Ameriprise 2008 Annual Report Download - page 35

Ameriprise Trust Collective Funds and Separately Managed Accounts
As of December 31, 2008, $8.5 billion of RiverSource Trust Collective Funds and separate accounts were managed for
Ameriprise Trust Company clients, compared to $8.8 billion at December 31, 2007. This amount does not include the
RiverSource family of mutual funds held in other retirement plans because these assets are included under assets managed
for institutional and retail clients and within the ‘‘Asset Management Offerings—Mutual Fund Families—RiverSource,
Threadneedle and Seligman’’ section above.
Collective funds are investment funds that are excepted from registration with the Securities and Exchange Commission
(‘‘SEC’’) and offered primarily through banks and other financial institutions to institutional clients such as retirement,
pension and profit-sharing plans. We currently serve as investment manager to 51 Ameriprise Trust Company collective funds
covering a broad spectrum of investment strategies. We receive fees for investment management services that are generally
based upon a percentage of assets under management rather than performance-based fees. Ameriprise Trust continues to
offer collective funds to retirement plans that were involved in the sale of the defined contribution recordkeeping business that
we sold on June 1, 2006. In addition to RiverSource Funds and RiverSource Trust Collective Funds, Ameriprise Trust offers
separately managed accounts to our retirement plan clients.
In addition to the investment management services described above, our trust company also acts as custodian, and one of
our brokerage subsidiaries acts as broker, for individual retirement accounts, tax-sheltered custodial accounts and other
retirement plans for individuals and small- and mid-sized businesses. At December 31, 2008, these tax-qualified assets
totaled $72.5 billion.
Prior to December 15, 2008, Ameriprise Trust Company provided institutional asset custodial services primarily to our
affiliates providing mutual funds, face-amount certificates, asset management and life insurance. We received fees for our
custody services that were generally based upon assets under custody as well as transaction-related fees for our institutional
custody services. On December 15, 2008, we disposed of our trust company subsidiary’s institutional asset custody business
as part of our continued re-engineering efforts
Institutional Distribution and Services
We offer separately managed account services to a variety of institutional clients, including pension plans, employee savings
plans, foundations, endowments, corporations, banks, trusts, governmental entities, high-net-worth individuals and
not-for-profit organizations. We provide investment management services for insurance companies, including our insurance
subsidiaries, as well as hedge fund management and other alternative investment products. These alternative investment
products include CDOs available through our syndicated loan management group to our institutional clients. We provide a
variety of services for our institutional clients that sponsor retirement plans. These services are provided primarily through our
trust company subsidiary and one of our broker-dealer subsidiaries. We are enhancing our institutional capabilities, including
funding institutional product development by our investment management teams and through the recent expansion of our
institutional and sub-advisory sales teams. At December 31, 2008, we managed $46.3 billion of assets for domestic
institutional clients.
International Distribution
Outside the United States, Threadneedle leads our distribution, which is categorized along three lines: Retail, Institutional and
Alternatives.
Retail. The retail business line includes Threadneedle’s European mutual fund family, which ranked as the ninth largest retail
fund business in the United Kingdom in terms of assets under management at December 31, 2008, according to the
Investment Management Association, a trade association for the UK investment management industry. Threadneedle sells
mutual funds mostly in Europe through financial intermediaries and institutions. Threadneedle also offers its funds directly or
within a multi-manager wrap through an independent UK distribution platform operated by Openwork Limited. Threadneedle
provides sales and marketing support for these distribution channels. In February 2009, Threadneedle announced that it had
signed a distribution agreement to become a strategic partner and global fund provider to Standard Chartered Bank.
Institutional. Threadneedle’s institutional business offers separately managed accounts to European and other international
pension funds and other institutions as well as offering insurance funds. Threadneedle is expanding distribution of its
institutional products in Scandinavia, Continental Europe, the Middle East and Asia. At December 31, 2008, Threadneedle
had $ 55.3 billion in managed assets in separately managed accounts (including ‘‘—Zurich’’ assets, as described below)
compared to $100.1 billion at December 31, 2007.
12