Exhibit 99.2
Statistical Supplement Package
(unaudited)
Second Quarter 2008
1
Ameriprise Financial, Inc.
Statistical Supplement Information
Table of Contents
| | Page |
Ameriprise Financial, Inc. | | |
| Highlights | 4 | |
| Financial Summary | 5 | |
| Consolidated Income Statements | 6 | |
| Consolidated, Per Share Summary | 8 | |
Advice & Wealth Management Segment | | |
| Segment Income Statements | 10 | |
| Segment Metrics | 11 | |
Asset Management Segment | | |
| Segment Income Statements | 13 | |
| Segment Metrics | 14 | |
| RiverSource Asset Management Products | 15 | |
| Threadneedle Asset Management Products | 16 | |
Annuities Segment | | |
| Segment Income Statements | 18 | |
| Segment Metrics | 19 | |
Protection Segment | | |
| Segment Income Statements | 21 | |
| Segment Metrics | 22 | |
Corporate & Other Segment | | |
| Segment Income Statements | 24 | |
Eliminations | | |
| Income Statements | 25 | |
Balance Sheet and Ratings Information | | |
| Consolidated Balance Sheets | 27 | |
| Capital and Ratings Information | 28 | |
| Investments | 29 | |
Non-GAAP Financial Information | 30 | |
Glossary of Selected Terminology | | |
| Glossary of Selected Terminology - Segments | 31 | |
| Glossary of Selected Terminology | 32 | |
Exhibit A | | |
| RiverSource Mutual Fund Performance and Lipper Ranking | 35 | |
Exhibit B | | |
| Reconciliation Tables | 42 | |
| Return on Equity | 43 | |
Exhibit C | | |
| Disclosed Items | 45 | |
2
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Consolidated Results
3
Ameriprise Financial, Inc.
Highlights
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions, except earnings per share amounts, headcount and as otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Management Targets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue growth: Target 6 - 8% | | 5.8 | % | 9.5 | % | 5.9 | % | (1.6 | )% | (8.1 | )% | 5.6 | % | (4.9 | )% | (13.9 | )% | | | | (10.5 | )% | | | | (6.5 | )% | | | |
Adjusted return on equity: Target 12 - 15% (1) | | 12.5 | % | 12.4 | % | 12.6 | % | 12.2 | % | 12.0 | % | 12.5 | % | 12.0 | % | (0.5 | )% | | | | (0.5 | )% | | | | (0.2 | )% | | | |
Adjusted earnings per diluted share growth: Target 12 - 15% (1) | | 24.1 | % | 5.3 | % | 13.7 | % | (8.9 | )% | (5.1 | )% | 22.9 | % | (6.9 | )% | (29.2 | )% | | | | (29.8 | )% | | | | 3.8 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Margins | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income margin | | 9.1 | % | 9.4 | % | 11.3 | % | 9.6 | % | 10.6 | % | 8.6 | % | 10.1 | % | 1.5 | % | | | | 1.5 | % | | | | 1.0 | % | | | |
Adjusted pretax margin (1) | | 14.3 | % | 13.1 | % | 16.2 | % | 9.8 | % | 12.0 | % | 14.6 | % | 10.9 | % | (2.3 | )% | | | | (3.7 | )% | | | | 2.2 | % | | | |
Adjusted earnings margin (1) | | 11.0 | % | 11.2 | % | 12.1 | % | 9.6 | % | 10.6 | % | 10.9 | % | 10.1 | % | (0.4 | )% | | | | (0.8 | )% | | | | 1.0 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.83 | | $ | 0.84 | | $ | 1.10 | | $ | 0.84 | | $ | 0.94 | | $ | 1.51 | | $ | 1.77 | | $ | 0.11 | | 13 | % | | $ | 0.26 | | 17 | % | | $ | 0.10 | | 12 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.81 | | $ | 0.83 | | $ | 1.08 | | $ | 0.82 | | $ | 0.93 | | $ | 1.49 | | $ | 1.75 | | $ | 0.12 | | 15 | % | | $ | 0.26 | | 17 | % | | $ | 0.11 | | 13 | % | |
Separation costs, after-tax | | 0.17 | | 0.16 | | 0.08 | | — | | — | | 0.39 | | — | | (0.17 | ) | # | | | (0.39 | ) | # | | | — | | — | | |
Adjusted diluted earnings per share (1) | | $ | 0.98 | | $ | 0.99 | | $ | 1.16 | | $ | 0.82 | | $ | 0.93 | | $ | 1.88 | | $ | 1.75 | | $ | (0.05 | ) | (5 | )% | | $ | (0.13 | ) | (7 | )% | | $ | 0.11 | | 13 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total common outstanding | | 235.3 | | 232.4 | | 227.7 | | 223.4 | | 218.9 | | 235.3 | | 218.9 | | (16.4 | ) | (7 | )% | | (16.4 | ) | (7 | )% | | (4.5 | ) | (2 | )% | |
Nonforfeitable restricted stock units | | 1.3 | | 1.3 | | 1.4 | | 2.6 | | 2.0 | | 1.3 | | 2.0 | | 0.7 | | 54 | % | | 0.7 | | 54 | % | | (0.6 | ) | (23 | )% | |
Total potentially dilutive | | 3.8 | | 3.9 | | 3.9 | | 2.8 | | 2.7 | | 3.8 | | 2.7 | | (1.1 | ) | (29 | )% | | (1.1 | ) | (29 | )% | | (0.1 | ) | (4 | )% | |
Total diluted shares | | 240.4 | | 237.6 | | 233.0 | | 228.8 | | 223.6 | | 240.4 | | 223.6 | | (16.8 | ) | (7 | )% | | (16.8 | ) | (7 | )% | | (5.2 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | 237.4 | | 235.4 | | 231.4 | | 228.4 | | 223.2 | | 237.4 | | 225.8 | | (14.2 | ) | (6 | )% | | (11.6 | ) | (5 | )% | | (5.2 | ) | (2 | )% | |
Diluted | | 241.0 | | 239.2 | | 235.4 | | 231.5 | | 226.0 | | 242.6 | | 228.8 | | (15.0 | ) | (6 | )% | | (13.8 | ) | (6 | )% | | (5.5 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | $ | 7,600 | | $ | 7,758 | | $ | 7,810 | | $ | 7,581 | | $ | 7,314 | | $ | 7,600 | | $ | 7,314 | | $ | (286 | ) | (4 | )% | | $ | (286 | ) | (4 | )% | | $ | (267 | ) | (4 | )% | |
Total client assets | | 292,271 | | 297,856 | | 293,899 | | 275,958 | | 275,473 | | 292,271 | | 275,473 | | (16,798 | ) | (6 | )% | | (16,798 | ) | (6 | )% | | (485 | ) | — | | |
Total advisor cash sales | | $ | 13,047 | | $ | 10,342 | | $ | 9,111 | | $ | 8,845 | | $ | 10,192 | | $ | 24,514 | | $ | 19,037 | | $ | (2,855 | ) | (22 | )% | | $ | (5,477 | ) | (22 | )% | | $ | 1,347 | | 15 | % | |
Total financial advisors | | 12,076 | | 12,003 | | 11,824 | | 11,609 | | 11,521 | | 12,076 | | 11,521 | | (555 | ) | (5 | )% | | (555 | ) | (5 | )% | | (88 | ) | (1 | )% | |
Net revenue per financial advisor (in thousands) | | $ | 83 | | $ | 79 | | $ | 80 | | $ | 81 | | $ | 77 | | $ | 156 | | $ | 158 | | $ | (6 | ) | (7 | )% | | $ | 2 | | 1 | % | | $ | (4 | ) | (5 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned, Managed, and Administered Assets (in billions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned | | $ | 38.5 | | $ | 39.6 | | $ | 39.6 | | $ | 36.8 | | $ | 36.9 | | $ | 38.5 | | $ | 36.9 | | $ | (1.6 | ) | (4 | )% | | $ | (1.6 | ) | (4 | )% | | $ | 0.1 | | — | | |
Managed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
External clients | | 310.5 | | 315.4 | | 307.0 | | 287.2 | | 283.0 | | 310.5 | | 283.0 | | (27.5 | ) | (9 | )% | | (27.5 | ) | (9 | )% | | (4.2 | ) | (1 | )% | |
Owned | | 62.7 | | 63.4 | | 62.6 | | 60.9 | | 59.9 | | 62.7 | | 59.9 | | (2.8 | ) | (4 | )% | | (2.8 | ) | (4 | )% | | (1.0 | ) | (2 | )% | |
Total managed | | 373.2 | | 378.8 | | 369.6 | | 348.1 | | 342.9 | | 373.2 | | 342.9 | | (30.3 | ) | (8 | )% | | (30.3 | ) | (8 | )% | | (5.2 | ) | (1 | )% | |
Administered | | 72.5 | | 73.5 | | 71.0 | | 65.8 | | 65.6 | | 72.5 | | 65.6 | | (6.9 | ) | (10 | )% | | (6.9 | ) | (10 | )% | | (0.2 | ) | — | | |
Total OMA assets | | $ | 484.2 | | $ | 491.9 | | $ | 480.2 | | $ | 450.7 | | $ | 445.4 | | $ | 484.2 | | $ | 445.4 | | $ | (38.8 | ) | (8 | )% | | $ | (38.8 | ) | (8 | )% | | $ | (5.3 | ) | (1 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends paid | | $ | 36 | | $ | 35 | | $ | 35 | | $ | 34 | | $ | 34 | | $ | 63 | | $ | 68 | | $ | (2 | ) | (6 | )% | | $ | 5 | | 8 | % | | $ | — | | — | | |
Common stock share repurchases | | $ | 142 | | $ | 171 | | $ | 283 | | $ | 270 | | $ | 250 | | $ | 494 | | $ | 520 | | $ | 108 | | 76 | % | | $ | 26 | | 5 | % | | $ | (20 | ) | (7 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Debt to total capital | | 22.6 | % | 22.2 | % | 20.5 | % | 21.0 | % | 21.6 | % | 22.6 | % | 21.6 | % | (1.0 | )% | | | | (1.0 | )% | | | | 0.6 | % | | | |
Debt to total capital excluding non-recourse debt | | 20.8 | % | 20.5 | % | 20.4 | % | 20.9 | % | 21.5 | % | 20.8 | % | 21.5 | % | 0.7 | % | | | | 0.7 | % | | | | 0.6 | % | | | |
Debt to total capital excluding non-recourse debt and 75% equity credit | | 16.9 | % | 16.7 | % | 16.6 | % | 17.0 | % | 17.4 | % | 16.9 | % | 17.4 | % | 0.5 | % | | | | 0.5 | % | | | | 0.4 | % | | | |
(1) See non-GAAP Financial Information.
# Variance of 100% or greater.
4
Ameriprise Financial, Inc.
Financial Summary
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Segment Summary | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | $ | 1,007 | | $ | 953 | | $ | 947 | | $ | 936 | | $ | 891 | | $ | 1,913 | | $ | 1,827 | | $ | (116 | ) | (12 | )% | | $ | (86 | ) | (4 | )% | | $ | (45 | ) | (5 | )% | |
Asset Management | | 449 | | 410 | | 492 | | 355 | | 364 | | 860 | | 719 | | (85 | ) | (19 | )% | | (141 | ) | (16 | )% | | 9 | | 3 | % | |
Annuities | | 535 | | 560 | | 580 | | 478 | | 494 | | 1,066 | | 972 | | (41 | ) | (8 | )% | | (94 | ) | (9 | )% | | 16 | | 3 | % | |
Protection | | 485 | | 495 | | 524 | | 492 | | 490 | | 966 | | 982 | | 5 | | 1 | % | | 16 | | 2 | % | | (2 | ) | — | | |
Corporate & Other | | — | | (6 | ) | 16 | | 9 | | 14 | | 14 | | 23 | | 14 | | — | | | 9 | | 64 | % | | 5 | | 56 | % | |
Eliminations | | (323 | ) | (301 | ) | (299 | ) | (270 | ) | (274 | ) | (634 | ) | (544 | ) | 49 | | 15 | % | | 90 | | 14 | % | | (4 | ) | (1 | )% | |
Total net revenues | | 2,153 | | 2,111 | | 2,260 | | 2,000 | | 1,979 | | 4,185 | | 3,979 | | (174 | ) | (8 | )% | | (206 | ) | (5 | )% | | (21 | ) | (1 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | 906 | | 859 | | 913 | | 872 | | 840 | | 1,756 | | 1,712 | | (66 | ) | (7 | )% | | (44 | ) | (3 | )% | | (32 | ) | (4 | )% | |
Asset Management | | 368 | | 338 | | 384 | | 337 | | 322 | | 733 | | 659 | | (46 | ) | (13 | )% | | (74 | ) | (10 | )% | | (15 | ) | (4 | )% | |
Annuities | | 449 | | 469 | | 452 | | 436 | | 417 | | 862 | | 853 | | (32 | ) | (7 | )% | | (9 | ) | (1 | )% | | (19 | ) | (4 | )% | |
Protection | | 367 | | 402 | | 370 | | 390 | | 377 | | 728 | | 767 | | 10 | | 3 | % | | 39 | | 5 | % | | (13 | ) | (3 | )% | |
Corporate & Other | | 78 | | 67 | | 74 | | 40 | | 60 | | 131 | | 100 | | (18 | ) | (23 | )% | | (31 | ) | (24 | )% | | 20 | | 50 | % | |
Eliminations | | (323 | ) | (301 | ) | (299 | ) | (270 | ) | (274 | ) | (634 | ) | (544 | ) | 49 | | 15 | % | | 90 | | 14 | % | | (4 | ) | (1 | )% | |
Total expenses before separation costs | | 1,845 | | 1,834 | | 1,894 | | 1,805 | | 1,742 | | 3,576 | | 3,547 | | (103 | ) | (6 | )% | | (29 | ) | (1 | )% | | (63 | ) | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Separation Costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate & Other | | 63 | | 60 | | 28 | | — | | — | | 148 | | — | | (63 | ) | # | | | (148 | ) | # | | | — | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Segment Income (Loss) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | 101 | | 94 | | 34 | | 64 | | 51 | | 157 | | 115 | | (50 | ) | (50 | )% | | (42 | ) | (27 | )% | | (13 | ) | (20 | )% | |
Asset Management | | 81 | | 72 | | 108 | | 18 | | 42 | | 127 | | 60 | | (39 | ) | (48 | )% | | (67 | ) | (53 | )% | | 24 | | # | | |
Annuities | | 86 | | 91 | | 128 | | 42 | | 77 | | 204 | | 119 | | (9 | ) | (10 | )% | | (85 | ) | (42 | )% | | 35 | | 83 | % | |
Protection | | 118 | | 93 | | 154 | | 102 | | 113 | | 238 | | 215 | | (5 | ) | (4 | )% | | (23 | ) | (10 | )% | | 11 | | 11 | % | |
Corporate & Other | | (141 | ) | (133 | ) | (86 | ) | (31 | ) | (46 | ) | (265 | ) | (77 | ) | 95 | | 67 | % | | 188 | | 71 | % | | (15 | ) | (48 | )% | |
Eliminations | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
Total pretax segment income | | $ | 245 | | $ | 217 | | $ | 338 | | $ | 195 | | $ | 237 | | $ | 461 | | $ | 432 | | $ | (8 | ) | (3 | )% | | $ | (29 | ) | (6 | )% | | $ | 42 | | 22 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Income Margin | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | 10.0 | % | 9.9 | % | 3.6 | % | 6.8 | % | 5.7 | % | 8.2 | % | 6.3 | % | (4.3 | )% | | | | (1.9 | )% | | | | (1.1 | )% | | | |
Asset Management | | 18.0 | % | 17.6 | % | 22.0 | % | 5.1 | % | 11.5 | % | 14.8 | % | 8.3 | % | (6.5 | )% | | | | (6.5 | )% | | | | 6.4 | % | | | |
Annuities | | 16.1 | % | 16.3 | % | 22.1 | % | 8.8 | % | 15.6 | % | 19.1 | % | 12.2 | % | (0.5 | )% | | | | (6.9 | )% | | | | 6.8 | % | | | |
Protection | | 24.3 | % | 18.8 | % | 29.4 | % | 20.7 | % | 23.1 | % | 24.6 | % | 21.9 | % | (1.2 | )% | | | | (2.7 | )% | | | | 2.4 | % | | | |
Ameriprise Financial, Inc. | | 11.4 | % | 10.3 | % | 15.0 | % | 9.8 | % | 12.0 | % | 11.0 | % | 10.9 | % | 0.6 | % | | | | (0.1 | )% | | | | 2.2 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | $ | 952 | | $ | 942 | | $ | 930 | | $ | 928 | | $ | 962 | | $ | 952 | | $ | 962 | | $ | 10 | | 1 | % | | $ | 10 | | 1 | % | | $ | 34 | | 4 | % | |
Asset Management | | 865 | | 862 | | 878 | | 847 | | 817 | | 865 | | 817 | | (48 | ) | (6 | )% | | (48 | ) | (6 | )% | | (30 | ) | (4 | )% | |
Annuities | | 2,151 | | 2,128 | | 2,100 | | 2,005 | | 1,961 | | 2,151 | | 1,961 | | (190 | ) | (9 | )% | | (190 | ) | (9 | )% | | (44 | ) | (2 | )% | |
Protection | | 2,145 | | 2,308 | | 2,318 | | 2,358 | | 2,366 | | 2,145 | | 2,366 | | 221 | | 10 | % | | 221 | | 10 | % | | 8 | | — | | |
Corporate & Other | | 1,842 | | 1,767 | | 1,751 | | 1,730 | | 1,730 | | 1,842 | | 1,730 | | (112 | ) | (6 | )% | | (112 | ) | (6 | )% | | — | | — | | |
Total allocated equity | | $ | 7,955 | | $ | 8,007 | | $ | 7,977 | | $ | 7,868 | | $ | 7,836 | | $ | 7,955 | | $ | 7,836 | | $ | (119 | ) | (1 | )% | | $ | (119 | ) | (1 | )% | | $ | (32 | ) | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Return on Allocated Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advice & Wealth Management | | 26.3 | % | 30.1 | % | 30.0 | % | 31.1 | % | 25.8 | % | 26.3 | % | 25.8 | % | (0.5 | )% | | | | (0.5 | )% | | | | (5.3 | )% | | | |
Asset Management | | 29.7 | % | 31.9 | % | 35.4 | % | 32.3 | % | 28.1 | % | 29.7 | % | 28.1 | % | (1.6 | )% | | | | (1.6 | )% | | | | (4.2 | )% | | | |
Annuities | | 18.8 | % | 19.2 | % | 19.1 | % | 16.3 | % | 16.3 | % | 18.8 | % | 16.3 | % | (2.5 | )% | | | | (2.5 | )% | | | | — | | | | |
Protection | | 23.1 | % | 20.2 | % | 21.8 | % | 20.7 | % | 20.1 | % | 23.1 | % | 20.1 | % | (3.0 | )% | | | | (3.0 | )% | | | | (0.6 | )% | | | |
# Variance of 100% or greater.
5
Ameriprise Financial, Inc.
Consolidated Income Statements
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 788 | | $ | 798 | | $ | 930 | | $ | 791 | | $ | 780 | | $ | 1,510 | | $ | 1,571 | | $ | (8 | ) | (1 | )% | | $ | 61 | | 4 | % | | $ | (11 | ) | (1 | )% | |
Distribution fees | | 494 | | 435 | | 415 | | 433 | | 422 | | 912 | | 855 | | (72 | ) | (15 | )% | | (57 | ) | (6 | )% | | (11 | ) | (3 | )% | |
Net investment income | | 507 | | 501 | | 475 | | 401 | | 393 | | 1,042 | | 794 | | (114 | ) | (22 | )% | | (248 | ) | (24 | )% | | (8 | ) | (2 | )% | |
Premiums | | 266 | | 269 | | 271 | | 265 | | 268 | | 523 | | 533 | | 2 | | 1 | % | | 10 | | 2 | % | | 3 | | 1 | % | |
Other revenues | | 164 | | 165 | | 228 | | 157 | | 158 | | 331 | | 315 | | (6 | ) | (4 | )% | | (16 | ) | (5 | )% | | 1 | | 1 | % | |
Total revenues | | 2,219 | | 2,168 | | 2,319 | | 2,047 | | 2,021 | | 4,318 | | 4,068 | | (198 | ) | (9 | )% | | (250 | ) | (6 | )% | | (26 | ) | (1 | )% | |
Banking and deposit interest expense | | 66 | | 57 | | 59 | | 47 | | 42 | | 133 | | 89 | | (24 | ) | (36 | )% | | (44 | ) | (33 | )% | | (5 | ) | (11 | )% | |
Total net revenues | | 2,153 | | 2,111 | | 2,260 | | 2,000 | | 1,979 | | 4,185 | | 3,979 | | (174 | ) | (8 | )% | | (206 | ) | (5 | )% | | (21 | ) | (1 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 533 | | 519 | | 527 | | 541 | | 517 | | 1,011 | | 1,058 | | (16 | ) | (3 | )% | | 47 | | 5 | % | | (24 | ) | (4 | )% | |
Interest credited to fixed accounts | | 215 | | 212 | | 202 | | 195 | | 192 | | 433 | | 387 | | (23 | ) | (11 | )% | | (46 | ) | (11 | )% | | (3 | ) | (2 | )% | |
Benefits, claims, losses and settlement expenses | | 288 | | 360 | | 276 | | 304 | | 294 | | 543 | | 598 | | 6 | | 2 | % | | 55 | | 10 | % | | (10 | ) | (3 | )% | |
Amortization of deferred acquisition costs | | 125 | | 128 | | 164 | | 154 | | 144 | | 259 | | 298 | | 19 | | 15 | % | | 39 | | 15 | % | | (10 | ) | (6 | )% | |
Interest and debt expense | | 29 | | 27 | | 27 | | 26 | | 28 | | 58 | | 54 | | (1 | ) | (3 | )% | | (4 | ) | (7 | )% | | 2 | | 8 | % | |
Separation costs | | 63 | | 60 | | 28 | | — | | — | | 148 | | — | | (63 | ) | # | | | (148 | ) | # | | | — | | — | | |
General and administrative expense | | 655 | | 588 | | 698 | | 585 | | 567 | | 1,272 | | 1,152 | | (88 | ) | (13 | )% | | (120 | ) | (9 | )% | | (18 | ) | (3 | )% | |
Total expenses | | 1,908 | | 1,894 | | 1,922 | | 1,805 | | 1,742 | | 3,724 | | 3,547 | | (166 | ) | (9 | )% | | (177 | ) | (5 | )% | | (63 | ) | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | 245 | | 217 | | 338 | | 195 | | 237 | | 461 | | 432 | | (8 | ) | (3 | )% | | (29 | ) | (6 | )% | | 42 | | 22 | % | |
Income tax provision | | 49 | | 19 | | 83 | | 4 | | 27 | | 100 | | 31 | | (22 | ) | (45 | )% | | (69 | ) | (69 | )% | | 23 | | # | | |
Net income | | $ | 196 | | $ | 198 | | $ | 255 | | $ | 191 | | $ | 210 | | $ | 361 | | $ | 401 | | $ | 14 | | 7 | % | | $ | 40 | | 11 | % | | $ | 19 | | 10 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted Earnings Reconciliation (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 196 | | $ | 198 | | $ | 255 | | $ | 191 | | $ | 210 | | $ | 361 | | $ | 401 | | $ | 14 | | 7 | % | | $ | 40 | | 11 | % | | $ | 19 | | 10 | % | |
Separation costs, after-tax (2) | | 41 | | 39 | | 19 | | — | | — | | 96 | | — | | (41 | ) | # | | | (96 | ) | # | | | — | | — | | |
Adjusted earnings | | $ | 237 | | $ | 237 | | $ | 274 | | $ | 191 | | $ | 210 | | $ | 457 | | $ | 401 | | $ | (27 | ) | (11 | )% | | $ | (56 | ) | (12 | )% | | $ | 19 | | 10 | % | |
(1) See non-GAAP Financial Information.
