Exhibit 99.2
Statistical Supplement
(unaudited)
First Quarter 2007
Ameriprise Financial, Inc.
Table of Contents
| Page |
Ameriprise Financial, Inc. | |
| Financial Summary | 1 |
| Consolidated Income Statements | 2 |
| Financial Advisor and Client Metrics | 3 |
| Corporate Volumes | 4 |
| Consolidated Balance Sheets | 5 |
| Investment Detail | 6 |
| Selected Balance Sheet Information | 7 |
| Adjusted Segment Information | 8 |
Asset Accumulation and Income Segment | |
| Income Statements | 9 |
| Revenues by Product | 10 |
| Retail Managed Assets Rollforwards | 11 |
| Institutional Managed Assets Rollforwards | 12 |
| Financial Advisor Managed Assets Rollforwards | 13 |
| Owned Assets Related to Variable Products | 14 |
| Net Investment Income and Spread Products | 15 |
| Selected Asset Management Performance Information | 16 |
| Deferred Acquisition Costs Rollforwards | 17 |
Protection Segment | |
| Income Statements | 18 |
| Revenues by Product | 19 |
| Selected Statistical Information | 20 |
| Product Rollforwards | 21 |
Corporate and Other and Eliminations Segment | |
| Income Statements | 22 |
Capital and Ratings Information | 23 |
Non-GAAP Financial Information and Reclassification | 24 |
Glossary of Selected Terminology | 25-27 |
Exhibit A | |
| RiverSourceSM Mutual Fund Performance and Lipper Ranking | A1 - A5 |
Exhibit B | |
| Adjusted Earnings Reconciliation Tables | B1 - B8 |
Exhibit C | |
| Disclosed Items | C1 - C3 |
Exhibit D | |
| Prior Statistical Supplement Reconciliation Tables | D1 |
Ameriprise Financial, Inc.
Financial Summary
(in millions, except per share amounts, headcount and where noted, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | 1Q ’07 vs. 1Q ’06 % Change | | Full Year 2006 | |
EPS - Basic: (1) | | | | | | | | | | | | | | | | |
Net income | | $ | 0.57 | | $ | 0.57 | | $ | 0.71 | | $ | 0.70 | | $ | 0.69 | | 21% | | | $ | 2.56 | |
Separation costs, after-tax | | 0.18 | | 0.22 | | 0.23 | | 0.33 | | 0.22 | | 22% | | | 0.95 | |
Adjusted earnings, after-tax | | $ | 0.75 | | $ | 0.79 | | $ | 0.94 | | $ | 1.03 | | $ | 0.91 | | 21% | | | $ | 3.51 | |
| | | | | | | | | | | | | | | | |
EPS - Diluted: | | | | | | | | | | | | | | | | |
Net income | | $ | 0.57 | | $ | 0.57 | | $ | 0.71 | | $ | 0.69 | | $ | 0.68 | | 19% | | | $ | 2.54 | |
Separation costs, after-tax | | 0.18 | | 0.22 | | 0.23 | | 0.33 | | 0.22 | | 22% | | | 0.94 | |
Adjusted earnings, after-tax | | $ | 0.75 | | $ | 0.79 | | $ | 0.94 | | $ | 1.02 | | $ | 0.90 | | 20% | | | $ | 3.48 | |
| | | | | | | | | | | | | | | | |
Management’s financial targets and performance: | | | | | | | | | | | | | | | | |
Adjusted revenue growth: Target 6 - 8% | | 9.9 | % | 12.9 | % | 4.9 | % | 15.6 | % | 5.8 | % | | | | 10.8 | % |
Adjusted earnings growth: Target 10 - 13% | | 17.4 | % | 21.9 | % | 29.1 | % | 30.1 | % | 16.4 | % | | | | 25.0 | % |
Adjusted return on equity: Target 12 - 15% | | 10.4 | % | 10.7 | % | 11.2 | % | 11.8 | % | 12.2 | % | | | | 11.8 | % |
| | | | | | | | | | | | | | | | |
Contribution margin | | 50.0 | % | 52.8 | % | 50.5 | % | 51.9 | % | 51.9 | % | | | | 51.4 | % |
Net income margin | | 7.4 | % | 6.9 | % | 8.8 | % | 7.9 | % | 8.0 | % | | | | 7.8 | % |
Effective tax rate on net income | | 24.0 | % | 24.3 | % | 19.8 | % | 15.5 | % | 23.6 | % | | | | 20.8 | % |
Effective tax rate on adjusted earnings | | 26.7 | % | 27.8 | % | 24.0 | % | 23.0 | % | 26.9 | % | | | | 25.2 | % |
Return on equity | | 7.4 | % | 7.1 | % | 7.6 | % | 8.3 | % | 8.6 | % | | | | 8.3 | % |
| | | | | | | | | | | | | | | | |
Debt to total capital | | 20.7 | % | 25.1 | % | 22.5 | % | 21.9 | % | 22.3 | % | | | | 21.9 | % |
Debt to total capital excluding non-recourse debt | | 17.0 | % | 21.7 | % | 20.5 | % | 20.2 | % | 20.6 | % | | | | 20.2 | % |
Debt to total capital excluding non-recourse debt and 75% equity credit | | 17.0 | % | 17.6 | % | 16.7 | % | 16.4 | % | 16.7 | % | | | | 16.4 | % |
| | | | | | | | | | | | | | | | |
Business metrics summary: | | | | | | | | | | | | | | | | |
Owned, managed and administered assets (in billions) | | $ | 445.7 | | $ | 427.9 | | $ | 440.0 | | $ | 466.1 | | $ | 473.9 | | 6% | | | $ | 466.1 | |
Total financial advisors | | 12,379 | | 12,372 | | 12,427 | | 12,592 | | 12,342 | | — | | | 12,592 | |
Clients with a financial plan percentage | | 44 | % | 44 | % | 44 | % | 45 | % | 45 | % | | | | 45 | % |
Total clients (in thousands) | | 2,762 | | 2,770 | | 2,779 | | 2,786 | | 2,774 | | — | | | 2,786 | |
Gross dealer concession | | $ | 527 | | $ | 545 | | $ | 545 | | $ | 596 | | $ | 624 | | 18% | | | $ | 2,213 | |
| | | | | | | | | | | | | | | | |
Employee base: | | | | | | | | | | | | | | | | |
Field (employee advisors) | | 3,075 | | 3,056 | | 3,063 | | 3,178 | | 2,987 | | (3)% | | | 3,178 | |
Non-field | | 8,582 | | 8,607 | | 8,647 | | 8,680 | | 8,960 | | 4% | | | 8,680 | |
| | | | | | | | | | | | | | | | |
Common shares outstanding | | 244.3 | | 244.1 | | 242.1 | | 241.4 | | 237.1 | | (3)% | | | 241.4 | |
| | | | | | | | | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | 252.3 | | 246.3 | | 244.5 | | 243.3 | | 240.7 | | (5)% | | | 246.5 | |
Diluted | | 253.5 | | 248.0 | | 246.4 | | 246.3 | | 244.1 | | (4)% | | | 248.5 | |
| | | | | | | | | | | | | | | | |
Book value: | | | | | | | | | | | | | | | | |
Book value | | $ | 7,341 | | $ | 7,235 | | $ | 7,753 | | $ | 7,925 | | $ | 7,731 | | 5% | | | $ | 7,925 | |
Book value, excluding the impact of accumulated other comprehensive income (OCI) | | 7,783 | | 7,901 | | 7,979 | | 8,134 | | 7,874 | | 1% | | | 8,134 | |
Book value per common share outstanding | | 30.05 | | 29.64 | | 32.02 | | 32.83 | | 32.60 | | 8% | | | 32.83 | |
Book value per common share outstanding, excluding the impact of OCI | | $ | 31.86 | | $ | 32.37 | | $ | 32.96 | | $ | 33.70 | | $ | 33.20 | | 4% | | | $ | 33.70 | |
(1) EPS for other than EPS-Net income are non-GAAP financial measures.
# Variance of 100% or greater.
1
Ameriprise Financial, Inc.
Consolidated Income Statements
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | 1Q ’07 vs. 1Q ’06 % Change | | Full Year 2006 | |
Revenues | | | | | | | | | | | | | | | | |
Management, financial advice and service fees | | $ | 710 | | $ | 721 | | $ | 720 | | $ | 814 | | $ | 791 | | 11% | | | $ | 2,965 | |
Distribution fees | | 301 | | 325 | | 300 | | 374 | | 344 | | 14% | | | 1,300 | |
Net investment income | | 574 | | 522 | | 542 | | 566 | | 518 | | (10)% | | | 2,204 | |
Premiums | | 220 | | 229 | | 244 | | 239 | | 236 | | 7% | | | 932 | |
Other revenues | | 144 | | 256 | | 171 | | 168 | | 174 | | 21% | | | 739 | |
Total revenues | | 1,949 | | 2,053 | | 1,977 | | 2,161 | | 2,063 | | 6% | | | 8,140 | |
| | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
Compensation and benefits: | | | | | | | | | | | | | | | | |
Field | | 423 | | 436 | | 428 | | 478 | | 486 | | 15% | | | 1,765 | |
Non-field | | 316 | | 330 | | 328 | | 374 | | 356 | | 13% | | | 1,348 | |
Total compensation and benefits | | 739 | | 766 | | 756 | | 852 | | 842 | | 14% | | | 3,113 | |
Interest credited to account values | | 324 | | 307 | | 317 | | 316 | | 287 | | (11)% | | | 1,264 | |
Benefits, claims, losses and settlement expenses | | 227 | | 225 | | 233 | | 245 | | 219 | | (4)% | | | 930 | |
Amortization of deferred acquisition costs | | 128 | | 153 | | 87 | | 104 | | 134 | | 5% | | | 472 | |
Interest and debt expense | | 23 | | 28 | | 32 | | 33 | | 32 | | 39% | | | 116 | |
Other expenses | | 250 | | 304 | | 248 | | 285 | | 248 | | (1)% | | | 1,087 | |
Total expenses before separation costs (1) | | 1,691 | | 1,783 | | 1,673 | | 1,835 | | 1,762 | | 4% | | | 6,982 | |
| | | | | | | | | | | | | | | | |
Income before income tax provision and separation costs (1) | | 258 | | 270 | | 304 | | 326 | | 301 | | 17% | | | 1,158 | |
Income tax provision before tax benefit attributable to separation costs (1) | | 69 | | 75 | | 73 | | 75 | | 81 | | 17% | | | 292 | |
| | | | | | | | | | | | | | | | |
Income before separation costs (1) | | 189 | | 195 | | 231 | | 251 | | 220 | | 16% | | | 866 | |
Separation costs, after-tax (1) | | 44 | | 54 | | 57 | | 80 | | 55 | | 25% | | | 235 | |
Net income | | $ | 145 | | $ | 141 | | $ | 174 | | $ | 171 | | $ | 165 | | 14% | | | $ | 631 | |
| | | | | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | | | | |
Net investment gains (losses), after-tax | | $ | 3 | | $ | 4 | | $ | 9 | | $ | 17 | | $ | 6 | | # | | | $ | 33 | |
Dividends paid | | $ | 28 | | $ | 27 | | $ | 27 | | $ | 26 | | $ | 27 | | (4)% | | | $ | 108 | |
Contribution margin | | 50.0 | % | 52.8 | % | 50.5 | % | 51.9 | % | 51.9 | % | | | | 51.4 | % |
(1) See non-GAAP Financial Information.
# Variance of 100% or greater.
2
Ameriprise Financial, Inc.
Financial Advisor and Client Metrics
(unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | 1Q ’07 vs. 1Q ’06 % Change | | Full Year 2006 | |
Financial Advisors | | | | | | | | | | | | | | | | |
Employee advisors | | 3,075 | | 3,056 | | 3,063 | | 3,178 | | 2,987 | | (3)% | | | 3,178 | |
Franchisee advisors | | 7,491 | | 7,499 | | 7,571 | | 7,651 | | 7,611 | | 2% | | | 7,651 | |
Total branded financial advisors | | 10,566 | | 10,555 | | 10,634 | | 10,829 | | 10,598 | | — | | | 10,829 | |
Securities America, Inc. registered representatives | | 1,813 | | 1,817 | | 1,793 | | 1,763 | | 1,744 | | (4)% | | | 1,763 | |
Total financial advisors | | 12,379 | | 12,372 | | 12,427 | | 12,592 | | 12,342 | | — | | | 12,592 | |
| | | | | | | | | | | | | | | | |
Employee advisor retention | | 62 | % | 60 | % | 63 | % | 63 | % | 63 | % | | | | 63 | % |
Franchisee advisor retention | | 91 | % | 91 | % | 93 | % | 93 | % | 93 | % | | | | 93 | % |
| | | | | | | | | | | | | | | | |
Gross dealer concession per branded advisor (in thousands) | | $ | 43.8 | | $ | 44.7 | | $ | 45.0 | | $ | 49.2 | | $ | 51.1 | | 17% | | | $ | 182.7 | |
| | | | | | | | | | | | | | | | |
Client Relationships | | | | | | | | | | | | | | | | |
Total clients (in thousands) | | 2,762 | | 2,770 | | 2,779 | | 2,786 | | 2,774 | | — | | | 2,786 | |
Client retention | | 92 | % | 93 | % | 93 | % | 93 | % | 93 | % | | | | 93 | % |
| | | | | | | | | | | | | | | | |
Branded advisor clients (in thousands) | | 1,990 | | 1,950 | | 1,925 | | 1,933 | | 1,939 | | (3)% | | | 1,933 | |
| | | | | | | | | | | | | | | | |
Clients with a financial plan percentage | | 44 | % | 44 | % | 44 | % | 45 | % | 45 | % | | | | 45 | % |
| | | | | | | | | | | | | | | | |
Financial plans sold (in thousands) | | 63 | | 58 | | 55 | | 61 | | 66 | | 5% | | | 237 | |
| | | | | | | | | | | | | | | | | | | | | | |
# Variance of 100% or greater.
3
Ameriprise Financial, Inc.
Corporate Volumes
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in millions unless otherwise noted, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Owned, managed and administered assets (in billions) | | | | | | | | | | | | | | | | |
Owned assets | | $ | 89.1 | | $ | 89.1 | | $ | 92.7 | | $ | 97.2 | | $ | 98.2 | | 10% | | | $ | 97.2 | |
Managed assets | | 276.2 | | 276.1 | | 283.4 | | 299.8 | | 305.3 | | 11% | | | 299.8 | |
Administered assets | | 80.4 | | 62.7 | | 63.9 | | 69.1 | | 70.4 | | (12)% | | | 69.1 | |
Total owned, managed and administered assets | | $ | 445.7 | | $ | 427.9 | | $ | 440.0 | | $ | 466.1 | | $ | 473.9 | | 6% | | | $ | 466.1 | |
| | | | | | | | | | | | | | | | |
Ending RiverSource Managed Assets (in billions) | | $ | 154.3 | | $ | 151.0 | | $ | 152.4 | | $ | 156.7 | | $ | 156.3 | | 1% | | | $ | 156.7 | |
| | | | | | | | | | | | | | | | |
Cash Sales | | | | | | | | | | | | | | | | |
By product: | | | | | | | | | | | | | | | | |
Mutual funds and non-proprietary SPS wrap net flows | | $ | 9,524 | | $ | 9,145 | | $ | 8,028 | | $ | 8,574 | | $ | 10,617 | | 11% | | | 35,271 | |
Annuities | | 2,870 | | 3,475 | | 3,341 | | 3,257 | | 3,296 | | 15% | | | 12,943 | |
Investment certificates | | 435 | | 373 | | 382 | | 696 | | 236 | | (46)% | | | 1,886 | |
Life and other insurance products | | 289 | | 265 | | 273 | | 274 | | 274 | | (5)% | | | 1,101 | |
Institutional products and services | | 2,250 | | 1,790 | | 1,912 | | 2,485 | | 2,517 | | 12% | | | 8,437 | |
Other | | 322 | | 518 | | 455 | | 1,275 | | 731 | | # | | | 2,570 | |
Total | | $ | 15,690 | | $ | 15,566 | | $ | 14,391 | | $ | 16,561 | | $ | 17,671 | | 13% | | | $ | 62,208 | |
| | | | | | | | | | | | | | | | |
By channel: | | | | | | | | | | | | | | | | |
Branded advisor cash sales and wrap net flows | | $ | 8,498 | | $ | 8,707 | | $ | 7,761 | | $ | 9,465 | | $ | 9,706 | | 14% | | | $ | 34,431 | |
Securities America, Inc. | | 2,037 | | 2,124 | | 1,950 | | 1,805 | | 2,234 | | 10% | | | 7,916 | |
Third-party distribution | | 305 | | 398 | | 427 | | 427 | | 407 | | 33% | | | 1,557 | |
Institutional | | 2,009 | | 1,217 | | 1,197 | | 1,817 | | 1,834 | | (9)% | | | 6,240 | |
Threadneedle | | 2,420 | | 2,758 | | 2,705 | | 2,676 | | 3,094 | | 28% | | | 10,559 | |
All other (AEB, etc.) | | 421 | | 362 | | 351 | | 371 | | 396 | | (6)% | | | 1,505 | |
Total | | $ | 15,690 | | $ | 15,566 | | $ | 14,391 | | $ | 16,561 | | $ | 17,671 | | 13% | | | $ | 62,208 | |
| | | | | | | | | | | | | | | | |
Total gross dealer concession | | $ | 527 | | $ | 545 | | $ | 545 | | $ | 596 | | $ | 624 | | 18% | | | $ | 2,213 | |
# Variance of 100% or greater.
4
Ameriprise Financial, Inc.
Consolidated Balance Sheets
(in millions, unaudited) | | March 31, 2006 | | June 30, 2006 | | September 30, 2006 | | December 31, 2006 | | March 31, 2007 | |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 1,650 | | $ | 2,101 | | $ | 3,309 | | $ | 2,717 | | $ | 2,413 | |
Investments | | 38,100 | | 37,027 | | 36,198 | | 35,553 | | 34,446 | |
Receivables | | 2,382 | | 2,441 | | 2,504 | | 2,960 | | 3,022 | |
Deferred acquisition costs | | 4,280 | | 4,342 | | 4,423 | | 4,499 | | 4,337 | |
Separate account assets | | 45,220 | | 45,751 | | 48,834 | | 53,848 | | 56,281 | |
Restricted and segregated cash | | 1,084 | | 1,002 | | 1,059 | | 1,236 | | 1,175 | |
Other assets | | 3,105 | | 3,385 | | 3,177 | | 3,359 | | 3,486 | |
Total assets | | $ | 95,821 | | $ | 96,049 | | $ | 99,504 | | $ | 104,172 | | $ | 105,160 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Future policy benefits and claims | | $ | 32,200 | | $ | 31,546 | | $ | 30,794 | | $ | 30,033 | | $ | 29,153 | |
Customer deposits | | 6,100 | | 5,711 | | 6,391 | | 6,525 | | 6,483 | |
Accounts payable and accrued expenses | | 1,823 | | 2,097 | | 1,952 | | 1,984 | | 1,672 | |
Debt | | 1,921 | | 2,419 | | 2,254 | | 2,225 | | 2,225 | |
Separate account liabilities | | 45,220 | | 45,751 | | 48,834 | | 53,848 | | 56,281 | |
Other liabilities | | 1,216 | | 1,290 | | 1,526 | | 1,632 | | 1,615 | |
Total liabilities | | 88,480 | | 88,814 | | 91,751 | | 96,247 | | 97,429 | |
| | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | |
Common shares ($.01 par) | | 3 | | 3 | | 3 | | 3 | | 3 | |
Additional paid-in capital | | 4,208 | | 4,254 | | 4,291 | | 4,353 | | 4,468 | |
Retained earnings | | 3,862 | | 3,976 | | 4,123 | | 4,268 | | 4,268 | |
Treasury stock | | (290 | ) | (332 | ) | (438 | ) | (490 | ) | (865 | ) |
Accumulated other comprehensive income (loss), net of tax | | (442 | ) | (666 | ) | (226 | ) | (209 | ) | (143 | ) |
Total shareholders’ equity | | 7,341 | | 7,235 | | 7,753 | | 7,925 | | 7,731 | |
Total liabilities and shareholders’ equity | | $ | 95,821 | | $ | 96,049 | | $ | 99,504 | | $ | 104,172 | | $ | 105,160 | |
5
Ameriprise Financial, Inc.
