4)

 

Reversion (5)

 

Gains (6)

 

Gains (6)

 

Reserves (1)

 

Reversion (5)

 

VIE (4)

 

Reserves (1)

 

Consolidated

 

A&WM

 

Asset Mgt

 

Annuities

 

Protection

 

Corporate

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

(1

)

$

 

$

 

$

   

$

   

$

 

$

   

$

 

$

   

$

(1

)  

$

   

$

(1

)  

$

   

$

   

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

1

 

 

 

15

 

3

 

 

 

 

 

19

 

 

1

 

15

 

3

 

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

25

 

(30

)

49

 

 

 

 

 

 

19

 

 

63

 

 

(5

)

49

 

19

 

 

Total revenues

 

 

25

 

(30

)

49

 

 

15

 

3

 

 

 

19

 

 

81

 

 

(5

)

64

 

22

 

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

 

25

 

(30

)

49

 

 

15

 

3

 

 

 

19

 

 

81

 

 

(5

)

64

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred acquisition costs

 

 

 

 

 

7

 

 

 

 

1

 

 

 

8

 

 

 

7

 

1

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

21

 

 

(30

)

 

 

 

 

5

 

 

 

14

 

10

 

21

 

(30

)

 

5

 

14

 

Total expenses

 

21

 

 

(30

)

 

7

 

 

 

5

 

1

 

 

14

 

18

 

21

 

(30

)

7

 

6

 

14

 

Pretax income

 

$

(21

)

$

25

 

$

 

$

49

 

$

7

 

$

15

 

$

3

 

$

(5

)

$

1

 

$

19

 

$

(14

)

$

63

 

$

(21

)

$

25

 

$

57

 

$

16

 

$

(14

)

 


(1)              Increased reserves related to legal and regulatory, other contingencies

(2)              Additional proceeds from the 2006 sale of our defined contribution recordkeeping business

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

(4)              Additional gains associated with the deconsolidation of a variable interest entity

(5)              Mean reversion of DAC

(6)              Pretax realized net investment gains and (losses)

 

 

 

 

47



 

Ameriprise Financial, Inc.

Disclosed Items

Fourth Quarter 2006

 

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

   

            

            

 

 

 

A&WM

 

Asset Mgt

 

Annuities

 

Protection

 

 

 

 

 

Summary Impacts

 

 

 

Legal and

 

 

 

Investment

 

Mean

 

Investment

 

Legal and

 

Auto

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions, unaudited)

   

Regulatory (1)

   

EITF 04-5 (2)

   

Gains (4)

   

Reversion (5)

   

Gains (4)

   

Regulatory (1)

   

& Home (3)

   

Consolidated (4)

   

Consolidated

   

A&WM

   

Asset Mgt

   

Annuities

   

Protection

   

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

   

$

   

$

(4

)  

$

   

$

   

$

   

$

   

$

   

$

   

$

(4

)  

$

   

$

(4

)  

$

   

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

1

 

21

 

 

5

 

 

 

 

27

 

 

1

 

21

 

5

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

18

 

 

 

 

 

 

 

18

 

 

18

 

 

 

Total revenues

 

 

15

 

21

 

 

5

 

 

 

 

41

 

 

15

 

21

 

5

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

 

15

 

21

 

 

5

 

 

 

 

41

 

 

15

 

21

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

 

 

 

 

 

 

(9

)

 

(9

)

 

 

 

(9

)

Amortization of deferred acquisition costs

 

 

 

 

(14

)

 

 

 

 

(14

 

 

(14

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

30

 

15

 

 

 

 

1

 

 

 

46

 

30

 

15

 

 

1

 

Total expenses

 

30

 

15

 

 

(14

)

 

1

 

(9

)

 

23

 

30

 

15

 

(14

(8

)

Pretax income

 

$

(30

)

$

 

$

21

 

$

(14

)

$

5

 

$

(1

)

$

9

 

$

 

$

18

 

$

(30

)

$

 

$

35

 

$

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

16

 

$

16

 

 

 

 

 

 

 

 

 

 


(1)          Legal and regulatory costs

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

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

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

(5)          Mean reversion of DAC

 

 

 

48



 

Ameriprise Financial, Inc.

Disclosed  Items

Third Quarter 2007

 

 

 

Annuities

 

Protection

 

 

 

 

 

Summary Impacts

 

 

 

 

 

Loan Provision

 

VA Riders

 

Investment

 

 

 

Investment

 

Consolidated

 

 

 

 

 

 

 

(in millions, unaudited)

 

DAC (1)

 

Reserve (2)

 

Impact (3)

 

Gains (4)

 

DAC (1)

 

Gains (4)

 

Income Tax (5)

 

Consolidated

 

Annuities

 

Protection

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management and financial advice fees

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

$

 

Distribution fees

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

21

 

57

 

12

 

 

3

 

 

93

 

90

 

3

 

Premiums

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

21

 

57

 

12

 

 

3

 

 

93

 

90

 

3

 

Banking and deposit interest expense

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

 

21

 

57

 

12

 

 

3

 

 

93

 

90

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution expenses

 

 

 

 

 

 

 

 

 

 

 

Interest credited to fixed accounts

 

 

 

 

 

 

 

 

 

 

 

Benefits, claims, losses and settlement expenses

 

3

 

 

120

 

 

11

 

 

 

134

 

123

 

11

 

Amortization of deferred acquisition costs

 

(4

)

 

(28

)

 

20

 

 

 

(12

)

(32

)

20

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

(1

)

 

92

 

 

31

 

 

 

122

 

91

 

31

 

Pretax income

 

$

1

 

$

21

 

$

(35

)

$

12

 

$

(31

)

$

3

 

$

 

$

(29

)

$

(1

)

$

(28

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21

 

$

21

 

 

 

 

 

 


(1)GRAPHICGRAPHICGRAPHICGRAPHIC          Annual DAC review (see below)

(2)          Loan provision reserve adjustment

(3)          Variable Annuity Riders hedge impact excluding DAC unlocking

(4)          Pretax realized net investment gains and (losses)

(5)          Income Tax impact of APB 23 related to repatriation of Threadneedle earnings

 

The $30 million DAC unlocking expense increase in the third quarter of 2007 primarily consisted of:

·  a $35 million increase in expense from updating product persistency assumptions;

·  a $13 million decrease in expense from updating assumptions as to separate account fee levels and net variable annuity rider charges; and,

·  a $8 million increase in expense from updating all other assumptions.

 

 

 

49