Ameriprise 2011 Annual Report Download - page 26

Separately Managed Accounts
We provide investment management services to pension, profit-sharing, employee savings and endowment funds, accounts
of large- and medium-sized businesses and governmental clients, as well as the accounts of high-net-worth individuals and
smaller institutional clients, including tax-exempt and not-for-profit organizations. Our services include investment of funds
on a discretionary or non-discretionary basis and related services including trading, cash management and reporting. We
offer various fixed income and equity investment strategies for our institutional clients with separately managed accounts.
Through an arrangement with Threadneedle, we offer certain international and U.S. equity strategies to U.S. clients. We
also offer U.S. equity and a variety of fixed income strategies to non-U.S. clients.
For our investment management services, we generally receive fees based on the market value of managed assets
pursuant to contracts the client can terminate on short notice. Clients may also pay us fees based on the performance of
their portfolio. At December 31, 2011, we managed a total of $32.2 billion in assets under this range of services.
Management of Institutional Owned Assets
We provide investment management services and recognize management fees for certain assets on our Consolidated
Balance Sheets, such as the assets held in the general account of our RiverSource Life companies, assets held by
Ameriprise Certificate Company and the investment portfolio of Ameriprise Bank. Our fixed income team manages the
general account assets to produce a consolidated and targeted rate of return on investments based on a certain level of
risk. Our fixed income and equity teams also manage separate account assets. The Asset Management segment’s
management of institutional owned assets for Ameriprise Financial subsidiaries is reviewed by the boards of directors and
staff functions of the applicable subsidiaries consistent with regulatory investment requirements. At December 31, 2011,
the Asset Management segment managed $40 billion of institutional owned assets.
Management of Collateralized Debt Obligations (‘‘CDOs’’)
We provide collateral management services to special purpose vehicles that issue CDOs through a dedicated team of
investment professionals. CDOs are securities collateralized by a pool of assets, primarily syndicated bank loans and, to a
lesser extent, high-yield bonds. Multiple tranches of securities are issued by a CDO, offering investors various maturity and
credit risk characteristics. Scheduled payments to investors are based on the performance of the CDO’s collateral pool. For
collateral management of CDOs, we earn fees based on the par value of assets and, in certain instances, we may also
receive performance-based fees. At December 31, 2011, excluding CDOs managed by Threadneedle, we managed
$5.3 billion of assets related to CDOs.
Private Funds
We provide investment advice and related services to private, pooled investment vehicles organized as limited partnerships,
limited liability companies or foreign (non-U.S.) entities. These funds are currently exempt from registration under the
Investment Company Act under either Section 3(c)(1) or Section 3(c)(7) or related interpretative relief and are organized
as domestic and foreign funds. For investment management services, we generally receive fees based on the market value
of assets under management, and we may also receive performance-based fees. As of December 31, 2011, we managed
$2.8 billion in private fund assets.
Ameriprise Trust Collective Funds and Separately Managed Accounts
Collective funds are investment funds that are exempt from registration with the Securities and Exchange Commission
(‘‘SEC’’) and offered primarily through banks and other financial institutions to institutional clients such as retirement,
pension and profit-sharing plans. We currently serve as investment manager to 38 Ameriprise Trust Company collective
funds covering a broad spectrum of investment strategies. We receive fees for investment management services that are
generally based upon a percentage of assets under management rather than performance. In addition to Columbia
Management funds and RiverSource Trust Collective Funds, Ameriprise Trust Company offers separately managed accounts
and collective funds to our retirement plan clients.
As of December 31, 2011, we managed $6.7 billion of Ameriprise Trust Collective Funds and separate accounts for
Ameriprise Trust Company clients. This amount does not include the Columbia Management family of mutual funds held in
other retirement plans because these assets are included under assets managed for institutional and retail clients and
within the ‘‘Columbia Management — Mutual Funds’’ section above.
Sub-advised Accounts
CMIA acts as sub-adviser for certain domestic and international mutual funds, private banking individually managed
accounts and common trust funds advised by other firms. CMIA continues to pursue opportunities to sub-advise additional
investment company assets in the U.S. and overseas. As with the Columbia Management funds, we earn management
fees for these services based on the underlying asset value of the funds we sub-advise. As of December 31, 2011, we
managed over $34.1 billion in assets in a sub-advisory capacity.
11