Investment Detail
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | |
(in millions unless otherwise noted, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | |
Net Investment Income | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 543 | | $ | 522 | | $ | 524 | | $ | 531 | | $ | 515 | | (5)% | | |
Realized gains (losses) | | 4 | | 6 | | 14 | | 27 | | 9 | | # | | |
Income related to interest credited and benefits line hedges | | 1 | | (13 | ) | 18 | | 15 | | (3 | ) | # | | |
Other (including seed money) | | 26 | | 7 | | (14 | ) | (7 | ) | (3 | ) | # | | |
Total net investment income | | $ | 574 | | $ | 522 | | $ | 542 | | $ | 566 | | $ | 518 | | (10)% | | |
| | | | | | | | | | | | | | |
Equity by Legal Entity | | | | | | | | | | | | | | |
RiverSource Life Insurance Company | | $ | 5,009 | | $ | 4,818 | | $ | 5,227 | | $ | 5,270 | | $ | 5,167 | | 3% | | |
IDS Property Casualty Insurance Company | | 513 | | 506 | | 534 | | 557 | | 575 | | 12% | | |
Ameriprise Certificate Company | | 225 | | 199 | | 234 | | 230 | | 229 | | 2% | | |
Ameriprise Bank, FSB | | — | | — | | 172 | | 169 | | 172 | | — | | |
Other | | 1,594 | | 1,712 | | 1,586 | | 1,699 | | 1,588 | | — | | |
Total equity by legal entity | | $ | 7,341 | | $ | 7,235 | | $ | 7,753 | | $ | 7,925 | | $ | 7,731 | | 5% | | |
| | | | | | | | | | | | | | |
Mortgage and Other Asset-Backed Securities Portfolio Detail - Fair Value (in billions) | |
RiverSource Life Consolidated | | | | | | | | | | | | | | |
Mortgage backed securities | | $ | 6.2 | | $ | 6.0 | | $ | 5.7 | | $ | 5.4 | | $ | 5.2 | | (16)% | | |
Commercial mortgage backed securities | | 3.0 | | 3.0 | | 3.0 | | 2.9 | | 2.9 | | (3)% | | |
Asset backed securities | | 1.2 | | 1.0 | | 0.9 | | 1.0 | | 0.8 | | (33)% | | |
Total | | $ | 10.4 | | $ | 10.0 | | $ | 9.6 | | $ | 9.3 | | $ | 8.9 | | (14)% | | |
| | | | | | | | | | | | | | |
Ameriprise Financial, Inc. | | | | | | | | | | | | | | |
Mortgage backed securities | | $ | 8.4 | | $ | 8.0 | | $ | 7.8 | | $ | 7.7 | | $ | 7.4 | | (12)% | | |
Commercial mortgage backed securities | | 3.5 | | 3.4 | | 3.4 | | 3.4 | | 3.3 | | (6)% | | |
Asset backed securities | | 1.5 | | 1.4 | | 1.3 | | 1.2 | | 1.3 | | (13)% | | |
Total | | $ | 13.4 | | $ | 12.8 | | $ | 12.5 | | $ | 12.3 | | $ | 12.0 | | (10)% | | |
| | | | | | | | | | | | | | |
Mortgage Loans on Real Estate | | | | | | | | | | | | | | |
Mortgage loans on real estate | | $ | 3,147 | | $ | 3,129 | | $ | 3,111 | | $ | 3,096 | | $ | 3,031 | | (4)% | | |
Allowance for loan losses | | (41 | ) | (40 | ) | (40 | ) | (40 | ) | (40 | ) | 2% | | |
Mortgage loans on real estate, net | | $ | 3,106 | | $ | 3,089 | | $ | 3,071 | | $ | 3,056 | | $ | 2,991 | | (4)% | | |
# Variance of 100% or greater.
6
Ameriprise Financial, Inc.
Selected Balance Sheet Information
| | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | |
(in billions, unaudited) | | Cost | | Fair Value | | Cost | | Fair Value | | Cost | | Fair Value | | Cost | | Fair Value | | Cost | | Fair Value | |
Earning Assets by Type | | | | | | | | | | | | | | | | | | | | | |
Equity | | — | | — | | 0.1% | | 0.1% | | 0.1% | | 0.1% | | 0.1% | | 0.1% | | 0.1% | | 0.1% | |
Fixed income | | 37.6% | | 37.2% | | 36.8% | | 36.1% | | 34.2% | | 33.9% | | 31.9% | | 31.7% | | 30.4% | | 30.3% | |
Separate accounts | | 50.4% | | 50.8% | | 50.8% | | 51.4% | | 52.4% | | 52.6% | | 55.2% | | 55.4% | | 57.2% | | 57.3% | |
Other | | 12.0% | | 12.0% | | 12.3% | | 12.4% | | 13.3% | | 13.4% | | 12.8% | | 12.8% | | 12.3% | | 12.3% | |
| | | | | | | | | | | | | | | | | | | | | |
Available-for-Sale (AFS) Investments | | | | | | | | | | | | | | | | | | | | | |
Corporate debt securities | | $ | 18.5 | | $ | 18.1 | | $ | 18.1 | | $ | 17.5 | | $ | 17.5 | | $ | 17.3 | | $ | 17.0 | | $ | 16.8 | | $ | 16.3 | | $ | 16.1 | |
Mortgage and other asset-backed securities | | 13.7 | | 13.4 | | 13.2 | | 12.8 | | 12.7 | | 12.5 | | 12.5 | | 12.3 | | 12.1 | | 12.0 | |
State and municipal obligations | | 0.9 | | 0.9 | | 1.0 | | 1.0 | | 1.0 | | 1.1 | | 1.0 | | 1.1 | | 1.1 | | 1.1 | |
U.S. government and agencies obligations | | 0.4 | | 0.4 | | 0.4 | | 0.4 | | 0.4 | | 0.4 | | 0.4 | | 0.4 | | 0.4 | | 0.4 | |
Foreign government bonds and obligations | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | |
Common and preferred stocks | | — | | — | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | — | | 0.1 | |
Other debt | | 0.2 | | 0.3 | | 0.3 | | 0.3 | | 0.1 | | — | | 0.1 | | 0.1 | | — | | — | |
Total AFS investments | | $ | 33.8 | | $ | 33.2 | | $ | 33.2 | | $ | 32.2 | | $ | 31.9 | | $ | 31.5 | | $ | 31.2 | | $ | 30.9 | | $ | 30.0 | | $ | 29.8 | |
| | | | | | | | | | | | | | | | | | | | | |
AFS Fixed Maturity Asset Quality | | | | | | | | | | | | | | | | | | | | | |
AAA | | 43% | | | | 43% | | | | 43% | | | | 43% | | | | 44% | | | |
AA | | 8% | | | | 8% | | | | 8% | | | | 9% | | | | 10% | | | |
A | | 19% | | | | 18% | | | | 18% | | | | 17% | | | | 16% | | | |
BBB | | 23% | | | | 24% | | | | 24% | | | | 24% | | | | 24% | | | |
Below investment grade | | 7% | | | | 7% | | | | 7% | | | | 7% | | | | 6% | | | |
| | | | | | | | | | | | | | | | | | | | | |
SFAS 115 related mark-to-market amount in assets, pretax | | $ | (0.6 | ) | | | $ | (1.0 | ) | | | $ | (0.4 | ) | | | $ | (0.3 | ) | | | $ | (0.2 | ) | | |
7
Ameriprise Financial, Inc.
Adjusted Segment Information
Excluding Separation Costs
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in millions unless otherwise noted, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Revenues | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | $ | 1,422 | | $ | 1,493 | | $ | 1,423 | | $ | 1,590 | | $ | 1,497 | | 5 | % | | $ | 5,928 | |
Protection | | 473 | | 496 | | 498 | | 502 | | 500 | | 6 | % | | 1,969 | |
Corporate and Other and Eliminations | | 54 | | 64 | | 56 | | 69 | | 66 | | 22 | % | | 243 | |
Total revenues | | 1,949 | | 2,053 | | 1,977 | | 2,161 | | 2,063 | | 6 | % | | 8,140 | |
| | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | 1,194 | | 1,271 | | 1,231 | | 1,341 | | 1,265 | | 6 | % | | 5,037 | |
Protection | | 399 | | 404 | | 347 | | 396 | | 399 | | — | | | 1,546 | |
Adjusted Corporate and Other and Eliminations | | 98 | | 108 | | 95 | | 98 | | 98 | | — | | | 399 | |
Total adjusted expenses | | 1,691 | | 1,783 | | 1,673 | | 1,835 | | 1,762 | | 4 | % | | 6,982 | |
| | | | | | | | | | | | | | | | |
Pretax Segment Income | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | 228 | | 222 | | 192 | | 249 | | 232 | | 2 | % | | 891 | |
Protection | | 74 | | 92 | | 151 | | 106 | | 101 | | 36 | % | | 423 | |
Adjusted Corporate and Other and Eliminations | | (44 | ) | (44 | ) | (39 | ) | (29 | ) | (32 | ) | 27 | % | | (156 | ) |
Total adjusted pretax segment income | | $ | 258 | | $ | 270 | | $ | 304 | | $ | 326 | | $ | 301 | | 17 | % | | $ | 1,158 | |
| | | | | | | | | | | | | | | | |
Allocated Equity | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | $ | 3,851 | | $ | 3,767 | | $ | 3,910 | | $ | 3,811 | | $ | 3,640 | | (5 | )% | | $ | 3,811 | |
Protection | | 2,173 | | 2,234 | | 2,246 | | 2,261 | | 2,280 | | 5 | % | | 2,261 | |
Corporate and Other and Eliminations | | 1,759 | | 1,900 | | 1,823 | | 2,062 | | 1,954 | | 11 | % | | 2,062 | |
Other comprehensive income | | (442 | ) | (666 | ) | (226 | ) | (209 | ) | (143 | ) | 68 | % | | (209 | ) |
Total shareholders’ equity | | $ | 7,341 | | $ | 7,235 | | $ | 7,753 | | $ | 7,925 | | $ | 7,731 | | 5 | % | | $ | 7,925 | |
| | | | | | | | | | | | | | | | |
Gross Dealer Concession | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | $ | 423 | | $ | 443 | | $ | 446 | | $ | 487 | | $ | 514 | | 22 | % | | $ | 1,799 | |
Protection | | 52 | | 52 | | 51 | | 54 | | 51 | | (2 | )% | | 209 | |
Corporate and Other and Eliminations | | 52 | | 50 | | 48 | | 55 | | 59 | | 13 | % | | 205 | |
Total gross dealer concession | | $ | 527 | | $ | 545 | | $ | 545 | | $ | 596 | | $ | 624 | | 18 | % | | $ | 2,213 | |
| | | | | | | | | | | | | | | | |
Owned, Managed and Administered Assets (in billions) | | | | | | | | | | | | | | | | |
Owned Assets | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | $ | 74.4 | | $ | 72.6 | | $ | 76.0 | | $ | 79.7 | | $ | 80.3 | | 8 | % | | $ | 79.7 | |
Protection | | 13.0 | | 14.1 | | 14.6 | | 15.2 | | 16.0 | | 23 | % | | 15.2 | |
Corporate and Other and Eliminations | | 1.7 | | 2.4 | | 2.1 | | 2.3 | | 1.9 | | 12 | % | | 2.3 | |
Total owned assets | | 89.1 | | 89.1 | | 92.7 | | 97.2 | | 98.2 | | 10 | % | | 97.2 | |
Managed Assets | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | 276.2 | | 276.1 | | 283.4 | | 299.8 | | 305.3 | | 11 | % | | 299.8 | |
Total managed assets | | 276.2 | | 276.1 | | 283.4 | | 299.8 | | 305.3 | | 11 | % | | 299.8 | |
Administered Assets | | | | | | | | | | | | | | | | |
Asset Accumulation and Income | | 80.4 | | 62.7 | | 63.9 | | 69.1 | | 70.4 | | (12 | )% | | 69.1 | |
Total administered assets | | 80.4 | | 62.7 | | 63.9 | | 69.1 | | 70.4 | | (12 | )% | | 69.1 | |
Total owned, managed and administered assets | | $ | 445.7 | | $ | 427.9 | | $ | 440.0 | | $ | 466.1 | | $ | 473.9 | | 6 | % | | $ | 466.1 | |
# Variance of 100% or greater.
8
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Income Statements
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Revenues | | | | | | | | | | | | | | | | |
Management, financial advice and service fees | | $ | 646 | | $ | 654 | | $ | 657 | | $ | 749 | | $ | 718 | | 11% | | | $ | 2,706 | |
Distribution fees | | 273 | | 297 | | 272 | | 344 | | 317 | | 16% | | | 1,186 | |
Net investment income | | 475 | | 427 | | 443 | | 454 | | 415 | | (13)% | | | 1,799 | |
Other revenues | | 28 | | 115 | | 51 | | 43 | | 47 | | 68% | | | 237 | |
Total revenues | | 1,422 | | 1,493 | | 1,423 | | 1,590 | | 1,497 | | 5% | | | 5,928 | |
| | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
Compensation and benefits - field | | 366 | | 376 | | 370 | | 425 | | 419 | | 14% | | | 1,537 | |
Interest credited to account values | | 288 | | 271 | | 281 | | 279 | | 253 | | (12)% | | | 1,119 | |
Benefits, claims, losses and settlement expenses | | 4 | | 12 | | 3 | | 22 | | (8 | ) | # | | | 41 | |
Amortization of deferred acquisition costs | | 87 | | 91 | | 98 | | 63 | | 99 | | 14% | | | 339 | |
Interest and debt expense | | 3 | | 5 | | 4 | | 3 | | 3 | | — | | | 15 | |
Other expenses | | 446 | | 516 | | 475 | | 549 | | 499 | | 12% | | | 1,986 | |
Total expenses | | 1,194 | | 1,271 | | 1,231 | | 1,341 | | 1,265 | | 6% | | | 5,037 | |
Pretax segment income | | $ | 228 | | $ | 222 | | $ | 192 | | $ | 249 | | $ | 232 | | 2% | | | $ | 891 | |
| | | | | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | | | | |
Net investment gains (losses), pretax | | $ | 1 | | $ | 6 | | $ | 12 | | $ | 21 | | $ | 8 | | # | | | $ | 40 | |
Contribution margin | | 53.7 | % | 55.9 | % | 54.0 | % | 54.3 | % | 55.6 | % | | | | 54.5 | % |
Allocated equity | | $ | 3,851 | | $ | 3,767 | | $ | 3,910 | | $ | 3,811 | | $ | 3,640 | | (5)% | | | $ | 3,811 | |
Return on allocated equity for pretax segment income | | 20.5 | % | 21.7 | % | 21.8 | % | 23.2 | % | 23.6 | % | | | | 23.2 | % |
# Variance of 100% or greater.
9
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Revenues by Product
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Revenues | | | | | | | | | | | | | | | | |
Management, financial advice and service fees | | | | | | | | | | | | | | | | |
Asset management | | $ | 293 | | $ | 296 | | $ | 294 | | $ | 347 | | $ | 294 | | — | | | $ | 1,230 | |
Variable annuities | | 138 | | 146 | | 150 | | 171 | | 177 | | 28% | | | 605 | |
Fixed annuities | | 1 | | 2 | | 2 | | 1 | | 2 | | # | | | 6 | |
Brokerage, banking and other | | 214 | | 210 | | 211 | | 230 | | 245 | | 14% | | | 865 | |
Total management, financial advice and service fees | | 646 | | 654 | | 657 | | 749 | | 718 | | 11% | | | 2,706 | |
| | | | | | | | | | | | | | | | |
Distribution fees | | | | | | | | | | | | | | | | |
Asset management | | 46 | | 42 | | 37 | | 39 | | 39 | | (15)% | | | 164 | |
Variable annuities | | 10 | | 10 | | 10 | | 8 | | 10 | | — | | | 38 | |
Fixed annuities | | 3 | | 3 | | 2 | | 2 | | 2 | | (33)% | | | 10 | |
Brokerage, banking and other | | 214 | | 242 | | 223 | | 295 | | 266 | | 24% | | | 974 | |
Total distribution fees | | 273 | | 297 | | 272 | | 344 | | 317 | | 16% | | | 1,186 | |
| | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | |
Asset management | | 11 | | 4 | | 22 | | 3 | | 12 | | 9% | | | 40 | |
Variable annuities | | 71 | | 68 | | 67 | | 63 | | 54 | | (24)% | | | 269 | |
Fixed annuities | | 304 | | 278 | | 267 | | 288 | | 258 | | (15)% | | | 1,137 | |
Certificates | | 74 | | 60 | | 70 | | 70 | | 61 | | (18)% | | | 274 | |
Brokerage, banking and other | | 15 | | 17 | | 17 | | 30 | | 30 | | # | | | 79 | |
Total net investment income | | 475 | | 427 | | 443 | | 454 | | 415 | | (13)% | | | 1,799 | |
| | | | | | | | | | | | | | | | |
Other revenues | | | | | | | | | | | | | | | | |
Asset management | | 8 | | 99 | | 28 | | 20 | | 18 | | # | | | 155 | |
Variable annuities | | 10 | | 11 | | 12 | | 14 | | 16 | | 60% | | | 47 | |
Brokerage, banking and other | | 10 | | 5 | | 11 | | 9 | | 13 | | 30% | | | 35 | |
Total other revenues | | 28 | | 115 | | 51 | | 43 | | 47 | | 68% | | | 237 | |
| | | | | | | | | | | | | | | | |
Total revenues | | $ | 1,422 | | $ | 1,493 | | $ | 1,423 | | $ | 1,590 | | $ | 1,497 | | 5% | | | $ | 5,928 | |
| | | | | | | | | | | | | | | | |
Total revenues | | | | | | | | | | | | | | | | |
Asset management | | $ | 358 | | $ | 441 | | $ | 381 | | $ | 409 | | $ | 363 | | 1% | | | $ | 1,589 | |
Variable annuities | | 229 | | 235 | | 239 | | 256 | | 257 | | 12% | | | 959 | |
Fixed annuities | | 308 | | 283 | | 271 | | 291 | | 262 | | (15)% | | | 1,153 | |
Certificates | | 74 | | 60 | | 70 | | 70 | | 61 | | (18)% | | | 274 | |
Brokerage, banking and other | | 453 | | 474 | | 462 | | 564 | | 554 | | 22% | | | 1,953 | |
| | | | | | | | | | | | | | | | |
Total revenues | | $ | 1,422 | | $ | 1,493 | | $ | 1,423 | | $ | 1,590 | | $ | 1,497 | | 5% | | | $ | 5,928 | |
# Variance of 100% or greater.
10
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Retail Managed Assets Rollforwards
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in billions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
RiverSource Managed Mutual Funds | | | | | | | | | | | | | | | |
Beginning assets | | $ | 76.6 | | $ | 78.2 | | $ | 76.4 | | $ | 78.2 | | $ | 81.7 | | 7 | % | | $ | 76.6 | |
Sales | | 3.5 | | 4.0 | | 4.5 | | 4.2 | | 4.4 | | 26 | % | | 16.2 | |
Redemptions | | (5.6 | ) | (4.6 | ) | (4.9 | ) | (5.1 | ) | (4.9 | ) | 13 | % | | (20.2 | ) |
Market appreciation (depreciation) | | 3.7 | | (1.2 | ) | 2.4 | | 4.6 | | 1.2 | | (68 | )% | | 9.5 | |
Other | | — | | — | | (0.2 | ) | (0.2 | ) | (0.3 | ) | # | | | (0.4 | ) |
Total ending assets | | $ | 78.2 | | $ | 76.4 | | $ | 78.2 | | $ | 81.7 | | $ | 82.1 | | 5 | % | | $ | 81.7 | |
| | | | | | | | | | | | | | | | |
Percent of Ending Assets Subadvised by Others | | 10 | % | 10 | % | 10 | % | 11 | % | 11 | % | | | | 11 | % |
| | | | | | | | | | | | | | | | |
RiverSource Managed Mutual Funds by Type | | | | | | | | | | | | | | | | |
Equity mutual funds | | $ | 39.1 | | $ | 37.2 | | $ | 37.4 | | $ | 39.0 | | $ | 38.6 | | (1 | )% | | $ | 39.0 | |
Taxable fixed income mutual funds | | 8.1 | | 7.9 | | 8.1 | | 8.0 | | 8.2 | | 1 | % | | 8.0 | |
Tax-exempt fixed income mutual funds | | 5.3 | | 5.0 | | 4.9 | | 4.8 | | 4.6 | | (13 | )% | | 4.8 | |
Money market mutual funds | | 3.6 | | 3.9 | | 4.3 | | 4.5 | | 4.6 | | 28 | % | | 4.5 | |
Hybrid and other mutual funds | | 2.7 | | 2.8 | | 2.9 | | 3.2 | | 3.3 | | 22 | % | | 3.2 | |
Variable product funds (1) | | 19.4 | | 19.6 | | 20.6 | | 22.2 | | 22.8 | | 18 | % | | 22.2 | |
Total ending assets | | $ | 78.2 | | $ | 76.4 | | $ | 78.2 | | $ | 81.7 | | $ | 82.1 | | 5 | % | | $ | 81.7 | |
| | | | | | | | | | | | | | | | |
Threadneedle Managed Mutual Funds | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 14.0 | | $ | 15.3 | | $ | 14.9 | | $ | 15.6 | | $ | 16.6 | | 19 | % | | $ | 14.0 | |
Sales | | 1.3 | | 1.3 | | 1.2 | | 1.3 | | 1.7 | | 31 | % | | 5.1 | |
Redemptions | | (1.4 | ) | (1.6 | ) | (1.5 | ) | (1.9 | ) | (1.9 | ) | (36 | )% | | (6.4 | ) |
Market appreciation (depreciation) | | 1.1 | | (0.8 | ) | 0.6 | | 0.9 | | 0.4 | | (64 | )% | | 1.8 | |
Foreign currency translation | | 0.1 | | 0.7 | | 0.4 | | 0.7 | | 0.1 | | –– | | | 1.9 | |
Other | | 0.2 | | –– | | –– | | — | | (0.1 | ) | | # | | 0.2 | |
Total ending assets | | $ | 15.3 | | $ | 14.9 | | $ | 15.6 | | $ | 16.6 | | $ | 16.8 | | 10 | % | | $ | 16.6 | |
| | | | | | | | | | | | | | | | |
Threadneedle Managed Mutual Funds by Type | | | | | | | | | | | | | | | | |
Equity mutual funds | | $ | 11.5 | | $ | 11.0 | | $ | 11.5 | | $ | 12.2 | | $ | 12.3 | | 7 | % | | $ | 12.2 | |
Fixed income mutual funds | | 2.9 | | 3.0 | | 3.1 | | 3.3 | | 3.4 | | 17 | % | | 3.3 | |
Money market mutual funds | | 0.3 | | 0.3 | | 0.3 | | 0.3 | | 0.2 | | (33 | )% | | 0.3 | |
Hybrid and other mutual funds | | 0.6 | | 0.6 | | 0.7 | | 0.8 | | 0.9 | | 50 | % | | 0.8 | |
Total ending assets | | $ | 15.3 | | $ | 14.9 | | $ | 15.6 | | $ | 16.6 | | $ | 16.8 | | 10 | % | | $ | 16.6 | |
| | | | | | | | | | | | | | | | |
RiverSource Collective Funds | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 11.3 | | $ | 11.0 | | $ | 10.9 | | $ | 11.0 | | $ | 10.2 | | (10 | )% | | $ | 11.3 | |
Net Flows | | (0.6 | ) | –– | | (0.2 | ) | (1.1 | ) | (0.3 | ) | 50 | % | | (1.9 | ) |
Market appreciation (depreciation) | | 0.3 | | –– | | 0.2 | | 0.3 | | 0.1 | | (67 | )% | | 0.8 | |
Other | | –– | | (0.1 | ) | –– | | –– | | –– | | –– | | | (0.1 | ) |
Total ending assets | | $ | 11.0 | | $ | 10.9 | | $ | 11.0 | | $ | 10.2 | | $ | 10.0 | | (9 | )% | | $ | 10.2 | |
(1) Difference between Variable product funds and Variable product liabilities, as shown on page 14, represents a timing difference of dividends declared and reinvested into the funds.