(2) For this non-GAAP presentation, after-tax separation costs are calculated using the statutory tax rate of 35%.
# Variance of 100% or greater.
6
Ameriprise Financial, Inc.
Consolidated Income Statements
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions, unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income margin | | 11.4 | % | 10.3 | % | 15.0 | % | 9.8 | % | 12.0 | % | 11.0 | % | 10.9 | % | 0.6 | % | | | | (0.1 | )% | | | | 2.2 | % | | | |
Net income margin | | 9.1 | % | 9.4 | % | 11.3 | % | 9.6 | % | 10.6 | % | 8.6 | % | 10.1 | % | 1.5 | % | | | | 1.5 | % | | | | 1.0 | % | | | |
Adjusted pretax margin (1) | | 14.3 | % | 13.1 | % | 16.2 | % | 9.8 | % | 12.0 | % | 14.6 | % | 10.9 | % | (2.3 | )% | | | | (3.7 | )% | | | | 2.2 | % | | | |
Adjusted earnings margin (1) | | 11.0 | % | 11.2 | % | 12.1 | % | 9.6 | % | 10.6 | % | 10.9 | % | 10.1 | % | (0.4 | )% | | | | (0.8 | )% | | | | 1.0 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 461 | | $ | 444 | | $ | 441 | | $ | 418 | | $ | 401 | | $ | 945 | | $ | 819 | | $ | (60 | ) | (13 | )% | | $ | (126 | ) | (13 | )% | | $ | (17 | ) | (4 | )% | |
Realized gains (losses) | | 2 | | 15 | | 18 | | (24 | ) | (27 | ) | 11 | | (51 | ) | (29 | ) | # | | | (62 | ) | # | | | (3 | ) | (13 | )% | |
Affordable housing amortization | | (9 | ) | (7 | ) | (8 | ) | (7 | ) | (8 | ) | (17 | ) | (15 | ) | 1 | | 11 | % | | 2 | | 12 | % | | (1 | ) | (14 | )% | |
Other (including seed money) | | 53 | | 49 | | 24 | | 14 | | 27 | | 103 | | 41 | | (26 | ) | (49 | )% | | (62 | ) | (60 | )% | | 13 | | 93 | % | |
Total net investment income | | $ | 507 | | $ | 501 | | $ | 475 | | $ | 401 | | $ | 393 | | $ | 1,042 | | $ | 794 | | $ | (114 | ) | (22 | )% | | $ | (248 | ) | (24 | )% | | $ | (8 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue growth: Target 6 - 8% | | 5.8 | % | 9.5 | % | 5.9 | % | (1.6 | )% | (8.1 | )% | 5.6 | % | (4.9 | )% | (13.9 | )% | | | | (10.5 | )% | | | | (6.5 | )% | | | |
Adjusted return on equity: Target 12 - 15% (1) | | 12.5 | % | 12.4 | % | 12.6 | % | 12.2 | % | 12.0 | % | 12.5 | % | 12.0 | % | (0.5 | )% | | | | (0.5 | )% | | | | (0.2 | )% | | | |
Adjusted earnings per diluted share growth: Target 12 - 15% (1) | | 24.1 | % | 5.3 | % | 13.7 | % | (8.9 | )% | (5.1 | )% | 22.9 | % | (6.9 | )% | (29.2 | )% | | | | (29.8 | )% | | | | 3.8 | % | | | |
Goodwill and intangible assets | | $ | 873 | | $ | 878 | | $ | 863 | | $ | 857 | | $ | 853 | | $ | 873 | | $ | 853 | | $ | (20 | ) | (2 | )% | | $ | (20 | ) | (2 | )% | | $ | (4 | ) | — | | |
Dividends paid | | 36 | | 35 | | 35 | | 34 | | 34 | | 63 | | 68 | | (2 | ) | (6 | )% | | 5 | | 8 | % | | — | | — | | |
Common stock share repurchases | | $ | 142 | | $ | 171 | | $ | 283 | | $ | 270 | | $ | 250 | | $ | 494 | | $ | 520 | | $ | 108 | | 76 | % | | $ | 26 | | 5 | % | | $ | (20 | ) | (7 | )% | |
Return on equity | | 9.2 | % | 9.4 | % | 10.5 | % | 10.9 | % | 11.2 | % | 9.2 | % | 11.2 | % | 2.0 | % | | | | 2.0 | % | | | | 0.3 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned, Managed and Administered Assets (in billions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owned | | $ | 38.5 | | $ | 39.6 | | $ | 39.6 | | $ | 36.8 | | $ | 36.9 | | $ | 38.5 | | $ | 36.9 | | $ | (1.6 | ) | (4 | )% | | $ | (1.6 | ) | (4 | )% | | $ | 0.1 | | — | | |
Managed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
External clients | | 310.5 | | 315.4 | | 307.0 | | 287.2 | | 283.0 | | 310.5 | | 283.0 | | (27.5 | ) | (9 | )% | | (27.5 | ) | (9 | )% | | (4.2 | ) | (1 | )% | |
Owned | | 62.7 | | 63.4 | | 62.6 | | 60.9 | | 59.9 | | 62.7 | | 59.9 | | (2.8 | ) | (4 | )% | | (2.8 | ) | (4 | )% | | (1.0 | ) | (2 | )% | |
Total managed | | 373.2 | | 378.8 | | 369.6 | | 348.1 | | 342.9 | | 373.2 | | 342.9 | | (30.3 | ) | (8 | )% | | (30.3 | ) | (8 | )% | | (5.2 | ) | (1 | )% | |
Administered | | 72.5 | | 73.5 | | 71.0 | | 65.8 | | 65.6 | | 72.5 | | 65.6 | | (6.9 | ) | (10 | )% | | (6.9 | ) | (10 | )% | | (0.2 | ) | — | | |
Total OMA assets | | $ | 484.2 | | $ | 491.9 | | $ | 480.2 | | $ | 450.7 | | $ | 445.4 | | $ | 484.2 | | $ | 445.4 | | $ | (38.8 | ) | (8 | )% | | $ | (38.8 | ) | (8 | )% | | $ | (5.3 | ) | (1 | )% | |
(1) See non-GAAP Financial Information.
# Variance of 100% or greater.
7
Ameriprise Financial, Inc.
Consolidated, Common Share and Per Share Summary
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions, except earnings per share amounts) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Earnings Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.83 | | $ | 0.84 | | $ | 1.10 | | $ | 0.84 | | $ | 0.94 | | $ | 1.51 | | $ | 1.77 | | $ | 0.11 | | 13 | % | | $ | 0.26 | | 17 | % | | $ | 0.10 | | 12 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per diluted share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per diluted share | | $ | 0.81 | | $ | 0.83 | | $ | 1.08 | | $ | 0.82 | | $ | 0.93 | | $ | 1.49 | | $ | 1.75 | | $ | 0.12 | | 15 | % | | $ | 0.26 | | 17 | % | | $ | 0.11 | | 13 | % | |
Separation costs, after-tax | | 0.17 | | 0.16 | | 0.08 | | — | | — | | 0.39 | | — | | (0.17 | ) | # | | | (0.39 | ) | # | | | — | | — | | |
Adjusted earnings per diluted share (1) | | $ | 0.98 | | $ | 0.99 | | $ | 1.16 | | $ | 0.82 | | $ | 0.93 | | $ | 1.88 | | $ | 1.75 | | $ | (0.05 | ) | (5 | )% | | $ | (0.13 | ) | (7 | )% | | $ | 0.11 | | 13 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | 236.6 | | 235.3 | | 232.4 | | 227.7 | | 223.4 | | 241.4 | | 227.7 | | (13.2 | ) | (6 | )% | | (13.7 | ) | (6 | )% | | (4.3 | ) | (2 | )% | |
Repurchases | | (2.3 | ) | (2.9 | ) | (4.8 | ) | (5.2 | ) | (5.2 | ) | (8.2 | ) | (10.4 | ) | (2.9 | ) | # | | | (2.2 | ) | (27 | )% | | — | | — | | |
Issuances | | 1.2 | | 0.1 | | 0.2 | | 1.3 | | 0.8 | | 2.7 | | 2.1 | | (0.4 | ) | (33 | )% | | (0.6 | ) | (22 | )% | | (0.5 | ) | (38 | )% | |
Other | | (0.2 | ) | (0.1 | ) | (0.1 | ) | (0.4 | ) | (0.1 | ) | (0.6 | ) | (0.5 | ) | 0.1 | | 50 | % | | 0.1 | | 17 | % | | 0.3 | | 75 | % | |
Total common outstanding | | 235.3 | | 232.4 | | 227.7 | | 223.4 | | 218.9 | | 235.3 | | 218.9 | | (16.4 | ) | (7 | )% | | (16.4 | ) | (7 | )% | | (4.5 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total common outstanding | | 235.3 | | 232.4 | | 227.7 | | 223.4 | | 218.9 | | 235.3 | | 218.9 | | (16.4 | ) | (7 | )% | | (16.4 | ) | (7 | )% | | (4.5 | ) | (2 | )% | |
Nonforfeitable restricted stock units | | 1.3 | | 1.3 | | 1.4 | | 2.6 | | 2.0 | | 1.3 | | 2.0 | | 0.7 | | 54 | % | | 0.7 | | 54 | % | | (0.6 | ) | (23 | )% | |
Total basic common shares | | 236.6 | | 233.7 | | 229.1 | | 226.0 | | 220.9 | | 236.6 | | 220.9 | | (15.7 | ) | (7 | )% | | (15.7 | ) | (7 | )% | | (5.1 | ) | (2 | )% | |
Total potentially dilutive | | 3.8 | | 3.9 | | 3.9 | | 2.8 | | 2.7 | | 3.8 | | 2.7 | | (1.1 | ) | (29 | )% | | (1.1 | ) | (29 | )% | | (0.1 | ) | (4 | )% | |
Total diluted shares | | 240.4 | | 237.6 | | 233.0 | | 228.8 | | 223.6 | | 240.4 | | 223.6 | | (16.8 | ) | (7 | )% | | (16.8 | ) | (7 | )% | | (5.2 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | 237.4 | | 235.4 | | 231.4 | | 228.4 | | 223.2 | | 237.4 | | 225.8 | | (14.2 | ) | (6 | )% | | (11.6 | ) | (5 | )% | | (5.2 | ) | (2 | )% | |
Diluted | | 241.0 | | 239.2 | | 235.4 | | 231.5 | | 226.0 | | 242.6 | | 228.8 | | (15.0 | ) | (6 | )% | | (13.8 | ) | (6 | )% | | (5.5 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book Value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity - end of period | | $ | 7,600 | | $ | 7,758 | | $ | 7,810 | | $ | 7,581 | | $ | 7,314 | | $ | 7,600 | | $ | 7,314 | | $ | (286 | ) | (4 | )% | | $ | (286 | ) | (4 | )% | | $ | (267 | ) | (4 | )% | |
Average equity - 5 point | | 7,649 | | 7,753 | | 7,765 | | 7,696 | | 7,613 | | 7,649 | | 7,613 | | (36 | ) | — | | | (36 | ) | — | | | (83 | ) | (1 | )% | |
Book Value per Share | | $ | 32.12 | | $ | 33.20 | | $ | 34.09 | | $ | 33.54 | | $ | 33.11 | | $ | 32.12 | | $ | 33.11 | | $ | 0.99 | | 3 | % | | $ | 0.99 | | 3 | % | | $ | (0.43 | ) | (1 | )% | |
(1) See non-GAAP Financial Information.
# Variance of 100% or greater.
8
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Advice & Wealth Management Segment
9
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 327 | | $ | 348 | | $ | 369 | | $ | 367 | | $ | 352 | | $ | 633 | | $ | 719 | | $ | 25 | | 8 | % | | $ | 86 | | 14 | % | | $ | (15 | ) | (4 | )% | |
Distribution fees | | 620 | | 541 | | 517 | | 517 | | 508 | | 1,160 | | 1,025 | | (112 | ) | (18 | )% | | (135 | ) | (12 | )% | | (9 | ) | (2 | )% | |
Net investment income | | 103 | | 96 | | 94 | | 79 | | 54 | | 209 | | 133 | | (49 | ) | (48 | )% | | (76 | ) | (36 | )% | | (25 | ) | (32 | )% | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
Other revenues | | 18 | | 21 | | 21 | | 20 | | 19 | | 34 | | 39 | | 1 | | 6 | % | | 5 | | 15 | % | | (1 | ) | (5 | )% | |
Total revenues | | 1,068 | | 1,006 | | 1,001 | | 983 | | 933 | | 2,036 | | 1,916 | | (135 | ) | (13 | )% | | (120 | ) | (6 | )% | | (50 | ) | (5 | )% | |
Banking and deposit interest expense | | 61 | | 53 | | 54 | | 47 | | 42 | | 123 | | 89 | | (19 | ) | (31 | )% | | (34 | ) | (28 | )% | | (5 | ) | (11 | )% | |
Total net revenues | | 1,007 | | 953 | | 947 | | 936 | | 891 | | 1,913 | | 1,827 | | (116 | ) | (12 | )% | | (86 | ) | (4 | )% | | (45 | ) | (5 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 615 | | 585 | | 587 | | 585 | | 564 | | 1,177 | | 1,149 | | (51 | ) | (8 | )% | | (28 | ) | (2 | )% | | (21 | ) | (4 | )% | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
General and administrative expense | | 291 | | 274 | | 326 | | 287 | | 276 | | 579 | | 563 | | (15 | ) | (5 | )% | | (16 | ) | (3 | )% | | (11 | ) | (4 | )% | |
Total expenses | | 906 | | 859 | | 913 | | 872 | | 840 | | 1,756 | | 1,712 | | (66 | ) | (7 | )% | | (44 | ) | (3 | )% | | (32 | ) | (4 | )% | |
Pretax income | | $ | 101 | | $ | 94 | | $ | 34 | | $ | 64 | | $ | 51 | | $ | 157 | | $ | 115 | | $ | (50 | ) | (50 | )% | | $ | (42 | ) | (27 | )% | | $ | (13 | ) | (20 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income margin | | 10.0 | % | 9.9 | % | 3.6 | % | 6.8 | % | 5.7 | % | 8.2 | % | 6.3 | % | (4.3 | )% | | | | (1.9 | )% | | | | (1.1 | )% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 69 | | $ | 64 | | $ | 67 | | $ | 62 | | $ | 59 | | $ | 143 | | $ | 121 | | $ | (10 | ) | (14 | )% | | $ | (22 | ) | (15 | )% | | $ | (3 | ) | (5 | )% | |
Realized gains (losses) | | (1 | ) | — | | — | | — | | (21 | ) | (1 | ) | (21 | ) | (20 | ) | # | | | (20 | ) | # | | | (21 | ) | — | | |
Other (including seed money) | | 35 | | 32 | | 27 | | 17 | | 16 | | 67 | | 33 | | (19 | ) | (54 | )% | | (34 | ) | (51 | )% | | (1 | ) | (6 | )% | |
Total net investment income | | $ | 103 | | $ | 96 | | $ | 94 | | $ | 79 | | $ | 54 | | $ | 209 | | $ | 133 | | $ | (49 | ) | (48 | )% | | $ | (76 | ) | (36 | )% | | $ | (25 | ) | (32 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 952 | | $ | 942 | | $ | 930 | | $ | 928 | | $ | 962 | | $ | 952 | | $ | 962 | | $ | 10 | | 1 | % | | $ | 10 | | 1 | % | | $ | 34 | | 4 | % | |
Pretax return on allocated equity | | 26.3 | % | 30.1 | % | 30.0 | % | 31.1 | % | 25.8 | % | 26.3 | % | 25.8 | % | (0.5 | )% | | | | (0.5 | )% | | | | (5.3 | )% | | | |
On-balance sheet deposits | | $ | 5,916 | | $ | 5,887 | | $ | 6,011 | | $ | 6,183 | | $ | 6,269 | | $ | 5,916 | | $ | 6,269 | | $ | 353 | | 6 | % | | $ | 353 | | 6 | % | | $ | 86 | | 1 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Plans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Branded financial plan net cash sales | | $ | 50 | | $ | 44 | | $ | 53 | | $ | 53 | | $ | 54 | | $ | 105 | | $ | 107 | | $ | 4 | | 8 | % | | $ | 2 | | 2 | % | | $ | 1 | | 2 | % | |
Financial planning penetration | | 45 | % | 45 | % | 45 | % | 46 | % | 46 | % | 45 | % | 46 | % | 1 | % | | | | 1 | % | | | | 0 | % | | | |
# Variance of 100% or greater.
10
Ameriprise Financial, Inc.
Advice & Wealth Management Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | | Diff. | | % | | | Diff. | | % | | |
Financial Advisors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee advisors | | 2,731 | | 2,541 | | 2,453 | | 2,193 | | 2,056 | | 2,731 | | 2,056 | | (675 | ) | (25 | )% | | (675 | ) | (25 | )% | | (137 | ) | (6 | )% | |
Franchisee advisors | | 7,642 | | 7,712 | | 7,757 | | 7,809 | | 7,846 | | 7,642 | | 7,846 | | 204 | | 3 | % | | 204 | | 3 | % | | 37 | | — | | |
Total branded financial advisors | | 10,373 | | 10,253 | | 10,210 | | 10,002 | | 9,902 | | 10,373 | | 9,902 | | (471 | ) | (5 | )% | | (471 | ) | (5 | )% | | (100 | ) | (1 | )% | |
SAI independent advisors | | 1,703 | | 1,750 | | 1,614 | | 1,607 | | 1,619 | | 1,703 | | 1,619 | | (84 | ) | (5 | )% | | (84 | ) | (5 | )% | | 12 | | 1 | % | |
Total financial advisors | | 12,076 | | 12,003 | | 11,824 | | 11,609 | | 11,521 | | 12,076 | | 11,521 | | (555 | ) | (5 | )% | | (555 | ) | (5 | )% | | (88 | ) | (1 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue per financial advisor (in thousands) (1) | | $ | 83 | | $ | 79 | | $ | 80 | | $ | 81 | | $ | 77 | | $ | 156 | | $ | 158 | | $ | (6 | ) | (7 | )% | | $ | 2 | | 1 | % | | $ | (4 | ) | (5 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advisor Retention | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee | | 62.2 | % | 61.0 | % | 58.9 | % | 59.1 | % | 59.6 | % | 62.2 | % | 59.6 | % | (2.6 | )% | | | | (2.6 | )% | | | | 0.5 | % | | | |
Franchisee | | 93.2 | % | 93.3 | % | 93.2 | % | 93.7 | % | 93.7 | % | 93.2 | % | 93.7 | % | 0.5 | % | | | | 0.5 | % | | | | — | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Certificates and Banking - Combined | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | (2 | ) | $ | 3 | | $ | (8 | ) | $ | (5 | ) | $ | (24 | ) | $ | — | | $ | (29 | ) | $ | (22 | ) | # | | | $ | (29 | ) | — | | | $ | (19 | ) | # | | |
Allocated equity | | $ | 389 | | $ | 375 | | $ | 367 | | $ | 376 | | $ | 393 | | $ | 389 | | $ | 393 | | $ | 4 | | 1 | % | | $ | 4 | | 1 | % | | $ | 17 | | 5 | % | |
Pretax return on allocated equity | | 1.8 | % | 0.5 | % | (1.3 | )% | (3.1 | )% | (8.9 | )% | 1.8 | % | (8.9 | )% | (10.7 | )% | | | | (10.7 | )% | | | | (5.8 | )% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wealth Management & Distribution | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 103 | | $ | 91 | | $ | 42 | | $ | 69 | | $ | 75 | | $ | 157 | | $ | 144 | | $ | (28 | ) | (27 | )% | | $ | (13 | ) | (8 | )% | | $ | 6 | | 9 | % | |
Allocated equity | | $ | 563 | | $ | 567 | | $ | 563 | | $ | 552 | | $ | 569 | | $ | 563 | | $ | 569 | | $ | 6 | | 1 | % | | $ | 6 | | 1 | % | | $ | 17 | | 3 | % | |
Pretax return on allocated equity | | 43.6 | % | 51.8 | % | 52.0 | % | 54.6 | % | 49.2 | % | 43.6 | % | 49.2 | % | 5.6 | % | | | | 5.6 | % | | | | (5.4 | )% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advisor Cash Sales by Product | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wrap net flows | | $ | 3,811 | | $ | 2,697 | | $ | 1,802 | | $ | 1,380 | | $ | 2,833 | | $ | 7,166 | | $ | 4,213 | | $ | (978 | ) | (26 | )% | | $ | (2,953 | ) | (41 | )% | | $ | 1,453 | | # | | |
Total mutual funds (non-wrap) | | 4,581 | | 3,939 | | 3,884 | | 4,119 | | 3,470 | | 8,904 | | 7,589 | | (1,111 | ) | (24 | )% | | (1,315 | ) | (15 | )% | | (649 | ) | (16 | )% | |
Annuities (proprietary and non-proprietary) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable | | 3,002 | | 2,688 | | 2,498 | | 2,186 | | 2,179 | | 5,763 | | 4,365 | | (823 | ) | (27 | )% | | (1,398 | ) | (24 | )% | | (7 | ) | — | | |
Fixed | | 107 | | 107 | | 109 | | 100 | | 215 | | 210 | | 315 | | 108 | | # | | | 105 | | 50 | % | | 115 | | # | | |
Investment certificates | | 220 | | 174 | | 181 | | 322 | | 593 | | 456 | | 915 | | 373 | | # | | | 459 | | # | | | 271 | | 84 | % | |
Insurance (proprietary and non-proprietary) | | 131 | | 124 | | 122 | | 102 | | 97 | | 256 | | 199 | | (34 | ) | (26 | )% | | (57 | ) | (22 | )% | | (5 | ) | (5 | )% | |
Other | | 1,195 | | 613 | | 515 | | 636 | | 805 | | 1,759 | | 1,441 | | (390 | ) | (33 | )% | | (318 | ) | (18 | )% | | 169 | | 27 | % | |
Total advisor cash sales | | $ | 13,047 | | $ | 10,342 | | $ | 9,111 | | $ | 8,845 | | $ | 10,192 | | $ | 24,514 | | $ | 19,037 | | $ | (2,855 | ) | (22 | )% | | $ | (5,477 | ) | (22 | )% | | $ | 1,347 | | 15 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Client Assets (at period end) | | $ | 292,271 | | $ | 297,856 | | $ | 293,899 | | $ | 275,958 | | $ | 275,473 | | $ | 292,271 | | $ | 275,473 | | $ | (16,798 | ) | (6 | )% | | $ | (16,798 | ) | (6 | )% | | $ | (485 | ) | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Wrap Accounts | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 81,812 | | $ | 89,150 | | $ | 92,944 | | $ | 93,851 | | $ | 89,603 | | $ | 76,365 | | $ | 93,851 | | $ | 7,791 | | 10 | % | | $ | 17,486 | | 23 | % | | $ | (4,248 | ) | (5 | )% | |
Net flows | | 3,811 | | 2,697 | | 1,802 | | 1,380 | | 2,833 | | 7,166 | | 4,213 | | (978 | ) | (26 | )% | | (2,953 | ) | (41 | )% | | 1,453 | | # | | |
Market appreciation (depreciation) and other | | 3,527 | | 1,097 | | (895 | ) | (5,628 | ) | (990 | ) | 5,619 | | (6,618 | ) | (4,517 | ) | # | | | (12,237 | ) | # | | | 4,638 | | 82 | % | |
Total wrap ending assets | | $ | 89,150 | | $ | 92,944 | | $ | 93,851 | | $ | 89,603 | | $ | 91,446 | | $ | 89,150 | | $ | 91,446 | | $ | 2,296 | | 3 | % | | $ | 2,296 | | 3 | % | | $ | 1,843 | | 2 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
S&P 500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Daily average | | 1,497 | | 1,489 | | 1,494 | | 1,349 | | 1,371 | | 1,461 | | 1,360 | | (126 | ) | (8 | )% | | (101 | ) | (7 | )% | | 22 | | 2 | % | |
Period end | | 1,503 | | 1,527 | | 1,468 | | 1,323 | | 1,280 | | 1,503 | | 1,280 | | (223 | ) | (15 | )% | | (223 | ) | (15 | )% | | (43 | ) | (3 | )% | |
(1) Year-to-date is sum of current year prior quarters.
