AMP - Earnings call transcript Q1 2022 | Ameriprise Financial, Inc.

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Operator

Welcome to Q1 2022 Earnings Call. My name is Sylvia and I will be your operator for today's call. At this, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] I will now turn the call over to Alicia Charity. begin. may you Alicia,

Alicia Charity

and call. Welcome Sylvia first Ameriprise quarter earnings good you, to morning. Financial's Thank

call me Officer. the and On with Walter and Cracchiolo, Berman, CEO; Chairman Chief Financial today are Jim

take Following we'd their be to remarks, your happy questions.

to on website, available see discussion on that statements. will our of you our forward-looking earnings two, Turning materials a are presentation slide

their into website. during respective and non-GAAP which we measures, the non-GAAP various financial of be can call, Specifically, numbers on Reconciliation provide GAAP you the insight found to numbers materials operations. will to hear references today's company's believe in our

XXXX And on and call with our results. it operations comments of these underlying believes facilitates more on GAAP enhances Some or this events factors and date of first the in a number earnings makes looking, reflecting and by cause understanding first to of forward top A to we management only These be forward-looking slide update to performance Jim. and turn statements different our future see focus that, plans On and actual reflecting and report. you'll our found We involve results our I'll sample Below quarter. could operating Report adjusted revise publicly risks speak the that today statements analysis. the XXXX make page core todays our you performance. operating adjusted be financial and the make materially which over list XXXX no results, call our three, the can may Annual quarter obligation uncertainties. of at risks overall meaningful to the about a of the results forward-looking XX-K statements. of on for forward-looking see management's business expectations that shareholders that, management our from will of statements operating be that as release, trend Many

Jim Cracchiolo

the quarter first sharing for another joining and Ameriprise Good delivered quarter and call. our good that to by I'll morning, thanks year. start begin solid a

seen, markets are more and remains here invasion the but inflation the as As the globally. the States, Russian economic well strong, Ukraine the as you've in environment experiencing we're United volatile, that given of impacts the both global higher equity

In US loss over climate, aggressive. have action experienced and largest they'll more appropriate. single its begun fact, Fed to the get to XX to slow in raise They've which Bloomberg rates, has In that aggregate quarterly short-term the finally this been years. is signaling take

the situation vehemently been Before have I thoughts Russia discuss acknowledge horrific and people being to Ameriprise condense affected. in the the Ukraine. committed the by are who atrocities quarter, all like I'd our with Ukrainian and

direct don't focus we Ukraine on is our relief. supporting business humanitarian Our been exposure have Russia I has and note, staff or in or limited. extremely conduct should

the results. activity the and very first very Let's been able Client a very we've to time. quarter well We're in year, execute this move volatile good position during to kick strong. remained off to

in good We're earnings We clients at strong challenging were resulted in management strong up XX% a All assets growth share, under Revenues well. results executing plans ROE asset for our per and generate was and is good and environment. double-digits, And serving up Total results. market in, continue terrific to XX%. and really were performance. investing financial that up growth administration XX.X%.

& Advice Wealth We strong Let Management. me now quarter. delivered another turn to

we in in in this is I the in flows been reallocation doing saw in and quarter rebalancing be it's We have a years coming level that's They us good important up, the with at that to that we had that advisors. we last tools in our particularly you engaged appropriate clients strong invested for fact, flows picking over plus and which volatility and leveraging know told of number point. and up, cash and solutions good balances picked of have the portfolios. advisors market. about. client the appropriate With acquisition, XXX,XXX are our our in And clients' activity

of Client give client are bit numbers. And Wrap year X% up some ago, though net assets holding a let more strong, than environment. So Total was are $X.X billion. to XX% a were billion $XXX inflows more clients the inflows in cash. lower $XX.X of were strong me volatile you even to up a they billion.

transactional activity only it's imagine, X%. As but you bit, down a was would impacted

