Portfolio Navigator Asset Allocation Program Performance

Transcription

1 Portfolio Navigator Asset Allocation Program Performance For use with Wells Fargo Advantage Select Variable Annuity performance Issued by RiverSource Life Insurance Company (RiverSource Life) ANNUITIES: ARE NOT A DEPOSIT OF ANY BANK OR ANY BANK AFFILIATE ARE NOT FDIC INSURED ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY ARE NOT BANK GUARANTEED MAY LOSE VALUE Page 1 of 7

2 Portfolio Navigator Performance As of 9/30/07 Moderate Moderate Aggressive Aggressive Moderate Conservative Conservative Since Since Since Since Since Program Program Program Program Program Portfolio Navigator 3 Mo. 1 Yr. 3 Yr. Incept.* 3 Mo. 1 Yr. 3 Yr. Incept.* 3 Mo. 1 Yr. 3 Yr. Incept.* 3 Mo. 1 Yr. 3 Yr. Incept.* 3 Mo. 1 Yr. 3 Yr. Incept.* Portfolio Navigator No riders, without withdrawal charges for qualified plans, 7-yr schedule 2.68% 17.80% 15.79% 14.29% 2.29% 14.66% 13.87% 12.67% 2.29% 12.45% 11.67% 10.90% 2.34% 10.18% 9.38% 9.15% 2.09% 7.74% 6.58% 6.75% Portfolio Navigator No riders, with withdrawal charges for non-qual plans, 5-yr schedule -4.84% 9.35% 12.19% 13.51% -5.19% 6.21% 9.88% 11.82% -5.19% 4.00% 7.47% 9.98% -5.15% 1.75% 4.50% 8.15% -5.38% -0.49% 14.24% 5.63% *Annualized Returns -- Inception Date 5/1/2004 Wells Fargo Advantage Select Variable Annuity first became available on 5/1/2004. Portfolio Navigator model portfolio performance shown assumes deduction of various fees as if the annuity existed at the inception date of the Portfolio Navigator program. The Portfolio Navigator program has been available for use with variable annuity contracts since 5/1/2004. The Portfolio Navigator Program allows clients to allocate their contract value to anasset allocation model portfolio that consists of subaccounts that invest in underlying funds and may include Guarantee Period Accounts and/or the fixed account (if available under the Portfolio Navigator program). The Program also allows clients to periodically update their model portfolio or transfer to a new model portfolio. Prior to participating in the Program, clients should read the description of the Program contained in the prospectus for the variable annuity contract together with all information provided by their financial representative, as well as the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document. Portfolio Navigator model portfolio performance from 5/1/2004 through 4/30/2006 is for the static version of the Portfolio Navigator program, which was available for contracts issued prior to 5/1/2006. The models used with the static program assumed a longer investment timehorizon and use different equity-bond targets than the models in the dynamic version of the program now offered. A revised version of the static models was available beginning 5/1/2005. The static program did not use RiverSource Investments, LLC as an investment adviser. Portfolio Navigator model portfolio performance from 5/1/2006 forward is for the dynamic version of the Portfolio Navigator program, which was available for contracts issued beginning 5/1/2006. Model portfolios in the dynamic program are periodically reassessed and updated, typically annually, with new or revised subaccounts, allocation percentages, and/or asset classes. Performance shown assumes an initial investment on 5/1/2004, change to the corresponding revised static model on 5/1/2005, change to the corresponding dynamic model portfolio on 5/1/2006, and adoption of all dynamic model portfolio updates as they became available. Actual performance will vary depending on which version(s) of the model portfolio(s) were available and selected over the course of an individual client s participation in the program. Past performance is no guarantee of future results. There is no guarantee that investment objectives will be satisfied or that return expectations will be met. Model performance was calculated by multiplying each individual variable funds expense-adjusted performance as provided by Lipper Inc. by its allocated percentage within the model. A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publiclytraded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly- traded retail mutual fund. Models were rebalanced as of calendar quarter-end. Current applicable charges deducted from performance include: Least Expensive: 1.05% total base variable expense for qualified plans, a $40 contract administrative charge and no withdrawal charge. Most Expensive: 1.50% total base variable expense for nonqualified plans, a $40 contract administrative charge, and a 8% declining withdrawal charge on purchase payments less than five years old. Premium