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

Cash
Includes readily accessible money market or bank deposit assets held in your brokerage sweep account.
 

Cash Investments
Cash investments are generally less readily available than liquid cash. These may include assets that are held within an investment product such as a mutual fund, ETF or annuity. This segment also includes money market funds, certificates as well as treasuries and CDs that have a maturity of less than 3 months.

Fixed income

U.S. Government
Both Treasury and agency US Government debt and CDs with maturity greater than 3 months.

U.S. Investment Grade Corporate
Can include Preferreds and Convertibles rated Baa3/BBB- or higher by Moody’s or S&P. Structured products with principal protection from the issuer are classified as fixed income. The type of fixed income is based on the rating of the issuer, which is typically investment grade.

Municipals
High Yield Bond
Can include Preferreds and Convertibles rated below Baa3/BBB- by Moody’s or S&P.

Developed Foreign Bond
Emerging Foreign Bond
Other Bond
Includes unrated Preferreds and Convertibles.

Equities

Domestic stock
U.S. stocks across large, mid and small caps, as well as value and growth segments.

Foreign stock
Developed & Emerging Foreign Equities

Other Stock
Includes structured products without principal protection and which are tied to an equity index or one or more equities. May also include stock in private companies, penny stocks etc.

Alternatives Real Assets
Commodities, non-traded REITs and non-traded BDCs
Alternative Strategies

Hedge Funds, managed futures, long-short strategies, non-traditional bond funds
Derivatives

Derivatives
Individual options and futures

Other assets Other
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

  1. Added more classes – now up to 6.

  2. Classified more assets to reduce the number that appear as “other assets.”

  3. 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.