Ameriprise 2008 Annual Report Download - page 34

At December 31, 2008, the Seligman family of open-ended mutual funds (which is managed within the structure of
RiverSource Investments, but which continues to use the ‘‘Seligman’’ name) consisted of 56 funds with $5.1 billion in
managed assets. The three Seligman closed-end funds had $1.2 billion in managed assets at December 31, 2008.
Threadneedle manages three UK-domiciled OEICs: Threadneedle Investment Funds ICVC (‘‘TIF’’), Threadneedle Specialist
Investment Funds ICVC (‘‘TSIF’’) and Threadneedle Focus Investment Funds (‘‘TFIF’’). TIF, TSIF and TFIF are structured as
umbrella companies with a total of 48 (34, 13 and 1, respectively) sub funds covering the world’s bond and equity markets as
well as money market funds. In addition, Threadneedle manages 13 unit trusts, 11 of which invest into the OEICs, 5 property
unit trusts, 1 Dublin-based cash OEIC and 1 property fund of funds. During the third quarter of 2008, Threadneedle began
managing 2 new mutual funds in the U.S.
Separately Managed Accounts
We provide investment management services to pension, profit-sharing, employee savings and endowment funds, accounts
of large- and medium-sized businesses and governmental clients, as well as the accounts of high-net-worth individuals and
smaller institutional clients, including tax-exempt and not-for-profit organizations. Our services include investment of funds on
a discretionary or non-discretionary basis and related services including trading, cash management and reporting.
We offer various fixed income and equity investment strategies for our institutional separately managed accounts clients.
Through an arrangement with Threadneedle and our affiliate Kenwood, we also offer certain international and U.S. equity
strategies to U.S. clients.
For our investment management services, we generally receive fees based on the market value of managed assets pursuant
to contracts that can typically be terminated by the client on short notice. Clients may also pay fees to us based on the
performance of their portfolio. At December 31, 2008, we managed a total of $2.6 billion in assets under this range of
services.
Management of Institutional Owned Assets
We provide investment management services and recognize management fees for certain assets on our Consolidated
Balance Sheets, such as the assets held in the general account of our RiverSource Life companies, the RiverSource Variable
Product funds held in the separate accounts of our RiverSource Life companies, and assets held by Ameriprise Certificate
Company. Our fixed income team manages the general account assets to produce a consolidated and targeted rate of return
on investments while controlling risk. Our fixed income and equity teams also manage separate account assets. The Asset
Management segment’s management of institutional owned assets for Ameriprise subsidiaries is reviewed by the boards of
directors and staff functions of the applicable subsidiaries consistent with regulatory investment requirements. At
December 31, 2008, the Asset Management segment managed $32.5 billion of institutional owned assets, compared to
$33.1 billion at December 31, 2007.
Management of Collateralized Debt Obligations (‘‘CDOs’’)
We provide collateral management services to special purpose vehicles that issue CDOs through a dedicated team of
investment professionals located in Los Angeles and Minneapolis. CDOs are securities collateralized by a pool of assets,
primarily syndicated bank loans and, to a lesser extent, high yield bonds. Multiple tranches of securities are issued by a CDO,
offering investors various maturity and credit risk characteristics. Scheduled payments to investors are based on the
performance of the CDO’s collateral pool. For collateral management of CDOs, we earn fees based on managed assets and, in
certain instances, may also receive performance-based fees. At December 31, 2008, excluding CDO portfolios managed by
Threadneedle, we managed $6.9 billion of assets related to CDOs.
Sub-Advisory Services
We act as sub-advisor for certain domestic and international mutual funds, and are pursuing opportunities to sub-advise
additional investment company assets in the U.S. and overseas. As of December 31, 2008, we managed over $1.3 billion in
assets in a sub-advisory capacity.
Hedge Funds
We provide investment advice and related services to private, pooled investment vehicles organized as limited partnerships,
limited liability corporations or foreign (non-U.S.) entities. These funds are currently exempt from registration under the
Investment Company Act of 1940 and are organized as domestic and foreign funds. For investment management services, we
generally receive fees based on the market value of assets under management, as well as performance-based fees.
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