Ameriprise 2010 Annual Report Download - page 23

account service that enables choices among strategic target allocations based on different risk profiles and tax sensitivities.
Following the introduction of two new series in 2010, we currently offer six different series of Active Portfolios investments:
Active Accumulation Portfolios, Active Income Portfolios, Active Diversified Funds Portfolios, Active Diversified Alternatives
Portfolios, Active Diversified Yield Portfolios and Active Opportunity ETF Portfolios. Additionally, we offer discretionary wrap
account services through which clients may invest in SMAs, mutual funds and exchange traded funds.
Our unbranded advisor force offers separate fee-based investment advisory account services through Securities America
Advisors, Inc. and through Iron Point Capital Management, the investment management platform of Brecek & Young.
Securities America Advisors, Inc. and Brecek & Young are wholly owned subsidiaries of SAFC.
Mutual Fund Offerings
In addition to the Columbia family of mutual funds (discussed below in ‘‘Our Segments—Asset Management—U.S. Asset
Management Offerings—Mutual Funds’’), we offer mutual funds from more than 275 mutual fund families on a stand-
alone basis and as part of our wrap accounts to provide our clients a broad choice of investment products. In 2010, retail
sales of other companies’ mutual funds accounted for a substantial portion of our total retail mutual fund sales. Client
assets held in mutual funds of other companies on a stand-alone basis generally produce lower total revenues than client
assets held in our own mutual funds, as our Asset Management segment does not receive ongoing investment
management fees.
Mutual fund families of other companies generally pay us a portion of the revenue generated from the sales of those funds
and from the ongoing management of fund assets attributable to our clients’ ownership of shares of those funds. These
payments enable us to make the mutual fund families of other companies generally available through our financial advisors
and through our online brokerage platform. We also receive administrative services fees from most mutual funds sold
through our distribution network.
Insurance and Annuities
We offer insurance and annuities issued by the RiverSource Life companies (discussed below in ‘‘Business—Our
Segments—Annuities’’ and in ‘‘Business—Our Segments—Protection’’). The RiverSource insurance solutions available to
our retail clients include variable and fixed universal life insurance, traditional life insurance and disability income
insurance. RiverSource annuities include fixed annuities, as well as variable annuities that allow our clients to choose from
a number of underlying investment options and to purchase certain guaranteed benefit riders. In addition to RiverSource
insurance and annuity products, our branded advisors offer products of unaffiliated carriers on a limited basis. In 2010, we
began offering variable annuities issued by a select number of unaffiliated insurance companies.
We receive a portion of the revenue generated from the sale of life and disability insurance policies of unaffiliated
insurance companies. We are paid distribution fees on annuities sales of unaffiliated insurance companies based on a
portion of the revenue generated from such sales. Such insurance companies may also pay us an administrative service
fee in connection with the sale of their products.
Banking Products
We provide consumer lending and Federal Deposit Insurance Corporation (‘‘FDIC’’) insured deposit products to our retail
clients through our banking subsidiary, Ameriprise Bank. Our consumer lending products include first mortgages, home
equity loans, home equity lines of credit, and investment secured loans. We also offer credit card products linked to the
Ameriprise Achiever Circle Program. These include the Ameriprise World Elite MasterCard, World MasterCard and Platinum
MasterCard. The majority of bank deposits are brokered deposits from affiliated broker-dealers or they are in the Ameriprise
Personal Savings Account, which we offer in connection with the Ameriprise ONE Financial Account described above in
‘‘Brokerage and Investment Advisory Services—Brokerage and Other Products and Services.’’ We also offer stand-alone
checking, savings and money market accounts and certificates of deposit. We believe these products play a key role in our
Advice & Wealth Management business by offering our clients an FDIC-insured alternative to other cash products. These
products also provide pricing flexibility generally not available through money market funds.
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