As attractiveness surveys advisers and they increased we to have more to of nine prior have to they terrific. continue our more And raise ago. of to back easily the as more short-term with capabilities earnings. value And us revenue a Fed our cash our total, going significant nearly balances is better firms. opportunity as out through at advisor work. of a advisers The markets stabilize, year said which growth for see In With clients billion ability to XXXX joining XX $XX good. backdrop, continues demonstrate XX beyond. have expect acquire look recruiting, move did continues present us advisors in $X meaningful we expect planning who we than joined to we over to to and technology, High us, financial their balances regard billion cash high proposition lift the than reached this With rates, in the quarter. from another to see a pipeline new of experienced productivity cash adviser another of in XX%,

their satisfaction. few campaign, trusted companies. launched family year, we business our plays One Advice I'm research recommend our one generational to one or number daily our work It's strong in of That's Management of clients of telling ad ago, showcased need great That We And complements family America's underscores to see ranking. things money Wealth About. consistently a strength. story to named the marketplace, holistic trusted XX we And for of likely clients the Newsweek the wealth most and Worth this out in is advice new Ameriprise us proud how a has more with that our investors' that earlier client on even our are Talking and which our released of marketplace. nine that broadly the significant friends. our to weeks we

in bank, ago. the grew $XX.X up billion to to assets year the more total Turning a quarter, billion than $X from

up Pre-tax rising within we above Advice We & To significant was basis for good up nicely up, growth Wealth are our The flexibility environment. generated Management our increasing bank XX and a demand in points. the long-term continue this opportunity financials rate provides strong presents loans to have additional quarter. with balances margin good. XX%, income driver pledge XX%, wrap and a in Management, a Wealth as

and we've Let's Management It retail. But overall, growth of over progress up last based the have of turn strong the saw like geopolitical the environment. the assets market risk XX%. experienced others, Asset affected the to volatility headwinds largely has in on us and been given now. good number the in We, we industry making quarters,

performance on XX% long-term three, and our time investment continues medium of periods, basis. and with asset-weighted were good to consistency above over funds show an Our five our year XX

growth a did volatility tough manage to out certain their especially Our slip good about the in a from environment. and on But based rotation equity in the there investment one positioning positioning quality as through bit market teams Europe. funds, they growth our value performance given our feel year

$XXX we out where first you've the Let's the pressure retail, industry. we turn reflecting were seen to in at $X.X the flows, about billion. million in quarter, In were

to we similar a industry. the terms of slowed pickup in sales redemptions and In US saw gross retail, our

fixed Our flow rate terms in was worse slightly of in in active peers better income. slightly and equities

haven't really a We way large in loan market in leveraged or the short played duration the area.

the of transaction our transfer which numbers net largely and benefited piece remaining the BMO included retail the However, part was quarter. our US this we outflows EMEA, improved UK. from in bit asset a In is retail of in that

partners, gatekeepers. the However, challenged, have and line risk-off market they Europe given stabilize, we good distribution with industry we'll advisers and position. a the a pressure. but and have Gross good funds similar in flows a Yes, worsened are flows for the to in engagement bit When up environment. we're slowed retail seeing strong certainly be starts of Continental

look $X.X we're to there a investors some volatility. institutional, as with strategies good but were you inflows global We've our some partners, to current wins engagement as We added expect, Turning number calls had insurance allocation were rated redemptions. excluding net asset legacy retail, globally. clients the through prospects some to and billion of similar and having experienced we and good

the well and being winners. Investments as US it's team Awards BMO Asset is to performance track. We five did Threadneedle With recent and is July. The recognized. earned XXXX to Columbus to BMO Barron's announced we combined EMEA investment and rebrand on we're that repeat EMEA with four strategies place Columbia Management Fund we Refinitiv rankings, in in senior will management Lipper integration, this Global regard in key business Our

