Ameriprise 2010 Annual Report Download - page 91

Market
Appreciation/
December 31, (Depreciation) Foreign December 31,
2007 Net Flows & Other Exchange 2008
(in billions)
Domestic Managed Assets:
Retail Funds $ 86.9 $ (5.4) $ (17.6)(1) $ — $ 63.9
Institutional Funds 62.0 (4.8) (2.5)(1) — 54.7
Alternative Funds 8.1 (1.2) 2.5(1) — 9.4
Less: Eliminations (0.7) — 0.6 — (0.1)
Total Domestic Managed Assets 156.3 (11.4) (17.0) — 127.9
International Managed Assets:
Retail Funds 30.8 (1.9) (6.2) (6.4) 16.3
Institutional Funds 100.1 (13.3) (9.8) (21.7) 55.3
Alternative Funds 3.5 (0.6) 0.2 (0.5) 2.6
Total International Managed Assets 134.4 (15.8) (15.8) (28.6) 74.2
Less: Sub-Advised Eliminations (5.6) — 3.1 — (2.5)
Total Managed Assets $ 285.1 $ (27.2) $ (29.7) $ (28.6) $ 199.6
(1) Included in Market appreciation (depreciation) and other are assets due to the acquisition of J. & W. Seligman & Co.
In 2009, Domestic managed assets had $119 million in net inflows compared to net outflows of $11.4 billion during
2008 and market appreciation and other of $21.0 billion in 2009 compared to market depreciation and other of
$17.0 billion in 2008. International managed assets had $3.5 billion in net inflows in 2009 compared to net outflows of
$15.8 billion in 2008 and market appreciation and other of $12.7 billion in 2009 compared to market depreciation and
other of $15.8 billion in 2008. The positive impact on International managed assets due to changes in foreign currency
exchange rates was $7.4 billion in 2009 compared to a negative impact of $28.6 billion in 2008.
The following table presents the results of operations of our Asset Management segment:
Years Ended December 31,
2009 2008
Less: Less: Operating
GAAP Adjustments(1) Operating GAAP Adjustments(1) Operating Change
(in millions, except percentages)
Revenues
Management and financial advice
fees $ 1,106 $ — $ 1,106 $ 1,079 $ — $ 1,079 $ 27 3%
Distribution fees 216 — 216 247 — 247 (31) (13)
Net investment income 18 (3) 21 (13) 1 (14) 35 NM
Other revenues 8 — 8 33 — 33 (25) (76)
Total revenues 1,348 (3) 1,351 1,346 1 1,345 6 —
Banking and deposit interest expense 2 — 2 6 — 6 (4) (67)
Total net revenues 1,346 (3) 1,349 1,340 1 1,339 10 1
Expenses
Distribution expenses 371 — 371 417 — 417 (46) (11)
Amortization of deferred acquisition
costs 21 — 21 24 — 24 (3) (13)
General and administrative expense 894 30 864 820 5 815 49 6
Total expenses 1,286 30 1,256 1,261 5 1,256 — —
Pretax income $ 60 $ (33) $ 93 $ 79 $ (4) $ 83 $ 10 12%
NM Not Meaningful.
(1) Adjustments include net realized gains or losses and integration charges.
Our Asset Management segment pretax income was $60 million for the year ended December 31, 2009 compared to
$79 million in the prior year. Our Asset Management segment pretax operating income, which excludes net realized gains
or losses and integration charges, was $93 million for the year ended December 31, 2009 compared to $83 million for
the prior year.
Net revenues
Net revenues increased $6 million to $1.3 billion for the year ended December 31, 2009. Operating net revenues, which
exclude net realized gains or losses, increased $10 million, or 1%, to $1.3 billion for the year ended December 31, 2009,
primarily due to an increase in management and financial advice fees and net investment income, partially offset by a
decline in distribution fees and other revenues.
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