# Variance of 100% or greater.
11
Ameriprise Financial, Inc.
Institutional Managed Assets Roll Forward and Management Fee Information
Institutional Managed Assets Rollforwards
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in billions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
RiverSource Managed Institutional Accounts | | | | | | | | | | | | | | | |
Beginning assets | | $ | 27.2 | | $ | 27.5 | | $ | 27.3 | | $ | 26.9 | | $ | 27.9 | | 3 | % | | $ | 27.2 | |
Sales | | 1.4 | | 0.6 | | 0.9 | | 1.8 | | 1.8 | | 29 | % | | 4.7 | |
Redemptions | | (0.8 | ) | (0.6 | ) | (1.7 | ) | (0.9 | ) | (1.1 | ) | (38 | )% | | (4.0 | ) |
Market appreciation (depreciation) | | 0.1 | | (0.1 | ) | 0.3 | | 0.2 | | 0.1 | | –– | | | 0.5 | |
Other | | (0.4 | ) | (0.1 | ) | 0.1 | | (0.1 | ) | –– | | | # | | (0.5 | ) |
Total ending assets | | $ | 27.5 | | $ | 27.3 | | $ | 26.9 | | $ | 27.9 | | $ | 28.7 | | 4 | % | | $ | 27.9 | |
| | | | | | | | | | | | | | | | |
RiverSource Managed Institutional Assets by Type | | | | | | | | | | | | | | | | |
Equity ending assets | | $ | 2.5 | | $ | 2.5 | | $ | 2.6 | | $ | 2.9 | | $ | 3.0 | | 20 | % | | $ | 2.9 | |
Fixed income ending assets | | 24.8 | | 24.3 | | 23.8 | | 24.1 | | 25.2 | | 2 | % | | 24.1 | |
Money market ending assets | | 0.2 | | 0.4 | | 0.4 | | 0.8 | | 0.4 | | | # | | 0.8 | |
Other ending assets | | –– | | 0.1 | | 0.1 | | 0.1 | | 0.1 | | –– | | | 0.1 | |
Total ending assets | | $ | 27.5 | | $ | 27.3 | | $ | 26.9 | | $ | 27.9 | | $ | 28.7 | | 4 | % | | $ | 27.9 | |
| | | | | | | | | | | | | | | | |
Threadneedle Managed Institutional Accounts | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 99.6 | | $ | 104.1 | | $ | 105.2 | | $ | 108.0 | | $ | 115.1 | | 16 | % | | $ | 99.6 | |
Sales | | 4.6 | | 5.8 | | 5.4 | | 5.9 | | 5.3 | | 15 | % | | 21.7 | |
Redemptions | | (5.5 | ) | (6.8 | ) | (7.6 | ) | (7.9 | ) | (7.4 | ) | (35 | )% | | (27.8 | ) |
Market appreciation (depreciation) | | 4.0 | | (3.3 | ) | 1.6 | | 3.0 | | 1.1 | | (73 | )% | | 5.3 | |
Foreign currency translation | | 0.7 | | 4.4 | | 2.8 | | 5.0 | | 0.5 | | (29 | )% | | 12.9 | |
Other | | 0.7 | | 1.0 | | 0.6 | | 1.1 | | 0.9 | | 29 | % | | 3.4 | |
Total ending assets | | $ | 104.1 | | $ | 105.2 | | $ | 108.0 | | $ | 115.1 | | $ | 115.5 | | 11 | % | | $ | 115.1 | |
| | | | | | | | | | | | | | | | |
Threadneedle Managed Institutional Assets by Type | | | | | | | | | | | | | | | | |
Equity ending assets | | $ | 53.9 | | $ | 52.5 | | $ | 54.0 | | $ | 57.8 | | $ | 57.8 | | 7 | % | | $ | 57.8 | |
Fixed income ending assets | | 33.7 | | 35.9 | | 36.9 | | 38.4 | | 39.8 | | 18 | % | | 38.4 | |
Money market ending assets | | 5.8 | | 5.3 | | 5.1 | | 6.0 | | 4.6 | | (21 | )% | | 6.0 | |
Other ending assets | | 10.7 | | 11.5 | | 12.0 | | 12.9 | | 13.3 | | 24 | % | | 12.9 | |
Total ending assets | | $ | 104.1 | | $ | 105.2 | | $ | 108.0 | | $ | 115.1 | | $ | 115.5 | | 11 | % | | $ | 115.1 | |
# Variance of 100% or greater.
12
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Financial Advisor Managed Assets Rollforwards
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in billions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Ameriprise Wrap Accounts | | | | | | | | | | | | | | | |
Beginning assets | | $ | 49.7 | | $ | 54.9 | | $ | 56.7 | | $ | 59.9 | | $ | 65.9 | | 33 | % | | $ | 49.7 | |
Mutual fund net flows | | 1.9 | | 1.9 | | 1.2 | | 1.3 | | 2.5 | | 32 | % | | 6.3 | |
Market appreciation (depreciation) and other | | 3.3 | | (0.1 | ) | 2.0 | | 4.7 | | 1.5 | | (55 | )% | | 9.9 | |
Total ending assets | | $ | 54.9 | | $ | 56.7 | | $ | 59.9 | | $ | 65.9 | | $ | 69.9 | | 27 | % | | $ | 65.9 | |
| | | | | | | | | | | | | | | | |
Money Market Funds as a % of Ending Assets | | 4.3 | % | 6.2 | % | 5.9 | % | 6.4 | % | 5.9 | % | | | | 6.4 | % |
| | | | | | | | | | | | | | | | |
SAI Wrap Accounts | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 8.0 | | $ | 9.1 | | $ | 9.8 | | $ | 10.2 | | $ | 10.5 | | 31 | % | | $ | 8.0 | |
Net flows | | 0.6 | | 0.6 | | 0.3 | | 0.3 | | 0.5 | | (17 | )% | | 1.8 | |
Market appreciation (depreciation) and other | | 0.5 | | 0.1 | | 0.1 | | –– | | 0.9 | | 80 | % | | 0.7 | |
Total ending assets | | $ | 9.1 | | $ | 9.8 | | $ | 10.2 | | $ | 10.5 | | $ | 11.9 | | 31 | % | | $ | 10.5 | |
# Variance of 100% or greater.
13
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Owned Assets Related to Variable Products
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in billions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Variable Annuities (1) | | | | | | | | | | | | | | | |
Beginning balance | | $ | 33.2 | | $ | 36.1 | | $ | 36.7 | | $ | 39.3 | | $ | 43.5 | | 31 | % | | $ | 33.2 | |
Deposits | | 2.1 | | 2.5 | | 2.4 | | 2.6 | | 2.6 | | 24 | % | | 9.6 | |
Withdrawals and surrenders | | (1.0 | ) | (1.2 | ) | (1.0 | ) | (1.1 | ) | (1.2 | ) | (20 | )% | | (4.3 | ) |
Net flows | | 1.1 | | 1.3 | | 1.4 | | 1.5 | | 1.4 | | 27 | % | | 5.3 | |
Investment performance and interest credited | | 1.9 | | (0.8 | ) | 1.1 | | 2.5 | | 0.7 | | (63 | )% | | 4.7 | |
Other | | (0.1 | ) | 0.1 | | 0.1 | | 0.2 | | 0.2 | | | # | | 0.3 | |
Total ending balance - contract reserves | | $ | 36.1 | | $ | 36.7 | | $ | 39.3 | | $ | 43.5 | | $ | 45.8 | | 27 | % | | $ | 43.5 | |
| | | | | | | | | | | | | | | | |
Assets Managed by RiverSource | | | | | | | | | | | | | | | | |
Variable annuity separate account liabilities | | $ | 17.2 | | $ | 17.3 | | $ | 18.1 | | $ | 19.7 | | $ | 20.5 | | 19 | % | | | |
Variable universal life liabilities (2) | | 2.3 | | 2.3 | | 2.4 | | 2.6 | | 2.6 | | 13 | % | | | |
| | | | | | | | | | | | | | | | |
Assets Managed by Threadneedle | | $ | 4.0 | | $ | 4.0 | | $ | 4.2 | | $ | 4.6 | | $ | 4.5 | | 13 | % | | | |
(1) The fixed portion of the Variable annuities product is included in the Fixed annuities product account values on page 15.
(2) Revenue associated with this product is included in the Protection segment.
# Variance of 100% or greater.
14
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Net Investment Income and Spread Products
| | | | | | | | | | | | 1Q ‘07 vs. 1Q ‘06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Net Investment Income | | | | | | | | | | | | | | | |
Realized gains (losses) | | $ | 1 | | $ | 6 | | $ | 12 | | $ | 21 | | $ | 8 | | | # | | $ | 40 | |
Income related to interest credited and benefits line hedges | | 1 | | (13 | ) | 18 | | 15 | | (3 | ) | | # | | 21 | |
Net investment income | | $ | 475 | | $ | 427 | | $ | 443 | | $ | 454 | | $ | 415 | | (13 | )% | | $ | 1,799 | |
| | | | | | | | | | | | | | | | |
Certificates (Excluding Discontinued Operations) | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 5,649 | | $ | 5,180 | | $ | 4,863 | | $ | 4,608 | | $ | 4,720 | | (16 | )% | | $ | 5,649 | |
Deposits | | 471 | | $ | 378 | | 390 | | 706 | | 238 | | (49 | )% | | 1,945 | |
Withdrawals and surrenders | | (993 | ) | $ | (738 | ) | (700 | ) | (653 | ) | (447 | ) | 55 | % | | (3,084 | ) |
Net flows | | (522 | ) | (360 | ) | (310 | ) | 53 | | (209 | ) | 60 | % | | (1,139 | ) |
Interest credited | | 55 | | 42 | | 56 | | 58 | | 51 | | (7 | )% | | 211 | |
Other | | (2 | ) | 1 | | (1 | ) | 1 | | (1 | ) | 50 | % | | (1 | ) |
Total ending balance | | $ | 5,180 | | $ | 4,863 | | $ | 4,608 | | $ | 4,720 | | $ | 4,561 | | (12 | )% | | $ | 4,720 | |
| | | | | | | | | | | | | | | | |
Asset earnings rate | | 4.89 | % | 4.93 | % | 4.92 | % | 4.90 | % | 4.97 | % | | | | 4.91 | % |
Crediting rate | | (3.48 | )% | (3.66 | )% | (3.92 | )% | (4.15 | )% | (4.28 | )% | | | | (3.79 | )% |
Spread (1) | | 1.41 | % | 1.27 | % | 1.00 | % | 0.75 | % | 0.69 | % | | | | 1.12 | % |
| | | | | | | | | | | | | | | | |
Annuities Fixed Account Balances | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 26,126 | | $ | 25,529 | | $ | 24,801 | | $ | 23,977 | | $ | 23,133 | | (11 | )% | | $ | 26,126 | |
Deposits | | 237 | | 221 | | 232 | | 183 | | 129 | | (46 | )% | | 873 | |
Withdrawals and surrenders | | (1,060 | ) | (1,176 | ) | (1,238 | ) | (1,237 | ) | (1,247 | ) | (18 | )% | | (4,711 | ) |
Net flows | | (823 | ) | (955 | ) | (1,006 | ) | (1,054 | ) | (1,118 | ) | (36 | )% | | (3,838 | ) |
Policyholder interest credited | | 236 | | 230 | | 228 | | 223 | | 205 | | (13 | )% | | 917 | |
Other | | (10 | ) | (3 | ) | (46 | ) | (13 | ) | (2 | ) | 80 | % | | (72 | ) |
Total ending balance | | $ | 25,529 | | $ | 24,801 | | $ | 23,977 | | $ | 23,133 | | $ | 22,218 | | (13 | )% | | $ | 23,133 | |
| | | | | | | | | | | | | | | | |
Capitalized Interest | | $ | 3 | | $ | 2 | | $ | 3 | | $ | 2 | | $ | 2 | | (33 | )% | | $ | 10 | |
Ending Balance Attributable to Variable Annuities Fixed Sub-Accounts | | $ | 6,810 | | $ | 6,572 | | $ | 6,277 | | $ | 5,975 | | $ | 5,674 | | (17 | )% | | $ | 5,975 | |
| | | | | | | | | | | | | | | | |
Asset earnings rate | | 5.83 | % | 5.64 | % | 5.21 | % | 5.57 | % | 5.56 | % | | | | 5.57 | % |
Crediting rate | | (3.54 | )% | (3.54 | )% | (3.56 | )% | (3.57 | )% | (3.56 | )% | | | | (3.55 | )% |
Spread (2) | | 2.29 | % | 2.10 | % | 1.65 | % | 2.00 | % | 2.00 | % | | | | 2.02 | % |
(1) The investment income effect of options backing the Stock Market Certificate and the corresponding credited amounts to certificate holders has been excluded from these rates.
(2) Attributable to interest sensitive products only, which has ranged between 87% to 89% of the total ending annuities fixed accounts balance in the periods reported. The asset earnings rate is a calculated theoretical yield obtained from the assignment of investment income using the investment year method of allocation.
# Variance of 100% or greater.
15
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Selected Asset Management Performance Information
| | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | |
RiverSource Mutual Fund Performance (1) | | | | | | | | | | | |
| | | | | | | | | | | |
Equity - 12 month | | 73 | % | 69 | % | 73 | % | 77 | % | 56 | % |
| | | | | | | | | | | |
Fixed Income - 12 month | | 50 | % | 44 | % | 78 | % | 72 | % | 83 | % |
| | | | | | | | | | | |
Taxable Fixed Income - 12 month | | 78 | % | 67 | % | 78 | % | 67 | % | 86 | % |
| | | | | | | | | | | |
Tax-exempt Fixed Income - 12 month | | 22 | % | 22 | % | 78 | % | 78 | % | 78 | % |
| | | | | | | | | | | |
Equity - 3 year | | 56 | % | 53 | % | 58 | % | 63 | % | 65 | % |
| | | | | | | | | | | |
Fixed Income - 3 year | | 43 | % | 41 | % | 47 | % | 53 | % | 44 | % |
| | | | | | | | | | | |
Taxable Fixed Income - 3 year | | 80 | % | 63 | % | 75 | % | 75 | % | 67 | % |
| | | | | | | | | | | |
Tax-exempt Fixed Income - 3 year | | 22 | % | 22 | % | 22 | % | 33 | % | 22 | % |
| | | | | | | | | | | |
Threadneedle Mutual Fund Performance (2) | | | | | | | | | | | |
| | | | | | | | | | | |
Equity - 12 month | | 84 | % | 83 | % | 72 | % | 63 | % | 57 | % |
| | | | | | | | | | | |
Fixed Income - 12 month | | 78 | % | 44 | % | 67 | % | 56 | % | 44 | % |
| | | | | | | | | | | |
Equity - 3 year | | 41 | % | 59 | % | 64 | % | 57 | % | 50 | % |
| | | | | | | | | | | |
Fixed Income - 3 year | | 56 | % | 56 | % | 78 | % | 67 | % | 56 | % |
(1) Percent of funds, equal weighted in top 2 Lipper quartiles.
(2) Percent of funds, equal weighted in top 2 S&P quartiles.
Aggregated data shows only actively-managed mutual funds by affiliated investment managers.
Aggregated data does not include mutual funds subadvised by advisors not affiliated with Ameriprise Financial, Inc. or index funds.
Aggregated equity rankings include RiverSource Portfolio Builder Series and other balanced and asset allocation funds that invest in both equities and fixed income.
RiverSource Portfolio Builder Series funds are funds of mutual funds that may invest in third-party subadvised funds.
Aggregated data only includes mutual funds in existence as of current quarter end. Refer to Exhibit A for RiverSource individual mutual fund performance rankings and other important disclosures.
Exhibit A includes RiverSource performance rankings for funds subadvised by non-affiliated advisors for general reference although not included in the summary above.
16
Ameriprise Financial, Inc.
Asset Accumulation and Income Segment
Deferred Acquisition Costs Rollforwards
| | | | | | | | | | | | 1Q ‘07 vs. 1Q ‘06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Variable Annuities | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,719 | | $ | 1,809 | | $ | 1,887 | | $ | 1,926 | | $ | 2,004 | | 17 | % | | $ | 1,719 | |
Capitalization | | 112 | | 113 | | 119 | | 121 | | 121 | | 8 | % | | 465 | |
Amortization | | (48 | ) | (56 | ) | (69 | ) | (34 | ) | (68 | ) | (42 | )% | | (207 | ) |
SOP 05-1 (cumulative pretax impact) | | –– | | –– | | –– | | –– | | (146 | ) | –– | | | –– | |
Other (FAS 115) | | 26 | | 21 | | (11 | ) | (9 | ) | (13 | ) | | # | | 27 | |
Total ending balance | | $ | 1,809 | | $ | 1,887 | | $ | 1,926 | | $ | 2,004 | | $ | 1,898 | | 5 | % | | $ | 2,004 | |
| | | | | | | | | | | | | | | | |
Fixed Annuities | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 396 | | $ | 391 | | $ | 381 | | $ | 359 | | $ | 343 | | (13 | )% | | $ | 396 | |
Capitalization | | 6 | | 5 | | 5 | | 3 | | 2 | | (67 | )% | | 19 | |
Amortization | | (21 | ) | (22 | ) | (17 | ) | (20 | ) | (21 | ) | –– | | | (80 | ) |
SOP 05-1 (cumulative pretax impact) | | –– | | –– | | –– | | –– | | (7 | ) | –– | | | –– | |
Other (FAS 115) | | 10 | | 7 | | (10 | ) | 1 | | (2 | ) | | # | | 8 | |
Total ending balance | | $ | 391 | | $ | 381 | | $ | 359 | | $ | 343 | | $ | 315 | | (19 | )% | | $ | 343 | |
| | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 109 | | $ | 95 | | $ | 88 | | $ | 80 | | $ | 74 | | (32 | )% | | $ | 109 | |
Capitalization | | 5 | | 5 | | 4 | | 4 | | 5 | | –– | | | 18 | |
Amortization | | (18 | ) | (13 | ) | (12 | ) | (9 | ) | (10 | ) | 44 | % | | (52 | ) |
SOP 05-1 (cumulative pretax impact) | | –– | | –– | | –– | | –– | | –– | | –– | | | –– | |
Other (FAS 115) | | (1 | ) | 1 | | –– | | (1 | ) | –– | | | # | | (1 | ) |
Total ending balance | | $ | 95 | | $ | 88 | | $ | 80 | | $ | 74 | | $ | 69 | | (27 | )% | | $ | 74 | |
# Variance of 100% or greater.
17
Ameriprise Financial, Inc.
