Ameriprise 2015 Annual Report Download - page 97

inflows of $2.5 billion for the year ended December 31, 2014 included a $5.6 billion mandate from a leading UK wealth
management firm to manage assets in a Strategic Managed fund, partially offset by $3.4 billion of outflows from legacy
insurance assets.
The following table presents the results of operations of our Asset Management segment on an operating basis:
Years Ended
December 31,
2014 2013 Change
(in millions)
Revenues
Management and financial advice fees $ 2,791 $ 2,643 $ 148 6%
Distribution fees 493 469 24 5
Net investment income 30 54 (24) (44)
Other revenues 65120
Total revenues 3,320 3,171 149 5
Banking and deposit interest expense — 2 (2) NM
Total net revenues 3,320 3,169 151 5
Expenses
Distribution expenses 1,148 1,112 36 3
Amortization of deferred acquisition costs 15 17 (2) (12)
Interest and debt expense 26 24 2 8
General and administrative expense 1,343 1,325 18 1
Total expenses 2,532 2,478 54 2
Operating earnings $ 788 $ 691 $ 97 14%
NM Not Meaningful.
Our Asset Management segment pretax operating earnings, which exclude net realized investment gains or losses,
increased $97 million, or 14%, to $788 million for the year ended December 31, 2014 compared to $691 million for the
prior year reflecting higher average assets under management driven by equity market appreciation, partially offset by retail
fund distributions and a $30 million gain on the sale of Threadneedle’s strategic business investment in Cofunds in the
prior year.
Net Revenues
Net revenues, which exclude net realized investment gains or losses, increased $151 million, or 5%, to $3.3 billion for the
year ended December 31, 2014 compared to $3.2 billion for the prior year driven by an increase in management and
financial advice fees.
Management and financial advice fees increased $148 million, or 6%, to $2.8 billion for the year ended December 31,
2014 compared to $2.6 billion for the prior year primarily due to an increase in assets under management. Average
assets under management increased 7% compared to the prior year primarily driven by equity market appreciation, partially
offset by retail fund distributions. See our discussion above on the changes in assets under management.
Distribution fees increased $24 million, or 5%, to $493 million for the year ended December 31, 2014 compared to
$469 million for the prior year primarily due to higher assets levels due to market appreciation, partially offset by retail
fund distributions.
Net investment income, which excludes net realized investment gains or losses, decreased $24 million, or 44%, to
$30 million for the year ended December 31, 2014 compared to $54 million for the prior year due to a $30 million gain
on the sale of Threadneedle’s investment in Cofunds in the prior year.
Expenses
Total expenses increased $54 million, or 2%, to $2.5 billion for the year ended December 31, 2014 compared to the prior
year primarily due to a $36 million increase in distribution expenses driven by higher average retail fund assets and an
$18 million increase in general and administrative expense primarily driven by the negative impact of foreign exchange
rates and investments in the business. The negative impact of foreign exchanges rates on expenses was more than offset
by the positive impact to revenues.
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