Ameriprise 2009 Annual Report Download - page 23

Business Alliances accounts, separately managed accounts and collective funds. Asset
Management products are also distributed directly to institutions
We provide workplace financial planning and educational
through our institutional sales force. Institutional Asset
programs to employees of major corporations and small
Management products include traditional asset classes, separate
businesses through our Business Alliances group. Our Business
accounts, collateralized loan obligations, hedge funds and
Alliances group focuses on helping the individual employees of
property funds. Revenues in this segment are primarily earned as
client companies plan for and achieve their long-term financial
fees based on managed asset balances, which are impacted by both
objectives. It offers financial planning as an employee benefit
market movements and net asset flows. The asset management
supported by educational materials, tools and programs. In
teams serving our Asset Management segment provide all
addition, we provide training and support to financial advisors
intercompany asset management services for Ameriprise, and the
working on-site at company locations to present educational
fees for all such services are reflected within the Asset
seminars, conduct one-on-one meetings and participate in client
Management segment results through intersegment allocations.
educational events. We also provide financial advice service
Intersegment expenses for this segment include distribution
offerings, such as Financial Planning and Executive Financial
expenses for services provided by our Advice & Wealth
Services, tailored to discrete employee segments.
Management, Annuities and Protection segments. All
intersegment activity is eliminated in our consolidated results. In
Strategic Alliances and Other Marketing Arrangements
2009, 17% of our total revenues from external clients were
We use strategic marketing alliances, local marketing programs
attributable to our Asset Management business.
for our branded advisors and on-site workshops through our
Business Alliances group to generate new clients for our financial At December 31, 2009, our Asset Management segment had
planning and other financial services. An important aspect of our $243 billion in managed assets worldwide. Managed assets
strategy is to leverage the client relationships of our other include managed external client assets and managed owned
businesses by working with major companies to create alliances assets. Managed external client assets include client assets for
that help us generate new financial services clients. For example, which we provide investment management services, such as the
AFSI currently has relationships with H & R Block, Inc., Office assets of the RiverSource family of mutual funds, the assets of the
Depot and The Association of Women’s Health, Obstetric and Threadneedle funds and the Seligman funds, and assets of
Neonatal Nurses. institutional clients. Managed assets include assets managed by
sub-advisors we select. These external client assets are not
Our alliance arrangements are generally for a limited duration of
reported on our Consolidated Balance Sheets. Managed owned
one to five years with an option to renew. Additionally, these types
assets include certain assets on our Consolidated Balance Sheets
of marketing arrangements typically provide that either party may
(such as the assets of the general account and the RiverSource
terminate the agreements on short notice, usually within sixty
Variable Product funds held in the separate accounts of our life
days. We compensate our alliance partners for providing
insurance subsidiaries) for which the Asset Management segment
opportunities to market to their clients.
provides management services and recognizes management fees.
In addition to our alliance arrangements, we have developed a For additional details regarding our owned, managed and
number of local marketing programs for our branded advisors to administered assets, see ‘‘Management’s Discussion and Analysis
use in building their client bases. These include pre-approved of Financial Condition and Results of Operations’’ included in
seminars, seminar- and event-training and referral tools and Part II, Item 7 of this Annual Report on Form 10-K.
training, which are designed to encourage both prospective and
Investment Management Capabilities and Development
existing clients to refer or bring their friends to an event.
Our investment management teams manage the majority of assets
in our RiverSource and Threadneedle families of mutual funds, as
Our Segments — Asset Management
well as the assets we manage for institutional clients in separately
Our Asset Management segment provides investment advice and
managed accounts, the general and separate accounts of the
investment products to retail and institutional clients.
RiverSource Life companies, the assets of our face-amount
RiverSource Investments predominantly provides U.S. domestic
certificate company and the investment portfolio of Ameriprise
products and services and Threadneedle predominantly provides
Bank. These investment management teams also manage assets
international investment products and services. U.S. domestic
under sub-advisory arrangements.
retail products are primarily distributed through our Advice &
Wealth Management segment and also through unaffiliated We believe that delivering consistent and strong investment
advisors. International retail products are primarily distributed performance will positively impact our assets under management
through third parties. Retail products include mutual funds, by increasing the competitiveness and attractiveness of many of
variable product funds underlying insurance and annuity separate
8 ANNUAL REPORT 2009