# Variance of 100% or greater.
11
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Asset Management Segment
12
Ameriprise Financial, Inc.
Asset Management Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 330 | | $ | 316 | | $ | 419 | | $ | 296 | | $ | 295 | | $ | 627 | | $ | 591 | | $ | (35 | ) | | (11 | )% | | $ | (36 | ) | | (6 | )% | | $ | (1 | ) | | — | | |
Distribution fees | | 84 | | 78 | | 78 | | 70 | | 70 | | 166 | | 140 | | (14 | ) | | (17 | )% | | (26 | ) | | (16 | )% | | — | | | — | | |
Net investment income | | 22 | | 5 | | 4 | | (4 | ) | 7 | | 39 | | 3 | | (15 | ) | | (68 | )% | | (36 | ) | | (92 | )% | | 11 | | | # | | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | | — | | | — | | | — | | | — | | |
Other revenues | | 19 | | 14 | | (2 | ) | (5 | ) | (7 | ) | 38 | | (12 | ) | (26 | ) | | # | | | (50 | ) | | # | | | (2 | ) | | (40 | )% | |
Total revenues | | 455 | | 413 | | 499 | | 357 | | 365 | | 870 | | 722 | | (90 | ) | | (20 | )% | | (148 | ) | | (17 | )% | | 8 | | | 2 | % | |
Banking and deposit interest expense | | 6 | | 3 | | 7 | | 2 | | 1 | | 10 | | 3 | | (5 | ) | | (83 | )% | | (7 | ) | | (70 | )% | | (1 | ) | | (50 | )% | |
Total net revenues | | 449 | | 410 | | 492 | | 355 | | 364 | | 860 | | 719 | | (85 | ) | | (19 | )% | | (141 | ) | | (16 | )% | | 9 | | | 3 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 116 | | 117 | | 118 | | 118 | | 111 | | 229 | | 229 | | (5 | ) | | (4 | )% | | — | | | — | | | (7 | ) | | (6 | )% | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | | — | | | — | | | — | | | — | | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | | — | | | — | | | — | | | — | | |
Amortization of deferred acquisition costs | | 9 | | 7 | | 7 | | 8 | | 5 | | 19 | | 13 | | (4 | ) | | (44 | )% | | (6 | ) | | (32 | )% | | (3 | ) | | (38 | )% | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | | — | | | — | | | — | | | — | | |
General and administrative expense | | 243 | | 214 | | 259 | | 211 | | 206 | | 485 | | 417 | | (37 | ) | | (15 | )% | | (68 | ) | | (14 | )% | | (5 | ) | | (2 | )% | |
Total expenses | | 368 | | 338 | | 384 | | 337 | | 322 | | 733 | | 659 | | (46 | ) | | (13 | )% | | (74 | ) | | (10 | )% | | (15 | ) | | (4 | )% | |
Pretax income | | $ | 81 | | $ | 72 | | $ | 108 | | $ | 18 | | $ | 42 | | $ | 127 | | $ | 60 | | $ | (39 | ) | | (48 | )% | | $ | (67 | ) | | (53 | )% | | $ | 24 | | | # | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income margin | | 18.0 | % | 17.6 | % | 22.0 | % | 5.1 | % | 11.5 | % | 14.8 | % | 8.3 | % | (6.5 | )% | | | | | (6.5 | )% | | | | | 6.4 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 865 | | $ | 862 | | $ | 878 | | $ | 847 | | $ | 817 | | $ | 865 | | $ | 817 | | $ | (48 | ) | | (6 | )% | | $ | (48 | ) | | (6 | )% | | $ | (30 | ) | | (4 | )% | |
Pretax return on allocated equity | | 29.7 | % | 31.9 | % | 35.4 | % | 32.3 | % | 28.1 | % | 29.7 | % | 28.1 | % | (1.6 | )% | | | | | (1.6 | )% | | | | | (4.2 | )% | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Managed Assets Reconciliations | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource managed assets | | $ | 159,864 | | $ | 161,811 | | $ | 157,865 | | $ | 148,637 | | $ | 144,951 | | $ | 159,864 | | $ | 144,951 | | $ | (14,913 | ) | | (9 | )% | | $ | (14,913 | ) | | (9 | )% | | $ | (3,686 | ) | | (2 | )% | |
Threadneedle managed assets | | 138,398 | | 139,804 | | 134,358 | | 124,267 | | 120,906 | | 138,398 | | 120,906 | | (17,492 | ) | | (13 | )% | | (17,492 | ) | | (13 | )% | | (3,361 | ) | | (3 | )% | |
Less: RiverSource assets sub-advised by Threadneedle | | (5,325 | ) | (5,614 | ) | (5,577 | ) | (4,912 | ) | (4,925 | ) | (5,325 | ) | (4,925 | ) | 400 | | | 8 | % | | 400 | | | 8 | % | | (13 | ) | | — | | |
Total managed assets | | $ | 292,937 | | $ | 296,001 | | $ | 286,646 | | $ | 267,992 | | $ | 260,932 | | $ | 292,937 | | $ | 260,932 | | $ | (32,005 | ) | | (11 | )% | | $ | (32,005 | ) | | (11 | )% | | $ | (7,060 | ) | | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Managed assets - external clients | | $ | 230,220 | | $ | 232,634 | | $ | 224,070 | | $ | 207,119 | | $ | 201,021 | | $ | 230,220 | | $ | 201,021 | | $ | (29,199 | ) | | (13 | )% | | $ | (29,199 | ) | | (13 | )% | | $ | (6,098 | ) | | (3 | )% | |
Managed assets - owned | | 62,717 | | 63,367 | | 62,576 | | 60,873 | | 59,911 | | 62,717 | | 59,911 | | (2,806 | ) | | (4 | )% | | (2,806 | ) | | (4 | )% | | (962 | ) | | (2 | )% | |
Total managed assets | | $ | 292,937 | | $ | 296,001 | | $ | 286,646 | | $ | 267,992 | | $ | 260,932 | | $ | 292,937 | | $ | 260,932 | | $ | (32,005 | ) | | (11 | )% | | $ | (32,005 | ) | | (11 | )% | | $ | (7,060 | ) | | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Managed Assets by Type | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity | | $ | 134,014 | | $ | 133,292 | | $ | 126,985 | | $ | 109,936 | | $ | 105,586 | | $ | 134,014 | | $ | 105,586 | | $ | (28,428 | ) | | (21 | )% | | $ | (28,428 | ) | | (21 | )% | | $ | (4,350 | ) | | (4 | )% | |
Fixed income | | 114,406 | | 117,170 | | 117,280 | | 117,377 | | 114,666 | | 114,406 | | 114,666 | | 260 | | | — | | | 260 | | | — | | | (2,711 | ) | | (2 | )% | |
Money market | | 13,590 | | 14,134 | | 13,112 | | 13,147 | | 13,866 | | 13,590 | | 13,866 | | 276 | | | 2 | % | | 276 | | | 2 | % | | 719 | | | 5 | % | |
Alternative | | 10,873 | | 11,484 | | 11,624 | | 11,000 | | 10,322 | | 10,873 | | 10,322 | | (551 | ) | | (5 | )% | | (551 | ) | | (5 | )% | | (678 | ) | | (6 | )% | |
Hybrid and other | | 20,054 | | 19,921 | | 17,645 | | 16,532 | | 16,492 | | 20,054 | | 16,492 | | (3,562 | ) | | (18 | )% | | (3,562 | ) | | (18 | )% | | (40 | ) | | — | | |
Total managed assets by type | | $ | 292,937 | | $ | 296,001 | | $ | 286,646 | | $ | 267,992 | | $ | 260,932 | | $ | 292,937 | | $ | 260,932 | | $ | (32,005 | ) | | (11 | )% | | $ | (32,005 | ) | | (11 | )% | | $ | (7,060 | ) | | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
# Variance of 100% or greater.
13
Ameriprise Financial, Inc.
Asset Management Segment
Second Quarter 2008
| | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | |
Mutual Fund Performance | | | | | | | | | | | |
RiverSource | | | | | | | | | | | |
Equal Weighted Mutual Fund Rankings in top 2 Lipper Quartiles | | | | | | | | | | | |
Equity - 12 month | | 70 | % | 65 | % | 45 | % | 41 | % | 34 | % |
Fixed income - 12 month | | 88 | % | 83 | % | 42 | % | 30 | % | 24 | % |
Equity - 3 year | | 65 | % | 73 | % | 69 | % | 73 | % | 73 | % |
Fixed income - 3 year | | 44 | % | 39 | % | 50 | % | 50 | % | 71 | % |
Equity - 5 year | | 44 | % | 44 | % | 40 | % | 44 | % | 47 | % |
Fixed income - 5 year | | 29 | % | 29 | % | 36 | % | 27 | % | 46 | % |
| | | | | | | | | | | |
Asset Weighted Mutual Fund Rankings in top 2 Lipper Quartiles | | | | | | | | | | | |
Equity - 12 month | | 87 | % | 67 | % | 57 | % | 53 | % | 29 | % |
Fixed income - 12 month | | 97 | % | 93 | % | 30 | % | 9 | % | 20 | % |
Equity - 3 year | | 74 | % | 93 | % | 68 | % | 70 | % | 72 | % |
Fixed income - 3 year | | 46 | % | 46 | % | 54 | % | 60 | % | 61 | % |
Equity - 5 year | | 61 | % | 57 | % | 58 | % | 57 | % | 60 | % |
Fixed income - 5 year | | 44 | % | 44 | % | 45 | % | 17 | % | 46 | % |
| | | | | | | | | | | |
Threadneedle | | | | | | | | | | | |
Equal Weighted Mutual Fund Rankings in top 2 S&P Quartiles | | | | | | | | | | | |
Equity - 12 month | | 63 | % | 77 | % | 80 | % | 90 | % | 90 | % |
Fixed income - 12 month | | 44 | % | 22 | % | 22 | % | 55 | % | 60 | % |
Equity - 3 year | | 64 | % | 76 | % | 83 | % | 86 | % | 86 | % |
Fixed income - 3 year | | 56 | % | 22 | % | 22 | % | 60 | % | 60 | % |
Equity - 5 year | | 29 | % | 46 | % | 58 | % | 64 | % | 69 | % |
Fixed income - 5 year | | 56 | % | 33 | % | 22 | % | 40 | % | 40 | % |
Equal Weighted Rankings in Top 2 Quartiles: Counts the number of Class A funds with above median ranking divided by the total number of Class A funds. Asset size is not a factor.
Asset Weighted Rankings in Top 2 Quartiles: Sums the assets of the Class A funds with above median ranking divided by the total Class A assets. Funds with more assets will receive a greater share of the total percentage above or below median.
Aggregated data shows only actively-managed mutual funds by affiliated investment managers.
Aggregated data does not include mutual funds sub-advised by advisors not affiliated with Ameriprise Financial, Inc., RiverSource S&P 500 Index Fund, RiverSource Cash Management Fund and RiverSource Tax Free Money Market Fund.
Aggregated equity rankings include RiverSource Portfolio Builder Series and other balanced and asset allocation funds that invest in both equities and fixed income.
RiverSource Portfolio Builder Series funds are funds of mutual funds that may invest in third-party sub-advised funds.
Aggregated data only includes mutual funds in existence as of current quarter end. Refer to Exhibit A for RiverSource individual mutual fund performance rankings and other important disclosures.
Exhibit A includes RiverSource performance rankings for funds sub-advised by non-affiliated advisors for general reference although not included in the summary above.
14
Ameriprise Financial, Inc.
Asset Management Segment - RiverSource
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
RiverSource - Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 82,085 | | $ | 86,988 | | $ | 88,575 | | $ | 86,864 | | $ | 80,232 | | $ | 81,691 | | $ | 86,864 | | $ | (1,853 | ) | (2 | )% | | $ | 5,173 | | 6 | % | | $ | (6,632 | ) | (8 | )% | |
Net flows | | 721 | | 399 | | 225 | | (636 | ) | (1,169 | ) | (115 | ) | (1,805 | ) | (1,890 | ) | # | | | (1,690 | ) | # | | | (533 | ) | (84 | )% | |
Market appreciation (depreciation) and other | | 4,182 | | 1,188 | | (1,936 | ) | (5,996 | ) | (782 | ) | 5,412 | | (6,778 | ) | (4,964 | ) | # | | | (12,190 | ) | # | | | 5,214 | | 87 | % | |
Total ending assets | | 86,988 | | 88,575 | | 86,864 | | 80,232 | | 78,281 | | 86,988 | | 78,281 | | (8,707 | ) | (10 | )% | | (8,707 | ) | (10 | )% | | (1,951 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 57,238 | | 55,827 | | 56,007 | | 54,821 | | 52,547 | | 59,131 | | 54,821 | | (4,691 | ) | (8 | )% | | (4,310 | ) | (7 | )% | | (2,274 | ) | (4 | )% | |
Net flows | | (996 | ) | (358 | ) | (1,403 | ) | (1,677 | ) | (754 | ) | (3,159 | ) | (2,431 | ) | 242 | | 24 | % | | 728 | | 23 | % | | 923 | | 55 | % | |
Market appreciation (depreciation) and other | | (415 | ) | 538 | | 217 | | (597 | ) | (603 | ) | (145 | ) | (1,200 | ) | (188 | ) | (45 | )% | | (1,055 | ) | # | | | (6 | ) | (1 | )% | |
Total ending assets | | 55,827 | | 56,007 | | 54,821 | | 52,547 | | 51,190 | | 55,827 | | 51,190 | | (4,637 | ) | (8 | )% | | (4,637 | ) | (8 | )% | | (1,357 | ) | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alternative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 8,520 | | 8,185 | | 8,605 | | 8,085 | | 7,293 | | 7,777 | | 8,085 | | (1,227 | ) | (14 | )% | | 308 | | 4 | % | | (792 | ) | (10 | )% | |
Net flows | | (332 | ) | 426 | | (516 | ) | (483 | ) | (101 | ) | 407 | | (584 | ) | 231 | | 70 | % | | (991 | ) | # | | | 382 | | 79 | % | |
Market appreciation (depreciation) and other | | (3 | ) | (6 | ) | (4 | ) | (309 | ) | 2 | | 1 | | (307 | ) | 5 | | # | | | (308 | ) | # | | | 311 | | # | | |
Total ending assets | | 8,185 | | 8,605 | | 8,085 | | 7,293 | | 7,194 | | 8,185 | | 7,194 | | (991 | ) | (12 | )% | | (991 | ) | (12 | )% | | (99 | ) | (1 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 9,983 | | 9,632 | | 9,342 | | 8,804 | | 8,911 | | 10,219 | | 8,804 | | (1,072 | ) | (11 | )% | | (1,415 | ) | (14 | )% | | 107 | | 1 | % | |
Net flows | | (604 | ) | (415 | ) | (542 | ) | 204 | | (436 | ) | (926 | ) | (232 | ) | 168 | | 28 | % | | 694 | | 75 | % | | (640 | ) | # | | |
Market appreciation (depreciation) and other | | 253 | | 125 | | 4 | | (97 | ) | 55 | | 339 | | (42 | ) | (198 | ) | (78 | )% | | (381 | ) | # | | | 152 | | # | | |
Total ending assets | | 9,632 | | 9,342 | | 8,804 | | 8,911 | | 8,530 | | 9,632 | | 8,530 | | (1,102 | ) | (11 | )% | | (1,102 | ) | (11 | )% | | (381 | ) | (4 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other and Eliminations | | (768 | ) | (718 | ) | (709 | ) | (346 | ) | (244 | ) | (768 | ) | (244 | ) | 524 | | 68 | % | | 524 | | 68 | % | | 102 | | 29 | % | |
Total RiverSource managed assets | | $ | 159,864 | | $ | 161,811 | | $ | 157,865 | | $ | 148,637 | | $ | 144,951 | | $ | 159,864 | | $ | 144,951 | | $ | (14,913 | ) | (9 | )% | | $ | (14,913 | ) | (9 | )% | | $ | (3,686 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Net Flows - RiverSource | | $ | (1,211 | ) | $ | 52 | | $ | (2,236 | ) | $ | (2,592 | ) | $ | (2,460 | ) | $ | (3,793 | ) | $ | (5,052 | ) | $ | (1,249 | ) | # | | | $ | (1,259 | ) | (33 | )% | | $ | 132 | | 5 | % | |
# Variance of 100% or greater.
15
Ameriprise Financial, Inc.
Asset Management Segment - Threadneedle
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | | Diff. | | % | | | Diff. | | % | | |
Threadneedle Managed Assets Rollforward Threadneedle Retail Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | $ | 28,741 | | $ | 30,494 | | $ | 31,540 | | $ | 30,822 | | $ | 28,154 | | $ | 28,112 | | $ | 30,822 | | $ | (587 | ) | (2 | )% | | $ | 2,710 | | 10 | % | | $ | (2,668 | ) | (9 | )% | |
Net flows | | 64 | | 98 | | (211 | ) | (253 | ) | 72 | | (66 | ) | (181 | ) | 8 | | 13 | % | | (115 | ) | # | | | 325 | | # | | |
Market appreciation (depreciation) | | 936 | | 287 | | 379 | | (2,489 | ) | (483 | ) | 1,528 | | (2,972 | ) | (1,419 | ) | # | | | (4,500 | ) | # | | | 2,006 | | 81 | % | |
Foreign currency translation (1) | | 613 | | 573 | | (964 | ) | (16 | ) | 104 | | 741 | | 88 | | (509 | ) | (83 | )% | | (653 | ) | (88 | )% | | 120 | | # | | |
Other | | 140 | | 88 | | 78 | | 90 | | 21 | | 179 | | 111 | | (119 | ) | (85 | )% | | (68 | ) | (38 | )% | | (69 | ) | (77 | )% | |
Total ending assets | | 30,494 | | 31,540 | | 30,822 | | 28,154 | | 27,868 | | 30,494 | | 27,868 | | (2,626 | ) | (9 | )% | | (2,626 | ) | (9 | )% | | (286 | ) | (1 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 110,960 | | 105,247 | | 105,450 | | 100,057 | | 92,433 | | 111,151 | | 100,057 | | (18,527 | ) | (17 | )% | | (11,094 | ) | (10 | )% | | (7,624 | ) | (8 | )% | |
Net flows | | (11,037 | ) | (3,313 | ) | (4,516 | ) | (2,560 | ) | (1,838 | ) | (13,512 | ) | (4,398 | ) | 9,199 | | 83 | % | | 9,114 | | 67 | % | | 722 | | 28 | % | |
Market appreciation (depreciation) | | 1,838 | | 585 | | 1,468 | | (5,744 | ) | (1,956 | ) | 2,774 | | (7,700 | ) | (3,794 | ) | # | | | (10,474 | ) | # | | | 3,788 | | 66 | % | |
Foreign currency translation (1) | | 2,332 | | 1,987 | | (3,167 | ) | (53 | ) | 331 | | 2,836 | | 278 | | (2,001 | ) | (86 | )% | | (2,558 | ) | (90 | )% | | 384 | | # | | |
Other | | 1,154 | | 944 | | 822 | | 733 | | 967 | | 1,998 | | 1,700 | | (187 | ) | (16 | )% | | (298 | ) | (15 | )% | | 234 | | 32 | % | |
Total ending assets | | 105,247 | | 105,450 | | 100,057 | | 92,433 | | 89,937 | | 105,247 | | 89,937 | | (15,310 | ) | (15 | )% | | (15,310 | ) | (15 | )% | | (2,496 | ) | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alternative | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning assets | | 2,398 | | 2,657 | | 2,814 | | 3,479 | | 3,680 | | 2,089 | | 3,479 | | 1,282 | | 53 | % | | 1,390 | | 67 | % | | 201 | | 6 | % | |
Net flows | | 156 | | 46 | | (2 | ) | 265 | | (713 | ) | 391 | | (448 | ) | (869 | ) | # | | | (839 | ) | # | | | (978 | ) | # | | |
Market appreciation (depreciation) | | 52 | | 59 | | 262 | | (71 | ) | 117 | | 116 | | 46 | | 65 | | # | | | (70 | ) | (60 | )% | | 188 | | # | | |
Foreign currency translation (1) | | 51 | | 52 | | (108 | ) | (3 | ) | 11 | | 61 | | 8 | | (40 | ) | (78 | )% | | (53 | ) | (87 | )% | | 14 | | # | | |
Other | | — | | — | | 513 | | 10 | | 6 | | — | | 16 | | 6 | | — | | | 16 | | — | | | (4 | ) | (40 | )% | |
Total ending assets | | 2,657 | | 2,814 | | 3,479 | | 3,680 | | 3,101 | | 2,657 | | 3,101 | | 444 | | 17 | % | | 444 | | 17 | % | | (579 | ) | (16 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Threadneedle managed assets | | $ | 138,398 | | $ | 139,804 | | $ | 134,358 | | $ | 124,267 | | $ | 120,906 | | $ | 138,398 | | $ | 120,906 | | $ | (17,492 | ) | (13 | )% | | $ | (17,492 | ) | (13 | )% | | $ | (3,361 | ) | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Net Flows - Threadneedle | | $ | (10,817 | ) | $ | (3,169 | ) | $ | (4,729 | ) | $ | (2,548 | ) | $ | (2,479 | ) | $ | (13,187 | ) | $ | (5,027 | ) | $ | 8,338 | | 77 | % | | $ | 8,160 | | 62 | % | | $ | 69 | | 3 | % | |
(1) Amounts represent British Pound to US dollar conversion.
