Your asset allocation
Understanding how Ameriprise creates your asset allocation view
The asset allocation section on your statement gives you an easy, at-a-glance way to track the diversification of your investments over time. A clear view into how your investments are allocated across asset classes is important for any investment strategy.
To give you an understanding of how your investments are categorized on your statements, we’ve laid out each of the six asset classes below and listed the types of investments they include. Since the classes include a ‘look through’ into holdings with certain investments, some classes below include exposure from a mutual fund, ETF, UIT or annuity subaccount.
|Asset classes||What’s included?|
|Cash & cash investments||
U.S. Investment Grade Corporate
Developed Foreign Bond
Commodities, non-traded REITs and non-traded BDCs
Hedge Funds, managed futures, long-short strategies, non-traditional bond funds
Holdings for which we temporarily lack classification data (typically newly purchased securities, securities which recently underwent a corporate action, or certain annuity subaccounts). Can include derivatives held inside of mutual funds or other pooled investments. A small number of Structured products that are neither principal protected nor tied to an equity index may be classified here.
Structured Notes are a form of corporate debt that are designed to offer exposure to a portion or all of the risks and returns of one or more referenced securities or indexes. Some structured notes may also be leveraged. Structured Notes vary in complexity and are subject to the issuers’ credit risk, and run the risk of going down to a value of zero. In certain cases, as would be defined in the prospectus, when the referenced securities or indexes decline past a contracted point the issuer of the note may choose to deliver shares or an equivalent cash value of the underlying securities to fulfill the remainder of its obligation leaving the investor with a depressed position, including a value of zero.
We've made three main enhancements in how we classify assets
Added more classes – now up to 6.
Classified more assets to reduce the number that appear as “other assets.”
Provided a view that looks inside of mutual funds and annuity subaccounts, to give a deeper view into a client’s more detail asset allocation.
Examples of how the representation of your asset allocation may change:
A deeper look into your investments
Previously many mutual funds, ETFs and annuity subaccounts were assigned to a single asset class. For example, this meant that 100% of the value of a mutual fund or ETF could have been classified under equities. A hypothetical portfolio that consisted of just one equity mutual fund could have been shown as a pie chart with 100 % equities.
We have now expanded the use of ‘look-through’ to more products and funds, to consistently show the underlying allocation in cases where a fund contains more than 1 asset class. That same hypothetical mutual fund or ETF that may have been previously assigned 100% to the equities category could now be divided into 5% cash investments, 80% equities, 10% fixed income and 5% alternatives. We used to do this for some funds previously, but do so for more funds now.
New clearer view
In the past, the statement showed just 4 asset classes: Cash & Cash Equivalents, Equities, Fixed Income and Other Assets.
We’ve added more asset classes to give you an even more detailed view. And, we’ve categorized more types of investments to reduce the number shown as ‘other assets’. This is part of our commitment to ensure you always have a clear view of your investments.