Protection Segment
Income Statements
| | | | | | | | | | | | 1Q ‘07 vs. 1Q ‘06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Revenues | | | | | | | | | | | | | | | |
Management, financial advice and service fees | | $ | 19 | | $ | 19 | | $ | 20 | | $ | 22 | | $ | 22 | | 16 | % | | $ | 80 | |
Distribution fees | | 28 | | 27 | | 27 | | 29 | | 28 | | –– | | | 111 | |
Net investment income | | 89 | | 86 | | 87 | | 92 | | 89 | | –– | | | 354 | |
Premiums | | 226 | | 234 | | 249 | | 246 | | 245 | | 8 | % | | 955 | |
Other revenues | | 111 | | 130 | | 115 | | 113 | | 116 | | 5 | % | | 469 | |
Total revenues | | 473 | | 496 | | 498 | | 502 | | 500 | | 6 | % | | 1,969 | |
| | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
Compensation and benefits - field | | 23 | | 22 | | 22 | | 21 | | 25 | | 9 | % | | 88 | |
Interest credited to account values | | 36 | | 36 | | 36 | | 37 | | 34 | | (6 | )% | | 145 | |
Benefits, claims, losses and settlement expenses | | 223 | | 213 | | 230 | | 223 | | 227 | | 2 | % | | 889 | |
Amortization of deferred acquisition costs | | 41 | | 62 | | (11 | ) | 41 | | 35 | | (15 | )% | | 133 | |
Other expenses | | 76 | | 71 | | 70 | | 74 | | 78 | | 3 | % | | 291 | |
Total expenses | | 399 | | 404 | | 347 | | 396 | | 399 | | –– | | | 1,546 | |
Pretax segment income | | $ | 74 | | $ | 92 | | $ | 151 | | $ | 106 | | $ | 101 | | 36 | % | | $ | 423 | |
| | | | | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | | | | |
Net investment gains (losses), pretax | | $ | 2 | | $ | –– | | $ | 2 | | $ | 6 | | $ | 1 | | (50 | )% | | $ | 10 | |
Contribution margin | | 40.4 | % | 45.4 | % | 42.2 | % | 44.0 | % | 42.8 | % | | | | 43.0 | % |
Allocated equity | | $ | 2,173 | | $ | 2,234 | | $ | 2,246 | | $ | 2,261 | | $ | 2,280 | | 5 | % | | $ | 2,261 | |
Return on allocated equity for pretax segment income | | 19.7 | % | 17.7 | % | 18.1 | % | 19.1 | % | 20.1 | % | | | | 19.1 | % |
Return on allocated equity for adjusted pretax segment income | | 17.7 | % | 17.3 | % | 18.1 | % | 19.1 | % | 20.1 | % | | | | 19.1 | % |
# Variance of 100% or greater.
18
Ameriprise Financial, Inc.
Protection Segment
Revenues by Product
| | | | | | | | | | | | 1Q ‘07 vs. 1Q ‘06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Revenues | | | | | | | | | | | | | | | |
Management, financial advice and service fees | | | | | | | | | | | | | | | |
VUL / UL | | $ | 18 | | $ | 18 | | $ | 19 | | $ | 21 | | $ | 21 | | 17 | % | | $ | 76 | |
Auto and Home | | 1 | | 1 | | 1 | | –– | | 1 | | –– | | | 3 | |
Disability income, LTC and other | | –– | | –– | | –– | | 1 | | –– | | –– | | | 1 | |
Total management, financial advice and service fees | | 19 | | 19 | | 20 | | 22 | | 22 | | 16 | % | | 80 | |
| | | | | | | | | | | | | | | | |
Distribution fees | | | | | | | | | | | | | | | | |
VUL / UL | | 18 | | 19 | | 18 | | 18 | | 19 | | 6 | % | | 73 | |
Auto and Home | | 1 | | –– | | –– | | 1 | | –– | | | # | | 2 | |
Disability income, LTC and other | | 9 | | 8 | | 9 | | 10 | | 9 | | –– | | | 36 | |
Total distribution fees | | 28 | | 27 | | 27 | | 29 | | 28 | | –– | | | 111 | |
| | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | |
VUL / UL | | 31 | | 29 | | 27 | | 30 | | 29 | | (6 | )% | | 117 | |
Traditional life | | 4 | | 4 | | 4 | | 4 | | 4 | | –– | | | 16 | |
Auto and Home | | 10 | | 10 | | 14 | | 11 | | 11 | | 10 | % | | 45 | |
Disability income, LTC and other | | 44 | | 43 | | 42 | | 47 | | 45 | | 2 | % | | 176 | |
Total net investment income | | 89 | | 86 | | 87 | | 92 | | 89 | | –– | | | 354 | |
| | | | | | | | | | | | | | | | |
Premiums | | | | | | | | | | | | | | | | |
Traditional life | | 18 | | 18 | | 19 | | 18 | | 19 | | 6 | % | | 73 | |
Auto and Home | | 127 | | 134 | | 135 | | 140 | | 141 | | 11 | % | | 536 | |
Intercompany premiums (1) | | 6 | | 5 | | 5 | | 7 | | 9 | | 50 | % | | 23 | |
Disability income, LTC and other | | 75 | | 77 | | 90 | | 81 | | 76 | | 1 | % | | 323 | |
Total premiums | | 226 | | 234 | | 249 | | 246 | | 245 | | 8 | % | | 955 | |
| | | | | | | | | | | | | | | | |
Other revenues | | | | | | | | | | | | | | | | |
VUL / UL | | 111 | | 132 | | 111 | | 114 | | 116 | | 5 | % | | 468 | |
Auto and Home | | (1 | ) | –– | | 1 | | –– | | –– | | | # | | –– | |
Disability income, LTC and other | | 1 | | (2 | ) | 3 | | (1 | ) | –– | | | # | | 1 | |
Total other revenues | | 111 | | 130 | | 115 | | 113 | | 116 | | 5 | % | | 469 | |
Total revenues | | $ | 473 | | $ | 496 | | $ | 498 | | $ | 502 | | $ | 500 | | 6 | % | | $ | 1,969 | |
| | | | | | | | | | | | | | | | |
Total revenues by product | | | | | | | | | | | | | | | | |
VUL / UL | | $ | 178 | | $ | 198 | | $ | 175 | | $ | 183 | | $ | 185 | | 4 | % | | $ | 734 | |
Traditional life | | 22 | | 22 | | 23 | | 22 | | 23 | | 5 | % | | 89 | |
Auto and Home | | 138 | | 145 | | 151 | | 152 | | 153 | | 11 | % | | 586 | |
Intercompany premiums (1) | | 6 | | 5 | | 5 | | 7 | | 9 | | 50 | % | | 23 | |
Disability income, LTC and other | | 129 | | 126 | | 144 | | 138 | | 130 | | 1 | % | | 537 | |
Total revenues by product | | $ | 473 | | $ | 496 | | $ | 498 | | $ | 502 | | $ | 500 | | 6 | % | | $ | 1,969 | |
(1) Intercompany E&O premiums are eliminated in the Corporate and Other and Eliminations segment.
# Variance of 100% or greater.
19
Ameriprise Financial, Inc.
Protection Segment
Selected Statistical Information
| | | | | | | | | | | | 1Q ‘07 vs. 1Q ‘06 | | Full Year | |
(in millions unless otherwise noted, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Sales | | | | | | | | | | | | | | | |
VUL/UL (1) | | $ | 90 | | $ | 86 | | $ | 84 | | $ | 90 | | $ | 83 | | (8 | )% | | $ | 350 | |
Term and whole life | | 5 | | 5 | | 4 | | 6 | | 5 | | — | | | 20 | |
Disability income | | 5 | | 5 | | 5 | | 5 | | 5 | | — | | | 20 | |
Brokered insurance and other | | $ | 10 | | $ | 10 | | $ | 11 | | $ | 9 | | $ | 9 | | (10 | )% | | $ | 40 | |
| | | | | | | | | | | | | | | | |
Lapse Rate | | | | | | | | | | | | | | | | |
VUL/UL | | 5.7 | % | 5.6 | % | 6.1 | % | 5.8 | % | 5.6 | % | | | | 5.8 | % |
| | | | | | | | | | | | | | | | |
Face Amount Outstanding | | | | | | | | | | | | | | | | |
VUL/UL | | $ | 107,531 | | $ | 108,974 | | $ | 110,419 | | $ | 111,889 | | $ | 113,104 | | 5 | % | | $ | 111,889 | |
Term and whole life | | 54,346 | | 56,517 | | 58,293 | | 60,278 | | 62,438 | | 15 | % | | 60,278 | |
Other (2) | | 1,906 | | 1,882 | | 1,867 | | 1,855 | | 1,832 | | (4 | )% | | 1,855 | |
Total face amount outstanding | | $ | 163,783 | | $ | 167,373 | | $ | 170,579 | | $ | 174,022 | | $ | 177,374 | | 8 | % | | $ | 174,022 | |
| | | | | | | | | | | | | | | | |
Policyholder Reserves (net) | | | | | | | | | | | | | | | | |
VUL/UL | | $ | 7,708 | | $ | 7,653 | | $ | 7,882 | | $ | 8,334 | | $ | 8,480 | | 10 | % | | $ | 8,334 | |
Term and whole life | | 234 | | 237 | | 235 | | 234 | | 234 | | — | | | 234 | |
Disability income | | 368 | | 374 | | 381 | | 386 | | 408 | | 11 | % | | 386 | |
Long term care and other | | $ | 2,133 | | $ | 2,147 | | $ | 2,167 | | $ | 2,197 | | $ | 2,215 | | 4 | % | | $ | 2,197 | |
| | | | | | | | | | | | | | | | |
Net Amount at Risk (3) | | | | | | | | | | | | | | | | |
VUL/UL | | $ | 48,047 | | $ | 47,731 | | $ | 47,019 | | $ | 46,327 | | $ | 45,939 | | (4 | )% | | $ | 46,327 | |
Term and whole life | | $ | 15,449 | | $ | 15,435 | | $ | 15,091 | | $ | 15,039 | | $ | 14,936 | | (3 | )% | | $ | 15,039 | |
| | | | | | | | | | | | | | | | |
Auto and Home Insurance | | | | | | | | | | | | | | | | |
Policy count (in thousands) | | 459 | | 469 | | 481 | | 490 | | 496 | | 8 | % | | 490 | |
Loss ratio | | 82.8 | % | 74.4 | % | 82.8 | % | 76.1 | % | 71.0 | % | | | | 79.0 | % |
Expense ratio | | 14.9 | % | 15.7 | % | 15.8 | % | 15.4 | % | 18.2 | % | | | | 15.4 | % |
(1) Includes lump sum deposits.
(2) Includes only other life insurance.
(3) Face amount outstanding less policyholder reserves net of re-insurance.
# Variance of 100% or greater.
20
Ameriprise Financial, Inc.
Protection Segment
Product Rollforwards
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Future Policy Benefits and Policyholder Account Balances | | | | | | | | | | | | | | | | |
VUL/UL | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 7,327 | | $ | 7,708 | | $ | 7,653 | | $ | 7,882 | | $ | 8,334 | | 14 | % | | $ | 7,327 | |
Premiums and deposits | | 266 | | 264 | | 263 | | 278 | | 275 | | 3 | % | | 1,071 | |
Investment performance and interest credited | | 339 | | (98 | ) | 183 | | 407 | | 121 | | (64 | )% | | 831 | |
Withdrawals and surrenders | | (242 | ) | (244 | ) | (237 | ) | (257 | ) | (264 | ) | (9 | )% | | (980 | ) |
Other | | 18 | | 23 | | 20 | | 24 | | 14 | | (25 | )% | | 85 | |
Total ending balance | | $ | 7,708 | | $ | 7,653 | | $ | 7,882 | | $ | 8,334 | | $ | 8,480 | | 10 | % | | $ | 8,334 | |
| | | | | | | | | | | | | | | | |
Deferred Acquisition Costs | | | | | | | | | | | | | | | | |
VUL/UL | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,371 | | $ | 1,397 | | $ | 1,422 | | $ | 1,492 | | $ | 1,507 | | 10 | % | | $ | 1,371 | |
Capitalization | | 34 | | 31 | | 30 | | 31 | | 36 | | 6 | % | | 126 | |
Amortization | | (14 | ) | (10 | ) | 38 | | (14 | ) | (10 | ) | 29 | % | | –– | |
SOP 05-1 (cumulative pretax impact) | | –– | | –– | | –– | | –– | | (51 | ) | –– | | | –– | |
Other (FAS 115) | | 6 | | 4 | | 2 | | (2 | ) | (4 | ) | | # | | 10 | |
Total ending balance | | $ | 1,397 | | $ | 1,422 | | $ | 1,492 | | $ | 1,507 | | $ | 1,478 | | 6 | % | | $ | 1,507 | |
| | | | | | | | | | | | | | | | |
Term and Whole Life | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 101 | | $ | 102 | | $ | 104 | | $ | 105 | | $ | 109 | | 8 | % | | $ | 101 | |
Capitalization | | 6 | | 6 | | 6 | | 7 | | 7 | | 17 | % | | 25 | |
Amortization | | (6 | ) | (4 | ) | (4 | ) | (3 | ) | (2 | ) | 67 | % | | (17 | ) |
Other | | 1 | | –– | | (1 | ) | –– | | –– | | | # | | –– | |
Total ending balance | | $ | 102 | | $ | 104 | | $ | 105 | | $ | 109 | | $ | 114 | | 12 | % | | $ | 109 | |
| | | | | | | | | | | | | | | | |
Disability Income, LTC and Other | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 448 | | $ | 446 | | $ | 447 | | $ | 448 | | $ | 448 | | –– | | | $ | 448 | |
Capitalization | | 15 | | 12 | | 13 | | 12 | | 14 | | (7 | )% | | 52 | |
Amortization | | (16 | ) | (13 | ) | (11 | ) | (12 | ) | (12 | ) | 25 | % | | (52 | ) |
Other | | (1 | ) | 2 | | (1 | ) | –– | | –– | | | # | | –– | |
Total ending balance | | $ | 446 | | $ | 447 | | $ | 448 | | $ | 448 | | $ | 450 | | 1 | % | | $ | 448 | |
| | | | | | | | | | | | | | | | |
Auto and Home | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 38 | | $ | 40 | | $ | 13 | | $ | 13 | | $ | 14 | | (63 | )% | | $ | 38 | |
Capitalization | | 7 | | 8 | | 12 | | 12 | | 11 | | 57 | % | | 39 | |
Amortization | | (5 | ) | (35 | ) | (12 | ) | (12 | ) | (11 | ) | | # | | (64 | ) |
Other | | –– | | –– | | –– | | 1 | | (1 | ) | –– | | | 1 | |
Total ending balance | | $ | 40 | | $ | 13 | | $ | 13 | | $ | 14 | | $ | 13 | | (68 | )% | | $ | 14 | |
# Variance of 100% or greater.
21
Ameriprise Financial, Inc.
Corporate and Other and Eliminations Segment
Income Statements
| | | | | | | | | | | | 1Q ’07 vs. 1Q ’06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Revenues | | | | | | | | | | | | | | | | |
Management, financial advice and service fees | | $ | 45 | | $ | 48 | | $ | 43 | | $ | 43 | | $ | 51 | | 13 | % | | $ | 179 | |
Distribution fees | | –– | | 1 | | 1 | | 1 | | (1 | ) | –– | | | 3 | |
Net investment income (loss) | | 10 | | 9 | | 12 | | 20 | | 14 | | 40 | % | | 51 | |
Premiums (1) | | (6 | ) | (5 | ) | (5 | ) | (7 | ) | (9 | ) | (50 | )% | | (23 | ) |
Other revenues | | 5 | | 11 | | 5 | | 12 | | 11 | | | # | | 33 | |
Total revenues | | 54 | | 64 | | 56 | | 69 | | 66 | | 22 | % | | 243 | |
| | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
Compensation and benefits - field | | 34 | | 38 | | 36 | | 32 | | 42 | | 24 | % | | 140 | |
Interest and debt expense | | 20 | | 23 | | 28 | | 30 | | 29 | | 45 | % | | 101 | |
Other expenses | | 44 | | 47 | | 31 | | 36 | | 27 | | (39 | )% | | 158 | |
Total expenses before separation costs | | 98 | | 108 | | 95 | | 98 | | 98 | | –– | | | 399 | |
Pretax segment loss before separation costs | | (44 | ) | (44 | ) | (39 | ) | (29 | ) | (32 | ) | 27 | % | | (156 | ) |
Separation costs, pretax | | 67 | | 84 | | 87 | | 123 | | 85 | | 27 | % | | 361 | |
Pretax segment loss | | $ | (111 | ) | $ | (128 | ) | $ | (126 | ) | $ | (152 | ) | $ | (117 | ) | (5 | )% | | $ | (517 | ) |
| | | | | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | | | | |
Net investment gains (losses), pretax | | $ | 1 | | $ | –– | | $ | –– | | $ | –– | | $ | –– | | | # | | $ | 1 | |
Allocated equity | | $ | 1,759 | | $ | 1,900 | | $ | 1,823 | | $ | 2,062 | | $ | 1,954 | | 11 | % | | $ | 2,062 | |
(1) Represents the elimination of intercompany E&O premiums recorded in the Protection segment.
# Variance of 100% or greater.
22
Ameriprise Financial, Inc.
Capital and Ratings Information
(in millions, unaudited) | | March 31, 2006 | | June 30, 2006 | | September 30, 2006 | | December 31, 2006 | | March 31, 2007 | |
Balance Sheet Detail | | | | | | | | | | | |
Senior notes | | $ | 1,500 | | $ | 1,500 | | $ | 1,500 | | $ | 1,500 | | $ | 1,500 | |
Medium term notes | | –– | | –– | | –– | | –– | | –– | |
Junior subordinated notes (1) | | –– | | 500 | | 500 | | 500 | | 500 | |
| | | | | | | | | | | |
Non-recourse debt | | | | | | | | | | | |
Debt of CDO | | 284 | | 254 | | 254 | | 225 | | 225 | |
Debt of property fund limited partnerships | | 137 | | 165 | | –– | | –– | | –– | |
Subtotal non-recourse debt | | 421 | | 419 | | 254 | | 225 | | 225 | |
Total debt | | $ | 1,921 | | $ | 2,419 | | $ | 2,254 | | $ | 2,225 | | $ | 2,225 | |
| | | | | | | | | | | |
Total debt excluding non-recourse debt | | $ | 1,500 | | $ | 2,000 | | $ | 2,000 | | $ | 2,000 | | $ | 2,000 | |
Total debt excluding non-recourse debt and 75% equity credit (1) | | $ | 1,500 | | $ | 1,625 | | $ | 1,625 | | $ | 1,625 | | $ | 1,625 | |
| | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | |
Common stock | | $ | 3 | | $ | 3 | | $ | 3 | | $ | 3 | | $ | 3 | |
Additional paid-in capital | | 4,208 | | 4,254 | | 4,291 | | 4,353 | | 4,468 | |
Retained earnings | | 3,862 | | 3,976 | | 4,123 | | 4,268 | | 4,268 | |
Treasury stock | | (290 | ) | (332 | ) | (438 | ) | (490 | ) | (865 | ) |
Accumulated other comprehensive income (loss), net of tax | | (442 | ) | (666 | ) | (226 | ) | (209 | ) | (143 | ) |
Total shareholders’ equity | | $ | 7,341 | | $ | 7,235 | | $ | 7,753 | | $ | 7,925 | | $ | 7,731 | |
| | | | | | | | | | | |
Total capital | | $ | 9,262 | | $ | 9,654 | | $ | 10,007 | | $ | 10,150 | | $ | 9,956 | |
Total capital excluding non-recourse debt | | 8,841 | | 9,235 | | 9,753 | | 9,925 | | 9,731 | |
Junior subordinated notes 75% equity credit (1) | | $ | –– | | $ | 375 | | $ | 375 | | $ | 375 | | $ | 375 | |
| | | | | | | | | | | |
Other Information | | | | | | | | | | | |
Ratio of earnings to fixed charges | | 6.6 | x | 5.8 x | | 6.1 x | | 6.0 x | | 6.4 x | |
Ratio of earnings to fixed charges without non-recourse debt interest | | 7.8 | x | 7.0 x | | 7.0 x | | 6.5 x | | 7.0 x | |
| | | | | | | | | | | |
Debt to total capital | | 20.7 | % | 25.1 | % | 22.5 | % | 21.9 | % | 22.3 | % |
Debt to total capital excluding non-recourse debt | | 17.0 | % | 21.7 | % | 20.5 | % | 20.2 | % | 20.6 | % |
Debt to total capital excluding non-recourse debt and 75% equity credit | | 17.0 | % | 17.6 | % | 16.7 | % | 16.4 | % | 16.7 | % |
| | | | | | | | | | | |
Double Leverage | | 106 | % | 106 | % | 107 | % | 105 | % | 110 | % |
| | | | | | | | | | | |
| | A.M. Best | | S&P | | Moody’s | | Fitch | |
Financial Strength (as of 3/31/07) | | | | | | | | | |
Claims Paying Rating | | | | | | | | | |
RiverSource Life Insurance Company | | A+ | | AA- | | Aa3 | | AA- | |
IDS Property Casualty Ins. Company | | A | | NR | | NR | | NR | |
| | | | | | | | | |
Debt Ratings | | | | | | | | | |
Ameriprise Financial, Inc. | | a- | | A- | | A3 | | A- | |
(1) The Company’s junior subordinated notes receive an equity credit of at least 75% by the majority of rating agencies.