# Variance of 100% or greater.
16
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Annuities Segment
17
Ameriprise Financial, Inc.
Annuities Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 127 | | $ | 130 | | $ | 138 | | $ | 126 | | $ | 130 | | $ | 242 | | $ | 256 | | $ | 3 | | 2 | % | | $ | 14 | | 6 | % | | $ | 4 | | 3 | % | |
Distribution fees | | 66 | | 70 | | 70 | | 70 | | 72 | | 127 | | 142 | | 6 | | 9 | % | | 15 | | 12 | % | | 2 | | 3 | % | |
Net investment income | | 295 | | 311 | | 274 | | 237 | | 237 | | 611 | | 474 | | (58 | ) | (20 | )% | | (137 | ) | (22 | )% | | — | | — | | |
Premiums | | 24 | | 24 | | 25 | | 18 | | 21 | | 46 | | 39 | | (3 | ) | (13 | )% | | (7 | ) | (15 | )% | | 3 | | 17 | % | |
Other revenues | | 23 | | 25 | | 73 | | 27 | | 34 | | 40 | | 61 | | 11 | | 48 | % | | 21 | | 53 | % | | 7 | | 26 | % | |
Total revenues | | 535 | | 560 | | 580 | | 478 | | 494 | | 1,066 | | 972 | | (41 | ) | (8) | % | | (94 | ) | (9 | )% | | 16 | | 3 | % | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
Total net revenues | | 535 | | 560 | | 580 | | 478 | | 494 | | 1,066 | | 972 | | (41 | ) | (8 | )% | | (94 | ) | (9 | )% | | 16 | | 3 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 51 | | 50 | | 48 | | 45 | | 47 | | 96 | | 92 | | (4 | ) | (8 | )% | | (4 | ) | (4 | )% | | 2 | | 4 | % | |
Interest credited to fixed accounts | | 180 | | 175 | | 167 | | 160 | | 156 | | 364 | | 316 | | (24 | ) | (13 | )% | | (48 | ) | (13 | )% | | (4 | ) | (3 | )% | |
Benefits, claims, losses and settlement expenses | | 77 | | 135 | | 80 | | 78 | | 69 | | 114 | | 147 | | (8 | ) | (10 | )% | | 33 | | 29 | % | | (9 | ) | (12 | )% | |
Amortization of deferred acquisition costs | | 76 | | 53 | | 100 | | 94 | | 91 | | 165 | | 185 | | 15 | | 20 | % | | 20 | | 12 | % | | (3 | ) | (3 | )% | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
General and administrative expense | | 65 | | 56 | | 57 | | 59 | | 54 | | 123 | | 113 | | (11 | ) | (17 | )% | | (10 | ) | (8 | )% | | (5 | ) | (8 | )% | |
Total expenses | | 449 | | 469 | | 452 | | 436 | | 417 | | 862 | | 853 | | (32 | ) | (7 | )% | | (9 | ) | (1 | )% | | (19 | ) | (4 | )% | |
Pretax income | | $ | 86 | | $ | 91 | | $ | 128 | | $ | 42 | | $ | 77 | | $ | 204 | | $ | 119 | | $ | (9 | ) | (10 | )% | | $ | (85 | ) | (42 | )% | | $ | 35 | | 83 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income margin | | 16.1 | % | 16.3 | % | 22.1 | % | 8.8 | % | 15.6 | % | 19.1 | % | 12.2 | % | (0.5 | )% | | | | (6.9 | )% | | | | 6.8 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 290 | | $ | 279 | | $ | 267 | | $ | 253 | | $ | 245 | | $ | 598 | | $ | 498 | | $ | (45 | ) | (16 | )% | | $ | (100 | ) | (17 | )% | | $ | (8 | ) | (3 | )% | |
Realized gains (losses) | | — | | 12 | | 15 | | (20 | ) | (5 | ) | 6 | | (25 | ) | (5 | ) | — | | | (31 | ) | # | | | 15 | | 75 | % | |
Other (including seed money) | | 5 | | 20 | | (8 | ) | 4 | | (3 | ) | 7 | | 1 | | (8 | ) | # | | | (6 | ) | (86 | )% | | (7 | ) | # | | |
Total net investment income | | $ | 295 | | $ | 311 | | $ | 274 | | $ | 237 | | $ | 237 | | $ | 611 | | $ | 474 | | $ | (58 | ) | (20 | )% | | $ | (137 | ) | (22 | )% | | $ | — | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 2,151 | | $ | 2,128 | | $ | 2,100 | | $ | 2,005 | | $ | 1,961 | | $ | 2,151 | | $ | 1,961 | | $ | (190 | ) | (9 | )% | | $ | (190 | ) | (9 | )% | | $ | (44 | ) | (2 | )% | |
Pretax return on allocated equity | | 18.8 | % | 19.2 | % | 19.1 | % | 16.3 | % | 16.3 | % | 18.8 | % | 16.3 | % | (2.5 | )% | | | | (2.5 | )% | | | | — | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net variable annuity living benefits market impact (1) | | $ | 1 | | $ | (71 | ) | $ | (1 | ) | $ | (15 | ) | $ | 19 | | $ | 25 | | $ | 4 | | $ | 18 | | # | | | $ | (21 | ) | (84 | )% | | $ | 34 | | # | | |
Total annuity net flows | | $ | 609 | | $ | 465 | | $ | 403 | | $ | 304 | | $ | 428 | | $ | 1,092 | | $ | 732 | | $ | (181 | ) | (30 | )% | | $ | (360 | ) | (33 | )% | | $ | 124 | | 41 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Accumulation Benefit (GMAB) only. |
| |
# | Variance of 100% or greater. |
18
Ameriprise Financial, Inc.
Annuities Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Prior Year��Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable Annuities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 41 | | $ | 35 | | $ | 52 | | $ | 20 | | $ | 57 | | $ | 98 | | $ | 77 | | $ | 16 | | 39 | % | | $ | (21 | ) | (21 | )% | | $ | 37 | | # | | |
Allocated equity | | $ | 905 | | $ | 919 | | $ | 919 | | $ | 914 | | $ | 900 | | $ | 905 | | $ | 900 | | $ | (5 | ) | (1 | )% | | $ | (5 | ) | (1 | )% | | $ | (14 | ) | (2 | )% | |
Pretax return on allocated equity | | 20.6 | % | 20.8 | % | 19.6 | % | 16.1 | % | 18.0 | % | 20.6 | % | 18.0 | % | (2.6 | )% | | | | (2.6 | )% | | | | 1.9 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Annuities (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 45 | | $ | 56 | | $ | 76 | | $ | 22 | | $ | 20 | | $ | 106 | | $ | 42 | | $ | (25 | ) | (56 | )% | | $ | (64 | ) | (60 | )% | | $ | (2 | ) | (9 | )% | |
Allocated equity | | $ | 1,246 | | $ | 1,209 | | $ | 1,181 | | $ | 1,091 | | $ | 1,061 | | $ | 1,246 | | $ | 1,061 | | $ | (185 | ) | (15 | )% | | $ | (185 | ) | (15 | )% | | $ | (30 | ) | (3 | )% | |
Pretax return on allocated equity | | 17.4 | % | 18.1 | % | 18.6 | % | 16.4 | % | 15.0 | % | 17.4 | % | 15.0 | % | (2.4 | )% | | | | (2.4 | )% | | | | (1.4 | )% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable Annuities Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 51,475 | | $ | 55,092 | | $ | 57,127 | | $ | 57,182 | | $ | 54,444 | | $ | 49,489 | | $ | 57,182 | | $ | 2,969 | | 6 | % | | $ | 7,693 | | 16 | % | | $ | (2,738 | ) | (5 | )% | |
Deposits | | 2,982 | | 2,649 | | 2,474 | | 2,129 | | 2,077 | | 5,688 | | 4,206 | | (905 | ) | (30 | )% | | (1,482 | ) | (26 | )% | | (52 | ) | (2 | )% | |
Withdrawals and terminations | | (1,634 | ) | (1,458 | ) | (1,368 | ) | (1,278 | ) | (1,266 | ) | (3,128 | ) | (2,544 | ) | 368 | | 23 | % | | 584 | | 19 | % | | 12 | | 1 | % | |
Net flows | | 1,348 | | 1,191 | | 1,106 | | 851 | | 811 | | 2,560 | | 1,662 | | (537 | ) | (40 | )% | | (898 | ) | (35 | )% | | (40 | ) | (5 | )% | |
Investment performance and interest credited | | 2,265 | | 847 | | (1,043 | ) | (3,577 | ) | (531 | ) | 3,035 | | (4,108 | ) | (2,796 | ) | # | | | (7,143 | ) | # | | | 3,046 | | 85 | % | |
Other | | 4 | | (3 | ) | (8 | ) | (12 | ) | 18 | | 8 | | 6 | | 14 | | # | | | (2 | ) | (25 | )% | | 30 | | # | | |
Total ending balance - contract accumulation values | | $ | 55,092 | | $ | 57,127 | | $ | 57,182 | | $ | 54,444 | | $ | 54,742 | | $ | 55,092 | | $ | 54,742 | | $ | (350 | ) | (1 | )% | | $ | (350 | ) | (1 | )% | | $ | 298 | | 1 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Variable annuities fixed sub-accounts | | $ | 5,416 | | $ | 5,542 | | $ | 5,419 | | $ | 5,389 | | $ | 5,366 | | $ | 5,416 | | $ | 5,366 | | $ | (50 | ) | (1 | )% | | $ | (50 | ) | (1 | )% | | $ | (23 | ) | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Annuities Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 14,285 | | $ | 13,652 | | $ | 13,046 | | $ | 12,463 | | $ | 12,020 | | $ | 14,884 | | $ | 12,463 | | $ | (2,265 | ) | (16 | )% | | $ | (2,421 | ) | (16 | )% | | $ | (443 | ) | (4 | )% | |
Deposits | | 77 | | 81 | | 76 | | 79 | | 208 | | 160 | | 287 | | 131 | | # | | | 127 | | 79 | % | | 129 | | # | | |
Withdrawals and terminations | | (816 | ) | (807 | ) | (779 | ) | (626 | ) | (591 | ) | (1,628 | ) | (1,217 | ) | 225 | | 28 | % | | 411 | | 25 | % | | 35 | | 6 | % | |
Net flows | | (739 | ) | (726 | ) | (703 | ) | (547 | ) | (383 | ) | (1,468 | ) | (930 | ) | 356 | | 48 | % | | 538 | | 37 | % | | 164 | | 30 | % | |
Policyholder interest credited | | 143 | | 120 | | 108 | | 92 | | 102 | | 271 | | 194 | | (41 | ) | (29 | )% | | (77 | ) | (28 | )% | | 10 | | 11 | % | |
Other | | (37 | ) | — | | 12 | | 12 | | 20 | | (35 | ) | 32 | | 57 | | # | | | 67 | | # | | | 8 | | 67 | % | |
Total ending balance - contract accumulation values | | $ | 13,652 | | $ | 13,046 | | $ | 12,463 | | $ | 12,020 | | $ | 11,759 | | $ | 13,652 | | $ | 11,759 | | $ | (1,893 | ) | (14 | )% | | $ | (1,893 | ) | (14 | )% | | $ | (261 | ) | (2 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitalized Interest | | $ | 2 | | $ | 2 | | $ | 1 | | $ | 2 | | $ | 2 | | $ | 4 | | $ | 4 | | $ | — | | — | | | $ | — | | — | | | $ | — | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payout Annuities Reserve Balance | | $ | 2,249 | | $ | 2,238 | | $ | 2,226 | | $ | 2,199 | | $ | 2,139 | | $ | 2,249 | | $ | 2,139 | | $ | (110 | ) | (5 | )% | | $ | (110 | ) | (5 | )% | | $ | (60 | ) | (3 | )% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Equivalent Spread - Fixed Annuities (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross rate of return on invested assets | | 5.6 | % | 5.6 | % | 5.6 | % | 5.4 | % | 5.4 | % | 5.7 | % | 5.4 | % | (0.2 | )% | | | | (0.3 | )% | | | | — | | | | |
Crediting rate | | (3.7 | )% | (3.7 | )% | (3.7 | )% | (3.7 | )% | (3.7 | )% | (3.7 | )% | (3.7 | )% | — | | | | | — | | | | | — | | | | |
Tax equivalent margin spread | | 1.9 | % | 1.9 | % | 1.9 | % | 1.7 | % | 1.7 | % | 2.0 | % | 1.7 | % | (0.2 | )% | | | | (0.3 | )% | | | | — | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Variable Annuities DAC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,898 | | $ | 1,988 | | $ | 2,067 | | $ | 2,086 | | $ | 2,145 | | $ | 2,004 | | $ | 2,086 | | $ | 247 | | 13 | % | | $ | 82 | | 4 | % | | $ | 59 | | 3 | % | |
Capitalization | | 124 | | 113 | | 111 | | 103 | | 97 | | 245 | | 200 | | (27 | ) | (22 | )% | | (45 | ) | (18 | )% | | (6 | ) | (6 | )% | |
Amortization per income statement | | (56 | ) | (20 | ) | (80 | ) | (79 | ) | (77 | ) | (124 | ) | (156 | ) | (21 | ) | (38 | )% | | (32 | ) | (26 | )% | | 2 | | 3 | % | |
Cumulative effect of accounting change (3) | | — | | — | | — | | 36 | | — | | (146 | ) | 36 | | — | | — | | | 182 | | # | | | (36 | ) | # | | |
Other (FAS 115) | | 22 | | (14 | ) | (12 | ) | (1 | ) | 21 | | 9 | | 20 | | (1 | ) | (5 | )% | | 11 | | # | | | 22 | | # | | |
Total ending balance | | $ | 1,988 | | $ | 2,067 | | $ | 2,086 | | $ | 2,145 | | $ | 2,186 | | $ | 1,988 | | $ | 2,186 | | $ | 198 | | 10 | % | | $ | 198 | | 10 | % | | $ | 41 | | 2 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Fixed Annuities DAC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 315 | | $ | 309 | | $ | 272 | | $ | 250 | | $ | 238 | | $ | 343 | | $ | 250 | | $ | (77 | ) | (24 | )% | | $ | (93 | ) | (27 | )% | | $ | (12 | ) | (5 | )% | |
Capitalization | | 1 | | 2 | | 2 | | 2 | | 8 | | 3 | | 10 | | 7 | | # | | | 7 | | # | | | 6 | | # | | |
Amortization per income statement | | (20 | ) | (33 | ) | (20 | ) | (15 | ) | (14 | ) | (41 | ) | (29 | ) | 6 | | 30 | % | | 12 | | 29 | % | | 1 | | 7 | % | |
Cumulative effect of accounting change (3) | | — | | — | | — | | — | | — | | (7 | ) | — | | — | | — | | | 7 | | # | | | — | | — | | |
Other (FAS 115) | | 13 | | (6 | ) | (4 | ) | 1 | | 15 | | 11 | | 16 | | 2 | | 15 | % | | 5 | | 45 | % | | 14 | | # | | |
Total ending balance | | $ | 309 | | $ | 272 | | $ | 250 | | $ | 238 | | $ | 247 | | $ | 309 | | $ | 247 | | $ | (62 | ) | (20 | )% | | $ | (62 | ) | (20 | )% | | $ | 9 | | 4 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Includes payout annuities. |
| |
(2) | Attributable to interest sensitive products only, which have been 97% of the total ending fixed annuities accumulation values in the periods reported. The asset earnings rate is a calculated theoretical yield obtained from the assignment of investment income using the investment year method of allocation. |
| |
(3) | Reflects adoption of FAS 157 in Q1 2008. |
| |
# | Variance of 100% or greater. |
19
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Protection Segment
20
Ameriprise Financial, Inc.
Protection Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | 17 | | $ | 17 | | $ | 18 | | $ | 15 | | $ | 16 | | $ | 33 | | $ | 31 | | $ | (1 | ) | (6 | )% | | $ | (2 | ) | (6 | )% | | $ | 1 | | 7 | % | |
Distribution fees | | 26 | | 25 | | 26 | | 27 | | 25 | | 51 | | 52 | | (1 | ) | (4 | )% | | 1 | | 2 | % | | (2 | ) | (7 | )% | |
Net investment income | | 87 | | 93 | | 92 | | 83 | | 85 | | 176 | | 168 | | (2 | ) | (2 | )% | | (8 | ) | (5 | )% | | 2 | | 2 | % | |
Premiums | | 251 | | 253 | | 255 | | 254 | | 255 | | 494 | | 509 | | 4 | | 2 | % | | 15 | | 3 | % | | 1 | | — | | |
Other revenues | | 105 | | 107 | | 133 | | 113 | | 110 | | 213 | | 223 | | 5 | | 5 | % | | 10 | | 5 | % | | (3 | ) | (3 | )% | |
Total revenues | | 486 | | 495 | | 524 | | 492 | | 491 | | 967 | | 983 | | 5 | | 1 | % | | 16 | | 2 | % | | (1 | ) | — | | |
Banking and deposit interest expense | | 1 | | — | | — | | — | | 1 | | 1 | | 1 | | — | | — | | | — | | — | | | 1 | | — | | |
Total net revenues | | 485 | | 495 | | 524 | | 492 | | 490 | | 966 | | 982 | | 5 | | 1 | % | | 16 | | 2 | % | | (2 | ) | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 18 | | 17 | | 13 | | 14 | | 17 | | 32 | | 31 | | (1 | ) | (6 | )% | | (1 | ) | (3 | )% | | 3 | | 21 | % | |
Interest credited to fixed accounts | | 35 | | 37 | | 35 | | 35 | | 36 | | 69 | | 71 | | 1 | | 3 | % | | 2 | | 3 | % | | 1 | | 3 | % | |
Benefits, claims, losses and settlement expenses | | 211 | | 225 | | 196 | | 226 | | 225 | | 429 | | 451 | | 14 | | 7 | % | | 22 | | 5 | % | | (1 | ) | — | | |
Amortization of deferred acquisition costs | | 40 | | 68 | | 57 | | 52 | | 48 | | 75 | | 100 | | 8 | | 20 | % | | 25 | | 33 | % | | (4 | ) | (8 | )% | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | — | | — | | | — | | — | | |
General and administrative expense | | 63 | | 55 | | 69 | | 63 | | 51 | | 123 | | 114 | | (12 | ) | (19 | )% | | (9 | ) | (7 | )% | | (12 | ) | (19 | )% | |
Total expenses | | 367 | | 402 | | 370 | | 390 | | 377 | | 728 | | 767 | | 10 | | 3 | % | | 39 | | 5 | % | | (13 | ) | (3 | )% | |
Pretax income | | $ | 118 | | $ | 93 | | $ | 154 | | $ | 102 | | $ | 113 | | $ | 238 | | $ | 215 | | $ | (5 | ) | (4 | )% | | $ | (23 | ) | (10 | )% | | $ | 11 | | 11 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax Operating Earnings | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 118 | | $ | 93 | | $ | 154 | | $ | 102 | | $ | 113 | | $ | 238 | | $ | 215 | | $ | (5 | ) | (4 | )% | | $ | (23 | ) | (10 | )% | | $ | 11 | | 11 | % | |
Realized (gains) losses | | — | | (3 | ) | (3 | ) | 3 | | 1 | | (1 | ) | 4 | | 1 | | — | | | 5 | | # | | | (2 | ) | (67 | )% | |
Total pretax operating earnings | | $ | 118 | | $ | 90 | | $ | 151 | | $ | 105 | | $ | 114 | | $ | 237 | | $ | 219 | | $ | (4 | ) | (3 | )% | | $ | (18 | ) | (8 | )% | | $ | 9 | | 9 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income Statement Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income margin | | 24.3 | % | 18.8 | % | 29.4 | % | 20.7 | % | 23.1 | % | 24.6 | % | 21.9 | % | (1.2 | )% | | | | (2.7 | )% | | | | 2.4 | % | | | |
Pretax operating earnings margin | | 24.3 | % | 18.2 | % | 28.8 | % | 21.3 | % | 23.3 | % | 24.5 | % | 22.3 | % | (1.0 | )% | | | | (2.2 | )% | | | | 2.0 | % | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income on fixed maturities | | $ | 81 | | $ | 81 | | $ | 82 | | $ | 79 | | $ | 76 | | $ | 162 | | $ | 155 | | $ | (5 | ) | (6 | )% | | $ | (7 | ) | (4 | )% | | $ | (3 | ) | (4 | )% | |
Realized gains (losses) | | — | | 3 | | 3 | | (3 | ) | (1 | ) | 1 | | (4 | ) | (1 | ) | — | | | (5 | ) | # | | | 2 | | 67 | % | |
Other (including seed money) | | 6 | | 9 | | 7 | | 7 | | 10 | | 13 | | 17 | | 4 | | 67 | % | | 4 | | 31 | % | | 3 | | 43 | % | |
Total net investment income | | $ | 87 | | $ | 93 | | $ | 92 | | $ | 83 | | $ | 85 | | $ | 176 | | $ | 168 | | $ | (2 | ) | (2 | )% | | $ | (8 | ) | (5 | )% | | $ | 2 | | 2 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 2,145 | | $ | 2,308 | | $ | 2,318 | | $ | 2,358 | | $ | 2,366 | | $ | 2,145 | | $ | 2,366 | | $ | 221 | | 10 | % | | $ | 221 | | 10 | % | | $ | 8 | | — | | |
Pretax return on allocated equity | | 23.1 | % | 20.2 | % | 21.8 | % | 20.7 | % | 20.1 | % | 23.1 | % | 20.1 | % | (3.0 | )% | | | | (3.0 | )% | | | | (0.6 | )% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long Term Care | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 7 | | $ | 3 | | $ | 2 | | $ | — | | $ | — | | $ | 14 | | $ | — | | $ | (7 | ) | # | | | $ | (14 | ) | # | | | $ | — | | — | | |
Allocated equity | | $ | 542 | | $ | 552 | | $ | 550 | | $ | 593 | | $ | 586 | | $ | 542 | | $ | 586 | | $ | 44 | | 8 | % | | $ | 44 | | 8 | % | | $ | (7 | ) | (1 | )% | |
Pretax return on allocated equity | | 6.0 | % | 3.3 | % | 3.4 | % | 2.1 | % | 0.9 | % | 6.0 | % | 0.9 | % | (5.1 | )% | | | | (5.1 | )% | | | | (1.2 | )% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Protection excluding Long Term Care | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income | | $ | 111 | | $ | 90 | | $ | 152 | | $ | 102 | | $ | 113 | | $ | 224 | | $ | 215 | | $ | 2 | | 2 | % | | $ | (9 | ) | (4 | )% | | $ | 11 | | 11 | % | |
Allocated equity | | $ | 1,603 | | $ | 1,756 | | $ | 1,768 | | $ | 1,765 | | $ | 1,780 | | $ | 1,603 | | $ | 1,780 | | $ | 177 | | 11 | % | | $ | 177 | | 11 | % | | $ | 15 | | 1 | % | |
Pretax return on allocated equity | | 29.0 | % | 25.9 | % | 27.9 | % | 26.8 | % | 26.3 | % | 29.0 | % | 26.3 | % | (2.7 | )% | | | | (2.7 | )% | | | | (0.5 | )% | | | |
# Variance of 100% or greater.
21
Ameriprise Financial, Inc.