taxes are not reflected in these total returns. Riders may or may not be available in all states. Keep in mind that because an annuity is a tax-deferred vehicle, in most cases it is subject to a 10% IRS penalty if the assets are withdrawn before age 59 1 /2. Asset allocation does not assure a profit or protect against a loss in declining markets. The GPA account was included as an investment option in the 2004 models in various states. For states that had not approved the GPA accounts, fixed income and money market fund model allocations were adjusted by Morningstar Associates, LLC and used in place of allocations to the GPA accounts. The performance shown does not reflect the returns of the GPA account. Page 2 of 7

3 Page 3 of 7 Portfolio Navigator Model Portfolios Effective May 1, 2007 Conservative Model & Alloc. % CASH EQUIVALENTS Wells Fargo Advantage VT Money Market Fund 11% SHORT-TERM FIXED INCOME RiverSource VP Short Duration US Government Fund 9% Protected Securities Fund 11% Return Bond Fund 30% Fund/VA, Service Shares 7% Securities Fund - Class 2 7% Bond Fund 5% Series II Shares 2% Equity Income Fund 3% RiverSource VP Growth Fund 2% Large Cap Value Fund 1% Class II Shares 1% Service Class 2 1% Value Fund - Institutional Shares 1% Service Class 2 4% Small Cap Value Fund 1% Value Portfolio (Class B) 2% Service Class 2 1% Securities Fund - Class 2 1% Moderately Conservative Model & Alloc. % CASH EQUIVALENTS Wells Fargo Advantage VT Money Market Fund 1% SHORT-TERM FIXED INCOME RiverSource VP Short Duration US Government Fund 5% Protected Securities Fund 11% Return Bond Fund 29% Fund/VA, Service Shares 7% Securities Fund - Class 2 7% Bond Fund 5% Series II Shares 4% Equity Income Fund 4% RiverSource VP Growth Fund 4% Large Cap Value Fund 1% Class II Shares 2% Service Class 2 1% Value Fund - Institutional Shares 1% Service Class 2 7% Small Cap Value Fund 2% Wanger U.S. Smaller Companies 1% Value Portfolio (Class B) 3% Service Class 2 3% Markets Fund 1% Securities Fund - Class 2 1% Moderate Model & Alloc. % Protected Securities Fund 9% Return Bond Fund 25% Fund/VA, Service Shares 6% Securities Fund - Class 2 6% Bond Fund 4% Series II Shares 6% Equity Income Fund 5% RiverSource VP Growth Fund 5% Large Cap Value Fund 2% Class II Shares 3% Service Class 2 2% Value Fund - Institutional Shares 2% Service Class 2 9% Small Cap Value Fund 3% Wanger U.S. Smaller Companies 2% Value Portfolio (Class B) 4% Service Class 2 3% Markets Fund 2% Securities Fund - Class 2 2% Moderately Aggressive Model & Alloc. % Protected Securities Fund 6% Return Bond Fund 18% Fund/VA, Service Shares 4% Securities Fund - Class 2 4% Bond Fund 2% Series II Shares 8% Equity Income Fund 7% RiverSource VP Growth Fund 7% Large Cap Value Fund 3% Class II Shares 4% Service Class 2 3% Value Fund - Institutional Shares 2% Service Class 2 11% Small Cap Value Fund 4% Wanger U.S. Smaller Companies 2% Value Portfolio (Class B) 5% Service Class 2 4% Markets Fund 3% Securities Fund - Class 2 3% Aggressive Model & Alloc. % Protected Securities Fund 3% Return Bond Fund 10% Fund/VA, Service Shares 2% Securities Fund - Class 2 2% Bond Fund 1% Series II Shares 10% Equity Income Fund 8% RiverSource VP Growth Fund 8% Large Cap Value Fund 4% Class II Shares 5% Service Class 2 4% Value Fund - Institutional Shares 2% Service Class 2 14% Small Cap Value Fund 5% Wanger U.S. Smaller Companies 3% Value Portfolio (Class B) 6% Service Class 2 5% Markets Fund 6% Securities Fund - Class 2 4%

4 Funds Underlying the Portfolio Navigator Asset Allocation Program The performance information shown represent past performance and is no guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling the RiverSource Life Customer Service line at (800) This information is authorized for use when preceded or accompanied by a current annuity prospectus. You should consider the investment objectives, risks, charges and expenses of the underlying investment options carefully before investing. For a free copy of the underlying investment s prospectus, which contains this and other information about variable annuities, call (800) Read the prospectus carefully before you invest. We show actual performance from the date the subaccounts began investing in the funds. We also show performance from the commencement date of the funds as if the annuity existed at that time, which it did not. 