23
Ameriprise Financial, Inc.
Non-GAAP Financial Information
Ameriprise Financial, Inc. (the Company) follows accounting principles generally accepted in the United States (GAAP). This report includes information on both a GAAP and non-GAAP basis.
Certain non-GAAP measures in this report exclude items that are a direct result of the separation from American Express Company, which consist of AMEX Assurance and non-recurring separation costs. These non-GAAP financial measures, which management views as important indicators of financial performance, include:
• Consolidated income statements adjusted to exclude after-tax separation costs;
• Total expenses before separation costs;
• Adjusted earnings (adjusted to exclude AMEX Assurance) and separation costs;
• Income before income tax provision, discontinued operations and separation costs;
• Income tax provision before tax benefit attributable to separation costs;
• Income before separation costs;
• Separation cost, after-tax;
• Adjusted return on allocated equity (adjusted to exclude AMEX Assurance); and
• Pretax segment loss before separation costs.
Management believes that the presentation of these non-GAAP financial measures excluding these specific income statement impacts better reflect the underlying performance of the Company’s ongoing operations and facilitates a more meaningful trend analysis. These non-GAAP measures are also used for goal setting, certain compensation related to the Company’s annual incentive award program and evaluating the Company’s performance on a basis comparable to that used by securities analysts.
The Company presents a debt to capital ratio excluding non-recourse debt of a CDO consolidated in accordance with FIN 46(R) and non-recourse debt of property fund limited partnerships managed by Threadneedle consolidated in accordance with EITF 04-5. Management believes that the debt to capital ratio excluding this non-recourse debt better represents the Company’s capital structure.
Reclassification
Certain prior period information has been restated to conform to current period presentation.
24
Ameriprise Financial, Inc.
Glossary of Selected Terminology
Adjusted Earnings - Income before non-recurring separation costs and excluding AMEX Assurance.
Adjusted Return on Equity - Adjusted return on equity (“ROE”) is calculated using as the numerator adjusted earnings for the last twelve months and as the denominator a five point average of equity excluding both the assets and liabilities of discontinued operations and equity allocated to expected non-recurring separation costs as of the last day of the preceding four quarters and the current quarter.
Administered Assets - Administered assets include assets for which we provide administrative services such as assets of our clients invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in customers’ brokerage accounts. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets.
Allocated Equity - The internal allocation of consolidated shareholders’ equity, excluding accumulated other comprehensive income (loss), to the Company’s operating segments for purposes of measuring segment return on allocated equity. Allocated equity does not represent insurance company risk-based capital or other regulatory capital requirements applicable to the Company and certain of its subsidiaries.
AMEX Assurance Company - A legal entity owned by IDS Property Casualty Insurance Company (“IDS Property Casualty”) that offers travel and other card insurance to American Express Company (“American Express”) customers. This business prior to our separation from American Express had historically been reported in the Travel Related Services segment of American Express. Under the separation agreement with American Express, 100% of this business was ceded to an American Express subsidiary in return for an arm’s length ceding fee. We expect to sell the legal entity of AMEX Assurance to American Express on or before September 30, 2007 for a fixed price equal to the net book value of AMEX Assurance.
Asset Accumulation and Income Segment - This segment offers products and services, both our own and other companies’, to help our retail clients address identified financial objectives related to asset accumulation and income management. Products and services in this segment are related to asset management, brokerage and banking, and include mutual funds, wrap accounts, variable and fixed annuities, brokerage accounts and investment certificates. This operating segment also serves institutional clients by providing investment management services in separately managed accounts, sub-advisory, and alternative investments. We earn revenues in this segment primarily through fees we receive based on managed assets and annuity separate account assets. These fees are impacted by both market movements and net asset flows. We also earn net investment income on owned assets, principally supporting the fixed annuity and certificate businesses and capital supporting the business, and distribution fees on sales of mutual funds and other products. This segment includes the results of SAFC, which through its operating subsidiary, Securities America, Inc. (“SAI”), operates its own separately branded distribution network.
Auto and Home Insurance - Personal auto and home protection products marketed directly to customers through marketing affiliates such as Costco Wholesale Corporation, Delta Loyalty Management Services, Inc. and Ford Motor Credit Company. We sell these products through our auto and home subsidiary. IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).
Book Value per Share - Total shareholders’ equity divided by the number of common shares outstanding and nonforfeitable restricted stock rights vested at period-end.
Branded Advisor Clients - Individual, business, or institutional clients that receive investment advice and other services from an employee of our company or franchisee-based financial advisor including Financial Service Center clients.
Cash Sales - Cash Sales are the dollar value volume indicator that captures gross new cash inflows which generate product revenue streams to our company. This includes primarily “client initiated” activity that results in an incremental increase in assets (owned, managed or administered) or premiums inforce (but doesn’t need to result in time of sale revenue), or activity that doesn’t increase assets or premiums in-force, but generates “fee revenue.”
Client Group - In general, a client group consists of accounts for an individual, spouse or domestic partner and any accounts owned for, by or with the individual’s unmarried children under the age of 21.
Clients With a Financial Plan Percentage - The period-end number of current clients who have received a financial plan, or have entered into an agreement to receive and have paid for a financial plan, divided by the number of active retail client groups, serviced by branded employees, franchisee advisors and our company’s client service organization.
Company - Ameriprise Financial, Inc. and consolidated subsidiaries. Effective August 1, 2005, we transferred our 50% ownership interest and the related assets and liabilities of American Express International Deposit Company (“AEIDC”) to American Express Company as part of the separation agreement with American Express.
Contribution Margin - Total revenues less compensation and benefits - field, interest credited to account values and benefits, claims, losses and settlement expenses as a percentage of total revenues.
Corporate and Other and Eliminations Segment - - This segment consists of income derived from financial planning fees, investment income on corporate level assets including unallocated equity and unallocated corporate expenses. This segment also includes non-recurring costs associated with our separation from American Express. For purposes of presentation in the statistical supplement, this segment also includes eliminations.
25
Ameriprise Financial, Inc.
Glossary of Selected Terminology
Debt to Capital Ratio - A ratio comprised of total debt divided by total capital. This ratio is also presented excluding non-recourse debt of a Collateralized Debt Obligation (“CDO”) consolidated in accordance with FIN 46(R) and non-recourse debt of property fund limited partnerships managed by Threadneedle consolidated in accordance with EITF 04-5. In addition, we provide debt to capital ratio information excluding non-recourse debt that reflects an equity credit on our junior subordinated notes we issued on May 26, 2006. These junior subordinated notes receive an equity credit of at least 75% by the majority of rating agencies.
Deferred Acquisition Costs and Amortization - Deferred acquisition costs (“DAC”) represents the costs of acquiring new protection, annuity and certain mutual fund business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life, disability income and long term care insurance and, to a lesser extent, deferred marketing and promotion expenses on auto and home insurance and deferred distribution costs on certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits.
Double Leverage - A ratio reflecting parent-company equity investments, including goodwill, in consolidated operating subsidiaries divided by total shareholders’ equity.
Effective Tax Rate on Adjusted Earnings - Represents the ratio of the adjusted income tax provision before tax benefit attributable to separation costs divided by adjusted income before income tax provision and separation costs.
Emerging Issues Task Force (“EITF”) Issue No. 04-5, “Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights” (“EITF 04-5”) - EITF 04-5 provides guidance on whether a partnership should be consolidated by one of its partners. Our adoption of EITF 04-5 effective January 1, 2006 resulted in the consolidation of certain limited partnerships for which we are the general partner. As a result, we consolidate certain property fund limited partnerships managed by Threadneedle Investments and certain hedge funds managed by RiverSource Investments.
Financial Plans Sold - The number of financial plans that, during the period, have been paid for and have been or will be provided to a client based on an agreement, less financial plans sold in prior periods not delivered within 14 months.
Gross Dealer Concession - An internal measure based upon the weighted average production of advisor activity used to represent financial results attributable to advisor activity and to determine advisor compensation.
Life Insurance in-Force - The total amount of all life insurance death benefits currently insured by our company.
Managed Assets - Managed assets includes client assets for which we provide investment management and other services, such as the assets of the RiverSource family of mutual funds, assets of institutional clients and assets held in our wrap accounts (retail accounts for which we receive a fee based on assets held in the account). Managed assets also include assets managed by sub-advisors selected by us. Managed assets do not include owned assets or administered assets. These assets are not reported on our Consolidated Balance Sheets.
Mass Affluent - Individuals with $100,000 to $1 million in investable assets.
Mass Affluent and Affluent Client Groups - Client groups with $100,000 or more in invested assets or comparable product values with the our company.
Net Flows - Sales less redemptions plus other. Other includes reinvested dividends.
Net Income Margin - A ratio representing net income as a percentage of total revenues.
Owned Assets - Owned assets include certain assets on our Consolidated Balance Sheets, principally investments in the general and separate accounts of our life insurance subsidiaries, as well as cash and cash equivalents, restricted and segregated cash and receivables.
Pretax Segment Income (Loss) - Segment income (loss) before income tax provision (benefit).
Protection Segment - This segment offers a variety of protection products, both our company’s and other companies’, including life, disability income, long term care and auto and home insurance to address the identified protection and risk management needs of our retail clients. We earn revenues in this operating segment primarily through premiums, fees and charges that we receive to assume insurance-related risk, fees we receive on assets supporting variable universal life separate account balances, and net investment income on owned assets supporting insurance reserves and capital supporting the business.
Ratio of Earnings to Fixed Charges - A ratio comprised of earnings divided by fixed charges. Earnings are defined as income before income tax provision plus interest and debt expense, interest portion of rental expense, amortization of capitalized interest and adjustments related to equity investments and minority interests in consolidated entities. Fixed charges are defined as interest and debt expense, the interest portion of rental expense and capitalized interest. The ratio is also presented excluding the effect of interest on non-recourse debt of a Collateralized Debt Obligation consolidated in accordance with FIN 46(R) and the Threadneedle managed property fund limited partnerships consolidated in accordance with EITF 04-5.
Return on Allocated Equity for Pretax Segment Income or Adjusted Pretax Segment Income - Calculated using pretax segment income or adjusted pretax segment income for the last twelve months and the average allocated equity as of the last day of the trailing four quarters.
RiverSource Managed Assets - Managed client assets of RiverSource Investments, LLC, an SEC-registered investment advisor that offers investment products and services under the names RiverSource Institutional Advisors, RiverSource Alternative Investments, RiverSource Capital Management and RiverSource Insurance Assets.
26
Ameriprise Financial, Inc.
Glossary of Selected Terminology
Securities America - Securities America Financial Corporation (“SAFC”) is a corporation whose sole function is to hold the stock of its operating subsidiaries, Securities America, Inc. (“SAI”) and Securities America Advisors, Inc. (“SAA”). SAI is a registered broker-dealer and an insurance agency. SAA is an SEC registered investment advisor.
Separate Accounts - Represent assets and liabilities that are maintained and established primarily for the purpose of funding variable annuity and insurance products. The assets of the separate account are only available to fund the liabilities of the variable annuity contract holders and others with contracts requiring premiums or other deposits to the separate account. Clients elect to invest premiums in stock, bond and/or money market funds depending on their risk tolerance. All investment performance, net of fees, is passed through to the client.
Separation Costs - Our company has incurred significant non-recurring separation costs as a result of the separation from American Express. Separation costs generally consist of costs associated with separating and reestablishing our company’s technology platforms, establishing the Ameriprise Financial brand and advisor and employee retention programs.
Separation Costs, After-Tax - For this non-GAAP presentation of non-recurring separation costs, after-tax is calculated in each quarter using the statutory tax rate of 35%, adjusted for permanent differences, if any.
SOP 05-1 (“Statement of Position”), “Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts” - SOP 05-1 provides guidance on accounting for DAC associated with any insurance or annuity contract that is significantly modified or internally replaced with another contract.
Strategic Portfolio Services - Strategic Portfolio Services (“SPS”) is a non-discretionary investment advisory wrap account program offering mutual funds, publicly traded securities and other financial account features. SPS provides execution of securities transactions for an asset-based fee, periodic portfolio reviews and ongoing investment advice.
Third Party Distribution - Distribution of RiverSource products, which include a variety of equity and fixed income mutual funds, annuities and insurance products, to retail clients through unaffiliated financial institutions and broker-dealers. The Third Party channel is separate from the Branded Advisor, Threadneedle, SAFC, and Institutional sales channels.
Total Clients - This is the sum of all individual, business, and institutional clients, that receive investment management and/or other services, excluding those clients serviced by SAFC and Threadneedle.
Total Capital - Total shareholders’ equity plus total debt excluding non-recourse debt. Total capital is also presented excluding non-recourse debt.
Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with investment advisory fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include proprietary and non-proprietary funds. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, RiverSource Investments, LLC chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay an asset-based fee based on the assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses and Rule 12b-1 fees.
27
EXHIBIT A
RiverSourceSM Mutual Fund Performance and Lipper Ranking
Equity Fund Performance & Lipper Ranking
As of March 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.
| | Total Net | | Total Net | | Total | | Rankings and Annualized Returns at NAV (1) | |
| | Assets | | Assets | | Expense | | 1 year | | 3 years | | 5 years | |
Class A Shares by Lipper Category | | (Mil $) | | Date | | Ratio | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | |
Emerging Market Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Emerging Markets Fund | | 613.90 | | 3/30/2007 | | 1.81 | | 22.16 | | 36 | % | 26.65 | | 51 | % | 22.84 | | 63 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 80 / 225 | | | | 95 / 187 | | | | 98 / 155 | |
Equity Income Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Diversified Equity Income Fund | | 7,589.10 | | 3/30/2007 | | 1.14 | | 11.65 | | 84 | % | 16.38 | | 4 | % | 12.36 | | 5 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 204 / 243 | | | | 6 / 189 | | | | 6 / 125 | |
RiverSourceSM Dividend Opportunity Fund | | 1,782.20 | | 3/30/2007 | | 1.16 | | 21.25 | | 4 | % | 15.91 | | 8 | % | 7.54 | | 57 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 9 / 243 | | | | 15 / 189 | | | | 71 / 125 | |
European Region Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM European Equity Fund | | 129.80 | | 3/30/2007 | | 1.52 | | 23.86 | | 45 | % | 20.17 | | 77 | % | 12.53 | | 82 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 44 / 97 | | | | 70 / 91 | | | | 64 / 78 | |
Flexible Portfolio Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Strategic Allocation Fund | | 1,798.90 | | 3/30/2007 | | 1.14 | | 11.72 | | 9 | % | 11.71 | | 15 | % | 8.45 | | 24 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 11 / 128 | | | | 15 / 103 | | | | 19 / 81 | |
Global Large Cap Growth Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Global Equity Fund | | 766.80 | | 3/30/2007 | | 1.51 | | 12.29 | | 30 | % | 17.55 | | 5 | % | 10.24 | | 32 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 26 / 87 | | | | 3 / 61 | | | | 16 / 49 | |
Gold-Oriented Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Precious Metals and Mining Fund | | 117.30 | | 3/30/2007 | | 1.46 | | 9.00 | | 65 | % | 12.70 | | 78 | % | 22.75 | | 78 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 34 / 52 | | | | 38 / 48 | | | | 31 / 39 | |
International Large Cap Core Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM International Opportunity Fund | | 693.70 | | 3/30/2007 | | 1.48 | | 15.36 | | 81 | % | 17.35 | | 63 | % | 11.55 | | 80 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 168 / 208 | | | | 121 / 194 | | | | 140 / 175 | |
International Multi Cap Growth Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Disciplined International Equity Fund | | 126.60 | | 3/30/2007 | | 1.92 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
RiverSourceSM International Aggressive Growth Fund (2) | | 562.10 | | 3/30/2007 | | 1.61 | | 17.64 | | 43 | % | 21.12 | | 16 | % | 16.04 | | 22 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 82 / 192 | | | | 23 / 143 | | | | 26 / 121 | |
International Multi Cap Value Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM International Equity Fund (2) | | 208.00 | | 3/30/2007 | | 1.69 | | 13.79 | | 92 | % | 17.10 | | 84 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 99 / 107 | | | | 74 / 88 | | | | | |
RiverSourceSM International Select Value Fund (2) | | 2,320.50 | | 3/30/2007 | | 1.47 | | 17.42 | | 70 | % | 22.47 | | 16 | % | 18.68 | | 24 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 75 / 107 | | | | 14 / 88 | | | | 15 / 62 | |
International Small/Mid Cap Core Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM International Small Cap Fund (2) | | 107.80 | | 3/30/2007 | | 1.83 | | 17.55 | | 72 | % | 18.33 | | 84 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 36 / 49 | | | | 40 / 47 | | | | | |
Large Cap Core Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Large Cap Equity Fund | | 6,732.10 | | 3/30/2007 | | 1.06 | | 10.08 | | 50 | % | 8.65 | | 54 | % | 5.27 | | 44 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 394 / 800 | | | | 361 / 669 | | | | 247 / 567 | |
RiverSourceSM Fundamental Growth Fund (2) | | 270.70 | | 3/30/2007 | | 1.42 | | 2.33 | | 99 | % | 3.38 | | 99 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 788 / 800 | | | | 657 / 669 | | | | | |
RiverSourceSM Disciplined Equity Fund | | 2,240.30 | | 3/30/2007 | | 1.07 | | 10.74 | | 41 | % | 10.23 | | 22 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 326 / 800 | | | | 146 / 669 | | | | | |
Large Cap Growth Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Growth Fund | | 3,437.20 | | 3/30/2007 | | 1.14 | | 5.40 | | 31 | % | 9.05 | | 10 | % | 4.76 | | 14 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 221 / 722 | | | | 58 / 613 | | | | 67 / 503 | |
Large Cap Value Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Equity Value Fund | | 1,242.30 | | 3/30/2007 | | 1.17 | | 11.67 | | 80 | % | 14.89 | | 5 | % | 8.53 | | 27 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 400 / 499 | | | | 21 / 435 | | | | 87 / 323 | |
RiverSourceSM Large Cap Value Fund | | 101.80 | | 3/30/2007 | | 1.21 | | 13.23 | | 59 | % | 10.66 | | 64 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 291 / 499 | | | | 276 / 435 | | | | | |
RiverSourceSM Value Fund (2) | | 387.60 | | 3/30/2007 | | 1.26 | | 11.32 | | 86 | % | 9.80 | | 80 | % | 6.84 | | 69 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 427 / 499 | | | | 345 / 435 | | | | 222 / 323 | |
Mid Cap Core Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Disciplined Small and Mid-Cap Equity Fund | | 43.80 | | 3/30/2007 | | 5.83 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
Mid Cap Growth Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Mid Cap Growth Fund | | 1,123.00 | | 3/30/2007 | | 1.12 | | -0.63 | | 83 | % | 7.02 | | 86 | % | 5.23 | | 79 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 517 / 622 | | | | 425 / 497 | | | | 310 / 394 | |
RiverSourceSM Aggressive Growth Fund (2) | | 558.10 | | 3/30/2007 | | 1.69 | | 2.08 | | 65 | % | 9.72 | | 58 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 402 / 622 | | | | 286 / 497 | | | | | |
A1
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | Rankings and Annualized Returns at NAV (1) | |
| | | | | | Fund | | Since | | | | | |
| | 10 years | | Inception | | Inception | | Ranking Since | |
Class A Shares by Lipper Category | | Return | | Ranking | | Date | | Return | | Date | | Ranking | |
Emerginag Market Funds | | | | | | | | | | | | | |
RiverSourceSM Emerging Markets Fund | | 9.26 | | 51 | % | 11/13/1996 | | 10.19 | | 11/14/1996 | | 51 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 40 / 78 | | | | | | | | 35 / 68 | |
Equity Income Funds | | | | | | | | | | | | | |
