Ameriprise 2012 Annual Report Download - page 93

The following table presents the results of operations of our Asset Management segment on an operating basis:
Years Ended
December 31,
2011 2010 Change
(in millions)
Revenues
Management and financial advice fees $ 2,434 $ 1,979 $ 455 23%
Distribution fees 450 358 92 26
Net investment income 11 14 (3) (21)
Other revenues 5 15 (10) (67)
Total revenues 2,900 2,366 534 23
Banking and deposit interest expense 3 1 2 NM
Total net revenues 2,897 2,365 532 22
Expenses
Distribution expenses 1,095 794 301 38
Amortization of deferred acquisition costs 19 20 (1) (5)
General and administrative expense 1,255 1,141 114 10
Total expenses 2,369 1,955 414 21
Operating earnings $ 528 $ 410 $ 118 29%
NM Not Meaningful.
Our Asset Management segment pretax operating income, which excludes net realized gains or losses and integration
charges, increased $118 million, or 29%, to $528 million for the year ended December 31, 2011 compared to
$410 million for the prior year. Earnings in 2011 reflect twelve months of Columbia Management earnings compared to
eight months in the prior year, which impacted revenues and expenses.
Net Revenues
Net revenues, which exclude net realized gains or losses, increased $532 million, or 22%, to $2.9 billion for the year
ended December 31, 2011 compared to $2.4 billion for the prior year driven by an increase in management and
distribution fees.
Management and financial advice fees increased $455 million, or 23%, compared to the prior year primarily due to an
increase in asset-based fees driven by higher average assets under management, partially offset by lower hedge fund
performance fees. Average Asset Management AUM increased 24% compared to the prior year primarily due to the
Columbia Management Acquisition, as well as the impact of higher average equity market levels on assets, partially offset
by net outflows. The average S&P 500 Index increased 11% in 2011 compared to the prior year. Hedge fund performance
fees decreased $54 million compared to the prior year.
Distribution fees increased $92 million, or 26%, to $450 million for the year ended December 31, 2011 compared to
$358 million for the prior year driven by higher average assets under management.
Expenses
Total expenses, which exclude integration charges, increased $414 million, or 21%, to $2.4 billion for the year ended
December 31, 2011 compared to $2.0 billion for the prior year due to an increase in distribution expenses and general
and administrative expense.
Distribution expenses increased $301 million, or 38%, to $1.1 billion for the year ended December 31, 2011 compared
to $794 million for the prior year driven by higher average assets under management.
General and administrative expense, which excludes integration charges, increased $114 million, or 10%, to $1.3 billion
for the year ended December 31, 2011 compared to $1.1 billion for the prior year reflecting an additional four months of
ongoing expenses of Columbia Management, as well as higher investment spending compared to the prior year, partially
offset by lower hedge fund performance compensation.
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