Purchasing mutual funds through Ameriprise Financial

Ameriprise Financial Services, Inc. ("Ameriprise Financial") has agreements with more than 200 mutual fund firms, which allows us to offer clients a broad range of more than 2,000 mutual funds. The advisors' goal is to select suitable investments that help clients achieve their financial goals. The following describes important information relating to the availability of mutual funds offered through Ameriprise Financial and factors that may influence the mutual funds advisors recommend.

Of the more than 200 mutual fund firms that Ameriprise Financial offers, twenty-six mutual fund firms participate in our mutual fund program (“the Program”). Ameriprise Financial selects certain mutual fund firms to participate in the Program in order to develop a strong offering for clients and advisors.

The goal at Ameriprise Financial is to offer a wide range of mutual funds using the following criteria:

• Marketing payments to support the cost of distribution
• Financial strength of the mutual fund firm
• Product breadth and strong mutual fund performance
• Ability to provide wholesaling and training to Ameriprise financial advisors

Twenty-two mutual fund firms fully participate in the Program. These fund firms include the RiverSource Investments family of funds (the Ameriprise Financial-affiliated fund family that is discussed below), AIM, American Century, Calvert, Columbia, Credit Suisse, Dreyfus, DWS Scudder, Eaton Vance, Evergreen, Federated, Fidelity, Goldman Sachs, Janus, John Hancock, Legg Mason, MFS, Nuveen, Oppenheimer, Phoenix, Van Kampen and Wells Fargo. These firms are referred to as "Full Participation Firms."

Four mutual fund firms participate in the Program at a limited level. These fund firms include Alliance Bernstein, Allianz/PIMCO, Franklin Templeton, and Putnam. These firms are referred to as "Limited Participation Firms."

Ameriprise financial advisors may offer, and clients are free to choose, mutual funds from the more than 200 fund firms offered. However, certain aspects of the Program may create a conflict of interest or incentive if Ameriprise Financial promotes, or Ameriprise financial advisors recommend, the mutual funds offered by a firm participating in the Program versus mutual funds offered by nonparticipating firms. In addition, among mutual fund firms participating in the Program, advisors generally have a greater incentive to offer mutual funds from Full Participation Firms than mutual funds from Limited Participation Firms. As further described below, these conflicts and incentives may arise from the marketing and sales support provided to our financial advisors by, as well as the payments Ameriprise Financial receives from, mutual fund firms participating in the Program, and with other relationships with mutual fund firms,  including our affiliation with the RiverSourceInvestments family of funds.

From time to time, Ameriprise Financial may enter into new relationships with mutual fund firms that do not currently participate in the Program. Generally, Ameriprise Financial will only add mutual fund firms to the Program that satisfy the criteria for Full Participation. See the website at www.ameriprise.com for the most current Program information.

Marketing and sales support payments

To be included in the Program, mutual fund firms have agreed to pay Ameriprise Financial a portion of the revenue generated from the sale and/or management of mutual fund shares. Full Participation Firms pay marketing support at a higher level than Limited Participation Firms. Each year a client holds shares of a particular mutual fund, the mutual fund's advisor or distributor may pay to Ameriprise Financial an amount based on the value of the mutual fund shares held in clients’ accounts (asset-based payment). In addition, a mutual fund's advisor or distributor may pay a fee to Ameriprise Financial for the mutual fund shares purchased during a given period (sales-based payment). As of December 2007, Ameriprise Financial received an asset-based payment (up to 0.25% per year) on some or all of Ameriprise Financial clients’ assets managed by the participating mutual fund firms and a maximum sales-based payment (up to 0.25%) on some or all of the participating mutual fund families’ gross sales made through Ameriprise Financial. Limited Participation Firms cap the amount of marketing support their affiliates may pay on mutual funds and disclose these limits in prospectuses. Specific marketing support payments are detailed below under Summary of the 2007 mutual fund firms’ marketing support by fund firm. These arrangements vary between mutual fund firms and may be subject to change or renegotiation at any time. If a mutual fund firm ceases to pay marketing support or other fees, Ameriprise Financial may remove the mutual fund firm from the Program and may cease to offer mutual fund shares.