So, of focused numbers. Pre-tax our for in were financials up XX%, and above Asset and for on earnings Management, our clients, with and BMO Ameriprise. that's full we're generating operating XX% plans margins returns and good were the executing quarter the

the off moved discontinued to & Moving pipeline again Protection we I'll had but came sales end. quarter. year products results. the that that start with as benefit with to in annuities. I variable in, We tapered living Retirement at we're riders some January, mention want that Solutions, we through seeing in good

product RAVA products. living given good a environment, We're the have but Given as should without move structured strong year. our expected our be well had volatility positive In guarantees. in continue benefit that benefits were our from and a Overall, seeing activity. away sales coming sales to we living in as we protection, sales quarter down XX%, off the good the

which in VUL were sales for for and environment. us on focused life up margin this are We've DI and XX%. good appropriate clients and been products, businesses return our Our

and Financial move In terms given line particularly were cash free we results good, in of X% from living expectations. the volatility benefits. and our earnings, away our with flow are

in shareholders that, And Ameriprise, public really terms raised with XX%, our XXth So about $XXX positioning, good a at to in capital back in rate. quarter, is give We becoming of returned up to overall, since attracted increase which our we dividend for an we continuing the million our XXXX. feel substantial. company

So quarter. changing this was I delivered I I another conversation, overall, Even with Ameriprise our good well. very situated as landscape, think think, began

in continue performed the in I'm feel are will this proposition confident cycles, investments, well, solutions value volatile execution on satisfy that, especially holistically In looking And and strategic well Our periods. that consistently balance clients quality key our and we advice have we sheet strength. this very based on serving high environment. our during objectives. our necessary client positioned with focus past to and our over

questions. detail, the more then take review we'll in and numbers will Walter Now, your

Walter Berman

Despite $X.XX. significant quarter, strength Thank you, uncertainty Jim. XX% profitable these risk with earnings firm Management across Ameriprise profile. delivered Ameriprise's in Protection Asset in well of delivered the strong operating business In the execution market and differentiated results ongoing quarter. growth to Wealth with businesses strategies. to the nearly up financial core quarter, EPS and representing adjusted our businesses strong growth the & And underlying continues model Retirement a of the of our business the perform our Solutions demonstrated XX%

allows sheet significant excellent return with of fundamentals shareholders excess plan to to consistently Ameriprise to capital balance earnings adjusted substantial in are Our operating approximately XXXX. XX% This as we to return of capital $X.X shareholders billion.

these to where strong from businesses year operating both basis XX%. margin a in profitability to you continue generate points of drove of and million, six, that blended can Wealth This of slide to growth up Management. up XX% turn with earnings we businesses pre-tax see XX.X%, a $XXX earnings and XX billion our in ago. Revenues $X.X Asset and grew growth Let's

market performance X% organic the improve slide Despite our billion technology the from with the segment have are $XXX to advisor grew and that were seven. year-over-year $XXX,XXX flows, billion exceptional slide very generate business on strong Management the we continue year. client quarter, management. challenging from quarter. with growth environment, to you billion advisers $X strong $XX.X robust Let's On up Client to individual client their net supplemented operating place turn productivity, and best-in-class fundamentals beginning deliver to continue our grew continued see Adjusted wealth can eight, strong tools we of macro generated in prior and These force, using XX% in Wealth per flows support by revenue X% strategies the to in and fueling productivity financial assets revenues to growth. which advisor results reaching results.

earnings $XX activity the the declined in upon billion, short dip substantial balances XXX anticipated the the we generally increases and is increase a to to balances balance expectation cash upon rates the for which followed remainder point of Based if In in subject the However, the nearly should basis provide exceeding increase, this is quarter. markets market $XXX where first we the the to Fed's bit of that counter additional environment per pretax given pattern impact transactional of million High face volatile seasonal typical market's change quarter. XXXX. year. would benefit the year, different XXX an in benefit the uncertain to saw Fed balances actions. of in But the increased a takes XXXX. in cash basis help immediate back offset This by would cash point based markets, pull if expect

where brokerage capital put will It duration increased opportunities for and well range. three rising see we us Expenses four In the brought that expense higher across work year to for expenses us. the quarter, and billion suite not of from business $X.X remain high the addition, April, bank this X% past the and to constraining volume-based increased first we provides benefit bank growth attractive off-balance In invest from In balances balance flexibility mid G&A nearly to a rates year. to brokerage is to the sheet onto across cash, rate certificates. optimize sheet X%. strategies we X% opportunities over earning and enable the us in managed. duration factor

