Stocks, bonds, options and structured products

If purchasing mutual funds through a transaction-based brokerage account, one of the following sales charges will apply:

• Time of purchase: a front-end load of up to 5.75% on mutual fund Class A shares
• Time of sale (or “redemption”): a back-end load (or “contingent deferred sales charge”) on some mutual fund share classes you sell within a certain period

If purchasing mutual funds through a fee-based investment advisory account, the above sales charges (front-end or back-end load) do not apply — although you will pay an annual asset-based fee (as described in the account overview section). Sales charges do not apply to money market mutual funds.

You indirectly pay a fund’s operating expenses, which are paid from the general assets of the fund. These fees reduce investment performance. Operating expenses may include the below fees (as disclosed in the fee and expense table of each fund’s prospectus).

• Management fees are paid from the fund to the fund’s investment advisor for services, including research, portfolio-manager and trader compensation, and technology and related administrative services.
• 12b-1 fees are paid by the fund out of fund assets to cover distribution expenses and sometimes shareholder service expenses. The principal underwriter typically pays a portion of these fees to dealers and their financial advisors who sell the funds and service shareholders of the fund. For transaction-based brokerage accounts, we receive 12b-1 fees and pay a portion of these fees to financial advisors who sell funds and service fund shareholders. If we receive 12b-1 fees for mutual funds held in managed accounts, they will be rebated to clients.
• Other expenses typically include other operating fees and expenses paid by the fund, including administration, transfer-agency, custodial and other nonadvisory fees.

Funds also pay portfolio transaction costs. These include brokerage commissions paid to brokers for trading portfolio securities held in the fund. Funds also pay implied commissions (or “markups”) for principal transactions (e.g., transactions made directly with a dealer) in most fixed-income securities and options or other derivatives. These costs are in addition to the operating expenses described on the previous page.

Funds that invest in other funds (underlying funds), including funds of funds, incur fees and expenses associated with owning shares of the underlying funds (acquired fund fees and expenses).

• Mutual funds are offered in different share classes — usually Classes A, C, no-load, advisory and institutional classes. The classes differ in sales charges and ongoing fees. The right share class for you typically depends on things like how long you plan to hold the fund, the amount you are able to invest, the expenses you pay and whether you qualify for breakpoint discounts.
• None of the mutual funds currently offered in Ameriprise advisory programs impose a front-end sales charge. For most mutual funds, a share class that does not have a sales-load and does not assess 12b-1 fees (collectively “Advisory Shares”) is offered in all Ameriprise advisory programs as the only mutual fund share class, where available to us through a selling agreement. If not available to us through a selling agreement or if the mutual fund does not offer an Advisory Share class, we offer Class A shares that may pay a 12b-1 fee or a no-load share class that does not have a sales-load but that may pay a 12b-1 fee. The share class offered by Ameriprise Financial for a particular mutual fund is the only share class we allow for additional purchase within your advisory account. As discussed above, any 12b-1 fees received by Ameriprise Financial will be promptly rebated to your advisory account. The share class offered by Ameriprise Financial for each applicable fund is listed in our online Mutual Fund Screener Tool under the Availability tab.
• Many mutual fund companies offer breakpoint discounts if you invest more than a certain dollar amount. These discounts may be based on your current purchase or on your total holdings in the fund family, including the holdings of your family or household members. Certain account types, such as TSCA or employer sponsored retirement plan accounts, may be eligible for discounts and waivers.
• To ensure that you are obtaining all available discounts and waivers, please work with your financial advisor or check the fund’s prospectus or website. You may also qualify for an advisor, institutional or other share class with lower expenses and fees outside of a transaction-fee based brokerage account or a Managed Account service.

If purchasing a non-traded REIT through a transaction-based brokerage account, you will pay an upfront sales charge up to 4.5%. Additionally, there may be upfront charges for organizational and offering expenses, typically up to 2.0%.

You indirectly pay a fund’s operating expenses, which are paid from the general assets of the fund. These fees reduce investment performance. Operating expenses may include the below fees (as disclosed in each non-traded REIT’s prospectus).

• Management/advisory fees and potential performance fees are paid from the fund to the fund’s investment advisor for investment management-related services.
• Distribution and shareholder servicing (12b-1) fees are paid by the fund to the fund’s dealer manager for distribution and marketing-related expenses, and ongoing shareholder services. The dealer manager typically pays a portion of these fees to dealers and their financial advisors who sell the funds and service shareholders of the fund. For transaction-based brokerage accounts, we receive these fees and pay a portion of these fees to financial advisors who sell funds and service fund shareholders. Non-traded REITs are subject to an overall cap on underwriting compensation. Shares are typically converted to institutional share classes once those thresholds are reached.
• Other expenses may include other fund-formation expenses, accounting fees, legal fees, acquisition fees, technology costs, ongoing property management fees and asset management expenses.

• Non-traded REITs are not appropriate for all investors. You should carefully consider the investment objectives, risks, charges and expenses of these products before investing.
• There are net-worth and/or liquid net-worth thresholds you must meet, which vary by state and non-traded REIT offering.
• Shares of non-traded REITs are not easily converted to cash and are not traded on a public stock exchange. There is no formal secondary market for non-traded REITs. Redemption programs vary by non-traded REIT issuer and are limited. It may be difficult to liquidate your investment.
• Non-traded REIT products are complex, long-term, illiquid investments and are suitable only for clients with long-term investment goals of at least 7–10 years. There can be no assurance that a secondary market for the non-traded REITs will exist. An investment in a non-traded REIT is subject to many of the same risks as a direct investment in real estate. Such risks include, but are not limited to, market risk, issuer-creditworthiness risk, economic risk, distressed-property risk, diversification risk, sector/concentration risk and higher-volatility risk. In addition, some of the properties held in non-traded REITs may be subject to balloon-payment financing, refinancing of maturing debt and/or bankruptcy, resulting in a potentially significant decline in the overall value of the non-traded REIT.
• Distributions are not guaranteed and may be suspended or halted. Distributions may exceed operating cash flow, resulting in return of principal.
• Non-traded REITs may use leverage, which may accelerate the velocity of potential losses.
• Ameriprise Financial is a distributor of non-traded REIT offerings and does not participate in selecting, managing or selling the underlying properties or investments of these products.
• The value of a non-traded REIT fluctuates with the portfolio of the underlying real-estate properties. Shares may be sold at a price that may be more or less than the original price you paid; and there may be significant conflicts of interest as disclosed in the fund’s prospectus.

Withdrawal penalties may be deducted from your certificate account balance if you withdraw money during the term, depending on the certificate product. The Ameriprise Cash Reserve Certificate does not have any withdrawal penalties. The other fees and expenses listed below are paid by the ACC and will not be charged to your account.

Advisory and services fees are paid by the ACC to the company’s investment adviser, Columbia Management Investment Advisers, LLC, for managing certificate assets and providing other services to the ACC.

Distribution fees are paid by the ACC to Ameriprise Financial Services, LLC, for the distribution of Ameriprise Certificates.

Transfer agent fees are paid by the ACC to Columbia Management Investment Services Corp. for the maintenance of certificate-owner accounts and records.

Other expenses — such as record keeping, accounting, regulatory reporting, audit, legal, custodial, securities lending and other non-investment-related services — are necessary to operate the ACC.