Marketing and sales support

The mutual fund firms in the Program that are Full Participation Firms provide education, training, marketing, and sales support to Ameriprise financial advisors. These mutual fund firms may reimburse Ameriprise Financial, or Ameriprise financial advisors, for client/prospect education events and advisor sales meetings, seminars, and training events consistent with Ameriprise Financial policies; Ameriprise Financial may also receive nominal non-cash benefits from time to time. Limited Participation Firms pay marketing support at a lower level than Full Participation Firms; therefore, Limited Participation Firms may not provide some services, or the same level of services, to Ameriprise financial advisors. As a result, Ameriprise financial advisors may have a greater familiarity with Full Participation Firms.

Other financial relationships

In addition to sales charges, 12b-1 fees, and marketing support payments Ameriprise Financial receives, the mutual fund's advisor, distributor, or affiliate may also make other payments to Ameriprise Financial for client services and other account maintenance activities provided. Information about these charges and fees may be viewed at www.ameriprise.com/funds in the document titled “An Investor's Guide to Purchasing Mutual Funds through Ameriprise Financial” or in the mutual fund prospectus. Ameriprise Financial receives up to 0.40% per year on some, or all, Ameriprise Financial clients' assets managed by participating mutual fund firms.

Ameriprise Financial provides clients with access to other mutual fund firms through its relationship with Charles Schwab & Co., Inc. ("Schwab") and Schwab's mutual fund program. Schwab passes to Ameriprise Financial certain payments it receives from mutual fund firms accessed through its program.

Ameriprise Financial and its affiliates may have other relationships with mutual fund firms whose mutual funds Ameriprise Financial offers. These relationships may include affiliates of mutual fund firms acting as a sub-advisor to RiverSource Investments mutual funds, or affiliates of a mutual fund firm managing an investment portfolio within another Ameriprise Financial or RiverSource product, such as a variable annuity. Mutual fund firms may use RiverSource Investments as an underlying investment option in products offered through the Program.

Davis Funds owns in excess of 5% of Ameriprise Financial, Inc. common stock and participates in the Ameriprise Financial fee-based advisory program as an accommodation firm. For a portion of 2007, Fidelity Funds also owned at least a 5% position in Ameriprise Financial, Inc. stock. However, Fidelity's Feb. 14, 2008, Schedule 13G filing with the Securities Exchange Commission ("SEC") indicates that, as of Dec. 31, 2007, ownership of Ameriprise Financial stock was below 5%. Fidelity is a Full Participation Firm.

Transaction charges

Ameriprise financial advisors pay charges on mutual fund sells, purchases, and exchanges ("Transaction charges"). Transaction charges are determined using a variety of factors such as the type of transaction, processing methodology (e.g., online, telephone, systematic arrangements), account type (e.g., fee-based investment advisory account, transaction-based brokerage account), and, in one case, the mutual fund firm. Ameriprise financial advisors pay the same mutual fund transaction rate for all mutual fund firms except American Funds. Ameriprise financial advisors pay significantly higher transaction charges (up to $85 per transaction) on mutual fund purchases of American Funds. This higher transaction charge may be a disincentive for Ameriprise financial advisors to recommend American Funds. Additionally, American Funds does not pay Ameriprise Financial for marketing support.

RiverSource^® family of mutual funds

RiverSource Investments, LLC sponsors and manages the RiverSource family of mutual funds (formerly American Express Funds), and RiverSource Distributors, Inc. is the distributor. The affiliates of Ameriprise Financial Services provide certain administrative, custody, and transfer agent services to these mutual funds. Ameriprise Financial and its affiliates generally receive more revenue from sales of RiverSource mutual funds than from sales of other mutual funds. Employee compensation and operating goals at all levels of the company are tied to the company's success. Certain employees may receive higher compensation and other benefits based, in part, on assets invested in RiverSource mutual funds.

Mutual Fund List

Ameriprise financial advisors may make mutual fund recommendations based on a group of mutual funds that appear on an Ameriprise Financial mutual fund list ("List"). Morningstar Associates, LLC developed the List using quantitative and qualitative criteria. Approximately 1,100 mutual funds are eligible for inclusion on the List, which includes only RiverSourcemutual funds and mutual funds deemed as Full Participation Firms in the Program described above.