XXXX, through of the environment. expenses continue move in we will As revenue light manage to we

we related volatile, XX.X%. to pressure. rates from XX% strong of margin significant expanded from Overall, earnings expect with pre-tax Management at equity revenue tailwind rising Wealth market While points Pre-tax markets $XXX offset remained point, to operating adjusted year. profitability million, remain this up a XX operating basis last

retail Margins XX.X% on the Asset fourth In revenues reflecting Asset offset what cumulative consistent our excluding at impacts BMO inflows Asset billion, Management the stream results. continued quarter sentiment as EMEA. two Underlying XX% and underlying million, and Management which profitability billion, $XXX to with BMO performance and in revenue $XXX demonstrating deliver as XX, strong given strong reflecting the strength the and outflows managed result from given compensation. financial earnings a rate pressures the performance. up XX% in quarter like billion, strong assets, to global Total as This full the of net our items, the was Pre-tax fee is acquisition business adjusted institutional net quarter Let's inflows quarter, nine, line basis appreciation. slide BMO of management The Expenses performance and billion XX% you in from the investor and with growth, strong fourth see increased in largely Adjusted expenses were increased in the including fees up XX where indicated assets volatility, turn flat regarding partners. we points, well guidance conditions. fees. market we in the operating insurance benefit a operating legacy quarter outflows business provided $X.X of On despite XX%, the in to under slide quarter addition $X are maintained to were performance of net were with geopolitical we, industry, and the strength $X.X acquisition outflows expectations Management of were remain performance market risk-off growth continued growth. of institutional. were flows in saw and in higher the fees. EMEA. G&A BMO line market

a with Solutions and Retirement include year operating slightly market from XX. slide with of pre-tax appreciation & lower business million, sales. risk expense well ago, of adjusted up to lower The business differentiated performed from $XXX distribution a turn earnings given profile. blocks Protection Let's

exit reflecting year. over riders last market optimizing focus shifting expected both in living from represent represent risk XX% benefit living Our XX%, offerings. of XXX book, universal the mix values riders. to continue. products increased life declined with XX%, mix another third product and of remains as points This our profile well Account which Variable Retirement insurance Variable down products business decision lower and value account Protection risk now the & our third uncertain sales of benefit a a for basis as our imports. sales is to total manufacturing overall environment only annuity sales to

to on the let's sheet balance move Now XX. slide

rated capital the fundamentals the in Our had balance portfolio sheet of VA AA was hedge fundamentals quarter. high effectiveness remain quality We excellent. XX% available $X.X $X.X excess holding end the well liquidity diversified billion quarter. of and positioned These and company of strong at consistent remains billion investment With capital A deliver our our take track shareholders announced level we in dividend. questions. mentioned, and approximately I return that, to increase operating of us XXXX. on quarterly to XX% to And in earnings we'll we Yesterday, the differentiated as XX% adjusted return an to allow of shareholders. remain your

Operator

you. Thank

And now [Operator will our have our Brennan UBS. We first question begin with from Hawken session. question-and-answer we Instructions]

Brennan Hawken

for I pre-tax Management. you run greater right, XXXX, expectation timing morning. from that’s where or million XQ earnings impact Wealth that my that taking was when we see on forward January versus would $XXX given Thanks rates Walter, call less benefit would question. in in be fair? rate think indicated your is versus the Good And of higher were curve the XXXX the the that impact, hikes, so the hawkish? Is

Walter Berman

recently indication this XXX they Yeah. XXX the the It what really about right. to announced of it is as in the short with you're the the in increases Fed seeing year. And relates and more has an end talked benefit

get get full then into XXXX. as you the would impact You calendarization

in end. increase the substantial as benefited the we spreads long it in now also we're the seeing see quarter, We because for

or balance start as that sheet balance So, sheet. pick to we shifting we on will money from up

to profitability. are will additional combination a that a to So again, of I lot us think it's But on allow going garner estimates based both of be these variables.