RiverSourceSM Diversified Equity Income Fund | | 10.57 | | 16 | % | 10/15/1990 | | 13.06 | | 10/18/1990 | | 34 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 13 / 81 | | | | | | | | 9 / 26 | |
RiverSourceSM Dividend Opportunity Fund | | 8.32 | | 60 | % | 8/1/1988 | | 10.23 | | 8/4/1988 | | 67 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 49 / 81 | | | | | | | | 14 / 20 | |
European Region Funds | | | | | | | | | | | | | |
RiverSourceSM European Equity Fund | | | | | | 6/26/2000 | | 3.73 | | 6/26/2000 | | 85 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 51 / 59 | |
Flexible Portfolio Funds | | | | | | | | | | | | | |
RiverSourceSM Strategic Allocation Fund | | 6.63 | | 78 | % | 1/23/1985 | | 11.17 | | 1/24/1985 | | 34 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 34 / 43 | | | | | | | | 2 / 5 | |
Global Large Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Global Equity Fund | | 5.93 | | 77 | % | 5/29/1990 | | 6.43 | | 5/31/1990 | | 80 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 20 / 25 | | | | | | | | 4 / 4 | |
Gold-Oriented Funds | | | | | | | | | | | | | |
RiverSourceSM Precious Metals and Mining Fund | | 7.22 | | 76 | % | 4/22/1985 | | 8.26 | | 4/25/1985 | | 40 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 19 / 24 | | | | | | | | 4 / 9 | |
International Large Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM International Opportunity Fund | | 4.56 | | 91 | % | 11/15/1984 | | 9.14 | | 11/15/1984 | | 80 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 74 / 81 | | | | | | | | 4 / 4 | |
International Multi Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Disciplined International Equity Fund | | | | | | 5/18/2006 | | 20.07 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM International Aggressive Growth Fund (2) | | | | | | 9/28/2001 | | 16.19 | | 9/28/2001 | | 35 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 39 / 113 | |
International Multi Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM International Equity Fund (2) | | | | | | 10/3/2002 | | 20.39 | | 10/3/2002 | | 94 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 67 / 71 | |
RiverSourceSM International Select Value Fund (2) | | | | | | 9/28/2001 | | 18.82 | | 9/28/2001 | | 31 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 19 / 61 | |
International Small/Mid Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM International Small Cap Fund (2) | | | | | | 10/3/2002 | | 26.27 | | 10/3/2002 | | 64 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 24 / 37 | |
Large Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Large Cap Equity Fund | | | | | | 3/28/2002 | | 5.26 | | 3/28/2002 | | 44 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 247 / 567 | |
RiverSourceSM Fundamental Growth Fund (2) | | | | | | 4/24/2003 | | 7.05 | | 4/24/2003 | | 98 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 607 / 622 | |
RiverSourceSM Disciplined Equity Fund | | | | | | 4/24/2003 | | 14.26 | | 4/24/2003 | | 22 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 135 / 622 | |
Large Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Growth Fund | | 3.69 | | 86 | % | 3/1/1972 | | 11.84 | | 3/2/1972 | | 25 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 163 / 190 | | | | | | | | 7 / 27 | |
Large Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Equity Value Fund | | 7.80 | | 66 | % | 3/20/1995 | | 10.22 | | 3/23/1995 | | 65 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 99 / 151 | | | | | | | | 67 / 103 | |
RiverSourceSM Large Cap Value Fund | | | | | | 6/27/2002 | | 10.21 | | 6/27/2002 | | 63 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 217 / 346 | |
RiverSourceSM Value Fund (2) | | | | | | 6/18/2001 | | 6.02 | | 6/18/2001 | | 57 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 160 / 284 | |
Mid Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Disciplined Small and Mid-Cap Equity Fund | | | | | | 5/18/2006 | | 7.38 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mid Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Mid Cap Growth Fund | | 8.61 | | 60 | % | 6/4/1957 | | | ^ | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | 97 / 161 | | | | | | | | | |
RiverSourceSM Aggressive Growth Fund (2) | | | | | | 4/24/2003 | | 17.83 | | 4/24/2003 | | 34 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 152 / 451 | |
A1
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | Annualized Returns at POP (1) | |
| | Max. Front | | | | | | | | | | | |
| | Sales | | | | | | | | | | Since | |
Class A Shares by Lipper Category | | Charge | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | |
Emerging Market Funds | | | | | | | | | | | | | |
RiverSourceSM Emerging Markets Fund | | 5.75 | | 15.13 | | 24.17 | | 21.40 | | 8.61 | | 9.56 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Equity Income Funds | | | | | | | | | | | | | |
RiverSourceSM Diversified Equity Income Fund | | 5.75 | | 5.23 | | 14.11 | | 11.04 | | 9.92 | | 12.66 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Dividend Opportunity Fund | | 5.75 | | 14.27 | | 13.64 | | 6.28 | | 7.68 | | 9.88 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
European Region Funds | | | | | | | | | | | | | |
RiverSourceSM European Equity Fund | | 5.75 | | 16.74 | | 17.82 | | 11.21 | | | | 2.83 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Flexible Portfolio Funds | | | | | | | | | | | | | |
RiverSourceSM Strategic Allocation Fund | | 5.75 | | 5.30 | | 9.53 | | 7.17 | | 6.00 | | 10.87 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Global Large Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Global Equity Fund | | 5.75 | | 5.83 | | 15.25 | | 8.94 | | 5.31 | | 6.05 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Gold-Oriented Funds | | | | | | | | | | | | | |
RiverSourceSM Precious Metals and Mining Fund | | 5.75 | | 2.73 | | 10.50 | | 21.31 | | 6.58 | | 7.97 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
International Large Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM International Opportunity Fund | | 5.75 | | 8.73 | | 15.06 | | 10.24 | | 3.94 | | 8.85 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
International Multi Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Disciplined International Equity Fund | | 5.75 | | | | | | | | | | 13.16 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM International Aggressive Growth Fund (2) | | 5.75 | | 10.88 | | 18.76 | | 14.67 | | | | 14.94 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
International Multi Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM International Equity Fund (2) | | 5.75 | | 7.25 | | 14.81 | | | | | | 18.81 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM International Select Value Fund (2) | | 5.75 | | 10.66 | | 20.08 | | 17.29 | | | | 17.55 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
International Small/Mid Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM International Small Cap Fund (2) | | 5.75 | | 10.79 | | 16.02 | | | | | | 24.62 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Large Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Large Cap Equity Fund | | 5.75 | | 3.75 | | 6.52 | | 4.03 | | | | 4.03 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Fundamental Growth Fund (2) | | 5.75 | | -3.55 | | 1.36 | | | | | | 5.45 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Disciplined Equity Fund | | 5.75 | | 4.37 | | 8.07 | | | | | | 12.55 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Large Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Growth Fund | | 5.75 | | -0.66 | | 6.91 | | 3.53 | | 3.08 | | 11.65 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Large Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Equity Value Fund | | 5.75 | | 5.25 | | 12.65 | | 7.25 | | 7.17 | | 9.68 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Large Cap Value Fund | | 5.75 | | 6.72 | | 8.50 | | | | | | 8.85 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Value Fund (2) | | 5.75 | | 4.92 | | 7.65 | | 5.59 | | | | 4.94 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mid Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Disciplined Small and Mid-Cap Equity Fund | | 5.75 | | | | | | | | | | 1.21 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mid Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Mid Cap Growth Fund | | 5.75 | | -6.34 | | 4.93 | | 4.00 | | 7.97 | | | • |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Aggressive Growth Fund (2) | | 5.75 | | -3.79 | | 7.57 | | | | | | 16.07 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
A1
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | Total Net | | Total Net | | Total | | Rankings and Annualized Returns at NAV (1) | |
| | Assets | | Assets | | Expense | | 1 year | | 3 years | | 5 years | |
Class A Shares by Lipper Category | | (Mil $) | | Date | | Ratio | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | |
Mid Cap Value Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Mid Cap Value Fund | | 2,224.80 | | 3/30/2007 | | 1.33 | | 12.59 | | 62 | % | 18.39 | | 10 | % | 14.75 | | 13 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 186 / 299 | | | | 23 / 230 | | | | 23 / 176 | |
Mixed-Asset Target 2010 Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2010 Fund | | 13.20 | | 3/30/2007 | | 1.39 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
Mixed-Asset Target 2020 Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2015 Fund | | 15.50 | | 3/30/2007 | | 1.40 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2020 Fund | | 23.60 | | 3/30/2007 | | 1.42 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
Mixed-Asset Target 2030 Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2025 Fund | | 18.80 | | 3/30/2007 | | 1.42 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2030 Fund | | 21.10 | | 3/30/2007 | | 1.42 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
Mixed-Asset Target 2040 Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2035 Fund | | 13.40 | | 3/30/2007 | | 1.42 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2040 Fund | | 22.50 | | 3/30/2007 | | 1.42 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2045 Fund | | 6.00 | | 3/30/2007 | | 1.42 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Conservative Fund | | 126.50 | | 3/30/2007 | | 1.12 | | 6.62 | | 62 | % | 4.94 | | 55 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 223 / 364 | | | | 117 / 214 | | | | | |
RiverSourceSM Portfolio Builder Moderate Conservative Fund | | 290.50 | | 3/30/2007 | | 1.13 | | 7.90 | | 28 | % | 6.78 | | 13 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 102 / 364 | | | | 27 / 214 | | | | | |
Mixed-Asset Target Allocation Growth Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Moderate Aggressive Fund | | 1,056.20 | | 3/30/2007 | | 1.25 | | 9.35 | | 48 | % | 9.53 | | 28 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 290 / 611 | | | | 138 / 504 | | | | | |
Mixed-Asset Target Allocation Moderate Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Balanced Fund | | 1,081.30 | | 3/30/2007 | | 1.01 | | 11.97 | | 11 | % | 8.58 | | 25 | % | 6.41 | | 49 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 46 / 423 | | | | 78 / 312 | | | | 104 / 212 | |
RiverSourceSM Portfolio Builder Moderate Fund | | 851.70 | | 3/30/2007 | | 1.18 | | 8.93 | | 48 | % | 8.44 | | 28 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 201 / 423 | | | | 86 / 312 | | | | | |
Multi Cap Core Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Fundamental Value Fund (2) | | 1,134.80 | | 3/30/2007 | | 1.26 | | 11.62 | | 22 | % | 10.20 | | 53 | % | 8.48 | | 26 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 188 / 893 | | | | 344 / 656 | | | | 124 / 476 | |
RiverSourceSM Portfolio Builder Aggressive Fund | | 521.00 | | 3/30/2007 | | 1.31 | | 9.78 | | 50 | % | 10.80 | | 40 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 442 / 893 | | | | 260 / 656 | | | | | |
RiverSourceSM Portfolio Builder Total Equity Fund | | 478.90 | | 3/30/2007 | | 1.35 | | 10.27 | | 40 | % | 12.16 | | 19 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 352 / 893 | | | | 123 / 656 | | | | | |
Multi Cap Value Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Select Value Fund (2) | | 579.30 | | 3/30/2007 | | 1.30 | | 16.41 | | 9 | % | 12.01 | | 48 | % | 11.16 | | 10 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 37 / 425 | | | | 159 / 333 | | | | 25 / 249 | |
Real Estate Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Real Estate Fund | | 292.40 | | 3/30/2007 | | 1.55 | | 21.05 | | 54 | % | 24.49 | | 23 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 137 / 256 | | | | 45 / 202 | | | | | |
S&P 500 Index Objective Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM S&P 500 Index Fund (3) | | 277.20 | | 3/30/2007 | | 0.79 | | 11.23 | | 9.31 | | 5.60 | | | | | | | |
Science & Technology Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Global Technology Fund | | 168.00 | | 3/30/2007 | | 1.69 | | 9.57 | | 9 | % | 10.26 | | 11 | % | 8.19 | | 11 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 24 / 288 | | | | 27 / 262 | | | | 26 / 242 | |
Small Cap Core Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Small Cap Equity Fund (2) | | 316.00 | | 3/30/2007 | | 1.76 | | 1.62 | | 83 | % | 11.65 | | 57 | % | 9.48 | | 75 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 588 / 711 | | | | 310 / 546 | | | | 323 / 435 | |
RiverSourceSM Small Cap Value Fund (2) | | 966.80 | | 3/30/2007 | | 1.49 | | 9.52 | | 15 | % | 13.04 | | 35 | % | 11.11 | | 45 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 106 / 711 | | | | 191 / 546 | | | | 194 / 435 | |
RiverSourceSM Small Cap Advantage Fund | | 580.60 | | 3/30/2007 | | 1.37 | | 0.67 | | 88 | % | 9.81 | | 82 | % | 10.55 | | 57 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 620 / 711 | | | | 448 / 546 | | | | 248 / 435 | |
RiverSourceSM Small Company Index Fund | | 1,038.00 | | 3/30/2007 | | 0.92 | | 4.62 | | 61 | % | 12.94 | | 38 | % | 10.74 | | 54 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 429 / 711 | | | | 203 / 546 | | | | 234 / 435 | |
Small Cap Growth Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Small Cap Growth Fund (2) | | 213.70 | | 3/30/2007 | | 1.73 | | -0.24 | | 59 | % | 7.47 | | 73 | % | 4.23 | | 84 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 312 / 534 | | | | 317 / 438 | | | | 309 / 368 | |
Small Cap Value Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Disciplined Small Cap Value Fund | | 30.80 | | 3/30/2007 | | 3.27 | | 2.46 | | 93 | % | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 248 / 267 | | | | | | | | | |
A1
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | Rankings and Annualized Returns at NAV (1) | |
| | | | | | Fund | | Since | | | | | |
| | 10 years | | Inception | | Inception | | Ranking Since | |
Class A Shares by Lipper Category | | Return | | Ranking | | Date | | Return | | Date | | Ranking | |
Mid Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Mid Cap Value Fund | | | | | | 2/14/2002 | | 16.31 | | 2/14/2002 | | 11 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 19 / 174 | |
Mixed-Asset Target 2010 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2010 Fund | | | | | | 5/18/2006 | | 12.93 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target 2020 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2015 Fund | | | | | | 5/18/2006 | | 14.59 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2020 Fund | | | | | | 5/18/2006 | | 15.11 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target 2030 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2025 Fund | | | | | | 5/18/2006 | | 14.89 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2030 Fund | | | | | | 5/18/2006 | | 15.40 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target 2040 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2035 Fund | | | | | | 5/18/2006 | | 14.52 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2040 Fund | | | | | | 5/18/2006 | | 15.23 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2045 Fund | | | | | | 5/18/2006 | | 14.89 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Conservative Fund | | | | | | 3/4/2004 | | 4.97 | | 3/4/2004 | | 51 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 108 / 214 | |
RiverSourceSM Portfolio Builder Moderate Conservative Fund | | | | | | 3/4/2004 | | 6.67 | | 3/4/2004 | | 11 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 23 / 214 | |
Mixed-Asset Target Allocation Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Moderate Aggressive Fund | | | | | | 3/4/2004 | | 9.24 | | 3/4/2004 | | 24 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 117 / 500 | |
Mixed-Asset Target Allocation Moderate Funds | | | | | | | | | | | | | |
RiverSourceSM Balanced Fund | | 3.55 | | 94 | % | 4/16/1940 | | | ^ | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | 106 / 112 | | | | | | | | | |
RiverSourceSM Portfolio Builder Moderate Fund | | | | | | 3/4/2004 | | 8.32 | | 3/4/2004 | | 23 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 69 / 308 | |
Multi Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Fundamental Value Fund (2) | | | | | | 6/18/2001 | | 6.43 | | 6/18/2001 | | 35 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 145 / 417 | |
RiverSourceSM Portfolio Builder Aggressive Fund | | | | | | 3/4/2004 | | 10.32 | | 3/4/2004 | | 31 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 196 / 649 | |
RiverSourceSM Portfolio Builder Total Equity Fund | | | | | | 3/4/2004 | | 11.46 | | 3/4/2004 | | 16 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 102 / 649 | |
Multi Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Select Value Fund (2) | | | | | | 3/8/2002 | | 11.06 | | 3/8/2002 | | 11 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 27 / 248 | |
Real Estate Funds | | | | | | | | | | | | | |
RiverSourceSM Real Estate Fund | | | | | | 3/4/2004 | | 25.08 | | 3/4/2004 | | 23 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 46 / 202 | |
S&P 500 Index Objective Funds | | | | | | | | | | | | | |
RiverSourceSM S&P 500 Index Fund (3) | | | | | | 10/25/1999 | | 2.21 | | 10/28/1999 | | | |
Science & Technology Funds | | | | | | | | | | | | | |
RiverSourceSM Global Technology Fund | | 8.75 | | 37 | % | 11/13/1996 | | 5.82 | | 11/14/1996 | | 65 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 17 / 45 | | | | | | | | 27 / 41 | |
Small Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Small Cap Equity Fund (2) | | | | | | 3/8/2002 | | 9.52 | | 3/8/2002 | | 76 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 326 / 432 | |
RiverSourceSM Small Cap Value Fund (2) | | | | | | 6/18/2001 | | 12.99 | | 6/18/2001 | | 25 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 92 / 374 | |
RiverSourceSM Small Cap Advantage Fund | | | | | | 5/4/1999 | | 8.47 | | 5/6/1999 | | 88 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 223 / 253 | |
RiverSourceSM Small Company Index Fund | | 11.45 | | 56 | % | 8/19/1996 | | 11.02 | | 8/22/1996 | | 62 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 76 / 136 | | | | | | | | 65 / 104 | |
Small Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Small Cap Growth Fund (2) | | | | | | 1/24/2001 | | 1.07 | | 1/24/2001 | | 74 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 236 / 322 | |
Small Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Disciplined Small Cap Value Fund | | | | | | 2/16/2006 | | 6.03 | | 2/16/2006 | | 90 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 235 / 262 | |
A1
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | Annualized Returns at POP (1) | |
| | Max. Front | | | | | | | | | | | |
| | Sales | | | | | | | | | | Since | |
Class A Shares by Lipper Category | | Charge | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | |
Mid Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Mid Cap Value Fund | | 5.75 | | 6.11 | | 16.07 | | 13.40 | | | | 14.98 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target 2010 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2010 Fund | | 5.75 | | | | | | | | | | 6.44 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target 2020 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2015 Fund | | 5.75 | | | | | | | | | | 8.00 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2020 Fund | | 5.75 | | | | | | | | | | 8.49 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target 2030 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2025 Fund | | 5.75 | | | | | | | | | | 8.28 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2030 Fund | | 5.75 | | | | | | | | | | 8.77 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target 2040 Funds | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2035 Fund | | 5.75 | | | | | | | | | | 7.94 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2040 Fund | | 5.75 | | | | | | | | | | 8.61 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Retirement Plus 2045 Fund | | 5.75 | | | | | | | | | | 8.28 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Conservative Fund | | 4.75 | | 1.55 | | 3.25 | | | | | | 3.32 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Moderate Conservative Fund | | 4.75 | | 2.77 | | 5.06 | | | | | | 4.99 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Moderate Aggressive Fund | | 5.75 | | 3.07 | | 7.39 | | | | | | 7.16 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Moderate Funds | | | | | | | | | | | | | |
RiverSourceSM Balanced Fund | | 5.75 | | 5.53 | | 6.46 | | 5.15 | | 2.93 | | | • |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Moderate Fund | | 5.75 | | 2.66 | | 6.32 | | | | | | 6.25 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Multi Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Fundamental Value Fund (2) | | 5.75 | | 5.20 | | 8.05 | | 7.20 | | | | 5.34 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Aggressive Fund | | 5.75 | | 3.46 | | 8.64 | | | | | | 8.21 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Portfolio Builder Total Equity Fund | | 5.75 | | 3.93 | | 9.97 | | | | | | 9.33 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Multi Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Select Value Fund (2) | | 5.75 | | 9.71 | | 9.82 | | 9.85 | | | | 9.77 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Real Estate Funds | | | | | | | | | | | | | |
RiverSourceSM Real Estate Fund | | 5.75 | | 14.09 | | 22.05 | | | | | | 22.69 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
S&P 500 Index Objective Funds | | | | | | | | | | | | | |
RiverSourceSM S&P 500 Index Fund (3) | | N/A | | 11.23 | | 9.31 | | 5.60 | | | | 2.21 | |
Science & Technology Funds | | | | | | | | | | | | | |
RiverSourceSM Global Technology Fund | | 5.75 | | 3.27 | | 8.10 | | 6.92 | | 8.11 | | 5.22 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Small Cap Core Funds | | | | | | | | | | | | | |
RiverSourceSM Small Cap Equity Fund (2) | | 5.75 | | -4.22 | | 9.47 | | 8.19 | | | | 8.25 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Small Cap Value Fund (2) | | 5.75 | | 3.22 | | 10.83 | | 9.80 | | | | 11.84 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Small Cap Advantage Fund | | 5.75 | | -5.12 | | 7.67 | | 9.25 | | | | 7.66 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Small Company Index Fund | | 5.75 | | -1.40 | | 10.74 | | 9.44 | | 10.79 | | 10.40 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Small Cap Growth Funds | | | | | | | | | | | | | |
RiverSourceSM Small Cap Growth Fund (2) | | 5.75 | | -5.97 | | 5.37 | | 3.00 | | | | 0.11 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Small Cap Value Funds | | | | | | | | | | | | | |
RiverSourceSM Disciplined Small Cap Value Fund | | 5.75 | | -3.43 | | | | | | | | 0.56 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
^ Since fund inception returns and rankings are not available. Actual fund inception date pre-dates data in Lipper database.
(1) Since inception returns and rankings for periods less than one year in length are cumulative.
(2) Mutual funds subadvised by advisors not affiliated with Ameriprise Financial, Inc.
(3) RiverSourceSM S&P 500 Index Fund data is for D shares.
