Ameriprise 2009 Annual Report Download - page 73

The following table presents the results of operations of our Asset Management segment:
Years Ended December 31,
2009 2008 Change
(in millions, except percentages)
Revenues
Management and financial advice fees $ 1,104 $ 1,077 $ 27 3 %
Distribution fees 216 247 (31) (13)
Net investment income 20 (13) 33 NM
Other revenues 36 (15) 51 NM
Total revenues 1,376 1,296 80 6
Banking and deposit interest expense 8 7 1 14
Total net revenues 1,368 1,289 79 6
Expenses
Distribution expenses 371 417 (46) (11)
Amortization of deferred acquisition costs 21 24 (3) (13)
General and administrative expense 901 825 76 9
Total expenses 1,293 1,266 27 2
Pretax income 75 23 52 NM
Less: Net income (loss) attributable to noncontrolling interests 15 (54) 69 NM
Pretax income attributable to Ameriprise Financial $ 60 $ 77 $ (17) (22)%
NM Not Meaningful.
Our Asset Management segment pretax income attributable to Ameriprise Financial was $60 million for the year ended December 31,
2009 compared to $77 million in the prior year.
Net revenues
Net revenues increased $79 million, or 6%, to $1.4 billion for the year ended December 31, 2009, primarily due to an increase in
management and financial advice fees, net investment income and other revenues, partially offset by a decline in distribution fees.
Management and financial advice fees increased $27 million, or 3%, to $1.1 billion for the year ended December 31, 2009, due to strong
hedge fund performance and net inflows, partially offset by a 22% decline in the daily average S&P 500 Index on a period-over-period
basis, as well as the negative impact of foreign currency translation. Total Asset Management account assets increased $43.6 billion, or
22%, compared to the prior year due to market appreciation, as well as net inflows in International managed assets and the positive
impact of changes in foreign currency exchange rates.
Distribution fees decreased $31 million, or 13%, to $216 million for the year ended December 31, 2009, primarily due to lower 12b-1 fees
driven by lower average assets.
Net investment income was $20 million for the year ended December 31, 2009 compared to net investment loss of $13 million in the prior
year primarily due to losses related to mark-to-market adjustments on seed money investments in 2008.
Other revenues increased $51 million compared to the prior year due to an increase in revenues related to certain consolidated limited
partnerships, partially offset by revenue from the sale of certain operating assets in 2008.
Expenses
Total expenses increased $27 million, or 2%, to $1.3 billion for the year ended December 31, 2009, primarily due to an increase in general
and administrative expense partially offset by a decrease in distribution expenses.
58 ANNUAL REPORT 2009