In developing the List, Morningstar Associates applies a quantitative and qualitative evaluation process that includes an analysis of a mutual fund's return, risk and expense; the tenure of its portfolio managers; and the consistency of its performance and style. Certain mutual funds that would have otherwise been included on the List are excluded due to high investment minimums.

Ameriprise financial advisors and clients must consider suitability, breakpoint discount eligibility, and NAV transfer availability when trading mutual funds. The mutual funds on the List are subject to change periodically; however, changes to the List should not be the sole reason that prompts mutual fund trading.

The List was developed by evaluating the characteristics of Class A mutual fund shares. As a result, clients for whom another share class may be more advantageous may be unable to purchase a mutual fund on the List if the mutual fund firm does not offer that particular share class. In addition, the List was developed using those mutual funds currently available through Ameriprise^®Strategic Portfolio Service (SPS) Advantage or Ameriprise^® Brokerage. As a result, clients may not be able to purchase a mutual fund on the List if that fund is not available through the product or service in which the client invests.

Ameriprise Financial receives payments for services provided by Full Participation Firms, the RiverSource family of mutual funds, and other mutual funds available for sale through Ameriprise Financial. The amount of fees Ameriprise Financial receives from mutual fund firms eligible for inclusion on the List is not considered in the List selection process. Mutual fund firms do not pay Ameriprise Financial to be included on the List. Clients may choose to follow the recommendations provided by their Ameriprise financial advisor or may select from any other mutual fund offered through Ameriprise Financial regardless of whether that mutual fund appears on the List.

Summary of the 2007 mutual fund firms' marketing support

Fund Family	Total marketing support payments from fund firms in 20071	Source of Payment
AIM	$ 5,752,477	AIM Distributors, Inc.
AllianceBernstein	$ 913,497	AllianceBernstein Investment Research and Management, Inc.
Allianz/PIMCO	$ 551,043	Allianz Global Investors Distributors LLC
American Century	$ 4,410,890	American Century Investment Services, Inc.
Calvert	$ 4,467,876	Calvert Distributors, Inc.
Columbia	$ 9,587,453	Columbia Management Distributors, Inc.
Credit Suisse	$ 394,773	Credit Suisse Asset Management Securities, Inc.
Davis/Selected	$ 592,595	Davis Selected Advisors, LP
Dreyfus	$ 3,808,109	The Dreyfus Corporation and/or Dreyfus Service Corporation
DWS Scudder	$ 589,026	Scudder Distributors, Inc.
Eaton Vance	$ 5,184,023	Eaton Vance Distributors, Inc.
Evergreen	$ 2,064,099	Evergreen Investment Services, Inc.
Federated	$ 179,836	Federated Securities Corp.
Fidelity	$ 11,668,579	Fidelity Distributors Corporation
Franklin Templeton	$ 5,454,027	Franklin Templeton Distributors, Inc.
Goldman Sachs	$ 2,591,405	Goldman, Sachs & Co.
Janus	$ 2,574,753	Janus Capital Management, LLC
John Hancock	$ 1,104,988	John Hancock Funds, LLC
Legg Mason Partners	$ 213,633	Legg Mason & Co, LLC
MFS	$ 8,603,346	MFS Fund Distributors, Inc.
Nuveen	$ 178,578	Nuveen Investments
Oppenheimer2	$ 19,915,613	Oppenheimer Funds Distributor, Inc.
Phoenix	$ 335,955	Phoenix Funds Distributor, Inc.
Pioneer3	$ 80,674	Pioneer Funds Distributor, Inc.
Putnam	$ 1,789,345	Putnam Retail Management Limited Partnership
RiverSource4	$ 17,558,000	RiverSource Distributors, Inc.
Van Kampen5	$ 7,166,297	Van Kampen Funds Inc.
Wells Fargo Advantage	$ 5,006,852	Wells Fargo Funds Distributor, LLC
Total marketing support payments from mutual fund firms in 2007:	$ 122,737,744