Ameriprise 2009 Annual Report Download - page 21

and other revenues for the products that we sell to them. These purchase mutual funds, among other securities, in connection
commissions, sales loads and other revenues are separate from with investment advisory fee-based ‘‘wrap account’’ programs or
and in addition to the financial planning fees we and our affiliated services, and pay fees based on a percentage of their assets. This
financial advisors may receive. Approximately 40.3% of our retail fee is for the added services and investment advice associated with
clients serviced by branded franchisee advisors and employee these accounts. We currently offer both discretionary and
advisors of AFSI have received a financial plan or have entered non-discretionary investment advisory wrap accounts. In a
into an agreement to receive and have paid for a financial plan. discretionary wrap account, we (or an unaffiliated investment
advisor) choose the underlying investments in the portfolio on
Brokerage and Other Products and Services behalf of the client, whereas in a non-discretionary wrap account,
clients choose the underlying investments in the portfolio based,
We offer our retail and institutional clients a variety of brokerage
to the extent the client elects, on their financial advisor’s
and other investment products and services.
recommendation. Investors in discretionary and
Our Ameriprise ONE Financial Account is a single integrated non-discretionary wrap accounts generally pay an asset-based fee
financial management account that combines a client’s (for advice and other services) based on the assets held in that
investment, banking and lending relationships. The Ameriprise account as well as any related fees or costs included in the
ONE Financial Account enables clients to access a single cash underlying securities held in that account (e.g., underlying mutual
account to fund a variety of financial transactions, including fund operating expenses, investment advisory or related fees,
investments in mutual funds, individual securities, cash products Rule 12b-1 fees, etc.). A significant portion of our affiliated mutual
and margin lending. Additional features of the Ameriprise ONE fund sales are made through wrap accounts. Client assets held in
Financial Account include unlimited check writing with overdraft affiliated mutual funds in a wrap account generally produce higher
protection, a co-branded MasterCard, online bill payments, ATM revenues to us than client assets held in affiliated mutual funds on
access and a savings account. a stand-alone basis because, as noted above, we receive an
investment advisory fee based on the asset values of the assets
We provide securities execution and clearing services for our retail held in a wrap account in addition to revenues we normally receive
and institutional clients through our registered broker-dealer for investment management of the funds included in the account.
subsidiaries. As of December 31, 2009, we administered
$95.1 billion in assets for clients. Clients can use our online We offer several types of investment advisory accounts. We
brokerage service to purchase and sell securities, obtain sponsor Ameriprise Strategic Portfolio Service Advantage, a
independent research and information about a wide variety of non-discretionary wrap account service. We also sponsor
securities, and use self-directed asset allocation and other Ameriprise Separately Managed Accounts (‘‘SMAs’’), a
financial planning tools. Clients can also contact their financial discretionary wrap account service through which clients invest in
advisor and access other services. We also offer shares in public strategies offered by us and by affiliated and non-affiliated
non-exchange traded Real Estate Investment Trusts (‘‘REITs’’), investment managers and a similar program on an
and other alternative investments and structured notes issued by accommodation basis where clients transfer assets to us and do
other companies. We believe we are one of the largest distributors not maintain an investment management relationship with the
of publicly registered, non-exchange traded REITs in the U.S. manager of those assets. We also offer Active Portfolios
investments, a discretionary mutual fund wrap account service of
Through Ameriprise Achiever Circle, we offer special benefits and which we are the sponsor, which includes the Active Diversified
rewards to recognize clients who have $100,000 invested with us. Portfolios series, which provide strategic target allocations based
Clients who have $500,000 or more invested with us are eligible on different risk profiles and tax sensitivities. Active Portfolios
for Ameriprise Achiever Circle Elite, which includes additional investments also include Active Diversified Alternatives
benefits. To qualify for and maintain Achiever Circle or Achiever Portfolios, introduced during 2009, which are designed to provide
Circle Elite status, clients must meet certain eligibility and enhanced risk-adjusted performance by incorporating
maintenance requirements. Special benefits of the program may uncorrelated sources of return from funds using alternative
include fee waivers on Ameriprise IRAs and the Ameriprise ONE investment strategies. Additionally, we offer discretionary wrap
Financial Account, a fee-waived Ameriprise Financial account services through which clients may invest in SMAs,
MasterCard or a preferred interest rate on an Ameriprise mutual funds and exchange traded funds.
Personal Savings Account, as applicable.
Our unbranded advisor force offers separate fee based investment
Fee-based Investment Advisory Accounts advisory account services through Securities America Advisors,
In addition to purchases of affiliated and non-affiliated mutual Inc., a wholly owned subsidiary of Securities America Financial
funds and other securities on a stand-alone basis, clients may
6 ANNUAL REPORT 2009