Constructing The Portfolio Navigator Funds

Important InformationThe Portfolio Navigator funds are sold exclusively as underlying investment options of variable annuity and variable life insurance products offered by RiverSource L

For Financial Professional Use Only Not For Public Distribution.

Constructing the Portfolio Navigator Funds

Peter Di Teresa, Senior Consultant

Morningstar Associates, LLC

Important Information

The Portfolio Navigator funds are sold exclusively as underlying investment options of variable annuity and variable life insurance products offered by RiverSource Life Insurance Company and RiverSource Life Insurance Co of New York (collectively, RiverSource Life).

The funds are managed by Columbia Management Investment Advisers, LLC, an affiliate of RiverSource Life RiverSource Life, Columbia Management, and their affiliates may receive revenue related to assets allocated to the funds Prior to allocating contract or policy values to a subaccount that invests in one of the funds, you should read the description in the applicable variable product and fund prospectuses.

The information, data, analyses, and opinions presented herein do not constitute investment advice; are provided as of the date written and solely for informational purposes only and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate Past performance is not indicative and not a guarantee of future results.

Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., provides consulting services to Columbia Management but is not acting in the capacity of investment adviser to the funds of funds nor is affiliated with, endorses or otherwise provides a testimonial for the products of RiverSource Life or Columbia Management.

Morningstar Overview

► Mission: create great products and services

that help investors reach their financial

goals

► Leading provider of independent

investment research

► Serve clients globally through presence in

North America, Europe, Asia, and Australia

► 3,225 employees as of 12/31/10 across

global offices, offering local market

expertise

► Recognized for pioneering contributions to

the investment industry since 1984

Morningstar, Inc.

Navigator since 2003

more informed investment decisions

and investment advisory services

needs and markets, both in US and Europe*

than $64 billion in assets as of 3/31/11

Morningstar Associates, LLC

* Morningstar Associates Europe Limited, a wholly owned subsidiary of Morningstar Associates, LLC, is an investment consulting organization serving institutions and intermediaries across the European Union

Morningstar Associates, LLC

It’s like having a team of investment experts in your back office working on these portfolios every day.

Asset-Class Teams

Marketing, Client Service

& Technology

Asset Allocation Committee

Investment Committee

Portfolio Construction Team

Portfolio Construction Team

► Peter Di Teresa

Senior Consultant

► Mike Stout, CFA

Senior Consultant

► Patrick Ryan, CFA

Investment Analyst

Morningstar Associates’ Investment Process:

Asset

Allocation

Fund Selection

Portfolio Construction

Ongoing Evaluation

Global Market Portfolio

Broadly based on global

market capitalization

Optimization

Refine asset mix to enhance risk/return efficiency and

diversification benefits

Fundamental Perspective

Incorporate prudence, fundamental judgment, and practical considerations

Asset Allocation

Developing Strategic Targets

Target allocations are as of March 31, 2011 and are subject to change without notice Diversification does not guarantee a profit or protect against a loss in a declining market

Portfolio Navigator Asset Type Targets

VP Aggressive VP Moderately

Aggressive VP Moderate VP Moderately Conservative VP Conservative U.S Equities 58.60% 47.60% 36.60% 25.65% 15.35%

Large-Cap 39.90 33.26 25.50 17.75 10.39 Mid-Cap 9.61 7.00 6.01 4.31 2.67 Small-Cap 9.09 7.34 5.09 3.59 2.29

International Stocks 21.40% 17.40% 13.40% 9.35% 4.65%

Large-Cap 15.25 12.75 9.20 6.55 3.45 Mid- / Small-Cap 3.15 2.15 1.95 1.55 0.70 Emerging Markets 2.00 1.50 1.25 0.50 0.00 Global Real Estate 1.00 1.00 1.00 0.75 0.50

Bonds 20.00% 35.00% 50.00% 63.00% 74.00%

Long / Intermediate Term 10.95 18.80 29.60 36.20 46.00 Short Term 9.05 14.20 17.40 25.30 26.00 High Yield 0.00 2.00 3.00 1.50 2.00