Protection Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Cash Sales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL (1) | | $ | 88 | | $ | 88 | | $ | 82 | | $ | 64 | | $ | 64 | | $ | 172 | | $ | 128 | | $ | (24 | ) | (27 | )% | | $ | (44 | ) | (26 | )% | | $ | — | | — | | |
Term and whole life | | 5 | | 5 | | 5 | | 4 | | 5 | | 10 | | 9 | | — | | — | | | (1 | ) | (10 | )% | | 1 | | 25 | % | |
Disability insurance | | 5 | | 4 | | 4 | | 4 | | 4 | | 10 | | 8 | | (1 | ) | (20 | )% | | (2 | ) | (20 | )% | | — | | — | | |
Auto and Home | | 147 | | 157 | | 145 | | 156 | | 155 | | 296 | | 311 | | 8 | | 5 | % | | 15 | | 5 | % | | (1 | ) | (1 | )% | |
Total cash sales | | $ | 245 | | $ | 254 | | $ | 236 | | $ | 228 | | $ | 228 | | $ | 488 | | $ | 456 | | $ | (17 | ) | (7 | )% | | $ | (32 | ) | (7 | )% | | $ | — | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL Policyholder Account Balances | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 9,473 | | $ | 9,858 | | $ | 9,976 | | $ | 9,836 | | $ | 9,336 | | $ | 9,329 | | $ | 9,836 | | $ | (137 | ) | (1 | )% | | $ | 507 | | 5 | % | | $ | (500 | ) | (5 | )% | |
Premiums and deposits | | 283 | | 277 | | 280 | | 266 | | 256 | | 558 | | 522 | | (27 | ) | (10 | )% | | (36 | ) | (6 | )% | | (10 | ) | (4 | )% | |
Investment performance and interest | | 372 | | 115 | | (156 | ) | (493 | ) | (33 | ) | 503 | | (526 | ) | (405 | ) | # | | | (1,029 | ) | # | | | 460 | | 93 | % | |
Withdrawals and surrenders | | (285 | ) | (287 | ) | (275 | ) | (267 | ) | (258 | ) | (561 | ) | (525 | ) | 27 | | 9 | % | | 36 | | 6 | % | | 9 | | 3 | % | |
Other | | 15 | | 13 | | 11 | | (6 | ) | 2 | | 29 | | (4 | ) | (13 | ) | (87 | )% | | (33 | ) | # | | | 8 | | # | | |
Total ending balance | | $ | 9,858 | | $ | 9,976 | | $ | 9,836 | | $ | 9,336 | | $ | 9,303 | | $ | 9,858 | | $ | 9,303 | | $ | (555 | ) | (6 | )% | | $ | (555 | ) | (6 | )% | | $ | (33 | ) | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums by Product | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Term and whole life | | $ | 21 | | $ | 21 | | $ | 19 | | $ | 21 | | $ | 19 | | $ | 39 | | $ | 40 | | $ | (2 | ) | (10 | )% | | $ | 1 | | 3 | % | | $ | (2 | ) | (10 | )% | |
Disability insurance | | 42 | | 42 | | 42 | | 43 | | 43 | | 83 | | 86 | | 1 | | 2 | % | | 3 | | 4 | % | | — | | — | | |
Long term care | | 35 | | 36 | | 38 | | 35 | | 34 | | 70 | | 69 | | (1 | ) | (3 | )% | | (1 | ) | (1 | )% | | (1 | ) | (3 | )% | |
Auto and Home | | 144 | | 146 | | 147 | | 148 | | 151 | | 285 | | 299 | | 7 | | 5 | % | | 14 | | 5 | % | | 3 | | 2 | % | |
Intercompany premiums | | 9 | | 8 | | 9 | | 7 | | 8 | | 17 | | 15 | | (1 | ) | (11 | )% | | (2 | ) | (12 | )% | | 1 | | 14 | % | |
Total premiums by product | | $ | 251 | | $ | 253 | | $ | 255 | | $ | 254 | | $ | 255 | | $ | 494 | | $ | 509 | | $ | 4 | | 2 | % | | $ | 15 | | 3 | % | | $ | 1 | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Auto and Home Insurance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Policy Count (thousands) | | 505 | | 512 | | 517 | | 524 | | 532 | | 505 | | 532 | | 27 | | 5 | % | | 27 | | 5 | % | | 8 | | 2 | % | |
Loss ratio | | 78.8 | % | 78.1 | % | 69.3 | % | 79.8 | % | 75.8 | % | 74.9 | % | 77.9 | % | (3.0 | )% | | | | 3.0 | % | | | | (4.0 | )% | | | |
Expense ratio | | 17.1 | % | 18.0 | % | 15.5 | % | 16.8 | % | 15.3 | % | 17.4 | % | 15.9 | % | (1.8 | )% | | | | (1.5 | )% | | | | (1.5 | )% | | | |
Combined ratio | | 95.9 | % | 96.1 | % | 84.8 | % | 96.6 | % | 91.1 | % | 92.3 | % | 93.8 | % | (4.8 | )% | | | | 1.5 | % | | | | (5.5 | )% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
DAC Rollforward | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life and Health | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 2,042 | | $ | 2,085 | | $ | 2,086 | | $ | 2,093 | | $ | 2,097 | | $ | 2,064 | | $ | 2,093 | | $ | 55 | | 3 | % | | $ | 29 | | 1 | % | | $ | 4 | | — | | |
Capitalization | | 60 | | 54 | | 57 | | 46 | | 45 | | 117 | | 91 | | (15 | ) | (25 | )% | | (26 | ) | (22 | )% | | (1 | ) | (2 | )% | |
Amortization per income statement | | (28 | ) | (54 | ) | (46 | ) | (40 | ) | (36 | ) | (52 | ) | (76 | ) | (8 | ) | (29 | )% | | (24 | ) | (46 | )% | | 4 | | 10 | % | |
SOP 05-1 (Cumulative pretax impact) | | — | | — | | — | | — | | — | | (51 | ) | — | | — | | — | | | 51 | | # | | | — | | — | | |
Other (FAS 115) | | 11 | | 1 | | (4 | ) | (2 | ) | 8 | | 7 | | 6 | | (3 | ) | (27 | )% | | (1 | ) | (14 | )% | | 10 | | # | | |
Total ending balance | | $ | 2,085 | | $ | 2,086 | | $ | 2,093 | | $ | 2,097 | | $ | 2,114 | | $ | 2,085 | | $ | 2,114 | | $ | 29 | | 1 | % | | $ | 29 | | 1 | % | | $ | 17 | | 1 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Life Insurance in-Force | | $ | 181,080 | | $ | 184,304 | | $ | 187,095 | | $ | 188,643 | | $ | 190,514 | | $ | 181,080 | | $ | 190,514 | | $ | 9,434 | | 5 | % | | $ | 9,434 | | 5 | % | | $ | 1,871 | | 1 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Amount at Risk | | $ | 60,185 | | $ | 59,516 | | $ | 59,100 | | $ | 58,395 | | $ | 58,583 | | $ | 60,185 | | $ | 58,583 | | $ | (1,602 | ) | (3 | )% | | $ | (1,602 | ) | (3 | )% | | $ | 188 | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Policyholder Reserves | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VUL / UL | | $ | 8,783 | | $ | 8,915 | | $ | 8,780 | | $ | 8,293 | | $ | 8,286 | | $ | 8,783 | | $ | 8,286 | | $ | (497 | ) | (6 | )% | | $ | (497 | ) | (6 | )% | | $ | (7 | ) | — | | |
Term and whole life | | 234 | | 233 | | 233 | | 233 | | 234 | | 234 | | 234 | | — | | — | | | — | | — | | | 1 | | — | | |
Disability insurance | | 414 | | 419 | | 426 | | 431 | | 431 | | 414 | | 431 | | 17 | | 4 | % | | 17 | | 4 | % | | — | | — | | |
Long term care and other | | 2,275 | | 2,300 | | 2,320 | | 2,339 | | 2,375 | | 2,275 | | 2,375 | | 100 | | 4 | % | | 100 | | 4 | % | | 36 | | 2 | % | |
Auto and Home loss and LAE reserves | | 360 | | 361 | | 339 | | 333 | | 319 | | 360 | | 319 | | (41 | ) | (11 | )% | | (41 | ) | (11 | )% | | (14 | ) | (4 | )% | |
Total net policyholder reserves | | $ | 12,066 | | $ | 12,228 | | $ | 12,098 | | $ | 11,629 | | $ | 11,645 | | $ | 12,066 | | $ | 11,645 | | $ | (421 | ) | (3 | )% | | $ | (421 | ) | (3 | )% | | $ | 16 | | — | | |
(1) Includes lump sum deposits.
# Variance of 100% or greater.
22
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Corporate & Other Segment
23
Ameriprise Financial, Inc.
Corporate & Other Segment
Second Quarter 2008
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | 1 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | — | | $ | — | | — | | $ | — | | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | 2 | | (3 | ) | 14 | | 8 | | 12 | | 11 | | 20 | | 10 | | # | | 9 | | 82 | % | 4 | | 50 | % |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | (1 | ) | (2 | ) | 3 | | 2 | | 2 | | 6 | | 4 | | 3 | | # | | (2 | ) | (33 | )% | — | | — | |
Total revenues | | 1 | | (4 | ) | 17 | | 10 | | 14 | | 17 | | 24 | | 13 | | # | | 7 | | 41 | % | 4 | | 40 | % |
Banking and deposit interest expense | | 1 | | 2 | | 1 | | 1 | | — | | 3 | | 1 | | (1 | ) | # | | (2 | ) | (67 | )% | (1 | ) | # | |
Total net revenues | | — | | (6 | ) | 16 | | 9 | | 14 | | 14 | | 23 | | 14 | | — | | 9 | | 64 | % | 5 | | 56 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | 1 | | — | | — | | — | | 1 | | 1 | | 1 | | — | | — | | — | | — | | 1 | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | 29 | | 27 | | 27 | | 26 | | 28 | | 58 | | 54 | | (1 | ) | (3 | )% | (4 | ) | (7 | )% | 2 | | 8 | % |
General and administrative expense | | 48 | | 40 | | 47 | | 14 | | 31 | | 72 | | 45 | | (17 | ) | (35 | )% | (27 | ) | (38 | )% | 17 | | # | |
Total expenses before separation costs (1) | | 78 | | 67 | | 74 | | 40 | | 60 | | 131 | | 100 | | (18 | ) | (23 | )% | (31 | ) | (24 | )% | 20 | | 50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Separation costs | | 63 | | 60 | | 28 | | — | | — | | 148 | | — | | (63 | ) | # | | (148 | ) | # | | — | | — | |
Total expenses | | 141 | | 127 | | 102 | | 40 | | 60 | | 279 | | 100 | | (81 | ) | (57 | )% | (179 | ) | (64 | )% | 20 | | 50 | % |
Pretax loss | | $ | (141 | ) | $ | (133 | ) | $ | (86 | ) | $ | (31 | ) | $ | (46 | ) | $ | (265 | ) | $ | (77 | ) | $ | 95 | | 67 | % | $ | 188 | | 71 | % | $ | (15 | ) | (48 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocated equity | | $ | 1,842 | | $ | 1,767 | | $ | 1,751 | | $ | 1,730 | | $ | 1,730 | | $ | 1,842 | | $ | 1,730 | | $ | (112 | ) | (6 | )% | $ | (112 | ) | (6 | )% | $ | — | | — | |
(1) See non-GAAP Financial Information.
# Variance of 100% or greater.
24
Ameriprise Financial, Inc.
Eliminations (1)
Second Quarter 2008
| | | | | | | | | | | | | | | | Prior Year Comparisons | | | | | |
| | | | | | | | | | | | Year-to-Date | | Qtr Chg - 2Q | | YTD Chg - 2Q | | Seq Qtr Chg - 2Q | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | | Diff. | | % | | Diff. | | % | | Diff. | | % | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | (13 | ) | $ | (14 | ) | $ | (14 | ) | $ | (13 | ) | $ | (13 | ) | $ | (25 | ) | $ | (26 | ) | $ | — | | — | | $ | (1 | ) | (4 | )% | $ | — | | — | |
Distribution fees | | (302 | ) | (279 | ) | (276 | ) | (251 | ) | (253 | ) | (592 | ) | (504 | ) | 49 | | 16 | % | 88 | | 15 | % | (2 | ) | (1 | )% |
Net investment income | | (2 | ) | (1 | ) | (3 | ) | (2 | ) | (2 | ) | (4 | ) | (4 | ) | — | | — | | — | | — | | — | | — | |
Premiums | | (9 | ) | (8 | ) | (9 | ) | (7 | ) | (8 | ) | (17 | ) | (15 | ) | 1 | | 11 | % | 2 | | 12 | % | (1 | ) | (14 | )% |
Other revenues | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Total revenues | | (326 | ) | (302 | ) | (302 | ) | (273 | ) | (276 | ) | (638 | ) | (549 | ) | 50 | | 15 | % | 89 | | 14 | % | (3 | ) | (1 | )% |
Banking and deposit interest expense | | (3 | ) | (1 | ) | (3 | ) | (3 | ) | (2 | ) | (4 | ) | (5 | ) | 1 | | 33 | % | (1 | ) | (25 | )% | 1 | | 33 | % |
Total net revenues | | (323 | ) | (301 | ) | (299 | ) | (270 | ) | (274 | ) | (634 | ) | (544 | ) | 49 | | 15 | % | 90 | | 14 | % | (4 | ) | (1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution expenses | | (268 | ) | (250 | ) | (239 | ) | (221 | ) | (223 | ) | (524 | ) | (444 | ) | 45 | | 17 | % | 80 | | 15 | % | (2 | ) | (1 | )% |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Amortization of deferred acquisition costs | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | (55 | ) | (51 | ) | (60 | ) | (49 | ) | (51 | ) | (110 | ) | (100 | ) | 4 | | 7 | % | 10 | | 9 | % | (2 | ) | (4 | )% |
Total expenses | | (323 | ) | (301 | ) | (299 | ) | (270 | ) | (274 | ) | (634 | ) | (544 | ) | 49 | | 15 | % | 90 | | 14 | % | (4 | ) | (1 | )% |
Pretax income | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | — | | $ | — | | — | | $ | — | | — | |
(1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses.
# Variance of 100% or greater.
25
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Balance Sheet and Ratings Information
26
Ameriprise Financial, Inc.
Consolidated Balance Sheets
(in millions, unaudited) | | June 30, 2007 | | September 30, 2007 | | December 31, 2007 | | March 31, 2008 | | June 30, 2008 | |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 3,333 | | $ | 4,002 | | $ | 3,836 | | $ | 3,904 | | $ | 3,373 | |
Investments | | 31,669 | | 31,126 | | 30,625 | | 29,808 | | 29,506 | |
Separate account assets | | 60,470 | | 62,371 | | 61,974 | | 58,442 | | 58,725 | |
Receivables | | 3,559 | | 3,323 | | 3,441 | | 3,441 | | 3,614 | |
Deferred acquisition costs | | 4,462 | | 4,502 | | 4,503 | | 4,549 | | 4,611 | |
Restricted and segregated cash | | 1,296 | | 1,225 | | 1,332 | | 1,142 | | 994 | |
Other assets | | 3,718 | | 3,621 | | 3,519 | | 3,616 | | 3,444 | |
Total assets | | $ | 108,507 | | $ | 110,170 | | $ | 109,230 | | $ | 104,902 | | $ | 104,267 | |
| | | | | | | | | | | |
Liabilities | | | | | | | | | | | |
Future policy benefits and claims | | $ | 28,316 | | $ | 28,048 | | $ | 27,446 | | $ | 27,164 | | $ | 26,744 | |
Separate account liabilities | | 60,470 | | 62,371 | | 61,974 | | 58,442 | | 58,725 | |
Customer deposits | | 6,055 | | 6,029 | | 6,201 | | 6,307 | | 6,382 | |
Debt | | 2,221 | | 2,215 | | 2,018 | | 2,018 | | 2,018 | |
Accounts payable and accrued expenses | | 1,114 | | 1,077 | | 1,187 | | 834 | | 890 | |
Other liabilities | | 2,731 | | 2,672 | | 2,594 | | 2,556 | | 2,194 | |
Total liabilities | | 100,907 | | 102,412 | | 101,420 | | 97,321 | | 96,953 | |
| | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | |
Common shares ($.01 par) | | 3 | | 3 | | 3 | | 3 | | 3 | |
Additional paid-in capital | | 4,533 | | 4,593 | | 4,630 | | 4,637 | | 4,649 | |
Retained earnings | | 4,428 | | 4,591 | | 4,811 | | 4,938 | | 5,111 | |
Treasury stock | | (1,009 | ) | (1,180 | ) | (1,467 | ) | (1,710 | ) | (1,927 | ) |
Accumulated other comprehensive income (loss), net of tax | | (355 | ) | (249 | ) | (167 | ) | (287 | ) | (522 | ) |
Total shareholders’ equity | | 7,600 | | 7,758 | | 7,810 | | 7,581 | | 7,314 | |
Total liabilities and shareholders’ equity | | $ | 108,507 | | $ | 110,170 | | $ | 109,230 | | $ | 104,902 | | $ | 104,267 | |
27
Ameriprise Financial, Inc.
Capital and Ratings Information
(in millions unless otherwise noted, unaudited) | | June 30, 2007 | | September 30, 2007 | | December 31, 2007 | | March 31, 2008 | | June 30, 2008 | |
Debt Summary | | | | | | | | | | | |
Senior notes | | $ | 1,500 | | $ | 1,500 | | $ | 1,500 | | $ | 1,500 | | $ | 1,500 | |
Junior subordinated notes (2) | | 500 | | 500 | | 500 | | 500 | | 500 | |
| | | | | | | | | | | |
Non-recourse debt | | | | | | | | | | | |
Debt of CDO | | 197 | | 197 | | — | | — | | — | |
Debt for inverse floaters | | 24 | | 18 | | 18 | | 18 | | 18 | |
Total non-recourse debt | | 221 | | 215 | | 18 | | 18 | | 18 | |
Total debt | | $ | 2,221 | | $ | 2,215 | | $ | 2,018 | | $ | 2,018 | | $ | 2,018 | |
| | | | | | | | | | | |
Total debt | | $ | 2,221 | | $ | 2,215 | | $ | 2,018 | | $ | 2,018 | | $ | 2,018 | |
Total non-recourse debt | | (221 | ) | (215 | ) | (18 | ) | (18 | ) | (18 | ) |
Total debt excluding non-recourse debt (1) | | 2,000 | | 2,000 | | 2,000 | | 2,000 | | 2,000 | |
Junior subordinated notes 75% equity credit (2) | | (375 | ) | (375 | ) | (375 | ) | (375 | ) | (375 | ) |
Total debt excluding non-recourse debt and 75% equity credit (1),(2) | | $ | 1,625 | | $ | 1,625 | | $ | 1,625 | | $ | 1,625 | | $ | 1,625 | |
| | | | | | | | | | | |
Total shareholders’ equity | | $ | 7,600 | | $ | 7,758 | | $ | 7,810 | | $ | 7,581 | | $ | 7,314 | |
Total capital | | 9,821 | | 9,973 | | 9,828 | | 9,599 | | 9,332 | |
Total capital excluding non-recourse debt (1) | | $ | 9,600 | | $ | 9,758 | | $ | 9,810 | | $ | 9,581 | | $ | 9,314 | |
| | | | | | | | | | | |
Other Information | | | | | | | | | | | |
Debt to total capital | | 22.6 | % | 22.2 | % | 20.5 | % | 21.0 | % | 21.6 | % |
Debt to total capital excluding non-recourse debt (1) | | 20.8 | % | 20.5 | % | 20.4 | % | 20.9 | % | 21.5 | % |
Debt to total capital excluding non-recourse debt and 75% equity credit (1) | | 16.9 | % | 16.7 | % | 16.6 | % | 17.0 | % | 17.4 | % |
Ratings (as of June 30, 2008) | | A.M. Best | | S & P | | Moody’s | | Fitch | | | | |
Claims Paying Ratings | | | | | | | | | | | | |
RiverSource Life Insurance Company | | A+ | | AA- | | Aa3 | | AA- | | | | |
IDS Property Casualty Ins. Company | | A | | N/R | | N/R | | N/R | | | | |
| | | | | | | | | | | | |
Debt Ratings | | | | | | | | | | | | |
Ameriprise Financial, Inc. | | a- | | A (3) | | A3 | | A- | | | | |
(1) See non-GAAP Financial Information.
(2) The Company’s junior subordinated notes receive an equity credit of at least 75% by the majority of rating agencies.
(3) Effective July 10, 2008 rating changed from A- to A.
28
Ameriprise Financial, Inc.
