Ameriprise 2009 Annual Report Download - page 26

Management of Collateralized Debt Obligations (‘‘CDOs’’) fees for investment management services that are generally based
upon a percentage of assets under management rather than
We provide collateral management services to special purpose
performance-based fees. In addition to RiverSource Funds and
vehicles that issue CDOs through a dedicated team of investment
RiverSource Trust Collective Funds, Ameriprise Trust offers
professionals located in Los Angeles and Minneapolis. CDOs are
separately managed accounts and collective funds to our
securities collateralized by a pool of assets, primarily syndicated
retirement plan clients.
bank loans and, to a lesser extent, high yield bonds. Multiple
tranches of securities are issued by a CDO, offering investors In addition to the investment management services described
various maturity and credit risk characteristics. Scheduled above, our brokerage subsidiaries acts as broker and in limited
payments to investors are based on the performance of the CDO’s cases as custodian, for individual retirement accounts,
collateral pool. For collateral management of CDOs, we earn fees tax-sheltered custodial accounts and other retirement plans for
based on the par value of assets and, in certain instances, may also individuals and small- and mid-sized businesses. At December 31,
receive performance-based fees. At December 31, 2009, excluding 2009, these tax-qualified assets totaled $9.9 billion.
CDO portfolios managed by Threadneedle, we managed
$6.4 billion of assets related to CDOs. Institutional Distribution and Services
We offer separately managed account services to a variety of
Sub-Advisory Services
institutional clients, including pension plans, employee savings
We act as sub-advisor for certain domestic and international plans, foundations, endowments, corporations, banks, trusts,
mutual funds and are pursuing opportunities to sub-advise governmental entities, high-net-worth individuals and
additional investment company assets in the U.S. and overseas. As not-for-profit organizations. We provide investment management
of December 31, 2009, we managed over $2.5 billion in assets in a services for insurance companies, including our insurance
sub-advisory capacity. subsidiaries, as well as hedge fund management and other
alternative investment products. These alternative investment
Hedge Funds
products include CDOs available through our syndicated loan
We provide investment advice and related services to private, management group to our institutional clients. We provide a
pooled investment vehicles organized as limited partnerships, variety of services for our institutional clients that sponsor
limited liability companies or foreign (non-U.S.) entities. These retirement plans. These services are provided primarily through
funds are currently exempt from registration under the our trust company subsidiary and one of our broker-dealer
Investment Company Act of 1940 and are organized as domestic subsidiaries. Over the past two years we have increased our efforts
and foreign funds. For investment management services, we to enhance our institutional capabilities, including funding
generally receive fees based on the market value of assets under institutional product development by our investment
management, as well as performance-based fees. As of management teams and through the recent expansion of our
December 31, 2009 we managed $3.4 billion in Hedge Fund institutional and sub-advisory sales teams. At December 31, 2009,
Assets. we managed $72.3 billion of assets for domestic institutional
clients.
Ameriprise Trust Collective Funds and Separately Managed
Accounts International Distribution
As of December 31, 2009, $7.5 billion of RiverSource Trust Outside the United States, Threadneedle leads our distribution,
Collective Funds and separate accounts were managed for which is categorized along three lines: Retail, Alternatives and
Ameriprise Trust Company clients. This amount does not include Institutional.
the RiverSource family of mutual funds held in other retirement
plans because these assets are included under assets managed for Retail. The retail business line includes Threadneedle’s
institutional and retail clients and within the ‘‘Asset Management European mutual fund family, which ranked as the 9th largest
Offerings — Mutual Fund Families — RiverSource and retail fund business in the United Kingdom in terms of assets
Threadneedle’’ section above. under management at December 31, 2009, according to the
Investment Management Association, a trade association for the
Collective funds are investment funds that are excepted from UK investment management industry. Threadneedle sells mutual
registration with the Securities and Exchange Commission funds mostly in Europe through financial intermediaries and
(‘‘SEC’’) and offered primarily through banks and other financial institutions. Threadneedle provides sales and marketing support
institutions to institutional clients such as retirement, pension for these distribution channels.
and profit-sharing plans. We currently serve as investment
manager to 37 Ameriprise Trust Company collective funds Alternatives. The Alternatives section of Threadneedle’s
covering a broad spectrum of investment strategies. We receive business consists of six long/short equity funds, one currency
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