Money Market 0.00% 0.00% 0.00% 2.00% 6.00%

► Positive long-term outlook for emerging markets

► Mid- and long-term concerns for developed markets

► Fixed Income

► Inflation

► Rising rates

► Prospects for government bonds

Asset Allocation

Key Themes in Current Positioning

► Interest Rate Sensitivity

► Barclays Capital US Aggregate Bond Index

Average Effective Duration of 4.62 years*

► Moderately Conservative Fund

Average Effective Duration of 3.59 years*

Asset Allocation

Fixed Income Positioning and Diversification

*Source: Morningstar, Inc proprietary data as of 3/31/2011

Asset Allocation

Fixed Income Positioning and Diversification

Fund Selection

Recommendations to Columbia Investment Management

Initial Screening

► Risk-adjusted performance history

► Absolute Risk

► Manager tenure

► Expenses

Fundamental Analysis

► Morningstar core competence

► Managers’ histories

► Qualitative review of investment approach

► Drivers of performance

► Source and consistency of income stream

► Evaluation of organizational strength

► Asset size and growth

► Portfolio composition and concentration

Portfolio Fit

► Determine the role of manager in portfolio

► Evaluate how managers complement one another

Portfolio Construction

Holdings-Based Analysis Helps Ensure Broad Diversification

Actual Equity Allocation

VP - Diversified

Equity Income

VP – Davis NY Venture

VP – Marsico Growth

Portfolio Construction

Holdings-Based Analysis Helps Differentiate Seemingly Similar Funds

0 0

2 11

37 29 19

0 0

7 6

VP – Diversified

Equity Income

VP – NFJ Dividend

Value

Source: Morningstar Associates, LLC Holdings data as of 3/31/2011 For illustrative purposes only References to specific funds are not a recommendation to buy or sell

Portfolio Construction

Understanding Differences in Sector Exposures

VP – Diversified Equity Income

VP – NFJ Dividend Value

Portfolio Construction

Portfolio Exposures Come from Multiple Sources

% Exposure to Large-Cap Value

Source: Morningstar, Inc proprietary data Holdings data as of 3/31/2011 For illustrative purposes only References to specific funds are not a recommendation to buy or sell and do not make up the entire portfolio

► Monitor individual managers

► Track portfolio exposures vs asset class and style targets

► Assess current economic and market conditions

► Evaluate performance relative to benchmark

Ongoing Evaluation

Multiple Levels of Monitoring

× Broadly-diversified asset mix

Portfolio Navigator Funds

Sophisticated Investment Approach

About Variable Annuities

Variable annuities are long-term investment vehicles designed to help clients through each stage of their retirement—from accumulation to providing income to passing on wealth to heirs With a RiverSource variable annuity, clients have access to a broad range of carefully selected investment choices from today’s top money managers, plus fixed account options The

guarantees are based on the claims-paying ability of the issuing company and do not apply to the performance of the variable subaccounts, which will vary with market conditions Clients will incur common variable annuity expenses including M&E fees and subaccount expenses, and may also incur surrender charges, optional rider expenses and a contract charge

Variable annuities are insurance products that are complex long-term investment vehicles that are subject to market risk,

including the potential loss of principal invested Before the client invests, be sure to explain the variable annuity’s features, benefits, risks and fees, to help the client determine if the variable annuity is appropriate for him or her, based upon his or her financial situation and objectives

Disclosures

VARIABLE ANNUITIES:

ARE NOT A DEPOSIT OF

ANY BANK OR BANK AFFILIATE

ARE NOT FDIC INSURED

ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

ARE NOT BANK GUARANTEED MAY LOSE VALUE

Morningstar Associates, LLC

19

About Morningstar Associates, LLC

Morningstar Associates, LLC is a registered investment adviser and wholly owned subsidiary of Morningstar, Inc Morningstar Associates provides consulting services to Columbia Management with regard to portfolio construction, investment allocation and selection, and periodic portfolio evaluations relating to the Portfolio Navigator funds, but is not acting in the capacity of investment adviser to individual investors in the funds Morningstar Associates is not affiliated with Columbia Management or its affiliates The Morningstar name and logo are the property of Morningstar, Inc Neither Morningstar Associates nor

Morningstar, Inc is affiliated with, endorses or otherwise provides a testimonial for the products of RiverSource Life or

Columbia Management

RiverSource Distributors, Inc (Distributor), Member FINRA Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co of New York, Albany, New York Only RiverSource Life Insurance Co of New York is authorized to sell insurance and annuities in New York

For broker-dealer use only This material has not been filed with FINRA and may not be reproduced or quoted to, or used with, members of the general public

Disclosures