Ameriprise 2012 Annual Report Download - page 29

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 ATC 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, 2012, we managed $114.2 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, 2012, Threadneedle had $127.8 billion in assets under management 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. 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 to institutional and retail clients in Europe, the United Kingdom,
the Middle East, the Asia-Pacific region and Africa. Threadneedle’s mutual 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 and investment trusts, the majority of which
are registered for offer in multiple jurisdictions.
Threadneedle’s institutional business offers separately managed accounts for pension funds and other institutions. At
December 31, 2012, Threadneedle had $87.6 billion in separately managed accounts. Threadneedle distributes its
institutional products in the UK, Europe, Asia, the U.S., the Middle East, Africa and Australia.
For more information on the funds and other investment vehicles and services Threadneedle offers, 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 leading global
and national consultancy firms. On the retail side, Threadneedle mutual funds are sold through financial intermediaries and
institutions, including banks, life insurance companies, independent financial advisers, wealth managers and platforms
offering a variety of investment products.
Our Segments — Annuities
Our Annuities segment provides RiverSource variable and fixed annuity products to individual clients. The RiverSource Life
companies provide variable annuity products through our advisors, and fixed annuity products are provided through both
affiliated and unaffiliated advisors and financial institutions. These products are designed to help individuals address their
asset accumulation and income goals. Revenues for our variable annuity products are primarily earned as fees based on
underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed
annuity products are primarily earned as net investment income on assets supporting fixed account balances, with
profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed
account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and
for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment
revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services
provided in connection with the availability of VIT Funds under the variable annuity contracts. Intersegment expenses for
this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as
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