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Press release

Liability-Driven Investing Strategies Failing to Achieve Widespread Adoption, According to New Research from RiverSource Investments and PLANSPONSOR Magazine
Survey results also support the existence of Asset Return-Funding Cost Paradox

MINNEAPOLIS – August 19, 2008 – In spite of the attention that Liability-Driven Investing (LDI) has received, its adoption by defined benefit plan sponsors appears to be lagging. LDI strategies are not in widespread use, and only 6 percent of all survey respondents assess their manager's investment performance in relation to a liability-based benchmark, the defining characteristic of an LDI strategy. This is according to new research sponsored by RiverSource Investments, LLC, a subsidiary of Ameriprise Financial, Inc., (NYSE: AMP) and conducted by PLANSPONSOR magazine.

Survey results also exhibit a significant asset-liability mismatch - more than 50 percent of all survey respondents have fixed income allocations of 30 percent or less.

Respondents cited current interest rates remaining below historical averages and the lower return potential of fixed income assets as the primary barriers to adopting LDI. The risk of being under-funded and simply not knowing enough about LDI strategies are cited as other major obstacles.

"The survey shows that the institutional marketplace is slow to break from tradition when it comes to adopting LDI," said Chris Keating, head of institutional sales and client services at RiverSource Investments. "The primary reason an LDI strategy can be cost effective is its ability to avoid large funding deficits, yet more than 40 percent of respondents cite the risk of being under-funded as a reason not to implement LDI."

Survey results also support the existence of the counterintuitive Asset Return-Funding Cost Paradox. Some underfunded plans with high equity returns may face higher funding costs compared to an LDI strategy, with non-corporate pension plans tending to violate the requirements to convert the equity risk premium into lower funding costs more often than corporate plans.

Being underfunded for extended periods of time is the most severe risk of increased long term funding costs, yet survey results show that about three quarters of the respondents' plans were, on average, underfunded over the last 10 years. Thus, the results suggest that the Asset Return-Funding Cost Paradox is more than mere theoretical possibility.

About the research

In June 2008, feedback was solicited from small, mid-, and large defined benefit plan sponsors on their utilization of and perceptions about liability-driven investing strategies.

A total of 159 firms participated in the study, which was conducted via a web-based, anonymous questionnaire. The questionnaire, developed jointly by RiverSource Investments and PLANSPONSOR magazine, consisted of 21 questions.

RiverSource Investments provided financial support for the study and its role was not disclosed to research participants. PLANSPONSOR is not affiliated with RiverSource Investments and nothing herein should be taken as an endorsement by PLANSPONSOR of RiverSource Investments' products or services.

An article on the survey is available in the August issue of PLANSPONSOR.

Webcast

A webcast for institutional investors on the survey results is scheduled for Sept. 11 at 12 noon EDT featuring Jamie Jackson, Liquid Assets Sector Leader, and Norman Ehrentreich, Liquid Assets Sector Manager, of RiverSource Investments. The webcast will be moderated by Charles Ruffel, CEO of PLANSPONSOR.

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. As a leading source of investment insight and innovation, RiverSource Investments delivers a full range of products across the risk return spectrum to retail investors and their advisors and to institutional investors including corporations, pension funds, governments, foundations and endowments.

RiverSource Investments, LLC is an SEC-registered investment adviser that offers investment products and services under the names RiverSource Institutional Advisors, RiverSource Alternative Investments, RiverSource Capital Management and RiverSource Insurance Assets.

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.

You should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about the funds, call (888) 791-3380. Read the prospectus carefully before investing.

Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

RiverSource® mutual funds are distributed by RiverSource Distributors, Inc., Member FINRA, and managed by RiverSource Investments, LLC. These companies are part of Ameriprise Financial, Inc.

For U.S. media inquiries, please contact:

Ryan Lund, Director, Media Relations
(612) 671-3459
ryan.s.lund@ampf.com

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