Investments
(in millions unless otherwise noted, unaudited) | | June 30, 2007 | | September 30, 2007 | | December 31, 2007 | | March 31, 2008 | | June 30, 2008 | |
Cash and cash equivalents | | $ | 3,333 | | $ | 4,002 | | $ | 3,836 | | $ | 3,904 | | $ | 3,373 | |
| | | | | | | | | | | |
Investments - Ending Balances | | | | | | | | | | | |
Available-for-Sale Securities (“AFS”) | | | | | | | | | | | |
Corporate debt securities | | 14,735 | | 14,471 | | 13,943 | | 13,493 | | 13,319 | |
| | | | | | | | | | | |
Mortgage backed securities | | 6,494 | | 6,267 | | 6,282 | | 6,155 | | 6,013 | |
Commercial mortgage backed securities | | 3,151 | | 3,075 | | 3,043 | | 2,944 | | 2,841 | |
Asset backed securities | | 1,042 | | 1,044 | | 1,068 | | 1,031 | | 1,073 | |
Total mortgage and other asset backed securities | | 10,687 | | 10,386 | | 10,393 | | 10,130 | | 9,927 | |
| | | | | | | | | | | |
Structured investments | | 46 | | 48 | | 46 | | 42 | | 38 | |
State and municipal obligations | | 1,069 | | 1,054 | | 1,035 | | 1,004 | | 991 | |
US government and agencies obligations | | 355 | | 360 | | 328 | | 333 | | 326 | |
Foreign government bonds and obligations | | 132 | | 133 | | 112 | | 113 | | 110 | |
Common and preferred stocks | | 58 | | 58 | | 58 | | 51 | | 54 | |
Other AFS | | 11 | | 54 | | 16 | | 20 | | 26 | |
Total other | | 1,671 | | 1,707 | | 1,595 | | 1,563 | | 1,545 | |
Total available-for-sale securities | | 27,093 | | 26,564 | | 25,931 | | 25,186 | | 24,791 | |
| | | | | | | | | | | |
Commercial mortgage loans | | 3,004 | | 3,025 | | 3,115 | | 3,127 | | 3,058 | |
Allowance for loan losses | | (40 | ) | (18 | ) | (18 | ) | (18 | ) | (18 | ) |
Commercial mortgage loans, net | | 2,964 | | 3,007 | | 3,097 | | 3,109 | | 3,040 | |
| | | | | | | | | | | |
Policy loans | | 679 | | 693 | | 706 | | 713 | | 725 | |
Trading securities | | 610 | | 551 | | 504 | | 428 | | 379 | |
Other investments | | 323 | | 311 | | 387 | | 372 | | 571 | |
Total investments | | 31,669 | | 31,126 | | 30,625 | | 29,808 | | 29,506 | |
| | | | | | | | | | | |
Total cash, cash equivalents and investments | | $ | 35,002 | | $ | 35,128 | | $ | 34,461 | | $ | 33,712 | | $ | 32,879 | |
| | | | | | | | | | | |
SFAS 115 Mark-to-market AFS | | $ | (618 | ) | $ | (434 | ) | $ | (316 | ) | $ | (500 | ) | $ | (915 | ) |
| | | | | | | | | | | |
AFS Fixed Maturity Asset Quality - % | | | | | | | | | | | |
AAA | | 44 | % | 43 | % | 44 | % | 44 | % | 42 | % |
AA | | 10 | % | 11 | % | 10 | % | 10 | % | 10 | % |
AFS securities AA and above | | 54 | % | 54 | % | 54 | % | 54 | % | 52 | % |
A | | 16 | % | 16 | % | 16 | % | 16 | % | 17 | % |
BBB | | 24 | % | 24 | % | 24 | % | 24 | % | 24 | % |
Below investment grade | | 6 | % | 6 | % | 6 | % | 6 | % | 7 | % |
Total AFS fixed maturity asset quality -% | | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
| | | | | | | | | | | |
Fair Value of Below Investment Grade as a % of Total cash and investments | | 6 | % | 5 | % | 6 | % | 5 | % | 7 | % |
29
Ameriprise Financial, Inc.
Non-GAAP Financial Information
Ameriprise Financial, Inc. (the Company) follows accounting principles generally accepted in the United States (U.S. GAAP). This report includes information on both a U.S. GAAP and non-GAAP basis.
Certain non-GAAP measures in this report exclude items that are a direct result of our separation from American Express Company, consisting of non-recurring separation costs. These non-GAAP financial measures, which our management views as important indicators of financial performance, include:
· Adjusted earnings;
· Separation costs, after-tax;
· Adjusted pretax margin;
· Adjusted earnings margin;
· Adjusted return on equity;
· Adjusted earnings per diluted share;
· Total debt excluding non-recourse debt;
· Total debt excluding non-recourse debt and 75% equity credit;
· Total capital excluding non-recourse debt;
· Debt to total capital excluding non-recourse debt;
· Debt to total capital excluding non-recourse debt and 75% equity credit;
· Pretax operating earnings;
· Pretax operating earnings margin; and
· Total expenses before separation costs for the Financial Summary and Corporate & Other segment;
Management believes that the presentation of these non-GAAP financial measures excluding these specific income statement impacts best reflect the underlying performance of the Company’s ongoing operations and facilitates a more meaningful trend analysis. These non-GAAP measures are also used for goal setting, certain compensation related to the Company’s annual incentive award program and evaluating the Company’s performance on a basis comparable to that used by securities analysts.
The Company presents debt to capital ratios excluding non-recourse debt of structured entities consolidated in accordance with FIN 46(R), EITF 04-5 and other accounting literature and with a 75% equity credit for the Company’s junior subordinated debt. Management believes that the debt to capital ratios excluding this non-recourse debt better represent the Company’s capital structure.
Reclassification
Certain prior period information has been restated to conform to current period presentation.
We have reclassified the mark-to-market adjustment on certain derivatives from Net investment income to various expense lines. The mark-to-market adjustment on derivatives hedging variable annuity living benefits, equity indexed annuities and stock market certificates were reclassified to Benefits, claims, losses and settlement expenses, Interest credited to fixed accounts and Banking and deposit interest expense, respectively. Prior period amounts have been reclassified to conform to the current presentation.
30
Ameriprise Financial, Inc.
Glossary of Selected Terminology - Segments
Advice & Wealth Management - This segment provides financial advice and full service brokerage and banking services, primarily to retail clients, through our financial advisors. Our advisors distribute a diversified selection of both proprietary and non-proprietary products to help clients meet their financial needs. A significant portion of revenues in this segment are fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on owned assets from primarily certificate and banking products. This segment earns revenues (distribution fees) for distributing non-proprietary products and earns intersegment revenues (distribution fees) for distributing our proprietary products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment.
Asset Management - This segment provides investment advice and investment products to retail and institutional clients. Threadneedle Investments predominantly provides international investment products and services, and RiverSource Investments predominantly provides domestic products and services. Domestic retail products are primarily distributed through our Advice & Wealth Management segment and also through third-party distribution. International retail products are primarily distributed through third parties. Products accessed by consumers on a retail basis include mutual funds, variable product funds underlying insurance and annuity separate accounts, separately managed accounts and collective funds. Asset Management products are also distributed directly to institutions through an institutional sales force. Institutional asset management products include traditional asset classes separate accounts, collateralized loan obligations, hedge funds and property funds. Revenues in this segment are primarily earned as fees based on managed asset balances which are impacted by both market movements and net asset flows. This segment earns intersegment revenue for investment management services. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management, Annuities and Protection segments.
Annuities - This segment provides RiverSource Life variable and fixed annuity products to our retail clients primarily distributed through our Advice & Wealth Managment segment and to the retail clients of unaffiliated distributors through third-party distribution. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on underlying account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting annuity benefits reserves and capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource fund under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.
Protection - This segment offers a variety of protection products to address the identified protection and risk management needs of our retail clients including life, disability income and property-casualty insurance. Life and disability income products are primarily distributed through our Advice & Wealth Management segment. Our property-casualty products are sold direct, primarily through affinity relationships. The primary sources of revenues for this segment are premiums, fees, and charges that we receive to assume insurance-related risk. We earn net investment income on owned assets supporting insurance reserves and capital supporting the business. We also receive fees based on the level of assets supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource funds under the variable universal life contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment.
Corporate & Other - This segment consists of net investment income on corporate level assets, including unallocated equity and other revenues from various investments as well as unallocated corporate expenses. This segment also includes non-recurring costs associated with our separation from American Express, which ended in 2007.
31
Ameriprise Financial, Inc.
Glossary of Selected Terminology
Adjusted Earnings - Adjustment to net income including the after-tax effect on separation costs.
Adjusted Earnings Margin - A ratio using as the numerator adjusted earnings and as the denominator total net revenues.
Adjusted Pretax Income - Adjustments made to income before tax provision for separation costs.
Adjusted Pretax Margin - A ratio using as the numerator pretax income excluding separation costs and as the denominator total net revenues.
Adjusted Return on Equity - Adjusted return on equity (“ROE”) is calculated using adjusted earnings in the numerator for the last twelve months and equity excluding the equity allocated to expected non-recurring separation costs as of the last day of the preceding four quarters and the current quarter in the denominator.
Administered Assets - Administered assets include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts. These assets include those held in clients’ brokerage accounts. We do not exercise management discretion over these assets and do not earn a management fee. These assets are not reported on our Consolidated Balance Sheets.
Alternative Assets - Assets reported by the Company that include Hedge Funds and Collateralized Debt Obligations (“CDO”).
Allocated Equity - The internal allocation of consolidated shareholders’ equity, excluding accumulated other comprehensive income (loss), to our operating segments for purposes of measuring segment return on allocated equity. Allocated equity does not represent insurance company risk-based capital or other regulatory capital requirements applicable to us and certain of our subsidiaries. For the Corporate & Other segment, allocated equity also includes any excess capital.
Auto & Home Insurance - Personal auto and home protection products marketed directly to customers through marketing affiliates such as Costco Wholesale Corporation, Delta Loyalty Management Services, Inc. and Ford Motor Credit Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance).
Book Value per Share - Total shareholders’ equity divided by the number of basic common shares outstanding at period-end.
Cash Sales - Cash sales are the dollar value volume indicator that captures gross new cash inflows which generate product revenue streams to our company. This includes primarily “client initiated” activity that results in an incremental increase in assets (owned, managed or administered), or premiums inforce (but doesn’t need to result in time of sale revenue), or activity that doesn’t increase assets or premiums inforce, but generates “fee revenue”.
Debt to Total Capital Ratio - A ratio comprised of total debt divided by total capital. We also present debt to capital ratios excluding non-recourse debt of structured entities consolidated in accordance with FIN 46(R), EITF 04-5 and other accounting literature and with a 75% equity credit for our junior subordinate debt.
Deferred Acquisition Costs and Amortization - Deferred acquisition costs (“DAC”) represents the costs of acquiring new protection, annuity and certain mutual fund business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity, life, disability income and long term care insurance and, to a lesser extent, deferred marketing and promotion expenses on auto and home insurance and deferred distribution costs on certain mutual fund products. These costs are deferred to the extent they are recoverable from future profits.
Emerging Issues Task Force (“EITF”) Issue No. 04-5, “Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights” (“EITF 04-5”) - EITF 04-5 provides guidance on whether a partnership should be consolidated by one of its partners. Our adoption of EITF 04-5 effective January 1, 2006 resulted in the consolidation of certain limited partnerships for which we are the general partner. As a result, we consolidate certain property fund limited partnerships managed by Threadneedle Investments and certain hedge funds managed by RiverSource Investments.
Financial Planning Penetration - The period-end number of current clients who have received a financial plan, or have entered into an agreement to receive and have paid for a financial plan, divided by the number of active retail client groups, serviced by branded financial advisors.
Life Insurance in-Force - The total amount of all life insurance death benefits currently insured by our company.
Managed External Client Assets - - Managed external client assets include client assets for which we provide investment management services, such as the assets of the RiverSource family of mutual funds, assets of institutional clients and client assets held in wrap accounts (retail accounts for which we receive an advice fee based on assets held in the account). Managed external client assets also include assets managed by sub-advisors selected by us. Managed external client assets are not reported on our Consolidated Balance Sheets.
Managed Owned Assets - Managed owned assets include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees, such as the assets of the general account and RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries.
Net Amount at Risk - Life insurance inforce less policyholder reserves net of re-insurance.
Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends.
Net Income Margin - A ratio representing net income as a percentage of total net revenues.
Owned Assets - Owned assets include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-proprietary funds held in the separate accounts of our life insurance subsidiaries, as well as restricted and segregated cash and receivables.
Pretax Income (Loss) - Income (loss) before income tax provision (benefit).
Pretax Income Margin - A ratio representing pretax income as a percentage of total net revenues.
Pretax Operating Earnings - Pretax income plus or minus net realized gains (losses).
Pretax Operating Earnings Margin - A ratio representing pretax operating earnings as a percentage of total net revenues.
Pretax Return on Allocated Equity - Calculated using pretax income for the last twelve months and the average allocated equity as of the last day of the trailing four quarters and current quarter end.
Securities America - Securities America Financial Corporation (“SAFC”) is a corporation whose sole function is to hold the stock of its operating subsidiaries, Securities America, Inc. (“SAI”) and Securities America Advisors, Inc. (“SAA”). SAI is a registered broker-dealer and an insurance agency. SAA is an SEC registered investment advisor.
32
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 entity contract holders and others with contracts requiring premiums or other deposits to the separate account. Clients elect to invest premiums in stock, bond and/or money market funds depending on their risk tolerance. All investment performance, net of fees, is passed through to the client.
Separation Costs - Separation costs include expenses related to our separation from American Express Company. These costs are primarily associated with establishing the Ameriprise Financial brand, separating and reestablishing our technology platforms and advisor and employee retention programs. These costs will end in 2007.
Separation costs, after-tax - For this non-GAAP presentation of non-recurring separation costs, after-tax is calculated in each quarter using the statutory tax rate of 35%, adjusted for permanent differences, if any.
SOP 05-1 (“Statement of Position”), “Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts” - SOP 05-1 provides guidance on accounting for DAC associated with any insurance or annuity contract that is significantly modified or internally replaced with another contract.
Third Party Distribution - Distribution of RiverSource products, which include a variety of equity and fixed income mutual funds, annuities and insurance products, to retail clients through unaffiliated financial institutions and broker-dealers. The Third Party channel is separate from the Branded Advisor, Threadneedle, SAFC, and Institutional sales channels.
Threadneedle - - Threadneedle Asset Management Holdings Limited is a holding company for the London-based Threadneedle companies, which provide investment management products and services.
Total Capital - Total shareholders’ equity plus total debt. Total capital is also presented excluding non-recourse debt.
Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with investment advisory fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include proprietary and non-proprietary funds. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, RiverSource Investments, LLC chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay an asset-based fee based on the assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that that account, such as underlying mutual fund operating expenses and Rule 12b-1 fees.
33
Exhibit A
Statistical Supplement Package
(unaudited)
Second Quarter 2008
RiverSource® Mutual Fund Performance and
Lipper Ranking
34
Ameriprise Financial, Inc.
Equity Fund Performance & Lipper Ranking
As of June 30, 2008
Source of Data: Lipper
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting riversource.com/funds.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Rankings and Annualized Returns at NAV (1) | | Annualized Returns at POP (1) | |
| | Total Net | | Total Net | | Gross | | | | | | | | | | | | | | | | | | Fund | | Since | | | | | | Max. Front | | | | | | | | | | | |
| | Assets | | Assets | | Expense | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | | Inception | | Ranking Since | | Sales | | | | | | | | | | Since | |
Class A Shares by Lipper Category | | (Mil $) | | Date | | Ratio | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Date | | Return | | Date | | Ranking | | Charge | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | |
Emerging Market Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Threadneedle Emerging Markets Fund | | 693.20 | | 6/30/2008 | | 1.83 | | 8.48 | | 11 | % | 28.55 | | 30 | % | 29.46 | | 45 | % | 14.02 | | 57 | % | 11/13/1996 | | 10.87 | | 11/14/1996 | | 45 | % | 5.75 | | 2.24 | | 26.04 | | 27.94 | | 13.35 | | 10.30 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 31 / 281 | | | | 60 / 201 | | | | 78 / 173 | | | | 55 / 97 | | | | | | | | 29 / 64 | | | | | | | | | | | | | |
Equity Income Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Diversified Equity Income Fund | | 6,751.20 | | 6/30/2008 | | 1.00 | | -15.50 | | 61 | % | 8.01 | | 15 | % | 13.32 | | 6 | % | 7.13 | | 12 | % | 10/15/1990 | | 11.66 | | 10/18/1990 | | 31 | % | 5.75 | | -20.36 | | 5.90 | | 11.98 | | 6.50 | | 11.29 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 170 / 278 | | | | 31 / 220 | | | | 8 / 154 | | | | 11 / 97 | | | | | | | | 8 / 25 | | | | | | | | | | | | | |
RiverSource Dividend Opportunity Fund | | 1,559.40 | | 6/30/2008 | | 1.15 | | -17.46 | | 76 | % | 4.88 | | 44 | % | 7.54 | | 60 | % | 3.30 | | 70 | % | 8/1/1988 | | 8.83 | | 8/4/1988 | | 77 | % | 5.75 | | -22.21 | | 2.83 | | 6.28 | | 2.69 | | 8.51 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 211 / 278 | | | | 96 / 220 | | | | 93 / 154 | | | | 68 / 97 | | | | | | | | 16 / 20 | | | | | | | | | | | | | |
