Ameriprise 2014 Annual Report Download - page 16

This report is not a solicitation for any of the products or services
mentioned. Investment products, including shares of mutual funds, are
not FDIC or otherwise federally insured, are not deposits or obligations,
or guaranteed by any nancial institution, and involve investment risks,
including possible loss of principal and uctuation in value.
Past performance does not guarantee future results. Actual
results may vary materially from our plans, estimates and beliefs.
Please review carefully the discussion captioned “Forward-Looking
Statements” contained in Part II, Item 7 in our Annual Report on Form
10-K for the year ended Dec. 31, 2014.
For each fund with at least a three-year history, Morningstar
calculates a Morningstar Rating™ based on a Morningstar Risk-
Adjusted Return measure that accounts for variation in a fund’s
monthly performance (including the effects of sales charges,
loads, and redemption fees), placing more emphasis on downward
variations and rewarding consistent performance. The top 10% of
funds in each category receive 5 stars, the next 22.5% receive 4
stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars
and the bottom 10% receive 1 star. (Each share class is counted as a
fraction of one fund within this scale and rated separately, which may
cause slight variations in the distribution percentages.)
The Morningstar Rating™ is for class Z shares only; other classes
may have different performance characteristics and may have
different ratings.
The following describes the principal subsidiaries that conduct the
nancial planning, asset accumulation and income, and protection
business of Ameriprise Financial, Inc. Columbia Mutual Funds are
distributed by Columbia Management Investment Distributors, Inc.,
member FINRA, and managed by Columbia Management Investment
Advisers, LLC. Threadneedle International Limited is an FCA- and
an SEC-registered investment adviser and an afliate of Columbia
Management Investment Advisers, LLC, based in the U.K. RiverSource
insurance and annuity products are issued by RiverSource Life
Insurance Company and, in New York, by RiverSource Life Insurance
Co. of New York, Albany, NY, and distributed by RiverSource
Distributors, Inc. Auto and home insurance is underwritten by IDS
Property Casualty Insurance Company, or in certain states, Ameriprise
Insurance Company. Personal trust services are offered through
Ameriprise National Trust Bank. Ameriprise Financial Services, Inc.
Member FINRA and SIPC. Investment advisory services and products
are made available through Ameriprise Financial Services, Inc., a
registered investment adviser.
Sources: #1 Customer Experience – Investment rm category (“The
Customer Experience Index, 2014” Forrester Research, Inc.); #2
Most Trusted Firm – Investment rm category (2014 Temkin Ratings);
Highest Forgiveness Rating – Investment rm category (2014 Temkin
Ratings); Recognized as “customer-obsessed” rm – Investment
rm category (Forrester Customer Advocacy: How US Consumers
Rate Their Financial Services Firms, November 2013); #1 provider
of quality nancial advice (Cogent Reports – Investor Brandscape,
Dec. 2014); Social media (wealthmanagement.com – 2015); #2
mutual fund advisory AUM – Cerulli Edge Managed Accounts through
3Q14; #5 IRA roll-over destination – Cogent Reports, Feb 2015; #30
Global Asset Manager – Pensions & Investments – Nov. 10, 2014;
#11 LT MF manager – ICI data through 3Q14; #5 retail AUM in UK -
investmentuk.org; top 10 VUL provider – LIMRA through 3Q14; see
ir.ameriprise.com for current nancial strength ratings.
Ameriprise helped pioneer the nancial planning process more
than 30 years ago. We have more nancial planning clients and
more CERTIFIED FINANCIAL PLANNER professionals than any other
company in the U.S. based on data led at adviserinfo.sec.gov and
documented by the CFP Board of Standards, as of 12-31-13.
($ in millions) 2014 2013 2012
Total net revenues $12,268 $11,199 $10,217
Less: Revenues attributable to
the CIEs 651 345 71
Less: Net realized gains 37 7 7
Less: Market impact on indexed
universal life benets (11) (10) –
Less: Integration/restructuring
charges – – (4)
Operating total net revenues $11,591 $10,857 $10,143
($ in millions) 2014 2013 2012 2009
Net income attributable to Ameriprise Financial $1,619 $1,334 $1,029 $634
Less: Income (loss) from discontinued
operations, net of tax (2) (3) (2) 1
Net income from continuing operations
attributable to Ameriprise Financial 1,621 1,337 1,031 633
Less: Adjustments(1) (41) (123) (214) (88)
Operating earnings $1,662 $1,460 $1,245 $721
Ameriprise Financial shareholders’
equity(2) $8,270 $8,582 $9,071 $6,431
Less: Assets and liabilities held
for sale(2) – – – 100
Less: Accumulated other
comprehensive income (loss), net of tax
"AOCI"(2)
734 821 1,001 (436)
Ameriprise Financial shareholders’ equity
from continuing operations excluding
AOCI(2)
7, 5 3 6 7,76 1 8,070 6,767
Less: Equity impacts attributable
to the consolidated investment
entities(2)
311 333 397 –
Operating equity(2) $7, 225 $7,42 8 $7,673 $6,767
Return on equity from continuing
operations, excluding AOCI 21.5% 17. 2 % 12.8% 9.4%
Operating return on equity,
excluding AOCI(3) 23.0% 19.7% 16.2% 10.7%
($ in millions) 2014
Asset Management operating total net revenues $3,320
Less: Distribution pass through revenues 929
Less: Subadvisory and other pass through revenues 400
Asset Management adjusted operating revenues $1,991
Asset Management pretax operating earnings $788
Less: Operating net investment income 30
Add: Amortization of intangibles 34
Asset Management adjusted operating earnings $792
Asset Management adjusted net pretax
operating margin 39.8%
(1) Adjustments reect the trailing twelve months’ sum of after-tax net realized gains/losses; market impact on variable annuity guaranteed benets, net of hedges and related DSIC and DAC
amortization; the market impact on indexed universal life benets, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; and integration/
restructuring charges. After-tax is calculated using the statutory tax rate of 35%. (2) Amounts represent the ve-point average of quarter-end balances, except for 2009. Amounts for 2009
represent a two-point average of beginning of year and end of year balances. (3) Operating return on equity excluding accumulated other comprehensive income/loss (AOCI) is calculated using the
trailing twelve months of earnings excluding the after-tax net realized gains/losses; market impact on variable annuity guaranteed benets, net of hedges and related DSIC and DAC amortization;
the market impact on indexed universal life benets, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; integration/restructuring charges;
and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity excluding AOCI; the impact of consolidating investment entities; and the assets and liabilities held for
sale using a ve-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 35%.
($ in millions, except per share amounts) 2014 2013 2012 2014 2013 2012
Net income attributable to Ameriprise Financial $1,619 $1,334 $1,029 $8.30 $6.44 $4.62
Less: Income (loss) from discontinued operations, net of tax (2) (3) (2) (0.01) (0.02) (0.01)
Net income from continuing operations attributable to Ameriprise Financial 1,621 1,337 1,031 8.31 6.46 4.63
Less: Net realized gains, net of tax(1) 24 5 5 0.12 0.02 0.02
Add: Integration/restructuring charges, net of tax(1) –9 46 – 0.04 0.21
Add: Market impact on variable annuity guaranteed benets, net of tax(1) 61 111 173 0.31 0.53 0.77
Add: Market impact on indexed universal life benets, net of tax(1) 48 – 0.02 0.04 –
Operating earnings $1,662 $1,460 $1,245 $8.52 $7.05 $5.59
(1) Calculated using the statutory tax rate of 35%.
Per Diluted Share