Ameriprise 2008 Annual Report Download - page 163

Glossary of Selected Terminology
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.
Auto and Home Insurance—Personal auto and home protection products marketed directly to customers through
marketing affiliates such as Costco Wholesale Corporation, Delta Loyalty Management Services, Inc. and Ford Motor Credit
Company. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing
business as Ameriprise Auto & Home Insurance).
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’’.
Deferred Acquisition Costs and Amortization—Deferred acquisition costs (‘‘DAC’’) represent 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.
Financial Planning—Financial planning at Ameriprise is an ongoing process which is intended to help clients plan to meet
their financial goals through disciplined management of their finances. The process involves collaboration between a client
and an Ameriprise financial advisor to define the client’s goals, develop a plan to achieve the goals, and track progress against
the goals, making adjustments where necessary.
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 Inforce—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 Products funds held in the separate accounts of our life insurance subsidiaries.
Net Flows—Sales less redemptions and miscellaneous flows which may include reinvested dividends.
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).
Securities America—Securities America Financial Corporation (‘‘SAFC’’) is a corporation whose sole function is to hold the
stock of its operating subsidiaries, Securities America, Inc. (‘‘SAI’’) and Securities America Advisors, Inc. (‘‘SAA’’). SAI is a
registered broker-dealer and an insurance agency. SAA is an SEC registered investment advisor.
Separate Accounts—Represent assets and liabilities that are maintained and established primarily for the purpose of
funding variable annuity and insurance products. The assets of the separate account are only available to fund the liabilities of
the variable entity contractholders 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 ended in 2007.
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