Brennan Hawken

you second Sure. a then, on concerns rates different about quite But there demand that. for question for do products. and those And might Thanks trajectory. on across product for industry, rising be for what my might some the new been is

the hearing advisors merits So, as educate likely rates on how what from your you those your are going? to are short term of And advisors the efforts are rise? to offering

Walter Berman

Yeah.

average very activity, we're - our any total not knowledgeable activity, continued seen in certainly, margin BM about the seen far, we from of And seen. advisors growth the negative have we far, pledge pledge continue to for trade-off seeing used So a are demand so impact. so and have in margin. not We've we good market. investment But capability the and that coming from our

Brennan Hawken

Thanks Great. my for taking questions.

Operator

Bass Erik with Research. Autonomous

Erik Bass

you. Thank Hi.

asset still Given in you market achievable? an is the performance year-to-date the in sustaining believe XX% management low margin turn range flows, weaker and do the asset

Walter Berman

Well, obviously, we range the XX%, market appreciation. and our it said will to the talked as getting always benefit about XX% is, we of we - were higher

the where Again, continue if we down. still imagine trade talked about. you stay to go you our we have So within down, that ranges would markets it go ways will to to go

Erik Bass

And provide think just expectations. anything above terms the around in slides more some is of Can Got earnings been you expectations the BMO noted your better? this? performing has I And you acquisition accretion? in the Where has that it. color on performance changed

Walter Berman

Okay.

environment. in garnered Obviously, it's have some on So multiple very good this fronts. they inflows

the other As talked came coming in. been had had also areas, would we've in about, institutional very LDI US transfer in, and good we that we've inflows and have

little was equity target So profitability and a we profitability better that private want at fees up the our been that we And property. the that actually certainly coming has as of performance very totally on strong certain. those have and been in, look came good. elements The

and our moving then plans well. strategy through integration, we that it our and looking to synergies. moving performing through we're certainly And So, through as our set, get we're have is

we're stage. comfortable about the So acquisition very this at feeling

Erik Bass

the Thank to forward? should you. expect that the in? last this there going And more US any expect was Or come you'd quarter, transfers are we

Walter Berman

believe. basically it. This is We

Erik Bass

Got it. Thank you.

Operator

you. Thank

Chubak comes question Wolfe Steven from with Our Research. next

Steven Chubak

morning. Good Hi.

off outlook. wanted start a the to on with question I So, just recruiting

February. advisor indicated the resilient peers in had anticipating. of particularly adds that volatility, could some dramatically earlier the organic X% strong you longer X% your quarter, of more elevated in admittedly just of in drove over the basis, term that speak some of in be organic pretty recruitment hoping growth January, we you just course growth, organic some But than net the resilient your quarter? the were given the sustaining the delivered the given more we quarter factors I growth, Some maybe a - you're the plus trends saw. to of And on trends was confident

Jim Cracchiolo

Okay.

So I you is guess, had around, just two the then of One sort and that. I recruiting the in flows. around organic from growth parts think

January. off that So quarter, to then some volatility the yeah, through at had little on And really of what based XX quality the and got that seen we've year good we a join always beginning the pick start we the as to occurred was of up us. quarter, it as were the able come in we people

in who Our pretty for continue mean saw support April. and the as forward. to people move conversations we But us. of understand we that we the joined They of type value provide of a have good that pipeline can the greater having think you level still month of there's I we're good people. what them with provide I looks been volatility as

slowing the have not whether client when general, are a relationships the activity gaining you unknown. are necessarily have to that in more But volatility is unknown thinking and going about of in just the of our money I there's engagement think has those cause now little will next the if people over lot work work you bit if will you're be volatility, lot about the of time, day. client market that putting money actually got held the occurrence. since activity, engagement of are unknown, whether you're and a thinking to that flow up, it, good. of do it. a organic people to fall little always believe pickup little sort want I we're it's the have a to a client But flows the is you more the little bit put overall as little going you good not I'm on relationships the you cash, in right and because a more imagine, how idea a a how would holding a is Regarding of period bit more there usual this slowdown strong, conversations of the good, sure the or