A1
Fixed Income Fund Performance & Lipper Ranking
As of March 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.
| | Total Net | | Total Net | | Total | | Rankings and Annualized Returns at NAV (1) | |
| | Assets | | Assets | | Expense | | 1 year | | 3 years | | 5 years | |
Class A Shares by Lipper Category | | (Mil $) | | Date | | Ratio | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | |
Taxable Funds | | | | | | | | | | | | | | | | | | | |
Emerging Markets Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Emerging Markets Bond Fund | | 61.10 | | 3/30/2007 | | 1.81 | | 11.97 | | 27 | % | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 15 / 55 | | | | | | | | | |
Equity Market Neutral Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Absolute Return Currency & Income Fund | | 98.90 | | 3/30/2007 | | 1.59 | | | | | | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | |
Global Income Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Global Bond Fund | | 490.00 | | 3/30/2007 | | 1.38 | | 8.34 | | 29 | % | 3.43 | | 50 | % | 7.99 | | 41 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 31 / 106 | | | | 49 / 97 | | | | 33 / 81 | |
High Current Yield Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM High Yield Bond Fund | | 1,939.90 | | 3/30/2007 | | 1.07 | | 11.25 | | 19 | % | 9.44 | | 11 | % | 9.32 | | 43 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 83 / 445 | | | | 42 / 382 | | | | 133 / 315 | |
RiverSourceSM Income Opportunities Fund | | 356.90 | | 3/30/2007 | | 1.14 | | 9.52 | | 65 | % | 7.50 | | 56 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 288 / 445 | | | | 211 / 382 | | | | | |
Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Core Bond Fund | | 221.70 | | 3/30/2007 | | 1.09 | | 5.85 | | 62 | % | 2.83 | | 59 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 317 / 517 | | | | 255 / 438 | | | | | |
RiverSourceSM Diversified Bond Fund | | 2,761.50 | | 3/30/2007 | | 0.97 | | 7.42 | | 6 | % | 3.60 | | 16 | % | 4.73 | | 59 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 30 / 517 | | | | 69 / 438 | | | | 222 / 379 | |
Loan Participation Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Floating Rate Fund | | 615.90 | | 3/30/2007 | | 1.29 | | 7.17 | | 18 | % | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 10 / 56 | | | | | | | | | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Income Builder Basic Income Fund | | 199.60 | | 3/30/2007 | | 3.62 | | 10.16 | | 7 | % | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 24 / 364 | | | | | | | | | |
RiverSourceSM Income Builder Moderate Income Fund | | 449.10 | | 3/30/2007 | | 1.77 | | 11.37 | | 3 | % | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 8 / 364 | | | | | | | | | |
RiverSourceSM Income Builder Enhanced Income Fund | | 268.60 | | 3/30/2007 | | 2.04 | | 12.14 | | 2 | % | | | | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 4 / 364 | | | | | | | | | |
Short-Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Limited Duration Bond Fund | | 152.00 | | 3/30/2007 | | 1.05 | | 5.70 | | 30 | % | 2.77 | | 21 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 45 / 151 | | | | 29 / 139 | | | | | |
Short U.S. Government Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Short Duration U.S. Government Fund | | 842.80 | | 3/30/2007 | | 1.03 | | 4.84 | | 49 | % | 2.14 | | 55 | % | 2.81 | | 47 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 40 / 82 | | | | 43 / 78 | | | | 32 / 68 | |
Treasury Inflation Protected Securities Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Inflation Protected Securities Fund | | 308.90 | | 3/30/2007 | | 0.96 | | 4.69 | | 37 | % | 2.38 | | 45 | % | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 44 / 120 | | | | 29 / 64 | | | | | |
U.S. Mortgage Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM U.S. Government Mortgage Fund | | 354.90 | | 3/30/2007 | | 1.17 | | 6.10 | | 49 | % | 3.44 | | 44 | % | 4.53 | | 38 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 37 / 75 | | | | 32 / 73 | | | | 24 / 63 | |
Tax-Exempt Funds | | | | | | | | | | | | | | | | | | | |
California Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM California Tax-Exempt Fund | | 175.20 | | 3/30/2007 | | 0.87 | | 5.14 | | 44 | % | 3.98 | | 49 | % | 5.07 | | 53 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 51 / 116 | | | | 52 / 107 | | | | 50 / 94 | |
General Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Tax-Exempt High Income Fund | | 3,023.30 | | 3/30/2007 | | 1.08 | | 4.98 | | 45 | % | 3.35 | | 54 | % | 4.69 | | 55 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 108 / 241 | | | | 126 / 233 | | | | 119 / 217 | |
RiverSourceSM Tax-Exempt Bond Fund | | 806.50 | | 3/30/2007 | | 0.94 | | 4.88 | | 49 | % | 3.30 | | 58 | % | 4.55 | | 62 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 118 / 241 | | | | 134 / 233 | | | | 134 / 217 | |
Intermediate Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Intermediate Tax-Exempt Fund | | 85.60 | | 3/30/2007 | | 0.91 | | 4.46 | | 38 | % | 2.43 | | 50 | % | 4.08 | | 50 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 60 / 159 | | | | 70 / 139 | | | | 57 / 113 | |
Massachusetts Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Massachusetts Tax-Exempt Fund | | 53.60 | | 3/30/2007 | | 1.08 | | 4.76 | | 41 | % | 3.00 | | 63 | % | 4.18 | | 82 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 21 / 51 | | | | 32 / 50 | | | | 41 / 49 | |
Michigan Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Michigan Tax-Exempt Fund | | 45.70 | | 3/30/2007 | | 1.11 | | 4.36 | | 50 | % | 3.12 | | 57 | % | 4.59 | | 57 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 15 / 29 | | | | 17 / 29 | | | | 17 / 29 | |
Minnesota Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Minnesota Tax-Exempt Fund | | 336.30 | | 3/30/2007 | | 1.06 | | 4.75 | | 43 | % | 3.16 | | 61 | % | 4.58 | | 61 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 21 / 48 | | | | 28 / 45 | | | | 28 / 45 | |
New York Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM New York Tax-Exempt Fund | | 68.40 | | 3/30/2007 | | 1.20 | | 4.80 | | 52 | % | 3.15 | | 66 | % | 4.64 | | 57 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 49 / 95 | | | | 63 / 95 | | | | 49 / 85 | |
Ohio Municipal Debt Funds | | | | | | | | | | | | | | | | | | | |
RiverSourceSM Ohio Tax-Exempt Fund | | 45.80 | | 3/30/2007 | | 1.12 | | 4.29 | | 62 | % | 2.87 | | 63 | % | 4.04 | | 73 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 27 / 43 | | | | 27 / 42 | | | | 29 / 39 | |
A2
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | Rankings and Annualized Returns at NAV (1) | |
| | | | | | Fund | | Since | | | | | |
| | 10 years | | Inception | | Inception | | Ranking Since | |
Class A Shares by Lipper Category | | Return | | Ranking | | Date | | Return | | Date | | Ranking | |
Taxable Funds | | | | | | | | | | | | | |
Emerging Markets Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Emerging Markets Bond Fund | | | | | | 2/16/2006 | | 9.79 | | 2/16/2006 | | 33 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 18 / 54 | |
Equity Market Neutral Funds | | | | | | | | | | | | | |
RiverSourceSM Absolute Return Currency & Income Fund | | | | | | 6/15/2006 | | 7.00 | | | | | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Global Income Funds | | | | | | | | | | | | | |
RiverSourceSM Global Bond Fund | | 5.24 | | 49 | % | 3/20/1989 | | 7.40 | | 3/23/1989 | | 34 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 27 / 55 | | | | | | | | 3 / 8 | |
High Current Yield Funds | | | | | | | | | | | | | |
RiverSourceSM High Yield Bond Fund | | 5.25 | | 65 | % | 12/8/1983 | | 8.39 | | 12/8/1983 | | 48 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 82 / 126 | | | | | | | | 11 / 22 | |
RiverSourceSM Income Opportunities Fund | | | | | | 6/19/2003 | | 8.54 | | 6/19/2003 | | 54 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 197 / 364 | |
Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Core Bond Fund | | | | | | 6/19/2003 | | 2.54 | | 6/19/2003 | | 70 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 290 / 414 | |
RiverSourceSM Diversified Bond Fund | | 5.32 | | 74 | % | 10/3/1974 | | 9.16 | | 10/3/1974 | | 25 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 127 / 172 | | | | | | | | 1 / 3 | |
Loan Participation Funds | | | | | | | | | | | | | |
RiverSourceSM Floating Rate Fund | | | | | | 2/16/2006 | | 7.58 | | 2/16/2006 | | 13 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 7 / 55 | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | |
RiverSourceSM Income Builder Basic Income Fund | | | | | | 2/16/2006 | | 9.48 | | 2/16/2006 | | 9 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 30 / 362 | |
RiverSourceSM Income Builder Moderate Income Fund | | | | | | 2/16/2006 | | 10.79 | | 2/16/2006 | | 3 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 9 / 362 | |
RiverSourceSM Income Builder Enhanced Income Fund | | | | | | 2/16/2006 | | 11.71 | | 2/16/2006 | | 1 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 3 / 362 | |
Short-Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Limited Duration Bond Fund | | | | | | 6/19/2003 | | 2.60 | | 6/19/2003 | | 27 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 34 / 125 | |
Short U.S. Government Funds | | | | | | | | | | | | | |
RiverSourceSM Short Duration U.S. Government Fund | | 4.22 | | 69 | % | 8/19/1985 | | 6.26 | | 8/22/1985 | | 17 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 30 / 43 | | | | | | | | 1 / 5 | |
Treasury Inflation Protected Securities Funds | | | | | | | | | | | | | |
RiverSourceSM Inflation Protected Securities Fund | | | | | | 3/4/2004 | | 2.70 | | 3/4/2004 | | 51 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 33 / 64 | |
U.S. Mortgage Funds | | | | | | | | | | | | | |
RiverSourceSM U.S. Government Mortgage Fund | | | | | | 2/14/2002 | | 4.31 | | 2/14/2002 | | 39 | % |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | 24 / 62 | |
Tax-Exempt Funds | | | | | | | | | | | | | |
California Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM California Tax-Exempt Fund | | 5.04 | | 63 | % | 8/18/1986 | | 5.88 | | 8/31/1986 | | 80 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 44 / 69 | | | | | | | | 16 / 19 | |
General Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Tax-Exempt High Income Fund | | 4.95 | | 53 | % | 5/7/1979 | | 6.84 | | 5/31/1979 | | 48 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 73 / 137 | | | | | | | | 11 / 22 | |
RiverSourceSM Tax-Exempt Bond Fund | | 5.02 | | 49 | % | 11/24/1976 | | 6.01 | | 11/30/1976 | | 75 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 67 / 137 | | | | | | | | 6 / 7 | |
Intermediate Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Intermediate Tax-Exempt Fund | | 4.21 | | 86 | % | 11/13/1996 | | 4.15 | | 11/14/1996 | | 82 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 63 / 73 | | | | | | | | 59 / 71 | |
Massachusetts Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Massachusetts Tax-Exempt Fund | | 4.59 | | 74 | % | 7/2/1987 | | 5.72 | | 7/31/1987 | | 93 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 31 / 41 | | | | | | | | 12 / 12 | |
Michigan Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Michigan Tax-Exempt Fund | | 4.69 | | 60 | % | 7/2/1987 | | 5.89 | | 7/31/1987 | | 88 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 16 / 26 | | | | | | | | 7 / 7 | |
Minnesota Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Minnesota Tax-Exempt Fund | | 4.86 | | 50 | % | 8/18/1986 | | 5.91 | | 8/31/1986 | | 67 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 19 / 37 | | | | | | | | 4 / 5 | |
New York Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM New York Tax-Exempt Fund | | 4.90 | | 61 | % | 8/18/1986 | | 5.70 | | 8/31/1986 | | 77 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 40 / 65 | | | | | | | | 13 / 16 | |
Ohio Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Ohio Tax-Exempt Fund | | 4.54 | | 70 | % | 7/2/1987 | | 5.70 | | 7/31/1987 | | 89 | % |
Lipper Fund Ranking / Total Funds in Category | | | | 25 / 35 | | | | | | | | 8 / 8 | |
A2
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | Annualized Returns @ POP (1) | |
| | Max. Front | | | | | | | | | | | |
| | Sales | | | | | | | | | | Since | |
Class A Shares by Lipper Category | | Charge | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | |
Taxable Funds | | | | | | | | | | | | | |
Emerging Markets Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Emerging Markets Bond Fund | | 4.75 | | 6.65 | | | | | | | | 5.12 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Equity Market Neutral Funds | | | | | | | | | | | | | |
RiverSourceSM Absolute Return Currency & Income Fund | | 4.75 | | | | | | | | | | 1.92 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Global Income Funds | | | | | | | | | | | | | |
RiverSourceSM Global Bond Fund | | 4.75 | | 3.19 | | 1.76 | | 6.94 | | 4.73 | | 7.11 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
High Current Yield Funds | | | | | | | | | | | | | |
RiverSourceSM High Yield Bond Fund | | 4.75 | | 5.96 | | 7.68 | | 8.26 | | 4.74 | | 8.16 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Income Opportunities Fund | | 4.75 | | 4.32 | | 5.77 | | | | | | 7.16 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Core Bond Fund | | 4.75 | | 0.83 | | 1.17 | | | | | | 1.23 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Diversified Bond Fund | | 4.75 | | 2.31 | | 1.93 | | 3.71 | | 4.81 | | 8.99 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Loan Participation Funds | | | | | | | | | | | | | |
RiverSourceSM Floating Rate Fund | | 4.75 | | 2.08 | | | | | | | | 3.00 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | |
RiverSourceSM Income Builder Basic Income Fund | | 4.75 | | 4.93 | | | | | | | | 4.82 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Income Builder Moderate Income Fund | | 4.75 | | 6.08 | | | | | | | | 6.08 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Income Builder Enhanced Income Fund | | 4.75 | | 6.82 | | | | | | | | 6.96 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Short-Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Limited Duration Bond Fund | | 4.75 | | 0.68 | | 1.11 | | | | | | 1.29 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Short U.S. Government Funds | | | | | | | | | | | | | |
RiverSourceSM Short Duration U.S. Government Fund | | 4.75 | | -0.14 | | 0.49 | | 1.81 | | 3.71 | | 6.02 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Treasury Inflation Protected Securities Funds | | | | | | | | | | | | | |
RiverSourceSM Inflation Protected Securities Fund | | 4.75 | | -0.29 | | 0.73 | | | | | | 1.09 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
U.S. Mortgage Funds | | | | | | | | | | | | | |
RiverSourceSM U.S. Government Mortgage Fund | | 4.75 | | 1.06 | | 1.78 | | 3.52 | | | | 3.33 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Tax-Exempt Funds | | | | | | | | | | | | | |
California Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM California Tax-Exempt Fund | | 4.75 | | 0.15 | | 2.30 | | 4.05 | | 4.53 | | 5.63 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
General Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Tax-Exempt High Income Fund | | 4.75 | | -0.01 | | 1.68 | | 3.68 | | 4.44 | | 6.65 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
RiverSourceSM Tax-Exempt Bond Fund | | 4.75 | | -0.10 | | 1.64 | | 3.54 | | 4.51 | | 5.84 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Intermediate Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Intermediate Tax-Exempt Fund | | 4.75 | | -0.51 | | 0.78 | | 3.08 | | 3.70 | | 3.66 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Massachusetts Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Massachusetts Tax-Exempt Fund | | 4.75 | | -0.21 | | 1.34 | | 3.17 | | 4.09 | | 5.46 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Michigan Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Michigan Tax-Exempt Fund | | 4.75 | | -0.59 | | 1.46 | | 3.57 | | 4.18 | | 5.62 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Minnesota Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Minnesota Tax-Exempt Fund | | 4.75 | | -0.23 | | 1.50 | | 3.57 | | 4.36 | | 5.66 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
New York Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM New York Tax-Exempt Fund | | 4.75 | | -0.18 | | 1.49 | | 3.62 | | 4.39 | | 5.45 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
Ohio Municipal Debt Funds | | | | | | | | | | | | | |
RiverSourceSM Ohio Tax-Exempt Fund | | 4.75 | | -0.67 | | 1.21 | | 3.03 | | 4.04 | | 5.44 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | |
(1) Since inception returns and rankings for periods less than one year in length are cumulative.
A2
Ameriprise Financial, Inc.
Fund Performance & Lipper Ranking
As of March 31, 2007
Source of Data: Lipper
Rankings based on annualized total returns, excluding sales charges. Net asset value (NAV) returns for all periods would have been lower if the applicable sales charges were included.
Please note the following about the “Ranking Since” Lipper Rankings: In order to obtain a more accurate “since inception” Lipper Ranking for funds with an inception prior to 2000, the Thursday or month-end date following the actual inception date was used, rather than the actual inception date. When researching since inception rankings, please use the “Ranking Since” date.
Please note the following about the “Annualized Returns @ POP”: The POP return is calculated assuming a one-time purchase of the Fund at the maximum sales charge listed in the exhibit. RiverSource S&P 500 Index Fund has no sales loads, however, a redemption fee of 0.50% is charged on shares redeemed within 180 days of purchase.
Net assets per fund include all share classes. Assets for RiverSource Portfolio Builder Funds, RiverSource Income Builder Funds and RiverSource Retirement Plus Funds are invested in other RiverSource Funds and therefore would be double counted if assets are summed to reach a total.
Fee waivers were in place for each subadvised fund shown and the return would have been lower for each Fund had fee waivers not been in place.
A3
Important Disclosures
An investment in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.
You should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about the funds, call (800) 297-3863, TTY: (800) 846-4852. Read the prospectus carefully before investing.
The RiverSource Global Technology Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives.
Investments in small- and mid-capitalization companies often involve greater risk and potential volatility than investments in larger, more established companies.
The RiverSource Precious Metals Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives.
The investment process used to manage the RiverSource Disciplined Equity Fund employs new technologies and statistical methods that have not previously been used to manage open-end mutual funds. Shareholders should be prepared for the possibility that the Fund may under perform its benchmark. While RiverSource Investments seeks to control trading activity, the Fund may trade more often than other funds in its peer group. Trading activity may result in increased fees, expenses and taxes.
The RiverSource Real Estate Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives. An investment in a real estate fund is subject to the same risks as a direct investment in real estate. Such risks include market risk, economic risk and mortgage rate risk.
International investing involves increased risk and volatility, not typically associated with domestic investing, due to changes in currency exchange rates, foreign government regulations, differences in auditing and accounting standards, potential political and economic instability, limited liquidity and volatile prices. The risks of international investing are particularly significant in emerging markets.
There are risks associated with an investment in a bond fund, including the impact of interest rates, credit and inflation. These and other risk considerations are discussed in the fund’s prospectus. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities. Non-investment grade securities, commonly called “high-yield” or “junk” bonds, generally have more volatile prices and carry more risk to principal and income than investment grade securities.
High yield funds invest in lower-rated bonds, which generally have more volatile prices and carry more risk to principal and income than investment grade securities.
Principal risks associated with the RiverSource Inflation Protected Securities Fund include style risk, interest rate risk, market risk, credit risk, liquidity risk and sector/concentration risk. Treasury Inflation Protected Securities (TIPS) are backed by the full faith and credit of the U.S. government. The U.S. government guarantee applies only to the underlying TIPS securities, and not the Fund itself.
Income from tax-exempt funds may be subject to state and local taxes, and a portion of income may be subject to the federal and/or state alternative minimum tax for certain investors. Federal income tax rules will apply to any capital gains distribution.
Shares of the RiverSource Short Duration U.S. Government Fund and the RiverSource U.S. Government Mortgage Fund are not insured or guaranteed by the U.S. government.
The Floating Rate Fund invests primarily in floating rate loans, the market value of which may fluctuate, sometimes rapidly and unpredictably. The principal risks of investing in the fund include liquidity risk, interest rate risk, credit risk, counterparty risk, highly leveraged transactions risk, derivatives risk, confidential information access risk, and impairment of collateral risk. Generally, when interest rates rise, the prices of fixed income securities fall, however, securities or loans with floating interest rates can be less sensitive to interest rate changes, but they may decline in value if their interest rates do not rise as much as interest rates in general. Limited liquidity may affect the ability of the fund to purchase or sell floating rate loans and may have a negative impact on fund performance. The floating rate loans and securities in which the fund invests generally are lower-rated (non-investment grade) and are more likely to experience a default, which results in more volatile prices and more risk to principal and income than investment grade loans or securities. See the Fund’s prospectus for information on these and other risks associated with the Fund.
Portfolio Builder, Income Builder and Retirement Plus Series The RiverSource Portfolio Builder Funds, RiverSource Income Builder Funds and RiverSource Retirement Plus Funds are “funds of funds” comprised of holdings in several different RiverSource funds, which may include small cap, mid cap, large cap, money market, international, bond and/or other sector funds. Specific risk considerations are discussed in each fund’s prospectus. Each of the underlying funds in which the portfolio invests has its own investment risks, and those risks can affect the value of each portfolio’s shares and investments. See each fund’s prospectus for specific risks that may be associated with the underlying funds.
“Standard & Poor’s®,” “S&P,” “S&P 500®,” and “Standard & Poor’s 500®” are trademarks of the McGraw Hill Companies, Inc. These trademarks and service marks have been licensed for use by RiverSource Investments. The Funds are not sponsored, endorsed, sold or promoted by Standard & Poor’s or any of their subsidiaries or affiliates (the “Licensors”) and the Licensors make no representation regarding the advisability of investing in the Funds.
