Ameriprise 2006 Annual Report Download - page 107

Glossary of Selected Terminology
Administered Assets—Administered assets include assets for
which we provide administrative services such as assets of
our clients invested in other companies’ products that we offer
outside of our wrap accounts. These assets include those held
in customers’ brokerage accounts. We do not exercise
management discretion over these assets and do not earn a
management fee. These assets are not reported on our
Consolidated Balance Sheets.
AMEX Assurance Company—A legal entity owned by IDS Property
Casualty Insurance Company (“IDS Property Casualty”) that offers
travel and other card insurance to American Express Company
(“American Express”) customers. This business prior to our
separation from American Express had historically been reported
in the Travel Related Services segment of American Express.
Under the separation agreement, 100% of this business was
ceded to an American Express subsidiary in return for an arm’s
length ceding fee. We expect to sell the legal entity of AMEX
Assurance to American Express on or before September 30,
2007 for a fixed price equal to the net book value of AMEX
Assurance.
Auto and Home Insurance—Personal auto and home
protection products marketed directly to customers through
marketing affiliates such as Costco Wholesale Corporation,
Delta Loyalty Management Services, Inc. and Ford Motor Credit
Company. The Company sells these products through its auto
and home subsidiary, IDS Property Casualty (doing business
as Ameriprise Auto & Home Insurance).
Branded Advisor Clients—Individual, business or institutional
clients that receive investment advice and other services from
an employee of our company or franchisee-based financial
advisor including Financial Service Center clients.
Cash Sales—Cash sales are the dollar value volume indicator
that captures gross new cash inflows which generate product
revenue streams to our company. This includes primarily “client
limited” activity that results in an incremental increase in
assets (owned, managed or administered) or premiums in-force
(but doesn’t need to result in time of sales revenue), or activity
that doesn’t increase assets or premiums in-force, but
generates “fee revenue” (e.g., related transactions such as
Financial Planning Fees).
Client Group—In general, a client group consists of accounts
for an individual, spouse or domestic partner and any
accounts owned for, by or with the individual’s unmarried
children under the age of 21.
Clients With a Financial Plan Percentage—The period-end num-
ber of current clients who have received a financial plan, or
have entered into an agreement to receive and have paid for a
financial plan, divided by the number of active retail client
groups, serviced by branded employees, franchisee advisors
and our company’s customer service organization.
Financial Plans Sold—The number of financial plans that,
during the period, have been paid for and have been or will be
provided to a client based on an agreement, less financial
plans sold in prior periods not delivered within 14 months.
Gross Dealer Concession—An internal measure based upon
the weighted average production of advisor activity used to
represent financial results attributable to advisor activity and
to determine advisor compensation.
Managed Assets—Managed assets includes client assets for
which we provide investment management and other services,
such as the assets of the RiverSource family of mutual funds,
assets of institutional clients and assets held in our wrap
accounts (retail accounts for which we receive a fee based on
assets held in the account). Managed assets also include assets
managed by sub-advisors selected by us. Managed assets do not
include owned assets or administered assets. These assets are
not reported on our Consolidated Balance Sheets.
Mass Affluent—Individuals with $100,000 to $1 million in
investable assets.
Mass Affluent and Affluent Client Groups—Client groups with
$100,000 or more in invested assets or comparable product
values with our company.
Owned Assets—Owned assets include certain assets on our
Consolidated Balance Sheets, principally investments in the
general and separate accounts of our life insurance
subsidiaries, as well as cash and cash equivalents, restricted
and segregated cash and receivables.
Securities America—Securities America Financial Corporation
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 regis-
tered investment advisor.
Total Clients—This is the sum of all individual, business and
institutional clients.
Wrap Accounts—Wrap accounts enable our clients to
purchase other securities such as mutual funds in connection
with investment advisory fee-based “wrap account” programs
or services. We offer clients the opportunity to select products
that include proprietary and non-proprietary funds. We
currently offer both discretionary and non-discretionary
investment advisory wrap accounts. In a discretionary wrap
account, an unaffiliated investment advisor or our investment
management subsidiary, RiverSource Investments, LLC, chooses
the underlying investments in the portfolio on behalf of the
client. In a non-discretionary wrap account, the client chooses
the underlying investments in the portfolio based, to the extent
the client elects, in part or whole on the recommendations of
their financial advisor. Investors in our wrap accounts generally
pay an asset-based fee based on the assets held in their wrap
accounts. These investors also pay any related fees or costs
included in the underlying securities held in that account, such as
underlying mutual fund operating expenses and Rule 12b-1 fees.
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Ameriprise Financial, Inc. 2006 Annual Report