Ameriprise 2014 Annual Report Download - page 29

investment management and research capabilities through research sharing and, for certain assets, through the use of
sub-advisory and personnel sharing arrangements. To better reflect the combined capabilities of Columbia and
Threadneedle and the collaborative approach which enables them to together provide better investment solutions for the
benefit of clients globally, in January, 2015, we announced our intention to rebrand our asset management businesses
under a common, new brand — Columbia Threadneedle InvestmentsSM — later this year.
Product and Service Offerings
We offer a broad spectrum of investment advice and products to individual, institutional and high-net worth investors. In an
effort to address changing market conditions and the evolving needs of investors, we may from time to time develop and
offer new retail and institutional investment products with new and/or innovative investment strategies, including U.S.
mutual funds and their non-U.S. equivalents, ETFs, separately managed accounts, hedge funds and other private funds,
CLOs, and collective funds. The following is an overview of our Asset Management offerings.
U.S. Registered Funds
We provide investment advisory, distribution and other services to the Columbia Management family of funds. The
Columbia Management family of funds includes retail mutual funds, exchange-listed ETFs and U.S. closed-end funds and
variable product funds. Retail mutual funds are available through unaffiliated third-party financial institutions and the
Ameriprise financial advisor network. Variable product funds are available as underlying investment options in variable
annuity and variable life insurance products, including RiverSource products. The Columbia Management family of funds
includes domestic and international equity funds, fixed income funds, cash management funds, balanced funds, specialty
funds, absolute return and other alternative funds and asset allocation funds, including fund-of-funds, with a variety of
investment objectives. At December 31, 2014, our U.S. retail mutual funds, ETFs and U.S. closed-end funds had total
managed assets of $165.7 billion in 140 funds. The variable insurance trust funds (‘‘VIT Funds’’) that we manage had
total managed assets at December 31, 2014 of $72.0 billion in 75 funds.
Columbia Management serves as investment manager for most of our U.S. mutual funds as well as our exchange-listed
ETFs and U.S. closed-end funds. Columbia Wanger Asset Management, LLC (‘‘Columbia Wanger’’), a subsidiary of
Columbia Management, also serves as investment manager for certain funds. In addition, several of our subsidiaries
perform related services for the funds, including distribution, accounting, administrative and transfer agency services.
Columbia Management and Columbia Wanger perform investment management services pursuant to contracts with the
U.S. registered funds that are subject to renewal by the fund boards within two years after initial implementation, and
thereafter, on an annual basis.
We earn management fees for managing the assets of the Columbia Management family of mutual funds based on the
underlying asset values. We also earn fees by providing related services to the Columbia Management family of funds.
The Columbia Management family of funds also uses sub-advisers to diversify the product offerings it makes available to
investors.
Non-U.S. Funds
Threadneedle offers a fund product range that includes different risk-return options across regions, markets, asset classes
and product structures, which include funds that are similar to U.S. mutual funds. These funds are marketed to non-U.S.
persons and often referred to as UCITS products (Undertakings for Collective Investment in Transferable Securities). UCITS
and other funds offered by Threadneedle typically are structured as Open Ended Investment Companies (‘‘OEICs’’) in the
UK, Societes d’Investissement A Capital Variable (‘‘SICAVs’’) in Luxembourg, as well as unit trusts and investment trusts.
The majority of these offerings are registered in and distributed across multiple jurisdictions. At December 31, 2014, our
non-U.S. retail funds had total managed assets of $43.9 billion in 188 funds.
Threadneedle Asset Management Ltd. serves as investment manager for most of our non-U.S. fund products and earns
management fees based on underlying asset values for managing the assets of these funds. Certain Threadneedle affiliates
also earn fees by providing ancillary services to the funds. In addition, certain non-U.S. funds or portions of the portfolios
underlying such funds may receive sub-advisory services, including services provided by both Columbia Management
personnel and other unaffiliated advisers.
Separately Managed Accounts
We provide investment management services to a range of clients globally, including pension, profit-sharing, employee
savings, sovereign wealth funds and endowment funds, accounts of large- and medium-sized businesses and governmental
clients, as well as the accounts of high-net-worth individuals and smaller institutional clients, including tax-exempt and
not-for-profit organizations. Our services include investment of funds on a discretionary or non-discretionary basis and
related services including trading, cash management and reporting. We offer various fixed income, equity and alternative
investment strategies for our institutional clients with separately managed accounts. Columbia Management and
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