Ameriprise 2011 Annual Report Download - page 27

Retail Distribution
Columbia Management Investment Distributors, Inc. acts as the principal underwriter and distributor of our Columbia
Management family of mutual funds. Pursuant to distribution agreements with the funds, we offer and sell fund shares on
a continuous basis and pay certain costs associated with the marketing and selling of shares. We earn commissions for
distributing the Columbia Management funds through sales charges (front-end or back-end loads) on certain classes of
shares and distribution and servicing-related (12b-1) fees based on a percentage of fund assets, and receive intersegment
allocation payments. This revenue is impacted by overall asset levels of the funds.
Columbia Management fund shares are sold through both our Advice & Wealth Management segment and through
unaffiliated third-party financial intermediaries. Among our third-party distribution arrangements is a strategic distribution
agreement entered into in connection with the acquisition of Columbia Management that provides ongoing access to
clients of Bank of America affiliated distributors, including U.S. Trust. Fees and reimbursements paid to such intermediaries
may vary based on sales, redemptions, asset values, and marketing and support activities provided by the intermediary.
Intersegment distribution expenses for services provided by our Advice & Wealth Management Segment are eliminated in
our consolidated results.
Institutional and High Net Worth Distribution
We offer separately managed account services and private funds to high net worth clients and to a variety of institutional
clients, including pension plans, employee savings plans, foundations, endowments, corporations, banks, trusts,
governmental entities, high-net-worth individuals and not-for-profit organizations. We provide investment management
services for insurance companies, including our insurance subsidiaries, as well as hedge fund management and other
alternative investment products. We also provide, primarily through our trust company subsidiary and one of our broker-
dealer subsidiaries, a variety of services for our institutional clients that sponsor retirement plans. We have dedicated
institutional and sub-advisory sales teams that market directly to such institutional clients.
At December 31, 2011, we managed $121.4 billion of assets for Columbia Management institutional clients.
Threadneedle
We offer international investment management products and services to both retail and institutional clients primarily
through Threadneedle, which is headquartered in Luxembourg and maintains its primary investment operations in London.
At December 31, 2011, Threadneedle had $113.6 billion in managed assets worldwide.
Investment Management Capabilities
Threadneedle’s investment management activities are conducted primarily from its London office. Threadneedle’s
investment philosophy is to share investment ideas and alpha generation across teams and asset classes. Each investment
management team may focus on particular investment strategies, asset types, products and services offered and
distribution channels. These teams manage the majority of assets in the Threadneedle family of mutual funds, the assets
of Threadneedle’s alternative investment structures and the assets managed for Threadneedle’s institutional clients. These
investment management teams also manage assets under sub-advisory arrangements, including certain Columbia
Management funds.
Offerings
Threadneedle offers a wide range of products and services, including segregated asset management, mutual funds and
hedge funds to institutional clients as well as to retail clients in Europe, the United Kingdom, the Middle East and the
Asia-Pacific region. Threadneedle’s mutual fund and hedge fund product range includes different risk-return options across
regions, markets, asset classes and product structures, which include Open Ended Investment Companies (‘‘OEICs’’),
Societe d’Investissement A Capital Variable (‘‘SICAV’’), unit trusts, Undertakings for Collective Investments in Transferable
Securities and offshore vehicles.
Threadneedle’s institutional business offers separately managed accounts to pension funds and other institutions. At
December 31, 2011, Threadneedle had $81 billion in managed assets in separately managed accounts including assets
managed for the Zurich Financial Services Group. Threadneedle distributes its institutional products in Europe, Asia, the
U.S., the Middle East and Australia.
For more information on the funds and other investment vehicles and services offered by Threadneedle, see
‘‘Management’s Discussion and Analysis of Financial Condition and Results of Operations’’ included in Part II, Item 7 of
this Annual Report on Form 10-K.
Distribution
Threadneedle has organized its sales force and support services into two major segments: retail markets and institutional
markets. The institutional team concentrates on establishing strong relationships with institutional clients and the leading
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