RiverSource Funds are managed by RiverSource Investments, LLC and distributed by Ameriprise Financial Services, Inc., Member NASD. Both companies are part of Ameriprise Financial, Inc.

Leslie Walstrom December 14, 2006

Should RiverSource Investments try Podcasting?

Who is RiverSource Investments?

• A 60 year old, mid-size mutual fund company based in Minneapolis

• New name and brand in October 2005 • Mutual funds sold through financial advisors

The challenge

In a commoditized industry, RiverSource Investments has an opportunity to differentiate by providing high-quality, innovative marketing support to financial advisors.

What do financial advisors want?

1. Mutual funds that perform as expected2. Tools and support for clients 3. Access information about the markets, economy

and mutual funds from expert investment professionals

What’s the best way to deliver information to advisors?

Case Study: Market Commentary Frequency desired: Weekly or more often in volatile markets Preferred methods of delivery:

1. In person visits from market strategist 2. Cassette tapes or audio CDs 3. Conference calls 4. In writing

How can we use technology to meet advisor needs?

Podcasting.

Term emerged in 2004. Combination of “broadcasting” and “iPod”. Podcasts are audio files posted on a website or music service that can be downloaded and listened to on an MP3 player or iPod.

Research question

Are financial advisors willing to use podcasts as a way to access investment information?

How we answered the question• Telephone survey with 375 financial advisors • Survey questions designed to explore whether the advisors

1. Are comfortable with technology2. Have the proper equipment to access podcasts3. Know what podcasting is4. Have ever downloaded a podcast5. Would download a podcast from RiverSource Investments

Are advisors comfortable using technology?

3%

2%

4%

35%

56%

0% 20% 40% 60%

Very uncomfortable

Uncomfortable

Neutral

Comfortable

Very comfortable

Com

fort

Lev

el

Percentage

Do advisors have the equipment they need to access podcasts?

• 93% of advisors have broadband internet access • 23% of all advisors own MP3 players/iPods, 22% plan to purchase

within 6 months

0%

5%

10%

15%

20%

25%

Perc

ent

25 andunder

26-35 36-44 45-54 55 andover

Age Group

Have player Plan to purchase player Do not have player

Are advisors familiar with podcasts?

40% of advisors are familiar with the term podcast.

0%2%4%6%8%

10%12%14%

Perc

enta

ge

25 andunder

26-35 36-44 45-54 55 andover

Age Group

Familiar with Podcasts

Have advisors downloaded podcasts?

Of advisors who are familiar with podcasts, the majority have not actually downloaded one.

64%

0% 0% 1%9% 7%

20%

0%

10%

20%

30%

40%

50%

60%

70%

Perc

ent

Never 1+ yearago

6-12months

3-6months

1-3months

2-4 weeksago

Withinpast week

Timeframe of Download

Are advisors interested in podcasts from RiverSource Investments?

39%55%

53%34%

0%

20%

40%

60%

80%

100%

Equipment not Subsidized Equipment SubsidizedNon-Subsidized Players vs. Subsisidized

Lik

elih

oo

d

Likely Unlikely

Advisor interest in podcasts increases if iPods or MP3 players are subsidized by RiverSource Investments.

Answering the research question

Question: Are financial advisors willing to use podcasts as a way to access investment information?

Answer: Some are, some aren’t.

This sentiment mirrors attitudes of the general population.

Podcast research findings

Pew Internet and American Life Project – 2005 • 22% of the population has an MP3 player/iPod • 29% have downloaded podcasts

Forrester Podcasting Study – 2006 • 22% of the population has an MP3 player/iPod • Only 1% download podcasts regularly, only 2% have

tried podcasting

Recommendations

• Pursue podcasting as an additional marketing support strategy, not a replacement for current methods of delivering information.

• To speed advisor adoption, RiverSource may want to subsidize costs for advisor MP3 players/iPods.

• Continue to monitor advisor interest in podcast content.

RiverSource Funds are managed by RiverSource Investments, LLC and distributed by Ameriprise Financial Services, Inc., Member NASD. Both companies are part of Ameriprise Financial, Inc.

Leslie Walstrom December 14, 2006

Question and Answer Session