So good. we feel

Our assets with stay us.

advice I think that, month think just we provide. people in seeking more particular quarter are that see happens or we the what can a that it's of And sustain. I or week. you But that

Steven Chubak

color. tightening great that cash course to as on And given yield bank. sorting level of That's of my to hoping high yield-seeking X% the betas help as modeling you we just brokerage to both or into on and you the we get the be we the based your the for think could deposit bank, just we And behavior you assumption had frame as scale continue what should cash for what underwriting experience? about earlier. reinvestment extend year expectation follow-up alluded of the we the Was over pace just cycle Fed tightening, historical should deeper just

Walter Berman

right. All

So our about $X.X on sheet billion. balance a we've moved sheet, from bank standpoint, already from balance

We are evaluating.

- here get to pickup trade to start be -- evaluating range our the would because to have the balance we that $X we that from $X standpoint. yield applicable can think that you giving billion would us that into We a or opportunity that billion

to will in is targeting should XXXX. do something that we And that expect you be so that

those As you risk yields we've indicated, up manage continued to certainly the profiles yields have as are that. low and

X.X% up because the low-risk will duration stay give us a low So spot sweet And duration. X.X% us. balance with in working well spread and on for that's range increase it good the very would we the between the and in the picking out short-term that's to

Steven Chubak

the And level to into the tightening with yield-seeking of behavior as balances cycle. we data the and this with cash get deeper expectation for regards or

Jim Cracchiolo

Yeah.

the I again, gives good. this is that that. you're mentioned more the the our enough we than working is stability off-balance If that and with is, up feel manage certainly, it very about It and liquidity shift built of it's over quite with years, from capital looking something sheet it's can comfortable that, standpoint more but us the that we to amount cash

Steven Chubak

Great. questions. much taking so my Thanks for

Operator

with from next Kligerman The question Credit is Suisse. Andrew

Andrew Kligerman

Hey, good morning.

mentioned, Just following up you bank $X it's $X.X billion $XX.X a mentioned trade-off, as billion could this billion $X And a you going just the of on from possibility billion said or quarter billion to these $X Are good up billion billion Walter, at deposits over the just there's And trade-off. to alone. billion? $X last year, that assets that and I'm add $X $X as course bank the year in question, year. you indicating you to to another looking billion you $X

Walter Berman

Yeah.

go you're range upper of $X billion. if $XX take I'll So, to - number, your billion, billion, you can $XX they had billion to the $X

Andrew Kligerman

too, touching were bit And you tight recruiting, on of that terms is earlier market. in Jim. a a it And great. labor That's

game? touch from other in there this advisors what in a you seeing new in at could the big stage advisors initiative you're on So this is that gaining And bringing de given environment, novo? of comfort just Is firms? terms in

Jim Cracchiolo

Yeah.

assistance systems them develop our that. we employee as will recruit even as of as office and to part and help and as as with side, advisors continued channel in we the continue have we well do So well the franchisee franchisee and

our a side, we're think, a people that very And And part the experience to that made join of extended way. activities. to, strong have good some continue nice proposition. I it's us an on large we but seeing value haven't activities, our complement We

better and who've As highly opening in either got been my much of firms, I the remarks, independents. mentioned at are able to satisfied provide or they joined in previous more we've what advisors houses they what us, wire gone to out their we've than

about telling payment quality in so not We're profile. someone can marketplace. and have -- the is. here just themselves not what what establish strong about with type story that productive grow actually that a And just of It's practice the very we're and it's a

have really even become rolling employee just not we're the we really highly for again, quality so support that productive that productivity. part We on system people were to franchise a can our numbers. based of low add manage to And provide a large all good up or with want looking We're looking people as them.

so good And that. we feel about

Andrew Kligerman

So grow amidst noise, that this channel? can likely continue economic you all to

Jim Cracchiolo

Yes, yes.