A4
Investment products are not federally or FDIC insured, are not deposits or obligations of, or guaranteed by, any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member NASD and SIPC. Ameriprise Bank, FSB, member FDIC, provides certain deposit and lending products and services for Ameriprise Financial Services, Inc. Ameriprise Bank, FSB deposit products are FDIC-insured up to $100,000 per customer.
RiverSource Distributors, Inc. (Distributor), Member NASD. Insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, NY. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of NY.
RiverSourceSM mutual funds are distributed by RiverSource Distributors, Inc. and Ameriprise Financial Services, Inc., Members NASD, and managed by RiverSource Investments, LLC.
The Threadneedle group of companies constitutes the Ameriprise Financial international investment platform. The group consists of wholly owned subsidiaries of Ameriprise Financial, Inc. and provides services independent from Ameriprise Financial Services, Inc., including Ameriprise Financial Services’ broker-dealer business.
RiverSource Investments, LLC is an SEC-registered investment adviser that offers investment products and services under the names RiverSource Institutional Advisors, RiverSource Alternative Investments, RiverSource Capital Management and RiverSource Insurance Assets. RiverSource Investments LLC also serves as the Investment Manager for the RiverSource mutual funds.
Ameriprise Certificates are issued by Ameriprise Certificate Company and distributed by Ameriprise Financial Services, Inc. Member NASD.
Ameriprise Auto & Home Insurance issues auto, home and umbrella insurance underwritten by AMEX Assurance Company (AMEX Assurance) or IDS Property Casualty Insurance Company (IDS Property Casualty), DePere, WI.
Mortgages and home equity loans are provided by Ameriprise Bank, FSB, an FDIC-insured federal savings bank. Ameriprise Bank, FSB, an Equal Housing Lender, is an Ameriprise Financial Services, Inc. company.
These companies, including Securities America, Inc., Member NASD, are all affiliated with Ameriprise Financial, Inc.
A5
EXHIBIT B
RECONCILIATION TABLES
Ameriprise Financial, Inc.
Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP
(in millions, unaudited) | | Three Months Ended March 31, 2006 | | | |
Line item in non-GAAP presentation | | Presented Before Separation Cost Impacts in Reported Financials | | Difference Attributable to Separation Costs | | GAAP Equivalent | | GAAP Line Item | |
| | | | | | | | | |
Total revenues (GAAP measure) | | $ | 1,949 | | $ | — | | $ | 1,949 | | Total revenues | |
| | | | | | | | | |
Total expenses before separation costs | | 1,691 | | 67 | | 1,758 | | Total expenses | |
| | | | | | | | | |
Income before income tax provision and separation costs | | 258 | | (67 | ) | 191 | | Income before income tax provision | |
| | | | | | | | | |
Income tax provision before tax benefit attributable to separation costs | | 69 | | (23 | ) | 46 | | Income tax provision | |
| | | | | | | | | |
Income before separation costs | | 189 | | | | | | | |
| | | | | | | | | |
Separation costs, after-tax | | 44 | | | | | | | |
| | | | | | | | | |
Net income (GAAP measure) | | $ | 145 | | | | $ | 145 | | Net income | |
| | | | | | | | | | | | |
B1
Ameriprise Financial, Inc.
Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP
(in millions, unaudited) | | Three Months Ended June 30, 2006 | | | |
Line item in non-GAAP presentation | | Presented Before Separation Cost Impacts in Reported Financials | | Difference Attributable to Separation Costs | | GAAP Equivalent | | GAAP Line Item | |
| | | | | | | | | |
Total revenues (GAAP measure) | | $ | 2,053 | | $ | — | | $ | 2,053 | | Total revenues | |
| | | | | | | | | |
Total expenses before separation costs | | 1,783 | | 84 | | 1,867 | | Total expenses | |
| | | | | | | | | |
Income before income tax provision and separation costs | | 270 | | (84 | ) | 186 | | Income before income tax provision | |
| | | | | | | | | |
Income tax provision before tax benefit attributable to separation costs | | 75 | | (30 | ) | 45 | | Income tax provision | |
| | | | | | | | | |
Income before separation costs | | 195 | | | | | | | |
| | | | | | | | | |
Separation costs, after-tax | | 54 | | | | | | | |
| | | | | | | | | |
Net income (GAAP measure) | | $ | 141 | | | | $ | 141 | | Net income | |
| | | | | | | | | | | | |
B2
Ameriprise Financial, Inc.
Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP
(in millions, unaudited) | | Three Months Ended September 30, 2006 | | | |
Line item in non-GAAP presentation | | Presented Before Separation Cost Impacts in Reported Financials | | Difference Attributable to Separation Costs | | GAAP Equivalent | | GAAP Line Item | |
| | | | | | | | | |
Total revenues (GAAP measure) | | $ | 1,977 | | $ | — | | $ | 1,977 | | Total revenues | |
| | | | | | | | | |
Total expenses before separation costs | | 1,673 | | 87 | | 1,760 | | Total expenses | |
| | | | | | | | | |
Income before income tax provision and separation costs | | 304 | | (87 | ) | 217 | | Income before income tax provision | |
| | | | | | | | | |
Income tax provision before tax benefit attributable to separation costs | | 73 | | (30 | ) | 43 | | Income tax provision | |
| | | | | | | | | |
Income before separation costs | | 231 | | | | | | | |
| | | | | | | | | |
Separation costs, after-tax | | 57 | | | | | | | |
| | | | | | | | | |
Net income (GAAP measure) | | $ | 174 | | | | $ | 174 | | Net income | |
| | | | | | | | | | | | |
B3
Ameriprise Financial, Inc.
Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP
(in millions, unaudited) | | Three Months Ended December 31, 2006 | | | |
Line item in non-GAAP presentation | | Presented Before Separation Cost Impacts in Reported Financials | | Difference Attributable to Separation Costs | | GAAP Equivalent | | GAAP Line Item | |
| | | | | | | | | |
Total revenues (GAAP measure) | | $ | 2,161 | | $ | — | | $ | 2,161 | | Total revenues | |
| | | | | | | | | |
Total expenses before separation costs | | 1,835 | | 123 | | 1,958 | | Total expenses | |
| | | | | | | | | |
Income before income tax provision and separation costs | | 326 | | (123 | ) | 203 | | Income before income tax provision | |
| | | | | | | | | |
Income tax provision before tax benefit attributable to separation costs | | 75 | | (43 | ) | 32 | | Income tax provision | |
| | | | | | | | | |
Income before separation costs | | 251 | | | | | | | |
| | | | | | | | | |
Separation costs, after-tax | | 80 | | | | | | | |
| | | | | | | | | |
Net income (GAAP measure) | | $ | 171 | | | | $ | 171 | | Net income | |
| | | | | | | | | | | | |
B4
Ameriprise Financial, Inc.
Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP
(in millions, unaudited) | | Twelve Months Ended December 31, 2006 | | | |
Line item in non-GAAP presentation | | Presented Before Separation Cost Impacts in Reported Financials | | Difference Attributable to Separation Costs | | GAAP Equivalent | | GAAP Line Item | |
| | | | | | | | | |
Total revenues (GAAP measure) | | $ | 8,140 | | $ | — | | $ | 8,140 | | Total revenues | |
| | | | | | | | | |
Total expenses before separation costs | | 6,982 | | 361 | | 7,343 | | Total expenses | |
| | | | | | | | | |
Income before income tax provision and separation costs | | 1,158 | | (361 | ) | 797 | | Income before income tax provision | |
| | | | | | | | | |
Income tax provision before tax benefit attributable to separation costs | | 292 | | $ | (126 | ) | 166 | | Income tax provision | |
| | | | | | | | | |
Income before separation costs | | 866 | | | | | | | |
| | | | | | | | | |
Separation costs, after-tax | | 235 | | | | | | | |
| | | | | | | | | |
Net income (GAAP measure) | | $ | 631 | | | | $ | 631 | | Net income | |
B5
Ameriprise Financial, Inc.
Reconciliation Table: Selected Adjusted Consolidated Income Data to GAAP
(in millions, unaudited) | | Three Months Ended March 31, 2007 | | | |
Line item in non-GAAP presentation | | Presented Before Separation Cost Impacts in Reported Financials | | Difference Attributable to Separation Costs | | GAAP Equivalent | | GAAP Line Item | |
| | | | | | | | | |
Total revenues (GAAP measure) | | $ | 2,063 | | $ | — | | $ | 2,063 | | Total revenues | |
| | | | | | | | | |
Total expenses before separation costs | | 1,762 | | 85 | | 1,847 | | Total expenses | |
| | | | | | | | | |
Income before income tax provision and separation costs | | 301 | | (85 | ) | 216 | | Income before income tax provision | |
| | | | | | | | | |
Income tax provision before tax benefit attributable to separation costs | | 81 | | (30 | ) | 51 | | Income tax provision | |
| | | | | | | | | |
Income before separation costs | | 220 | | | | | | | |
| | | | | | | | | |
Separation costs, after-tax | | 55 | | | | | | | |
| | | | | | | | | |
Net income (GAAP measure) | | $ | 165 | | | | $ | 165 | | Net income | |
| | | | | | | | | | | | |
B6
Ameriprise Financial, Inc.
Return on Equity Calculation
(in millions, unaudited) | | ROE Excluding Discontinued Operations (1) | | Adjustments | | Adjusted ROE (2) | |
| | | | | | | |
Return on Equity Calculation for the Twelve Months Ended: | | | | | | | |
March 31, 2006 | | | | | | | |
Return | | $ | 528 | | $ | 192 | | $ | 720 | |
Equity | | $ | 7,156 | | $ | (235 | ) | $ | 6,921 | |
Return on Equity | | 7.4 | % | | | 10.4 | % |
| | | | | | | |
June 30, 2006 | | | | | | | |
Return | | $ | 520 | | $ | 236 | | $ | 756 | |
Equity | | $ | 7,348 | | $ | (291 | ) | $ | 7,057 | |
Return on Equity | | 7.1 | % | | | 10.7 | % |
| | | | | | | |
September 30, 2006 | | | | | | | |
Return | | $ | 571 | | $ | 236 | | $ | 807 | |
Equity | | $ | 7,550 | | $ | (336 | ) | $ | 7,214 | |
Return on Equity | | 7.6 | % | | | 11.2 | % |
| | | | | | | |
December 31, 2006 | | | | | | | |
Return | | $ | 631 | | $ | 235 | | $ | 866 | |
Equity | | $ | 7,588 | | $ | (273 | ) | $ | 7,315 | |
Return on Equity | | 8.3 | % | | | 11.8 | % |
| | | | | | | |
March 31, 2007 | | | | | | | |
Return | | $ | 651 | | $ | 246 | | $ | 897 | |
Equity | | $ | 7,597 | | $ | (215 | ) | $ | 7,382 | |
Return on Equity | | 8.6 | % | | | 12.2 | % |
(1) Return on equity is calculated using the 12 month trailing income before discontinued operations in the numerator and the average of shareholders’ equity before the assets and liabilities of discontinued operations as of the last day of the preceding four quarters and the current quarter in the denominator.
(2) Adjusted return on equity is calculated using adjusted earnings (income before discontinued operations excluding non-recurring separation costs and AMEX Assurance) in the numerator, and equity excluding both the assets and liabilities of discontinued operations and equity allocated to expected non-recurring separation costs as of the last day of the preceding four quarters and the current quarter in the denominator.
B7
Ameriprise Financial, Inc.
Ratio of Earnings to Fixed Charges
| | | | | | | | | | | | 1Q ‘07 vs. 1Q ‘06 | | Full Year | |
(in millions, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | 1 Qtr 2007 | | % Change | | 2006 | |
Ratio of Earnings to Fixed Charges (1) | | | | | | | | | | | | | |
Earnings | | $ | 225 | | $ | 225 | | $ | 258 | | $ | 244 | | $ | 256 | | 14 | % | | $ | 952 | |
Fixed charges | | $ | 34 | | $ | 39 | | $ | 42 | | $ | 41 | | $ | 40 | | 18 | % | | $ | 156 | |
Ratio of earnings to fixed charges | | 6.6 | x | 5.8 | x | 6.1 | x | 6.0 | x | 6.4 | x | (3 | )% | | 6.1 | x |
| | | | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges without interest expense on non-recourse debt (1) | | | | | |
Earnings | | $ | 225 | | $ | 225 | | $ | 258 | | $ | 244 | | $ | 256 | | 14 | % | | $ | 952 | |
Interest expense on non-recourse debt: | | | | | | | | | | | | | | | | |
Interest on debt of CDO consolidated per FIN 46(R) | | (5 | ) | (5 | ) | (4 | ) | (4 | ) | (4 | ) | 20 | % | | (18 | ) |
Interest on debt of Threadneedle managed property fund limited partnerships consolidated per EITF 04-5 | | (1 | ) | (3 | ) | (2 | ) | — | | — | | | # | | (6 | ) |
| | (6 | ) | (8 | ) | (6 | ) | (4 | ) | (4 | ) | 33 | % | | (24 | ) |
Total earnings | | $ | 219 | | $ | 217 | | $ | 252 | | $ | 240 | | $ | 252 | | 15 | % | | $ | 928 | |
| | | | | | | | | | | | | | | | |
Fixed charges | | $ | 34 | | $ | 39 | | $ | 42 | | $ | 41 | | $ | 40 | | 18 | % | | $ | 156 | |
Interest expense on non-recourse debt: | | | | | | | | | | | | | | | | |
Interest on debt of CDO consolidated per FIN 46(R) | | (5 | ) | (5 | ) | (4 | ) | (4 | ) | (4 | ) | 20 | % | | (18 | ) |
Interest on debt of Threadneedle managed property fund limited partnerships consolidated per EITF 04-5 | | (1 | ) | (3 | ) | (2 | ) | — | | — | | | # | | (6 | ) |
| | (6 | ) | (8 | ) | (6 | ) | (4 | ) | (4 | ) | 33 | % | | (24 | ) |
Total fixed charges | | $ | 28 | | $ | 31 | | $ | 36 | | $ | 37 | | $ | 36 | | 29 | % | | $ | 132 | |
| | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges without interest expense on non-recourse debt | | 7.8 | x | 7.0 | x | 7.0 | x | 6.5 | x | 7.0 | x | (10 | )% | | 7.0 | x |
(1) See definition of Ratio of Earnings to Fixed Charges included in this supplement.
# Variance of 100% or greater.
B8
Ameriprise Financial, Inc.
First Quarter 2007
Disclosed Items
| | Asset Accumulation & Income | | Protection | | AMP | |
| | Realized | | Threadneedle | | Realized | | | |
| | Investment | | EPP | | Investment | | | |
(in millions, unaudited) | | Gains (1) | | Accrual (2) | | Gains (1) | | Consolidated | |
Revenues | | | | | | | | | |
Management, financial advice and service fees | | $ | — | | $ | — | | $ | — | | $ | — | |
Distribution fees | | — | | — | | — | | — | |
Net investment income | | 8 | | — | | 1 | | 9 | |
Premiums | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | |
Total revenues | | 8 | | — | | 1 | | 9 | |
| | | | | | | | | |
Expenses | | | | | | | | | |
Compensation and benefits - field | | — | | — | | — | | — | |
Compensation and benefits - non-field | | — | | — | | — | | 16 | |
Interest credited to account values | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | |
Other expenses | | — | | 16 | | — | | — | |
Total expenses | | — | | 16 | | — | | 16 | |
| | | | | | | | | |
Income before tax provision and separation costs | | $ | 8 | | $ | (16 | ) | $ | 1 | | $ | (7 | ) |
(1) Pretax realized net investment gains and (losses).
(2) Impact of recognizing the full year fair value adjustment in the first quarter of 2007.
C-1
Ameriprise Financial, Inc.
Fourth Quarter 2006
Disclosed Items
| | Asset Accumulation & Income | | Protection | | AMP | |
| | Realized | | | | Realized | | | | Auto and Home | | | |
| | Investment | | Legal & | | Investment | | Legal & | | Reserve | | | |
(in millions, unaudited) | | Gains (1) | | Regulatory | | Gains (1) | | Regulatory | | Release (2) | | Consolidated | |
Revenues | | | | | | | | | | | | | |
Management, financial advice and service fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | |
Net investment income | | 21 | | — | | 6 | | — | | — | | 27 | |
Premiums | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | — | |
Total revenues | | 21 | | — | | 6 | | — | | — | | 27 | |
| | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | |
Compensation and benefits - field | | — | | — | | — | | — | | — | | — | |
Compensation and benefits - non-field | | — | | — | | — | | — | | — | | — | |
Interest credited to account values | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | (9 | ) | (9 | ) |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | |
Other expenses | | — | | 30 | | — | | 1 | | — | | 31 | |
Total expenses | | — | | 30 | | — | | 1 | | (9 | ) | 22 | |
| | | | | | | | | | | | | |
Income before tax provision and separation costs | | $ | 21 | | $ | (30 | ) | $ | 6 | | $ | (1 | ) | $ | 9 | | $ | 5 | |
| | | | | | | | | | | | | |
Income tax (benefit)(3) | | | | | | | | | | | | $ | (16 | ) |
(1) Pretax realized net investment gains and (losses).
(2) Reserve release due to continued improvement in 2004 and 2005 accident year results in Auto and Home.
(3) Tax benefit primarily due to a change in effective state income tax rate applied to deferred tax assets due to the separation from American Express.
C-2
Ameriprise Financial, Inc.
First Quarter 2006
Disclosed Items
| | Asset Accumulation & Income | | Protection | | Corporate | | AMP | |
| �� | Realized | | DC Record- | | Realized | | Realized | | | | | |
| | Investment | | keeping | | Investment | | Investment | | | | | |
(in millions, unaudited) | | Gains (1) | | Business (2) | | Gains (1) | | Gains (1) | | Severance (3) | | Consolidated | |
Revenues | | | | | | | | | | | | | |
Management, financial advice and service fees | | $ | — | | $ | 16 | | $ | — | | $ | — | | $ | — | | $ | 16 | |
Distribution fees | | — | | — | | — | | — | | — | | — | |
Net investment income | | 1 | | — | | 2 | | 1 | | — | | 4 | |
Premiums | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | — | | — | | — | | — | | — | |
Total revenues | | 1 | | 16 | | 2 | | 1 | | — | | 20 | |
| | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | |
Compensation and benefits - field | | — | | — | | — | | — | | — | | — | |
Compensation and benefits - non-field | | — | | — | | — | | — | | — | | 19 | |
Interest credited to account values | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | |
Other expenses | | — | | 20 | | — | | — | | 11 | | 12 | |
Total expenses | | — | | 20 | | — | | — | | 11 | | 31 | |
| | | | | | | | | | | | | |
Income before tax provision, separation costs and accounting change | | $ | 1 | | $ | (4 | ) | $ | 2 | | $ | 1 | | $ | (11 | ) | $ | (11 | ) |
(1) Pretax realized net investment gains and (losses).
(2) Results from operations of defined contribution (DC) business, which was sold in the second quarter 2006.
(3) Cost of severance primarily within the technology group.
C-3
Ameriprise Financial, Inc.
Reconciliation of Adjustments Affecting Historical Statistical Supplement Presentations
(in billions unless otherwise noted, unaudited) | | 1 Qtr 2006 | | 2 Qtr 2006 | | 3 Qtr 2006 | | 4 Qtr 2006 | | YTD 2006 | |
Cash Sales (in millions) (1) | | | | | | | | | | | |
Ending balance - as previously reported | | $ | 16,123 | | $ | 15,996 | | $ | 14,762 | | $ | 16,804 | | $ | 63,685 | |
Change | | (433 | ) | (430 | ) | (371 | ) | (243 | ) | (1,477 | ) |
Ending balance - current presentation | | $ | 15,690 | | $ | 15,566 | | $ | 14,391 | | $ | 16,561 | | $ | 62,208 | |
| | | | | | | | | | | |
RiverSource Collective Funds (1) | | | | | | | | | | | |
Ending balance - as previously reported | | $ | 10.8 | | $ | 10.6 | | $ | 10.7 | | $ | 10.1 | | $ | 10.1 | |
Change | | 0.2 | | 0.3 | | 0.3 | | 0.1 | | 0.1 | |
Ending balance - current presentation | | $ | 11.0 | | $ | 10.9 | | $ | 11.0 | | $ | 10.2 | | $ | 10.2 | |
| | | | | | | | | | | |
RiverSource Managed Retail Funds (2) | | | | | | | | | | | |
Ending balance - as previously reported | | $ | 58.8 | | $ | 56.8 | | $ | 57.6 | | $ | 59.5 | | $ | 59.5 | |
Variable product funds | | 19.4 | | 19.6 | | 20.6 | | 22.2 | | 22.2 | |
Ending balance - current presentaion | | $ | 78.2 | | $ | 76.4 | | $ | 78.2 | | $ | 81.7 | | $ | 81.7 | |
(1) Change in methodolgy is related to the sale of the recordkeeping business to Wachovia. Prior periods have been restated to conform to current presentation. This revision appears on pages 4 and 11.
(2) Changed to include Variable product funds in RiverSource Managed Retail Funds. This revision appears on page 11.
D-1