Ameriprise 2011 Annual Report Download - page 21

cash and liabilities, investments, protection and taxes. We believe this approach helps our clients build a solid financial
foundation, persevere through difficult economies and challenging markets, and ultimately achieve their financial goals. We
offer a broad array of products and services in each of these categories, including those carrying the Ameriprise Financial,
Columbia or RiverSource name, as well as solutions offered by unaffiliated firms.
Our affiliated advisors deliver financial solutions to our advisory clients by building long-term personal relationships through
financial planning that is responsive to clients’ evolving needs. We utilize the Certified Financial Planner Board of
Standards, Inc.’s defined financial planning process of Engage, Gather, Analyze, Recommend, Implement and Monitor. This
process involves gathering relevant financial information, setting life goals, examining clients’ current financial status and
determining a strategy or plan for helping clients meet their goals given their current situation and future plans. Once we
identify a financial planning client’s objectives, we then recommend a solution set consisting of actions — such as paying
down debt, increasing savings and investment, protecting income and assets, creating a will, and including tax qualified
formats in the client’s allocation of savings and investment — as well as offer products to address these objectives with
clients accepting what they determine to be an appropriate range and level of risk. Our financial planning relationships with
our clients are characterized by an ability to thoroughly understand their specific needs, which enables us to help them
meet those needs, achieve high overall client satisfaction, hold more products in their accounts and increase our assets
under management.
Our financial planning clients pay a fee for the receipt of financial planning services. This fee is based on the complexity of
a client’s financial and life situation and his or her advisor’s experience. The fee for financial planning services is not based
on or related to actual investment performance; however, our clients may elect to pay a consolidated, asset-based advisory
fee for financial planning and managed account services. If clients elect to implement their financial plan with our
company, we and our affiliated advisors generally receive a sales commission and/or sales load and other revenues for the
products that they purchase from us. These commissions, sales loads and other revenues are separate from, and in
addition to, the financial planning fees we and our affiliated advisors may receive.
Brokerage and Other Products and Services
We offer our retail and institutional clients a variety of brokerage and other investment products and services.
Our Ameriprise ONEᓼ Financial Account is a single integrated financial management account that combines a client’s
investment, banking and lending relationships. The Ameriprise ONE Financial Account enables clients to access a single
cash account to fund a variety of financial transactions, including investments in mutual funds, individual securities, cash
products and margin lending. Additional features include unlimited check writing with overdraft protection, a MasterCardᓼ
debit card, online bill payments, ATM access and a savings account.
We provide securities execution and clearing services for our retail and institutional clients through our registered broker-
dealer subsidiaries. Clients can use our online brokerage service to purchase and sell securities, obtain independent
research and information about a wide variety of securities, and use self-directed asset allocation and other financial
planning tools. We also offer shares in public non-exchange traded Real Estate Investment Trusts, structured notes, and
other alternative investments issued by unaffiliated companies.
Through Ameriprise Achiever Circle, we offer benefits and rewards to clients who have $100,000 or more invested with us.
Clients who have $500,000 or more invested with us are eligible for Ameriprise Achiever Circle Elite, which includes
additional benefits. To qualify for and maintain Achiever Circle or Achiever Circle Elite status, clients must meet certain
eligibility and maintenance requirements. Special benefits of the program may include fee reductions or waivers on
Ameriprise IRAs and the Ameriprise ONE Financial Accounts, fee-waived Ameriprise Financial MasterCardᓼ, fee or interest
rate benefits on an Ameripriseᓼ Savings or Advantage Savings Accounts, and fee or rate benefits on home equity lines of
credit with Ameriprise Bank.
Fee-based Investment Advisory Accounts
In addition to purchases of affiliated and non-affiliated mutual funds and other securities on a stand-alone basis, clients
may purchase mutual funds, among other securities, in connection with investment advisory fee-based ‘‘wrap account’’
programs or services. We currently offer both discretionary and non-discretionary investment advisory wrap accounts. In a
discretionary wrap account, we (or an unaffiliated investment advisor) choose the underlying investments in the portfolio on
behalf of the client, whereas in a non-discretionary wrap account, clients choose the underlying investments in the portfolio
based on their financial advisor’s recommendation. Investors in discretionary and non-discretionary wrap accounts generally
pay a fee (for investment advice and other services) based on the assets held in that account as well as any related fees
or costs included in the underlying securities held in that account (e.g., underlying mutual fund operating expenses,
investment advisory or related fees, Rule 12b-1 fees, etc.). A significant portion of our affiliated mutual fund sales are
made through wrap accounts. Client assets held in affiliated mutual funds in a wrap account generally produce higher
revenues to us than client assets held in affiliated mutual funds on a stand-alone basis because, as noted above, we
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