European Region Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Threadneedle European Equity Fund | | 118.80 | | 6/30/2008 | | 1.43 | | -8.02 | | 13 | % | 14.83 | | 32 | % | 15.43 | | 67 | % | | | | | 6/26/2000 | | 2.90 | | 6/26/2000 | | 74 | % | 5.75 | | -13.31 | | 12.59 | | 14.07 | | | | 2.14 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 14 / 107 | | | | 30 / 95 | | | | 57 / 85 | | | | | | | | | | | | 44 / 59 | | | | | | | | | | | | | |
Extended U.S. Large-Cap Core Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource 120/20 Contrarian Equity Fund | | 50.50 | | 6/30/2008 | | 2.01 | | | | | | | | | | | | | | | | | | 10/18/2007 | | -20.90 | | | | | | 5.75 | | | | | | | | | | -25.45 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource 130/30 U.S. Equity Fund | | 16.90 | | 6/30/2008 | | 3.18 | | | | | | | | | | | | | | | | | | 10/18/2007 | | -20.91 | | | | | | 5.75 | | | | | | | | | | -25.46 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Flexible Portfolio Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Strategic Allocation Fund | | 1,928.00 | | 6/30/2008 | | 1.13 | | -11.37 | | 86 | % | 5.89 | | 49 | % | 8.34 | | 48 | % | 3.67 | | 79 | % | 1/23/1985 | | 10.24 | | 1/31/1985 | | 34 | % | 5.75 | | -16.47 | | 3.82 | | 7.07 | | 3.06 | | 9.96 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 125 / 145 | | | | 49 / 101 | | | | 44 / 91 | | | | 44 / 55 | | | | | | | | 2 / 5 | | | | | | | | | | | | | |
Global Large Cap Growth Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Threadneedle Global Equity Fund | | 702.30 | | 6/30/2008 | | 1.39 | | -9.57 | | 57 | % | 11.66 | | 17 | % | 13.62 | | 20 | % | 2.63 | | 64 | % | 5/29/1990 | | 5.88 | | 5/31/1990 | | 80 | % | 5.75 | | -14.77 | | 9.48 | | 12.28 | | 2.02 | | 5.53 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 55 / 97 | | | | 13 / 76 | | | | 10 / 51 | | | | 16 / 24 | | | | | | | | 4 / 4 | | | | | | | | | | | | | |
Global Science & Technology Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Global Technology Fund | | 134.80 | | 6/30/2008 | | 1.60 | | -11.72 | | 60 | % | 8.06 | | 43 | % | 11.00 | | 20 | % | 2.85 | | 40 | % | 11/13/1996 | | 4.78 | | 11/14/1996 | | 67 | % | 5.75 | | -16.80 | | 5.95 | | 9.70 | | 2.24 | | 4.24 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 65 / 108 | | | | 44 / 102 | | | | 18 / 90 | | | | 11 / 27 | | | | | | | | 12 / 17 | | | | | | | | | | | | | |
Gold-Oriented Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Precious Metals and Mining Fund | | 147.40 | | 6/30/2008 | | 1.33 | | 18.62 | | 91 | % | 32.50 | | 67 | % | 23.96 | | 71 | % | 16.37 | | 80 | % | 4/22/1985 | | 8.88 | | 4/30/1985 | | 50 | % | 5.75 | | 11.80 | | 29.91 | | 22.50 | | 15.68 | | 8.60 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 56 / 61 | | | | 35 / 52 | | | | 33 / 46 | | | | 23 / 28 | | | | | | | | 5 / 9 | | | | | | | | | | | | | |
International Large Cap Core Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Threadneedle International Opportunity Fund | | 582.10 | | 6/30/2008 | | 1.34 | | -7.18 | | 26 | % | 13.85 | | 27 | % | 15.01 | | 55 | % | 2.19 | | 96 | % | 11/15/1984 | | 8.56 | | 11/15/1984 | | 75 | % | 5.75 | | -12.52 | | 11.62 | | 13.66 | | 1.58 | | 8.29 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 54 / 208 | | | | 47 / 178 | | | | 89 / 163 | | | | 90 / 93 | | | | | | | | 3 / 3 | | | | | | | | | | | | | |
International Multi Cap Growth Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Disciplined International Equity Fund | | 805.70 | | 6/30/2008 | | 1.46 | | -11.86 | | 81 | % | | | | | | | | | | | | | 5/18/2006 | | 6.69 | | 5/18/2006 | | 66 | % | 5.75 | | -16.92 | | | | | | | | 3.75 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 179 / 220 | | | | | | | | | | | | | | | | | | | | 123 / 187 | | | | | | | | | | | | | |
RiverSource Partners International Select Growth Fund (2) | | 694.00 | | 6/30/2008 | | 1.61 | | -6.44 | | 44 | % | 15.58 | | 39 | % | 18.61 | | 25 | % | | | | | 9/28/2001 | | 13.15 | | 9/28/2001 | | 41 | % | 5.75 | | -11.82 | | 13.32 | | 17.22 | | | | 12.16 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 96 / 220 | | | | 58 / 150 | | | | 31 / 124 | | | | | | | | | | | | 42 / 102 | | | | | | | | | | | | | |
International Multi Cap Value Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Partners International Select Value Fund (2) | | 1,783.00 | | 6/30/2008 | | 1.38 | | -19.15 | | 87 | % | 11.28 | | 54 | % | 15.92 | | 59 | % | | | | | 9/28/2001 | | 13.10 | | 9/28/2001 | | 40 | % | 5.75 | | -23.80 | | 9.11 | | 14.55 | | | | 12.11 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 115 / 132 | | | | 48 / 89 | | | | 46 / 78 | | | | | | | | | | | | 24 / 60 | | | | | | | | | | | | | |
International Small/Mid Cap Core Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Partners International Small Cap Fund (2) | | 97.80 | | 6/30/2008 | | 1.90 | | -16.68 | | 59 | % | 10.38 | | 71 | % | 15.76 | | 75 | % | | | | | 10/3/2002 | | 18.06 | | 10/3/2002 | | 70 | % | 5.75 | | -21.47 | | 8.22 | | 14.40 | | | | 16.85 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 35 / 59 | | | | 34 / 47 | | | | 35 / 46 | | | | | | | | | | | | 28 / 39 | | | | | | | | | | | | | |
Large Cap Core Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Large Cap Equity Fund | | 4,254.00 | | 6/30/2008 | | 1.09 | | -17.04 | | 86 | % | 1.76 | | 84 | % | 4.62 | | 87 | % | | | | | 3/28/2002 | | 2.06 | | 3/28/2002 | | 68 | % | 5.75 | | -21.81 | | -0.23 | | 3.38 | | | | 1.10 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 702 / 820 | | | | 581 / 694 | | | | 501 / 575 | | | | | | | | | | | | 354 / 522 | | | | | | | | | | | | | |
RiverSource Disciplined Equity Fund | | 3,113.70 | | 6/30/2008 | | 1.05 | | -15.36 | | 78 | % | 4.05 | | 49 | % | 6.98 | | 49 | % | | | | | 4/24/2003 | | 8.55 | | 4/24/2003 | | 41 | % | 5.75 | | -20.23 | | 2.02 | | 5.72 | | | | 7.32 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 634 / 820 | | | | 336 / 694 | | | | 280 / 575 | | | | | | | | | | | | 231 / 571 | | | | | | | | | | | | | |
Large Cap Growth Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Growth Fund | | 2,277.00 | | 6/30/2008 | | 1.19 | | -17.65 | | 99 | % | 0.32 | | 98 | % | 3.84 | | 93 | % | -1.64 | | 95 | % | 3/1/1972 | | 10.98 | | 3/2/1972 | | 36 | % | 5.75 | | -22.38 | | -1.65 | | 2.62 | | -2.22 | | 10.80 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 745 / 757 | | | | 626 / 642 | | | | 493 / 531 | | | | 246 / 259 | | | | | | | | 9 / 24 | | | | | | | | | | | | | |
Large Cap Value Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Equity Value Fund | | 961.90 | | 6/30/2008 | | 1.06 | | -13.12 | | 23 | % | 8.13 | | 10 | % | 11.60 | | 7 | % | 4.54 | | 35 | % | 3/20/1995 | | 8.78 | | 3/23/1995 | | 51 | % | 5.75 | | -18.12 | | 6.01 | | 10.29 | | 3.92 | | 8.29 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 126 / 552 | | | | 45 / 479 | | | | 25 / 392 | | | | 57 / 166 | | | | | | | | 51 / 100 | | | | | | | | | | | | | |
RiverSource Large Cap Value Fund | | 57.00 | | 6/30/2008 | | 1.28 | | -20.67 | | 73 | % | 1.24 | | 78 | % | 5.82 | | 82 | % | | | | | 6/27/2002 | | 4.95 | | 6/27/2002 | | 73 | % | 5.75 | | -25.23 | | -0.74 | | 4.57 | | | | 3.92 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 403 / 552 | | | | 370 / 479 | | | | 322 / 392 | | | | | | | | | | | | 249 / 341 | | | | | | | | | | | | | |
Mid Cap Core Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Disciplined Small and Mid-Cap Equity Fund | | 39.80 | | 6/30/2008 | | 1.67 | | -19.79 | | 92 | % | | | | | | | | | | | | | 5/18/2006 | | -5.64 | | 5/18/2006 | | 97 | % | 5.75 | | -24.40 | | | | | | | | -8.24 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 304 / 333 | | | | | | | | | | | | | | | | | | | | 293 / 302 | | | | | | | | | | | | | |
35
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Rankings and Annualized Returns at NAV (1) | | Annualized Returns at POP (1) | |
| | Total Net | | Total Net | | Gross | | | | | | | | | | | | | | | | | | Fund | | Since | | | | | | Max. Front | | | | | | | | | | | |
| | Assets | | Assets | | Expense | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | | Inception | | Ranking Since | | Sales | | | | | | | | | | Since | |
Class A Shares by Lipper Category | | (Mil $) | | Date | | Ratio | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Date | | Return | | Date | | Ranking | | Charge | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | |
Mid Cap Growth Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Mid Cap Growth Fund | | 831.70 | | 6/30/2008 | | 1.08 | | -9.82 | | 69 | % | 3.63 | | 88 | % | 6.70 | | 94 | % | 4.25 | | 69 | % | 6/4/1957 | | ^ | | | | | | 5.75 | | -15.01 | | 1.60 | | 5.45 | | 3.63 | | ^ | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 408 / 597 | | | | 440 / 502 | | | | 385 / 409 | | | | 124 / 181 | | | | | | | | | | | | | | | | | | | | | |
RiverSource Partners Aggressive Growth Fund (2) | | 592.60 | | 6/30/2008 | | 1.58 | | 1.82 | | 14 | % | 12.36 | | 13 | % | 14.14 | | 16 | % | | | | | 4/24/2003 | | 16.24 | | 4/24/2003 | | 14 | % | 5.75 | | -4.03 | | 10.17 | | 12.80 | | | | 14.92 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 81 / 597 | | | | 63 / 502 | | | | 63 / 409 | | | | | | | | | | | | 54 / 402 | | | | | | | | | | | | | |
Mid Cap Value Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Mid Cap Value Fund | | 2,515.00 | | 6/30/2008 | | 1.23 | | -14.68 | | 31 | % | 8.68 | | 9 | % | 16.15 | | 6 | % | | | | | 2/14/2002 | | 11.85 | | 2/14/2002 | | 10 | % | 5.75 | | -19.59 | | 6.56 | | 14.79 | | | | 10.82 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 104 / 344 | | | | 24 / 271 | | | | 11 / 209 | | | | | | | | | | | | 17 / 169 | | | | | | | | | | | | | |
Mixed-Asset Target 2010 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement PlusSM 2010 Fund | | 16.00 | | 6/30/2008 | | 1.49 | | -10.08 | | 99 | % | | | | | | | | | | | | | 5/18/2006 | | 3.22 | | 5/18/2006 | | 74 | % | 5.75 | | -15.25 | | | | | | | | 0.37 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 157 / 158 | | | | | | | | | | | | | | | | | | | | 75 / 101 | | | | | | | | | | | | | |
Mixed-Asset Target 2015 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement Plus 2015 Fund | | 28.00 | | 6/30/2008 | | 1.31 | | -11.86 | | 98 | % | | | | | | | | | | | | | 5/18/2006 | | 3.06 | | 5/18/2006 | | 68 | % | 5.75 | | -16.93 | | | | | | | | 0.22 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 98 / 99 | | | | | | | | | | | | | | | | | | | | 37 / 54 | | | | | | | | | | | | | |
Mixed-Asset Target 2020 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement Plus 2020 Fund | | 30.50 | | 6/30/2008 | | 1.29 | | -13.13 | | 99 | % | | | | | | | | | | | | | 5/18/2006 | | 2.88 | | 5/18/2006 | | 69 | % | 5.75 | | -18.13 | | | | | | | | 0.04 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 133 / 134 | | | | | | | | | | | | | | | | | | | | 59 / 85 | | | | | | | | | | | | | |
Mixed-Asset Target 2025 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement Plus 2025 Fund | | 32.80 | | 6/30/2008 | | 1.34 | | -14.06 | | 99 | % | | | | | | | | | | | | | 5/18/2006 | | 2.35 | | 5/18/2006 | | 64 | % | 5.75 | | -19.00 | | | | | | | | -0.47 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 77 / 77 | | | | | | | | | | | | | | | | | | | | 24 / 37 | | | | | | | | | | | | | |
Mixed-Asset Target 2030 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement Plus 2030 Fund | | 30.10 | | 6/30/2008 | | 1.32 | | -13.99 | | 97 | % | | | | | | | | | | | | | 5/18/2006 | | 2.64 | | 5/18/2006 | | 72 | % | 5.75 | | -18.93 | | | | | | | | -0.19 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 127 / 131 | | | | | | | | | | | | | | | | | | | | 59 / 82 | | | | | | | | | | | | | |
Mixed-Asset Target 2035 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement Plus 2035 Fund | | 20.30 | | 6/30/2008 | | 1.51 | | -13.99 | | 90 | % | | | | | | | | | | | | | 5/18/2006 | | 2.28 | | 5/18/2006 | | 60 | % | 5.75 | | -18.94 | | | | | | | | -0.54 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 70 / 77 | | | | | | | | | | | | | | | | | | | | 21 / 34 | | | | | | | | | | | | | |
Mixed-Asset Target 2040 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement Plus 2040 Fund | | 12.50 | | 6/30/2008 | | 1.66 | | -14.04 | | 91 | % | | | | | | | | | | | | | 5/18/2006 | | 2.54 | | 5/18/2006 | | 64 | % | 5.75 | | -18.98 | | | | | | | | -0.29 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 105 / 115 | | | | | | | | | | | | | | | | | | | | 48 / 75 | | | | | | | | | | | | | |
Mixed-Asset Target 2045 Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Retirement Plus 2045 Fund | | 10.00 | | 6/30/2008 | | 2.10 | | -13.97 | | 88 | % | | | | | | | | | | | | | 5/18/2006 | | 2.44 | | 5/18/2006 | | 37 | % | 5.75 | | -18.91 | | | | | | | | -0.38 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 58 / 65 | | | | | | | | | | | | | | | | | | | | 8 / 21 | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Portfolio Builder Conservative Fund | | 179.40 | | 6/30/2008 | | 1.06 | | 0.64 | | 18 | % | 4.00 | | 38 | % | | | | | | | | | 3/4/2004 | | 4.02 | | 3/4/2004 | | 29 | % | 4.75 | | -4.14 | | 2.33 | | | | | | 2.85 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 77 / 429 | | | | 110 / 295 | | | | | | | | | | | | | | | | 63 / 217 | | | | | | | | | | | | | |
RiverSource Portfolio Builder Moderate Conservative Fund | | 383.30 | | 6/30/2008 | | 1.10 | | -1.69 | | 50 | % | 4.85 | | 14 | % | | | | | | | | | 3/4/2004 | | 4.91 | | 3/4/2004 | | 10 | % | 4.75 | | -6.36 | | 3.16 | | | | | | 3.73 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 214 / 429 | | | | 40 / 295 | | | | | | | | | | | | | | | | 20 / 217 | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Growth Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Portfolio Builder Moderate Aggressive Fund | | 1,130.00 | | 6/30/2008 | | 1.23 | | -6.46 | | 43 | % | 5.90 | | 32 | % | | | | | | | | | 3/4/2004 | | 5.97 | | 3/4/2004 | | 22 | % | 5.75 | | -11.84 | | 3.83 | | | | | | 4.53 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 277 / 655 | | | | 172 / 546 | | | | | | | | | | | | | | | | 103 / 469 | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Moderate Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Balanced Fund | | 806.30 | | 6/30/2008 | | 1.07 | | -11.78 | | 92 | % | 2.69 | | 82 | % | 5.45 | | 67 | % | 0.39 | | 94 | % | 4/16/1940 | | ^ | | | | | | 5.75 | | -16.85 | | 0.68 | | 4.21 | | -0.20 | | ^ | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 425 / 463 | | | | 296 / 362 | | | | 160 / 240 | | | | 134 / 142 | | | | | | | | | | | | | | | | | | | | | |
RiverSource Portfolio Builder Moderate Fund | | 1,038.20 | | 6/30/2008 | | 1.16 | | -4.07 | | 36 | % | 5.50 | | 28 | % | | | | | | | | | 3/4/2004 | | 5.68 | | 3/4/2004 | | 19 | % | 5.75 | | -9.59 | | 3.43 | | | | | | 4.24 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 167 / 463 | | | | 100 / 362 | | | | | | | | | | | | | | | | 55 / 291 | | | | | | | | | | | | | |
Multi Cap Core Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Disciplined Large Cap Growth Fund | | 196.50 | | 6/30/2008 | | 1.44 | | -9.75 | | 35 | % | | | | | | | | | | | | | 5/17/2007 | | -8.58 | | 5/17/2007 | | 37 | % | 5.75 | | -14.94 | | | | | | | | -13.29 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 292 / 848 | | | | | | | | | | | | | | | | | | | | 310 / 838 | | | | | | | | | | | | | |
RiverSource Partners Fundamental Value Fund (2) | | 884.60 | | 6/30/2008 | | 1.18 | | -13.51 | | 65 | % | 4.31 | | 59 | % | 8.32 | | 49 | % | | | | | 6/18/2001 | | 4.07 | | 6/18/2001 | | 41 | % | 5.75 | | -18.49 | | 2.27 | | 7.05 | | | | 3.19 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 546 / 848 | | | | 391 / 665 | | | | 237 / 486 | | | | | | | | | | | | 143 / 353 | | | | | | | | | | | | | |
RiverSource Portfolio Builder Aggressive Fund | | 536.30 | | 6/30/2008 | | 1.29 | | -9.55 | | 34 | % | 6.20 | | 33 | % | | | | | | | | | 3/4/2004 | | 6.19 | | 3/4/2004 | | 28 | % | 5.75 | | -14.75 | | 4.13 | | | | | | 4.74 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 283 / 848 | | | | 216 / 665 | | | | | | | | | | | | | | | | 152 / 551 | | | | | | | | | | | | | |
RiverSource Portfolio Builder Total Equity Fund | | 472.70 | | 6/30/2008 | | 1.34 | | -12.38 | | 53 | % | 6.46 | | 30 | % | | | | | | | | | 3/4/2004 | | 6.43 | | 3/4/2004 | | 24 | % | 5.75 | | -17.42 | | 4.38 | | | | | | 4.98 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 448 / 848 | | | | 196 / 665 | | | | | | | | | | | | | | | | 131 / 551 | | | | | | | | | | | | | |
Multi Cap Value Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Partners Select Value Fund (2) | | 386.90 | | 6/30/2008 | | 1.39 | | -11.77 | | 16 | % | 5.42 | | 17 | % | 9.25 | | 31 | % | | | | | 3/8/2002 | | 7.51 | | 3/8/2002 | | 9 | % | 5.75 | | -16.84 | | 3.36 | | 7.96 | | | | 6.51 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 66 / 431 | | | | 54 / 327 | | | | 78 / 255 | | | | | | | | | | | | 18 / 211 | | | | | | | | | | | | | |
Real Estate Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Real Estate Fund | | 215.10 | | 6/30/2008 | | 1.51 | | -14.32 | | 50 | % | 5.33 | | 28 | % | | | | | | | | | 3/4/2004 | | 10.68 | | 3/4/2004 | | 19 | % | 5.75 | | -19.25 | | 3.27 | | | | | | 9.18 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 112 / 227 | | | | 53 / 191 | | | | | | | | | | | | | | | | 31 / 170 | | | | | | | | | | | | | |
36
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Rankings and Annualized Returns at NAV (1) | | Annualized Returns at POP (1) | |
| | Total Net | | Total Net | | Gross | | | | | | | | | | | | | | | | | | Fund | | Since | | | | | | Max. Front | | | | | | | | | | | |
| | Assets | | Assets | | Expense | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | | Inception | | Ranking Since | | Sales | | | | | | | | | | Since | |
Class A Shares by Lipper Category | | (Mil $) | | Date | | Ratio | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Date | | Return | | Date | | Ranking | | Charge | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | |
S&P 500 Index Objective Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource S&P 500 Index Fund (3) | | 186.10 | | 6/30/2008 | | 0.68 | | -13.60 | | | | 3.83 | | | | 6.91 | | | | | | | | 10/25/1999 | | 0.88 | | 10/28/1999 | | | | — | | -13.60 | | 3.83 | | 6.91 | | | | 0.88 | |
Small Cap Core Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Partners Small Cap Equity Fund (2) | | 209.70 | | 6/30/2008 | | 1.58 | | -14.42 | | 29 | % | 3.95 | | 37 | % | 11.16 | | 28 | % | | | | | 3/8/2002 | | 6.08 | | 3/8/2002 | | 57 | % | 5.75 | | -19.34 | | 1.92 | | 9.85 | | | | 5.09 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 225 / 790 | | | | 231 / 630 | | | | 133 / 488 | | | | | | | | | | | | 232 / 413 | | | | | | | | | | | | | |
RiverSource Partners Small Cap Value Fund (2) | | 468.10 | | 6/30/2008 | | 1.59 | | -21.37 | | 77 | % | 1.81 | | 65 | % | 9.32 | | 64 | % | | | | | 6/18/2001 | | 7.47 | | 6/18/2001 | | 44 | % | 5.75 | | -25.89 | | -0.18 | | 8.03 | | | | 6.57 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 609 / 790 | | | | 409 / 630 | | | | 311 / 488 | | | | | | | | | | | | 154 / 356 | | | | | | | | | | | | | |
RiverSource Small Cap Advantage Fund | | 262.40 | | 6/30/2008 | | 1.34 | | -21.40 | | 78 | % | -0.33 | | 87 | % | 8.11 | | 81 | % | | | | | 5/4/1999 | | 5.04 | | 5/6/1999 | | 91 | % | 5.75 | | -25.92 | | -2.28 | | 6.84 | | | | 4.37 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 611 / 790 | | | | 543 / 630 | | | | 395 / 488 | | | | | | | | | | | | 217 / 239 | | | | | | | | | | | | | |
RiverSource Small Company Index Fund | | 615.70 | | 6/30/2008 | | 0.93 | | -15.04 | | 34 | % | 3.43 | | 44 | % | 10.74 | | 34 | % | 6.65 | | 52 | % | 8/19/1996 | | 8.75 | | 8/22/1996 | | 61 | % | 5.75 | | -19.92 | | 1.41 | | 9.44 | | 6.02 | | 8.21 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 263 / 790 | | | | 275 / 630 | | | | 164 / 488 | | | | 100 / 193 | | | | | | | | 61 / 99 | | | | | | | | | | | | | |
Small Cap Growth Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Partners Small Cap Growth Fund (2) | | 169.90 | | 6/30/2008 | | 1.79 | | -11.92 | | 38 | % | 6.02 | | 33 | % | 8.42 | | 61 | % | | | | | 1/24/2001 | | 0.25 | | 1/24/2001 | | 70 | % | 5.75 | | -16.99 | | 3.94 | | 7.14 | | | | -0.55 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 224 / 604 | | | | 158 / 486 | | | | 244 / 400 | | | | | | | | | | | | 217 / 310 | | | | | | | | | | | | | |
Small Cap Value Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Disciplined Small Cap Value Fund | | 35.50 | | 6/30/2008 | | 1.73 | | -21.65 | | 65 | % | | | | | | | | | | | | | 2/16/2006 | | -6.06 | | 2/16/2006 | | 81 | % | 5.75 | | -26.15 | | | | | | | | -8.38 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 202 / 314 | | | | | | | | | | | | | | | | | | | | 220 / 272 | | | | | | | | | | | | | |
^ Since fund inception returns and rankings are not available. Actual fund inception date pre-dates data in Lipper database.
(1) Since inception returns and rankings for periods less than one year in length are cumulative.
(2) Mutual funds subadvised by advisors not affiliated with Ameriprise Financial, Inc.
(3) RiverSource S&P 500 Index Fund data is for D shares.