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. The benefits of tax deferral may outweigh the costs of a variable annuity only if you hold it as a long-term investment. Current applicable charges deducted from performance include: Least Expensive: 1.05% total base variable expense for qualified plans, a $40 contract administrative charge and no withdrawal charge. Most Expensive: 1.50% total base variable expense for nonqualified plans under the 5-year withdrawal charge schedule, a $40 contract administrative charge, a 0.20% Maximum Anniversary Value Death Benefit rider fee, a 0.40% Benefit Protector SM Plus Death Benefit rider fee, a 0.65% Income Assurer Benefit SM rider - Greater of 5% Accumulation or MAV rider fee, and a declining 8% withdrawal charge for purchase payments less than five years old. Premium taxes are not reflected in these total returns. Riders may or may not be available in all states. Keep in mind that because an annuity is a taxdeferred vehicle, in most cases it is subject to a 10% IRS penalty if the assets are withdrawn before age 59 1 /2. *An investment in the Cash Management Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The 7-day yields shown reflect more closely the earnings of the fund than the total return numbers. Short-term yields may be higher or lower than the figures shown. Contact your financial professional or call (800) for the most current yield. Most annuities have a tax-deferred feature. So do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is taxdeferred, your annuity will not provide any necessary or additional tax deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax advisor prior to making a purchase for an explanation of the tax implications to you. Page 4 of 7

5 Performance Subaccounts Underlying Portfolio Navigator Model Portfolios Quarter End 9/30/07. Average Annual Total Returns Since Commencement of the Subaccount Average Annual Total Returns of the Subaccount Since Commencement of the Fund Sub- 1-month 3-month YTD As of Quarter End As of Quarter End account Fund Through Through Through Since Since Subaccount Inception Inception 9/30/07 9/30/07 9/30/07 1-yr. 3-yr. 5-yr. 10-yr. Inception** 1-yr. 3-yr. 5-yr. 10-yr. Inception** Series II 1 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/01/98) 4.71% -0.33% 13.86% 21.50% 10.35% 21.50% 16.97% 17.68% 7.23% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (08/30/02) (05/01/98) -2.99% -7.95% 4.42% 11.45% 13.45% 15.45% 13.07% 11.45% 13.45% 15.45% 5.31% Value Portfolio (Class B) 2 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/10/01) 5.26% 0.75% 10.58% 23.53% 16.61% 23.53% 24.58% 27.11% 17.18% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (04/30/04) (05/10/01) -2.48% -6.90% 1.25% 13.44% 21.11% 20.65% 13.44% 21.11% 24.79% 15.18% Service Class 2 4 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (01/03/95) 5.85% 6.61% 15.45% 22.59% 13.11% 22.59% 16.94% 16.49% 8.95% 13.25% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (08/30/02) (01/03/95) -1.94% -1.53% 5.99% 12.52% 13.42% 14.27% 13.25% 12.52% 13.42% 14.27% 7.02% 11.28% Fidelity VIP Mid Cap Portfolio Service Class 2 4 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (12/28/98) 5.65% 4.82% 17.04% 24.87% 10.64% 24.87% 19.76% 21.14% 18.35% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (05/01/01) (12/28/98) -2.12% -3.17% 7.56% 14.76% 16.26% 18.88% 12.03% 14.76% 16.26% 18.88% 16.32% Service Class 2 4 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (01/28/87) 6.04% 2.79% 15.45% 26.67% 14.76% 26.67% 21.67% 21.05% 6.03% 7.04% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (04/30/04) (01/28/87) -1.77% -5.02% 5.99% 16.53% 18.19% 15.02% 16.53% 18.19% 18.80% 3.97% 5.10% Securities Fund - Class 2 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (01/24/89) 4.65% 3.48% 8.66% 13.81% 9.51% 13.81% 8.52% 11.36% 6.95% 6.82% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (04/30/04) (01/24/89) -3.04% -4.40% -0.49% 3.89% 4.89% 6.32% 3.89% 4.89% 9.19% 5.07% 4.97% Securities Fund - Class 2 5 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (01/24/89) 2.87% -3.88% % -1.80% 1.49% -1.80% 10.42% 15.62% 8.20% 10.46% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (01/24/89) -4.68% % % % 6.81% 13.41% 13.54% % 6.81% 13.41% 6.24% 8.56% Value Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/01/98) 2.96% -3.44% 5.60% 14.40% 9.85% 14.40% 15.07% 17.22% 9.96% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (05/01/98) -4.60% % -3.26% 4.47% 11.53% 15.00% 14.51% 4.47% 11.53% 15.00% 8.05% Fund/VA, Service Shares No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/03/93) 2.31% 2.32% 5.78% 9.19% 7.09% 9.19% 5.94% 8.12% 5.12% 5.59% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (05/01/02) (05/03/93) -5.19% -5.46% -3.10% -0.44% 2.25% 5.98% 5.39% -0.44% 2.25% 5.98% 3.24% 3.72% RiverSource Variable Portfolio - Diversified Equity Income Fund No riders, without withdrawal charges for qual plans, 7-yr schedule (05/01/06) (09/15/99) -0.45% 10.31% 11.15% 21.86% 15.25% 21.86% 18.53% 15.75% 9.34% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (09/15/99) -7.78% 1.86% 2.21% 11.80% 15.03% 13.53% 8.86% 11.80% 15.03% 13.53% 7.37% RiverSource Variable Portfolio - Emerging Markets Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/01/00) 12.78% 13.67% 29.97% 56.13% 29.12% 56.13% 38.55% 32.96% 13.68% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (04/30/04) (05/01/00) 4.63% 5.18% 20.33% 45.49% 35.10% 31.32% 45.49% 35.10% 30.56% 11.50% RiverSource Variable Portfolio - Global Inflation Protected Securities Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (09/13/04) 0.68% 3.57% 2.86% 2.04% 4.14% 2.04% 2.25% 2.36% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (05/01/06) (09/13/04) -6.69% -4.31% -5.76% -6.92% -2.22% -6.92% -1.36% -1.22% RiverSource Variable Portfolio - Growth Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (09/15/99) 4.35% 2.67% 8.04% 15.22% 9.84% 15.22% 11.81% 11.70% -2.96% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (04/30/04) (09/15/99) -3.32% -5.14% -1.05% 5.29% 8.24% 7.01% 5.29% 8.24% 9.53% -5.40% RiverSource Variable Portfolio - High Yield Bond Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/01/96) 2.23% -0.19% 2.53% 6.50% 6.00% 6.50% 6.33% 10.38% 3.10% 4.16% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (05/01/96) -5.27% -7.85% -6.08% -2.89% 2.65% 8.21% 2.25% -2.89% 2.65% 8.21% 1.10% 2.24% RiverSource Variable Portfolio - Short Duration US Government Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (09/15/99) 0.58% 1.70% 2.90% 3.68% 4.09% 3.68% 2.03% 1.39% 2.92% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (09/15/99) -6.79% -6.02% -5.72% -5.43% -1.59% -0.81% 1.18% -5.43% -1.59% -0.81% 1.08% RiverSource Variable Portfolio - Small Cap Value Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (08/14/01) 1.05% -4.80% 1.09% 10.28% 4.65% 10.28% 11.82% 17.03% 10.94% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (05/01/02) (08/14/01) -6.35% % -7.38% 0.55% 8.25% 14.81% 7.28% 0.55% 8.25% 14.81% 9.05% Class II Shares 6 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (04/30/99) 1.22% -2.33% 2.99% 8.87% 9.14% 8.87% 9.93% 15.28% 6.42% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (08/30/02) (04/30/99) -6.20% -9.95% -5.64% -0.72% 6.33% 13.08% 10.36% -0.72% 6.33% 13.08% 4.55% Page 5 of 7

6 Performance Subaccounts Underlying Portfolio Navigator Model Portfolios Quarter End 9/30/07. Average Annual Total Returns Since Commencement of the Subaccount Average Annual Total Returns of the Subaccount Since Commencement of the Fund Sub- 1-month 3-month YTD As of Quarter End As of Quarter End account Fund Through Through Through Since Since Subaccount Inception Inception 9/30/07 9/30/07 9/30/07 1-yr. 3-yr. 5-yr. 10-yr. Inception** 1-yr. 3-yr. 5-yr. 10-yr. Inception** Wanger U.S. Smaller Comapnies No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/03/95) 2.00% -2.29% 7.71% 13.26% 5.69% 13.26% 13.08% 18.09% 8.48% 13.72% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (04/30/04) (05/03/95) -5.48% -9.91% -1.35% 3.34% 9.51% 9.34% 3.34% 9.51% 15.87% 6.58% 11.79% Large Cap Value Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/01/98) 3.60% -0.48% 3.13% 10.70% 11.00% 10.70% 11.09% 13.71% 1.64% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (05/01/98) -4.01% -8.11% -5.51% 0.92% 7.51% 11.52% 1.81% 0.92% 7.51% 11.52% -0.44% Wells Fargo Advantage VT Money Market Fund 7 No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (05/19/94) 0.24% 1.24% 3.02% 3.98% 3.84% 3.98% 2.64% 1.37% 2.22% 2.62% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (05/19/94) -7.09% -6.44% -5.61% -5.15% -1.01% -0.79% -0.07% -5.15% -1.01% -0.79% 0.31% 0.67% Return Bond Fund No riders, without surrender charges for qual plans, 7-yr schedule (05/01/06) (09/20/99) 0.55% 2.22% 2.52% 3.33% 4.88% 3.33% 2.27% 3.78% 4.71% Riders, with withdrawal charges for non-qual plans, 5-yr schedule (03/03/00) (09/20/99) -6.81% -5.55% -6.06% -5.75% -1.36% 1.62% 3.09% -5.75% -1.36% 1.62% 2.91% RiverSource Life offers several different annuities which your investment professional may be authorized to offer you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, withdrawal charge schedules and access to annuity account values. The fees and charges may also be different between each annuity. Small Cap: Stocks of small-capitalization companies involve substantial risk. Historically, these stocks have experienced greater price volatility than stocks of larger companies, and they can be expected to do so in the future. Mid-cap: Stocks of mid-capitalization companies involve substantial risk. Historically, these