Ameriprise 2014 Annual Report Download - page 30

Threadneedle distribute products of the other, including Threadneedle’s offering various investment strategies of Columbia
Management to non-U.S. clients and Columbia Management’s offering of certain investment strategies of Threadneedle to
U.S. clients.
For our investment management services, we generally receive fees based on the market value of managed assets
pursuant to contracts the client can terminate on short notice. Clients may also pay us fees based on the performance of
their portfolio. At December 31, 2014, Columbia Management managed a total of $42.0 billion in assets under this range
of services and Threadneedle managed $100.1 billion.
Management of Enterprise Owned Assets
We provide investment management services and recognize management fees for certain assets on our Consolidated
Balance Sheets, such as the assets held in the general account of our RiverSource Life companies and assets held by
Ameriprise Certificate Company. Our fixed income team manages the general account assets to produce a consolidated
and targeted rate of return on investments based on a certain level of risk. Our fixed income and equity teams also
manage separate account assets. The Asset Management segment’s management of institutional owned assets for
Ameriprise Financial subsidiaries is reviewed by the boards of directors and staff functions of the applicable subsidiaries
consistent with regulatory investment requirements. At December 31, 2014, the Asset Management segment managed
$36.1 billion of institutional owned assets.
Management of Collateralized Loan Obligations (‘‘CLOs’’)
Columbia Management has a dedicated team of investment professionals who provide collateral management services to
special purpose vehicles which primarily invest in syndicated bank loans and issue multiple tranches of securities
collateralized by the assets of each pool. By offering multiple tranches of securities, these special purpose vehicles provide
investors with various maturity and credit risk characteristics. Scheduled payments to investors are based on the
performance of the CLO’s collateral pool. For collateral management of CLOs, we earn fees based on the par value of
assets and, in certain instances, we may also receive performance-based fees. At December 31, 2014, we managed
$6.6 billion of assets related to CLOs.
Private Funds
Columbia Management provides investment advice and related services to private, pooled investment vehicles organized as
limited partnerships, limited liability companies or foreign (non-U.S.) entities. These funds are currently exempt from
registration under the Investment Company Act under either Section 3(c)(1) or Section 3(c)(7) or related interpretative
relief and are organized as U.S. and non-U.S. funds. These funds are subject to local regulation in the jurisdictions where
they are formed or marketed. For investment management services, we generally receive fees based on the market value
of assets under management, and we may also receive performance-based fees. As of December 31, 2014, we managed
$200 million in private fund assets.
Ameriprise Trust Company — Collective Funds and Separately Managed Accounts
Collective funds are investment funds that are exempt from registration with the Securities and Exchange Commission
(‘‘SEC’’) and offered primarily through banks, trust companies and other financial institutions to certain qualified
institutional clients such as retirement, pension and profit-sharing plans. Columbia Management currently serves as
investment manager to ATC with respect to a series of ATC collective funds covering a broad spectrum of investment
strategies for which ATC serves as trustee. We receive fees pursuant to an agreement with ATC for such investment
management services that are generally based upon a percentage of assets under management. In addition to its
collective funds, ATC serves as investment manager to separately managed accounts for qualified institutional clients.
As of December 31, 2014, we managed $6.7 billion of ATC Funds and separate accounts for ATC clients. This amount
does not include the Columbia Management family of funds held in other retirement plans because these assets are
included under assets managed for institutional and retail clients and within the ‘‘Product and Service Offerings — U.S.
Registered Funds’’ section above.
Sub-advised Accounts
In addition to providing sub-advisory services to each other, Columbia Management and Threadneedle act as sub-adviser
for certain U.S. and non-U.S. funds, private banking individually managed accounts, common trust funds and other
portfolios sponsored or advised by other firms. As with our affiliated funds, we earn management fees for these
sub-advisory services based on the underlying asset value of the funds and accounts we sub-advise. As of December 31,
2014, we managed over $32.0 billion in assets in a sub-advisory capacity.
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