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18 Ameriprise Financial, Inc. 2006 Annual Report
Our variable annuity sales also refl ect this fee-based trend. In 2006, annuity variable
account net infl ows increased 83 percent to $5 billion. We are one of the fastest growing
annuity providers as our products are appealing to clients in part due to optional living
benefi t riders that guarantee income in retirement.
Through RiverSource Investments, clients have access to a wide range of competitive
investment solutions. We generated strong one-year results in equity and fi xed income
portfolios and have strengthened longer-term performance track records, a critical
component of our ability to gather and retain assets.
With $156 billion in assets under management, RiverSource Investments competes to
earn retail and institutional business. While our fi nancial advisors are the main distribution
channel for our retail products, we recently expanded distribution of RiverSourceSM mutual
funds through other broker-dealers and banks. We’re also focused on the institutional
marketplace, where we are gaining clients in our separate account, subadvisory, alternative
and defi ned contribution businesses.
We serve the international marketplace through Threadneedle Investments, which
manages $136 billion of assets. An established retail fund provider, Threadneedle is also
driving profi tability improvements by maintaining diversifi ed revenue streams from
institutional, hedge fund and property businesses.
Our recently rebranded and consolidated RiverSource Insurance subsidiaries are important
components of the value we provide clients. We offer a wide range of asset protection
products, including universal life, variable universal life and disability
income insurance. In fact, we are the leading provider of variable
universal life insurance, a product that provides the dual benefi ts of
protection and asset growth potential.
Through Ameriprise Bank, clients have access to traditional banking
services including checking, savings, money markets and home
lending. The addition of these products helps advisors better serve
clients and earn an increasing share of their fi nancial activities.
Underpinning this broad product offering is a commitment to product
innovation. During the year, we introduced RiverSource Income
Builder Series and RiverSource Retirement PlusSM Series —
two sophisticated funds-of-funds that add to our stable of asset
management and income generating “goal-based” solutions. These
products embed sound investment principals such as asset allocation
and risk management — helping advisors craft solutions that better
meet clients’ lifetime needs.
RiverSource Internally Managed Equity Funds*
Top Half Lipper Performance
0
10
20
30
40
50
60
70
80
2003 2004 2005 2006
1-Year 5-Year 10-Year
Equal Weighted Percentage of Funds
* Aggregated equity rankings exclude RiverSource
S&P 500 Index Fund and funds managed by unaffi liated
managers and include RiverSource Portfolio Builder Series,
RiverSource Retirement Plus Series and other balanced and
asset allocation funds that invest in both equities and fi xed
income. Figures represent A shares only. Past performance
does not guarantee future results.
***Source: Cerulli Associates, The Cerulli Edge Managed Accounts Edition, Fourth Quarter 2006.
***Source: VARDS OnlineSM as of Fourth Quarter 2006.
*** Source: Tillinghast Towers Perrin Value™ Survey through Third Quarter 2006 Variable Insurance Product Sales.
> Ameriprise Financial
has the #1 U.S.
non-discretionary
mutual fund advisory
program in assets.*
> RiverSource
Annuities is one
of the fastest
growing annuity
providers.**
> RiverSource
Insurance is #1
in variable
universal life
insurance sales.***