37
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Rankings and Annualized Returns at NAV (1) | | Annualized Returns at POP (1) | |
| | Total Net | | Total Net | | Total | | | | | | | | | | | | | | | | | | Fund | | Since | | | | | | Max. Front | | | | | | | | | | | |
| | Assets | | Assets | | Expense | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | | Inception | | Ranking Since | | Sales | | | | | | | | | | Since | |
Class A Shares by Lipper Category | | (Mil $) | | Date | | Ratio | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Return | | Ranking | | Date | | Return | | Date | | Ranking | | Charge | | 1 year | | 3 years | | 5 years | | 10 years | | Inception | |
Taxable Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Markets Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Emerging Markets Bond Fund | | 124.90 | | 6/30/2008 | | 1.33 | | -0.13 | | 80 | % | | | | | | | | | | | | | 2/16/2006 | | 5.02 | | 2/16/2006 | | 61 | % | 4.75 | | -4.87 | | | | | | | | 2.88 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 59 / 73 | | | | | | | | | | | | | | | | | | | | 37 / 60 | | | | | | | | | | | | | |
Equity Market Neutral Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Absolute Return Currency & Income Fund | | 512.10 | | 6/30/2008 | | 1.36 | | -2.24 | | 67 | % | | | | | | | | | | | | | 6/15/2006 | | 4.07 | | 6/15/2006 | | 26 | % | 3 | | -5.17 | | | | | | | | 2.53 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 42 / 62 | | | | | | | | | | | | | | | | | | | | 12 / 46 | | | | | | | | | | | | | |
Global Income Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Global Bond Fund | | 847.20 | | 6/30/2008 | | 1.37 | | 9.12 | | 47 | % | 4.75 | | 46 | % | 5.20 | | 48 | % | 5.15 | | 49 | % | 3/20/1989 | | 7.36 | | 3/23/1989 | | 38 | % | 4.75 | | 3.94 | | 3.06 | | 4.18 | | 4.64 | | 7.09 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 54 / 114 | | | | 45 / 97 | | | | 42 / 87 | | | | 27 / 55 | | | | | | | | 3 / 7 | | | | | | | | | | | | | |
High Current Yield Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource High Yield Bond Fund | | 1,329.00 | | 6/30/2008 | | 1.08 | | -2.18 | | 43 | % | 4.82 | | 23 | % | 7.28 | | 13 | % | 3.45 | | 61 | % | 12/8/1983 | | 7.85 | | 12/8/1983 | | 46 | % | 4.75 | | -6.82 | | 3.14 | | 6.24 | | 2.95 | | 7.64 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 197 / 462 | | | | 88 / 389 | | | | 44 / 340 | | | | 102 / 168 | | | | | | | | 10 / 21 | | | | | | | | | | | | | |
RiverSource Income Opportunities Fund | | 274.50 | | 6/30/2008 | | 1.14 | | -0.77 | | 19 | % | 4.18 | | 45 | % | 6.26 | | 47 | % | | | | | 6/19/2003 | | 6.17 | | 6/19/2003 | | 45 | % | 4.75 | | -5.49 | | 2.50 | | 5.23 | | | | 5.15 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 85 / 462 | | | | 174 / 389 | | | | 160 / 340 | | | | | | | | | | | | 153 / 339 | | | | | | | | | | | | | |
Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Diversified Bond Fund | | 3,632.80 | | 6/30/2008 | | 0.97 | | 3.45 | | 65 | % | 3.27 | | 37 | % | 3.27 | | 41 | % | 4.24 | | 78 | % | 10/3/1974 | | 8.90 | | 10/3/1974 | | 25 | % | 4.75 | | -1.46 | | 1.61 | | 2.27 | | 3.74 | | 8.74 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 362 / 557 | | | | 171 / 464 | | | | 161 / 393 | | | | 147 / 189 | | | | | | | | 1 / 3 | | | | | | | | | | | | | |
Loan Participation Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Floating Rate Fund | | 558.30 | | 6/30/2008 | | 1.07 | | -3.97 | | 70 | % | | | | | | | | | | | | | 2/16/2006 | | 2.30 | | 2/16/2006 | | 44 | % | 3 | | -6.85 | | | | | | | | 0.99 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 54 / 77 | | | | | | | | | | | | | | | | | | | | 25 / 56 | | | | | | | | | | | | | |
Mixed-Asset Target Allocation Conservative Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Income Builder Basic Income Fund | | 304.20 | | 6/30/2008 | | 1.06 | | -2.20 | | 56 | % | | | | | | | | | | | | | 2/16/2006 | | 4.02 | | 2/16/2006 | | 23 | % | 4.75 | | -6.85 | | | | | | | | 1.90 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 238 / 429 | | | | | | | | | | | | | | | | | | | | 80 / 357 | | | | | | | | | | | | | |
RiverSource Income Builder Moderate Income Fund | | 590.50 | | 6/30/2008 | | 1.09 | | -4.25 | | 77 | % | | | | | | | | | | | | | 2/16/2006 | | 3.90 | | 2/16/2006 | | 26 | % | 4.75 | | -8.79 | | | | | | | | 1.79 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 329 / 429 | | | | | | | | | | | | | | | | | | | | 91 / 357 | | | | | | | | | | | | | |
RiverSource Income Builder Enhanced Income Fund | | 295.00 | | 6/30/2008 | | 1.18 | | -5.35 | | 85 | % | | | | | | | | | | | | | 2/16/2006 | | 3.83 | | 2/16/2006 | | 28 | % | 4.75 | | -9.84 | | | | | | | | 1.72 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 362 / 429 | | | | | | | | | | | | | | | | | | | | 99 / 357 | | �� | | | | | | | | | | | |
Multi-Sector Income Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Strategic Income Allocation Fund | | 172.20 | | 6/30/2008 | | 1.27 | | 0.35 | | 67 | % | | | | | | | | | | | | | 5/17/2007 | | -0.14 | | 5/17/2007 | | 61 | % | 4.75 | | -4.42 | | | | | | | | -4.38 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 94 / 141 | | | | | | | | | | | | | | | | | | | | 83 / 137 | | | | | | | | | | | | | |
Short-Intermediate Investment Grade Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Limited Duration Bond Fund | | 173.50 | | 6/30/2008 | | 1.11 | | 3.16 | | 63 | % | 2.78 | | 66 | % | 2.61 | | 45 | % | | | | | 6/19/2003 | | 2.52 | | 6/19/2003 | | 45 | % | 3 | | 0.06 | | 1.74 | | 1.99 | | | | 1.90 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 90 / 144 | | | | 88 / 133 | | | | 54 / 119 | | | | | | | | | | | | 54 / 119 | | | | | | | | | | | | | |
Short U.S. Government Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Short Duration U.S. Government Fund | | 788.40 | | 6/30/2008 | | 1.03 | | 4.01 | | 81 | % | 3.35 | | 81 | % | 2.38 | | 72 | % | 3.60 | | 87 | % | 8/19/1985 | | 6.11 | | 8/31/1985 | | 17 | % | 3 | | 0.89 | | 2.31 | | 1.76 | | 3.28 | | 5.97 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 71 / 87 | | | | 67 / 82 | | | | 54 / 74 | | | | 45 / 51 | | | | | | | | 1 / 5 | | | | | | | | | | | | | |
Treasury Inflation Protected Securities Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Inflation Protected Securities Fund | | 846.60 | | 6/30/2008 | | 0.98 | | 14.66 | | 36 | % | 5.14 | | 35 | % | | | | | | | | | 3/4/2004 | | 4.98 | | 3/4/2004 | | 41 | % | 3 | | 11.22 | | 4.07 | | | | | | 4.25 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 45 / 127 | | | | 33 / 96 | | | | | | | | | | | | | | | | 23 / 56 | | | | | | | | | | | | | |
U.S. Mortgage Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource U.S. Government Mortgage Fund | | 393.90 | | 6/30/2008 | | 1.17 | | 4.33 | | 52 | % | 3.36 | | 39 | % | 3.39 | | 39 | % | | | | | 2/14/2002 | | 4.06 | | 2/14/2002 | | 38 | % | 4.75 | | -0.63 | | 1.70 | | 2.39 | | | | 3.27 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 45 / 86 | | | | 30 / 77 | | | | 27 / 69 | | | | | | | | | | | | 25 / 65 | | | | | | | | | | | | | |
Tax-Exempt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
California Municipal Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource California Tax-Exempt Fund | | 180.70 | | 6/30/2008 | | 0.88 | | 0.52 | | 51 | % | 1.94 | | 40 | % | 2.88 | | 51 | % | 3.91 | | 52 | % | 8/18/1986 | | 5.52 | | 8/31/1986 | | 80 | % | 4.75 | | -4.25 | | 0.30 | | 1.89 | | 3.41 | | 5.28 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 59 / 116 | | | | 42 / 105 | | | | 51 / 100 | | | | 37 / 71 | | | | | | | | 16 / 19 | | | | | | | | | | | | | |
General Municipal Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Tax-Exempt High Income Fund | | 2,595.30 | | 6/30/2008 | | 1.13 | | 0.49 | | 64 | % | 1.70 | | 57 | % | 2.52 | | 57 | % | 3.74 | | 56 | % | 5/7/1979 | | 6.53 | | 5/31/1979 | | 48 | % | 4.75 | | -4.28 | | 0.06 | | 1.53 | | 3.24 | | 6.35 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 149 / 235 | | | | 124 / 220 | | | | 120 / 210 | | | | 85 / 153 | | | | | | | | 10 / 20 | | | | | | | | | | | | | |
RiverSource Tax-Exempt Bond Fund | | 678.00 | | 6/30/2008 | | 0.94 | | 1.08 | | 52 | % | 1.86 | | 49 | % | 2.48 | | 61 | % | 3.80 | | 51 | % | 11/24/1976 | | 5.77 | | 11/30/1976 | | 75 | % | 4.75 | | -3.72 | | 0.22 | | 1.48 | | 3.30 | | 5.61 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 121 / 235 | | | | 108 / 220 | | | | 128 / 210 | | | | 78 / 153 | | | | | | | | 6 / 7 | | | | | | | | | | | | | |
Intermediate Municipal Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Intermediate Tax-Exempt Fund | | 73.70 | | 6/30/2008 | | 0.95 | | 1.76 | | 89 | % | 1.80 | | 78 | % | 2.09 | | 76 | % | 3.61 | | 77 | % | 11/13/1996 | | 3.79 | | 11/14/1996 | | 86 | % | 3 | | -1.29 | | 0.77 | | 1.47 | | 3.29 | | 3.52 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 142 / 159 | | | | 109 / 140 | | | | 95 / 124 | | | | 60 / 77 | | | | | | | | 59 / 68 | | | | | | | | | | | | | |
Minnesota Municipal Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource Minnesota Tax-Exempt Fund | | 307.90 | | 6/30/2008 | | 1.06 | | 2.27 | | 33 | % | 2.17 | | 37 | % | 2.69 | | 62 | % | 3.88 | | 49 | % | 8/18/1986 | | 5.63 | | 8/31/1986 | | 60 | % | 4.75 | | -2.59 | | 0.53 | | 1.70 | | 3.38 | | 5.40 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 14 / 42 | | | | 14 / 37 | | | | 22 / 35 | | | | 14 / 28 | | | | | | | | 3 / 4 | | | | | | | | | | | | | |
New York Municipal Debt Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RiverSource New York Tax-Exempt Fund | | 56.80 | | 6/30/2008 | | 1.18 | | 1.56 | | 55 | % | 1.97 | | 48 | % | 2.56 | | 62 | % | 3.85 | | 51 | % | 8/18/1986 | | 5.41 | | 8/31/1986 | | 83 | % | 4.75 | | -3.26 | | 0.33 | | 1.57 | | 3.34 | | 5.17 | |
Lipper Fund Ranking / Total Funds in Category | | | | | | | | | | 54 / 98 | | | | 45 / 93 | | | | 57 / 92 | | | | 35 / 68 | | | | | | | | 14 / 16 | | | | | | | | | | | | | |
(1) Since inception returns and rankings for periods less than one year in length are cumulative.
38
Ameriprise Financial, Inc.
Fund Performance & Lipper Ranking
As of June 30, 2008
Source of Data: Lipper
Important Disclosures
Rankings based on annualized total returns, excluding sales charges. Net asset value (NAV) returns for all periods would have been lower if the applicable sales charges were included.
Please note the following about the “Ranking since” Lipper Rankings: In order to obtain a more accurate “since inception” Lipper Ranking for funds with an inception prior to 2000, the Thursday or month-end date following the actual inception date was used, rather than the actual inception date. When researching since inception rankings, please use the “Ranking Since” date.
Please note the following about the “Annualized Returns @ POP”: The POP return is calculated assuming a one-time purchase of the Fund at the maximum sales charge listed in the exhibit. RiverSource S&P 500 Index Fund has no sales loads, however, a redemption fee of 0.50% is charged on shares redeemed within 180 days of purchase.
Net assets per fund include all share classes. Assets for RiverSource Portfolio Builder Funds, RiverSource Income Builder Funds and RiverSource Retirement Plus Funds are invested in other RiverSource Funds and therefore would be double counted if assets are summed to reach a total.
Fee waivers were in place for each subadvised fund shown and the return would have been lower for each Fund had fee waivers not been in place.
An investment in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.
You should consider the investment objectives, risks, and charges and expenses of mutual funds carefully before investing. For a free prospectus, which contains this and other important information about the funds, call (800) 297-3863, TTY: (800) 846-4852. Read the prospectus carefully before investing.
The RiverSource Global Technology Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives.
Investments in small- and mid-capitalization companies often involve greater risk and potential volatility than investments in larger, more established companies.
The RiverSource Precious Metals Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives.
The RiverSource Real Estate Fund is a narrowly focused sector fund and it may exhibit higher volatility than funds with broader investment objectives. An investment in a real estate fund is subject to the same risks as a direct investment in real estate. Such risks include market risk, economic risk and mortgage rate risk.
International investing involves increased risk and volatility, not typically associated with domestic investing, due to changes in currency exchange rates, foreign government regulations, differences in auditing and accounting standards, potential political and economic instability, limited liquidity and volatile prices. The risks of international investing are particularly significant in emerging markets.
There are risks associated with an investment in a bond fund, including the impact of interest rates, credit and inflation. These and other risk considerations are discussed in the fund’s prospectus. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities. Non-investment grade securities, commonly called “high-yield” or “junk” bonds, generally have more volatile prices and carry more risk to principle and income than investment grade securities.
39
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.
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.
Investment products are not federally or FDIC insured, are not deposits or obligations of, or guaranteed by any financial institution; and involve investment risks including possible loss of principal and fluctuation in value.
RiverSourceSM mutual funds are distributed by RiverSource Distributors, Inc. and Ameriprise Financial Services, Inc., Members FINRA, and managed by RiverSource Investments, LLC. These companies are part of Ameriprise Financial, Inc.
Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Ameriprise Bank, FSB, member FDIC, provides certain deposit and lending products and services for Ameriprise Financial Services, Inc. Ameriprise Bank, FSB deposit products are FDIC-insured up to $100,000 per customer.
RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, NY. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance products in the state of NY.
RiverSource Investments employs Threadneedle as a sub-advisor and offers its institutional strategies on a referral basis. Securities products offered through RiverSource Distributors, Inc., Member FINRA. These companies are a part of Ameriprise Financial, Inc.
RiverSource Investments, LLC is an SEC-registered investment adviser that offers investment products and services under the names RiverSource Institutional Advisors, RiverSource Alternative Investments, RiverSource Capital Management and RiverSource Insurance Assets. RiverSource Investments LLC also serves as the Investment Manager for the RiverSource mutual funds.
Ameriprise Certificates are issued by Ameriprise Certificate Company and distributed by Ameriprise Financial Services, Inc. Member FINRA.
Ameriprise Auto & Home Insurance issues auto, home and umbrella insurance underwritten by 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 FINRA, are all affiliated with Ameriprise Financial, Inc.
40
Exhibit B
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Reconciliation Tables
41
Ameriprise Financial, Inc.
Reconciliation Table: Adjusted Earnings and Adjusted Pretax Income
| | | | | | | | | | | | Year-to-Date | |
(in millions unless otherwise noted, unaudited) | | 2 Qtr 2007 | | 3 Qtr 2007 | | 4 Qtr 2007 | | 1 Qtr 2008 | | 2 Qtr 2008 | | 2007 | | 2008 | |
Adjusted Earnings (1) | | | | | | | | | | | | | | | |
Net income | | $ | 196 | | $ | 198 | | $ | 255 | | $ | 191 | | $ | 210 | | $ | 361 | | $ | 401 | |
Separation costs, after-tax (2) | | 41 | | 39 | | 19 | | — | | — | | 96 | | — | |
Adjusted earnings | | $ | 237 | | $ | 237 | | $ | 274 | | $ | 191 | | $ | 210 | | $ | 457 | | $ | 401 | |
Adjusted Pretax Income (1) | | | | | | | | | | | | | | | |
Pretax income | | $ | 245 | | $ | 217 | | $ | 338 | | $ | 195 | | $ | 237 | | $ | 461 | | $ | 432 | |
Separation costs | | 63 | | 60 | | 38 | | — | | — | | 148 | | — | |
Adjusted pretax income | | $ | 308 | | $ | 277 | | $ | 366 | | $ | 195 | | $ | 237 | | $ | 609 | | $ | 432 | |
(1) See non-GAAP Financial Information.
(2) In GAAP financial statements, separation costs are part of continuing operations. For this non-GAAP presentation, after-tax separation costs are calculated using the statutory tax rate of 35%.
42
Ameriprise Financial, Inc.
Return on Equity Calculation
(in millions, unaudited) | | ROE (1) | | Adjustments | | Adjusted ROE (2) | |
Return on Equity Calculation for the Twelve Months Ended: | | | | | | | |
June 30, 2007 | | | | | | | | |
| Return | | $ | 706 | | $ | 233 | | $ | 939 | |
| Equity | | $ | 7,649 | | $ | (158 | ) | $ | 7,491 | |
| Return on Equity | | 9.2 | % | | | 12.5 | % |
| | | | | | | | |
September 30, 2007 | | | | | | | | |
| Return | | $ | 730 | | $ | 215 | | $ | 945 | |
| Equity | | $ | 7,753 | | $ | (102 | ) | $ | 7,651 | |
| Return on Equity | | 9.4 | % | | | 12.4 | % |
| | | | | | | | |
December 31, 2007 | | | | | | | | |
| Return | | $ | 814 | | $ | 154 | | $ | 968 | |
| Equity | | $ | 7,765 | | $ | (58 | ) | $ | 7,707 | |
| Return on Equity | | 10.5 | % | | | 12.6 | % |
| | | | | | | | |
March 31, 2008 | | | | | | | | |
| Return | | $ | 840 | | $ | 99 | | $ | 939 | |
| Equity | | $ | 7,696 | | $ | (29 | ) | $ | 7,667 | |
| Return on Equity | | 10.9 | % | | | 12.2 | % |
| | | | | | | | |
June 30, 2008 | | | | | | | | |
| Return | | $ | 854 | | $ | 58 | | $ | 912 | |
| Equity | | $ | 7,613 | | $ | (12 | ) | $ | 7,601 | |
| Return on Equity | | 11.2 | % | | | 12.0 | % |
(1) Return on equity is calculated using the trailing twelve months income in the numerator and equity, calculated using a five point average of quarter-end equity, in the denominator.
(2) Adjusted return on equity is calculated using adjusted earnings (excluding non-recurring separation costs) in the numerator, and equity excluding the equity allocated to expected non-recurring separation costs as of the last day of the preceding four quarters and the current quarter in the denominator.
43
Exhibit C
Statistical Supplement Package
(unaudited)
Second Quarter 2008
Disclosed Items
44
Ameriprise Financial, Inc.
Disclosed Items
Second Quarter 2008
| | Advice & Wealth Management | | Asset Management | | Annuities | | Protection | | Consolidated | | | |
| | Investment | | | | Investment | | Mean | | Investment | | Mean | | | | | |
(in millions, unaudited) | | Losses (2) | | EITF 04-5 (1) | | Losses (2) | | Reversion (3) | | Losses (2) | | Reversion (3) | | Tax Impact (4) | | Consolidated | |
Revenues | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (21 | ) | 1 | | (5 | ) | — | | (1 | ) | — | | — | | (26 | ) |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | (4 | ) | — | | — | | — | | — | | — | | (4 | ) |
Total revenues | | (21 | ) | (3 | ) | (5 | ) | — | | (1 | ) | — | | — | | (30 | ) |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (21 | ) | (3 | ) | (5 | ) | — | | (1 | ) | — | | — | | (30 | ) |
| | | | | | | | | | | | | | | | | |
Expenses | �� | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | 1 | | — | | — | | — | | 1 | |
Amortization of deferred acquisition costs | | — | | — | | — | | 9 | | — | | 1 | | — | | 10 | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | — | | (3 | ) | — | | — | | — | | — | | — | | (3 | ) |
Total expenses | | — | | (3 | ) | — | | 10 | | — | | 1 | | — | | 8 | |
Pretax income | | $ | (21 | ) | $ | — | | $ | (5 | ) | $ | (10 | ) | $ | (1 | ) | $ | (1 | ) | $ | — | | $ | (38 | ) |
| | | | | | | | | | | | | | | | | |
Tax Benefit | | | | | | | | | | | | | | $ | 27 | | $ | 27 | |
(1) In accordance with EITF 04-5, reflects consolidation of property fund limited partnerships managed by Threadneedle and hedge fund limited partnerships managed by RiverSource
(2) Pretax realized net investment gains and (losses)
(3) Mean reversion of DAC and DSIC
(4) Exceptional tax adjustments
45
Ameriprise Financial, Inc.
Disclosed Items
First Quarter 2008
| | Asset Management | | Annuities | | Protection | | Corporate | | Consolidated | | | |
| | | | Investment | | Mean | | Investment | | Mean | | Investment | | | | | |
(in millions, unaudited) | | EITF 04-5 (1) | | Losses (2) | | Reversion (3) | | Losses (2) | | Reversion (3) | | Losses (2) | | Tax Impact (4) | | Consolidated | |
Revenues | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | (1 | ) | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (1 | ) |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | | | (20 | ) | — | | (3 | ) | — | | (1 | ) | | | (24 | ) |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | (3 | ) | — | | — | | — | | — | | — | | — | | (3 | ) |
Total revenues | | (4 | ) | (20 | ) | — | | (3 | ) | — | | (1 | ) | — | | (28 | ) |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (4 | ) | (20 | ) | — | | (3 | ) | — | | (1 | ) | — | | (28 | ) |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | 3 | | — | | — | | — | | — | | 3 | |
Amortization of deferred acquisition costs | | — | | — | | 22 | | — | | 2 | | — | | — | | 24 | |
Interest and debt expense | | — | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | (4 | ) | — | | — | | — | | — | | — | | — | | (4 | ) |
Total expenses | | (4 | ) | — | | 25 | | — | | 2 | | — | | — | | 23 | |
Pretax income | | $ | — | | $ | (20 | ) | $ | (25 | ) | $ | (3 | ) | $ | (2 | ) | $ | (1 | ) | $ | — | | $ | (51 | ) |
| | | | | | | | | | | | | | | | | |
Tax Benefit | | | | | | | | | | | | | | $ | 38 | | $ | 38 | |
(1) In accordance with EITF 04-5, reflects consolidation of property fund limited partnerships managed by Threadneedle and hedge fund limited partnerships managed by RiverSource
(2) Pretax realized net investment gains and (losses)
(3) Mean reversion of DAC and DSIC
(4) Exceptional tax adjustments
VA rider hedge impact can be found on page 18 of the Statistical Supplement
46
Ameriprise Financial, Inc.
Disclosed Items
Second Quarter 2007
| | Advice & Wealth Management | | Asset Management | | Annuities | | Protection | | Corporate | | Consolidated | | | |
| | Investment | | | | Investment | | Mean | | Mean | | Investment | | | | | |
(in millions, unaudited) | | Losses (1) | | EITF 04-5 (3) | | Gains (1) | | Reversion (4) | | Reversion (4) | | Gains (1) | | Tax Impact (2) | | Consolidated | |
Revenues | | | | | | | | | | | | | | | | | |
Management and financial advice fees | | $ | — | | $ | (1 | ) | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (1 | ) |
Distribution fees | | — | | — | | — | | — | | — | | — | | — | | — | |
Net investment income | | (1 | ) | 3 | | 2 | | — | | — | | 1 | | — | | 5 | |
Premiums | | — | | — | | — | | — | | — | | — | | — | | — | |
Other revenues | | — | | 15 | | — | | — | | — | | — | | — | | 15 | |
Total revenues | | (1 | ) | 17 | | 2 | | — | | — | | 1 | | — | | 19 | |
Banking and deposit interest expense | | — | | — | | — | | — | | — | | — | | — | | — | |
Total net revenues | | (1 | ) | 17 | | 2 | | — | | — | | 1 | | — | | 19 | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | | |
Distribution expenses | | — | | — | | — | | — | | — | | — | | — | | — | |
Interest credited to fixed accounts | | — | | — | | — | | — | | — | | — | | — | | — | |
Benefits, claims, losses and settlement expenses | | — | | — | | — | | (1 | ) | — | | — | | — | | (1 | ) |
Amortization of deferred acquisition costs | | — | | — | | — | | (10 | ) | (1 | ) | — | | — | | (11 | ) |
Interest and debt expense | | | | — | | — | | — | | — | | — | | — | | — | |
General and administrative expense | | — | | 17 | | — | | — | | — | | — | | — | | 17 | |
Total expenses | | — | | 17 | | — | | (11 | ) | (1 | ) | — | | — | | 5 | |
Pretax income | | $ | (1 | ) | $ | — | | $ | 2 | | $ | 11 | | $ | 1 | | $ | 1 | | $ | — | | $ | 14 | |
| | | | | | | | | | | | | | | | | |
Tax Benefit | | | | | | | | | | | | | | $ | 16 | | $ | 16 | |
(1) Pretax realized net investment gains and (losses)
(2) Decrease in tax expense as a result of prior period tax returns
(3) In accordance with EITF 04-5, reflects consolidation of property fund limited partnerships managed by Threadneedle and hedge fund limited partnerships managed by RiverSource
(4) Mean reversion of DAC and DSIC
47