Ameriprise 2011 Annual Report Download - page 92

Distribution fees increased $205 million, or 14%, to $1.7 billion for the year ended December 31, 2010 compared to
$1.5 billion for the prior year primarily driven by growth in average fee-based assets resulting from market appreciation and
net inflows in wrap account assets, as well as increased client activity.
Net investment income decreased $20 million, or 7%, to $273 million for the year ended December 31, 2010 compared
to $293 million for the prior year. Operating net investment income, which excludes net realized gains or losses, decreased
$36 million, or 12%, to $272 million for the year ended December 31, 2010 compared to $308 million for the prior year
driven by lower invested assets resulting from net outflows in certificates, as well as lower average yields on invested
assets related to certificates.
Banking and deposit interest expense decreased $66 million, or 50%, to $67 million for the year ended December 31,
2010 compared to $133 million for the prior year primarily due to lower certificate balances as a result of the run-off of
certificate rate promotions, as well as a decrease in crediting rates on certificate products.
Expenses
Total expenses increased $190 million, or 7%, to $3.0 billion for the year ended December 31, 2010 compared to
$2.8 billion for the prior year. Operating expenses, which exclude integration charges, increased $247 million, or 9%, to
$3.0 billion for the year ended December 31, 2010 compared to $2.8 billion for the prior year due to an increase in
distribution expenses partially offset by a decrease in general and administrative expense.
Distribution expenses increased $310 million, or 19%, to $2.0 billion for the year ended December 31, 2010 compared
to $1.6 billion for the prior year primarily due to growth in average fee-based assets, as well as higher advisor
compensation from business growth.
General and administrative expense decreased $120 million, or 10%, to $1.1 billion for the year ended December 31,
2010 compared to $1.2 billion for the prior year. Integration charges decreased $57 million to $7 million in 2010
compared to $64 million in the prior year. Operating general and administrative expense, which excludes integration
charges, decreased $63 million, or 6%, to $1.1 billion for the year ended December 31, 2010 reflecting cost controls.
Asset Management
The following tables present the changes in Columbia and Threadneedle managed assets:
Market
Appreciation/
January 1, (Depreciation) Foreign December 31,
2010 Net Flows & Other(1) Exchange 2010
(in billions)
Columbia Managed Assets:(2)
Retail Funds $ 76.9 $ (5.2) $ 146.8(3) $ — $ 218.5
Institutional Funds 62.3 (7.1) 72.0(4) — 127.2
Alternative Funds 9.9 — 0.1 — 10.0
Less: Eliminations (0.1) — (0.1) — (0.2)
Total Columbia Managed Assets 149.0 (12.3) 218.8 — 355.5
Threadneedle Managed Assets:
Retail Funds 29.1 1.9 3.5 (1.1) 33.4
Institutional Funds 66.8 (2.2) 8.7 (2.4) 70.9
Alternative Funds 1.9 (0.2) (0.4) — 1.3
Total Threadneedle Managed Assets 97.8 (0.5) 11.8 (3.5) 105.6
Less: Sub-Advised Eliminations (3.6) (0.1) (0.6) — (4.3)
Total Managed Assets $ 243.2 $ (12.9) $ 230.0 $ (3.5) $ 456.8
(1) Distributions of Retail Funds are included in market appreciation/(depreciation) and other.
(2) Prior to the Columbia Management Acquisition, the domestic managed assets of our Asset Management segment, which are now
included in Columbia Managed Assets, were managed by RiverSource Investments.
(3) Included in Market appreciation/(depreciation) and other is $118.1 billion due to the Columbia Management Acquisition, including
$3 billion of assets that were transferred to RiverSource Sub-advised through the implementation of the Portfolio Navigator program,
and an additional $13.1 billion of Portfolio Navigator related assets sub-advised by others.
(4) Included in Market appreciation/(depreciation) and other is $68.4 billion due to the Columbia Management Acquisition.
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