RiverSource Life Insurance Company, Inc., a subsidiary of Ameriprise Financial, Inc. (NYSE: AMP), has introduced Disciplined Asset AllocationSM Portfolios for individuals investing in RiverSource® variable annuities and RiverSource variable universal life insurance products. Disciplined Asset Allocation Portfolios are five RiverSource fund-of-funds subaccounts, ranging from conservative to aggressive, designed to help investors more easily manage and help drive the performance of their RiverSource variable annuity and variable universal life products. The new portfolios are managed by the RiverSource Disciplined Equity and Asset Allocation team in Cambridge, Mass.
Using a disciplined, repeatable and systematic investing process similar to large institutional investors, RiverSource Investments teams work together to actively manage and monitor Disciplined Asset Allocation Portfolios by engaging asset allocation, risk management, security selection and dynamic reallocation strategies:
> The RiverSource Disciplined Equity and Asset Allocation team drives the asset allocation decisions at the portfolio level and manages the underlying equity funds in the portfolios.
> The RiverSource Fixed Income team provides day-to-day management of the fixed income funds in the portfolios and may provide additional input based upon its specialization across fixed income markets.
Advice-embedded solutions such as Disciplined Asset Allocation Portfolios help individuals address the investment management needs of the variable accounts within their annuity and insurance products. Variable annuities are long-term investment vehicles designed to help individuals through each stage of their retirement—from accumulation, to providing income, to passing wealth on to heirs. Variable universal life insurance is permanent life insurance that offers protection and an opportunity to build cash values. With these products, investors will incur mortality and expense fees and subaccount expenses and may also incur optional rider expenses, surrender charges, and contract/policy charges. Both RiverSource variable annuities and variable universal life insurance offer a broad range of carefully selected investment choices, plus fixed account options.
“The variable accounts within annuity and insurance products offer a broad array of investment choices. This can be daunting for some investors, along with the complex tasks of asset allocation, diversification and portfolio rebalancing,” said Gumer Alvero, senior vice president and general manager - RiverSource Annuities. “By choosing Disciplined Asset Allocation Portfolios, individuals may have better management of their variable annuity and variable insurance investment portfolios due to advice-embedded solutions, which are managed by seasoned investment professionals.”
Disciplined Asset Allocation Portfolios are assessed on a monthly basis and portfolios are re-optimized. This allows clients to take advantage of market opportunities and adapt to market changes.
“Research shows that the average equity investor has barely kept pace with the rate of inflation over the last 20 years1,” said Tim Bechtold, senior vice president and general manager - RiverSource Insurance. “Disciplined Asset Allocation Portfolios help people stay invested and on track while avoiding pitfalls, such as trying to time the market or making emotionally driven investment decisions during volatile markets.”
Disciplined Asset Allocation Portfolios are available for new and existing RiverSource variable universal life policies and all new and existing RiverSource RAVA series variable annuities. (Disciplined Asset Allocation Portfolios are not available as an investment option for variable annuity contracts with living benefits and are not available on no longer sold, Single Premium Variable Life insurance policies.)
About RiverSource Insurance and Annuities
Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. These companies are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York.
About RiverSource Investments
RiverSource Investments develops and manages asset growth, preservation and income solutions that revolve around the needs of today's investors. The firm's specialized investment platform provides access to investment and research professionals located in strategic investment centers in the U.S. and overseas. RiverSource Investments delivers a full range of solutions across the risk return spectrum to retail investors and their advisors and to institutional investors including corporations, pension funds, governments, foundations and endowments. For more information, visit riversource.com.
About Ameriprise Financial
Ameriprise Financial, Inc., is a diversified financial services company serving the comprehensive financial planning needs of the mass affluent and affluent. For more information, visit ameriprise.com.
12006 Dalbar study, for 1986–2006.
Variable annuities and variable life are insurance products that are complex, long-term investment vehicles that are subject to market risk, including the potential loss of principal invested.
You should consider the investment objectives, risks, charges and expenses of the variable annuity or variable life insurance and its underlying investment options carefully before investing. For a free copy of the annuity's or life insurance prospectus and underlying investments' prospectus, which contains this and other information about variable annuities or variable life insurance, call (800) 333-3437. Read the prospectus carefully before you invest.
Disciplined Asset Allocation Portfolios are part of RiverSource Variable Series Trust funds that are managed by RiverSource Investments, LLC. RiverSource Investments, LLC as well as RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York are affiliates of Ameriprise Financial, Inc. Each receives revenue from assets allocated to subaccounts investing in the Disciplined Asset Allocation Portfolios.
A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund.
All guarantees are based on the continued claims paying ability of the issuing company and do not apply to the performance of the variable subaccounts, which will vary with market conditions.
Diversification helps you spread risk throughout your portfolio, so investments that do poorly may be balanced by others that do relatively better. Diversification is not a guarantee of overall portfolio profit and does not protect against loss.
RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. These companies are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York.
For RiverSource Life Insurance Company, this applies to insurance policy # 30061 and 30090 and annuity contract # 31043A, 131041A, 131101, 131102, 131103. For RiverSource Life Insurance Co. of New York this applies to insurance policy # 39061 and 39090 and annuity contract # 31053A, 139035A, 139482, 139483, 139484.
© 2008 RiverSource Distributors, Inc. All rights reserved.
Contacts:
Todd Wold, 612-671-6583
todd.wold@ampf.com