Andrew Kligerman

thanks. Awesome,

Operator

question from Our Barnidge John Piper Sandler. next with

John Barnidge

much. thought you. that for portfolio. maybe Thank increase very versus in demand know ESG that interest energy talk in about product you a how been Can you may Europe? maybe I There's demand specifically issues some has large ESG product in had and been investing. and BMO Thank others Europe broadly

Jim Cracchiolo

Yeah.

areas So part actually garnering we're the good other in been that on investing. franchise, They And a so capabilities Europe. international doing softer their but one of responsible where in it's are to areas was States. portfolios are flows very of to across United our the there leverage it's even working more heading little our in holistically the BMO well. acquisition in clearly, And

And so, into demand we that picks that's environment area. leverage we also confer as to in move continuing what that part the of feel up good the in we're that

investing. S that's part an one energy responsible there part but that, of the the of is & G important part - think is I easiest of and overall it,

John Barnidge

then And follow-up great. my question. Okay,

ago? management you talk funded, months Given the market how maybe three asset for to unfunded can fitting volatility, six you. about that's time to maybe versus line Thank

Jim Cracchiolo

Yeah.

they've what's themselves. on won to be wouldn't necessarily just - Things market the institutional something. little to sometimes funds you wouldn't how market I It the a all, conditions little are the they based have bit where recognize a of have you business, at say need I as So always haven't on say further or but longer a imagine, to reallocated a that in the extension is even funding. seen and in trying been there extended I quickened happening side takes regard. they of fund. would

I think think in a portfolios of there's you the X But the the always some last in some market running as parts certain have have for reallocation was you it's backup segments. consistently equity been fixed it over where or months. income I

John Barnidge

Thank you.

Operator

Gallagher Tom Evercore. from is question next with The

Tom Gallagher

VA you product percentage think potentially exiting level, you're of The color give annuity some on is can versus pieces? level the on some fees, remain Good the getting a might guaranteed it going there insurance there given the like other move Any of you to distribution morning. recovery drop sales. downward be at of depressed and sounds what that move lower sustained in the

Jim Cracchiolo

we'll I benefits, can't eliminate are the that but seeing the aspect really exiting of, strength give percentage, in product. SDA you certainly living but we a certainly

give So I them, really can't proportionality you on the exact Tom.

Walter Berman

see Yeah. the And Tom, industry volatility. quarter, think slowing the annuity first think activity across you'll I in in bit because the of a more I

But we very it. that is comfortable of non-guarantee and with pickup And versus part it was in of part the then think of guarantees business. feel continue the activity. well of trade-off to us we some for there So that, it's new be part the - we right forward. booking expense not from some the move savings as as also the But we will

about total good very we feel and balance that can we overall, So the we garner there. move think that continue of what to

Tom Gallagher

but overreact, management color Any side, not you. just sharp in can flows to outlook on definitely Got pretty one-year overall a retail on institutional the drop and give performance. you there was for asset between

you we the If of between any think for imagine term a expect statistics in which But business depressed are pieces overall here than Should I the big impact. going? two won't a at remain color probably while? flows have near terms you to of would there, where look the

Jim Cracchiolo

Yeah.

quickly. we situation flow one-year regard. affect more So occurred of really know had the the It more it's in didn't performance, that so what

I think - can you the it see the industry. flows and across

out. you little market, particularly on hey, fixed of out You're income, redemptions pickup there's get some look income pull major as going fixed a the maybe et cetera. And sectors been people to if to have a including munis, say, need of they I at

at based of stocks pulled investing they've how You point in upon in, people slowing let's bit this growth time a back. say, also had

be should that think I So expected.