stocks have experienced greater price volatility than stocks of larger companies, and they can be expected to do so in the future. Technology: Investments in a technology fund are more vulnerable to price fluctuation as a result of the narrow focus of technology investing and the fact that the products of companies in which the fund invests may be subject to rapid obsolescence. International/Global: International investing involves increased risk and volatility, not typically associated with domestic investing, due to changes in currency exchange rates, foreign government regulations, differences in auditing and accounting standards, potential political and economic instability, limited liquidity, and volatile prices. The risks of international investing are particularly significant in emerging markets. Bond funds: There are risks associated with an investment in a bond fund, including the impact of interest rates, credit, and inflation. These and other risk considerations are discussed in the fund's prospectus. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities. High-Yield Bond funds: High-yield funds invest in lower-rated bonds, which generally have more volatile prices and carry more risk to principal and income than investment grade securities. Tax-exempt funds: Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal and/or state alternative minimum tax for certain investors. Federal income tax rules will apply to any capital gains distribution. ** If subaccount or fund is less than 1 year old, the reported returns are cumulative, not annualized. 1 Performance shown for periods prior to the inception date of the Series II class of shares reflect the historical results of the Series I class, adjusted to reflect the impact that the Series II class Rule 12b- 1 plan would have had if the Series II class had then existed. The Series I and Series II share classes invest in the same portfolio of securities and will have substantially similar performance, except to the extent that expenses borne by each class differ. 2 Because Class B shares were not offered until August 15, 2001, standardized Class A fund performance for prior periods represents historical results of Class A shares. For periods beginning August 15, 2001, Class B's results reflect an additional 12b-1 fee expense, which also affects future performance. 3 Service Class shares carry 0.25% annual Rule 12b-1 fee. Service Class shares include the performance of Initial Class shares for periods prior to the inception of Service Class shares. Because operating expenses of Service Class shares are higher than those of Initial Class, the Service Class performance generally would have been lower than Initial Class performance. 4 Initial offering of the Service Class 2 of each fund took place on Jan. 12, Returns prior to Jan. 12, 2000 through Nov. 3, 1997 (Jan. 12, 2000 through Dec. 28, 1998 for VIP Mid Cap) are those of the Service Class, which reflect a 12b-1 fee of 0.10%. Service Class 2 returns prior to Nov. 3, 1997 (or Dec. 28, 1998 for VIP Mid Cap) are those of the Initial Class, which has no 12b-1 fee. If Service Class 2's 12b-1 fee of 0.25% had been reflected, returns prior to Jan. 12, 2000 would have been lower. 5 Ongoing stock market volatility can dramatically change the fund s shortterm performance; current results may differ. Because Class 2 shares were not offered until Jan. 6, 1999, standardized Class 2 Fund performance for prior periods represents historical results of Class 1 shares. For periods beginning Jan. 6, 1999, Class 2 s results reflect an additional 12b-1 fee expense, which also affects future performance. Page 6 of 6

7 6 Average annual total return based on net asset value (NAV) assumes reinvestment of all distributions for the period. Returns for Class II shares include combined Rule 12b-1 fees and service fees of up to 0.25 percent. Returns do not include any charges, expenses or fees imposed by an insurance company at the underlying portfolio or separate account levels. If the returns included the effect of these additional charges, the returns would have been lower. The portfolio's Adviser has waived or reimbursed fees and expenses from time to time; absent such waivers/reimbursements the portfolio's returns would have been lower. 7 There are special risk considerations associated with international investing related to market, currency, economic, political and other factors. RiverSource Life Insurance Company 9549 Ameriprise Financial Center Minneapolis, MN Contract number RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company RiverSource Life Insurance Company. All rights reserved. Page 7 of 7