think as I you you're see people see that. reporting, to more going

I in that did income. flows think level And is We're fixed X% I I of US industry. What the the the you X% see in worsed with can mentioned the difference is We in our were SIMS segment. data. better and that say the at in looking we're equities. consistent

major industry. to full the had So up think we actually I don't a compared

industry I as is well. the off think falling

this Now active. talking point the other is active. We're -- about and

and things isn't say - in one, performance it's value, Now they a occur: there meshed other side, together. number and calls Europe, three thing are on that growth would that I all is the there segment the

a We bias have more of growth versus a value. quality little of a more

you we growth when look so, underperformance little and oriented. European at more there the your more a had benchmark, little And we're a because

It's one retail our and equities. fund, then dropped, institution But caused will a of that's the not your basis and US, on in back. points that and the It's just bond XXth. market. big it Our more. clients performance little Then the down. you imagine income, of the the the understand a in US just fixed And with It in below. what that which few the is could way little we go benchmarking, it goes have shows pullback

had good therefore, thing. of will a points portfolios. few as is about dislocation well. more the like we the there feel little quality But feel that and those what And very basis You tips a bounce we back

like quarter a feel don't you year one performance, look of within strong years And So important. is effect. what's versus so really institutional XX we that I underlying at three, there's a again, of understand a think an has the don't very And particularly in also having I little major I and five when change. and more that think clients a portfolio, think

Tom Gallagher

If last color, Jim. helpful That's just in could slip one I question.

annuity, of timing, the pricing gone on would quarter transfer something either and as maybe of right update if about be direction interest Just think would evaluation on you that the life care. which Any potential this the on way can rates a risk risk interest likely several presumably broader road? whether as down a transfer, potential have the it you development? on up, also And in Thanks. give a you to help think relates is doing little also rates, out step bit that long-term

Jim Cracchiolo

Yeah.

take transfer, there's at of in and interest And our clearly, risk a products, these care me relates interest seeing to improves the that. you're as active and maybe long-term environment sort it clearly, of let look other as aspects you a So in that. rate shot more opinion, a

those combined of Again, These the it transactions. profile are complicated now yeah, many that how a nature. have at certainly higher long for with things looking two long, So of you've have to that seen books aspects taken. they people have been

said, good put a starting to Like we're off position. frame I on in going a very I'm time them. So

We from great evaluate products, have we expressing basically and we just standpoint. that people - with interest,

it's is the So, certainly environment - beneficial at this but stage.

Tom Gallagher

Okay. Thanks.

Operator

Goldman have We Instructions] Blostein our with from [Operator Alex question next Sachs.

Alex Blostein

into brokerage hoping into dig little for morning. here AWM cash was question. Good interest guys. to and of to the higher see more a Thanks sort are Hey, the the that I dynamics rates. with likely

So, definitely of topic customer to cash the for top investors. sort and retain is of ability sorting of mind cash the

of in pretty guys percentage kind around as lows cash. terms to of of You assets close bouncing are historical client

suite? or whether kind in Just sense the for bank As there of assets to it's could better cash of higher-yielding will options this are you terms of be trying within ability some there a presumably, the forward balances. and Is broker retain absolute cash? remain percentage think for kind investors. frame a as channel, of surge about become to kind the available thinking holistic get client of the to that you How AMP the yield to downside way

Jim Cracchiolo

asset over up. have what Alex, levels I say total our is would gone I So think years,

And so with that. to cash your risen have consistency in levels point, our

if of year a have first cetera, the as I quarter, up et from at I - think would I we what few look you sort of over the even or dollars say, usually course billion the draw is a the back of what we're is of work stuff. seen in a from as a little more money down more we've a quarter the into and year little what the goes pickup. end And first more of

money market or down, if on I the much probably far the as cash less little sense. back cash effect materially that hold. didn’t whatever into people But to will because the would or as a see we increase bond I keep say really it So, more in don’t going put positional it that some

I of as your maintained a think assets. point, total percentage to it’s

few about because would active. that have normally advisors gone Our of portfolios the keeping some falling it billion we I from cash rebalancing But see it don't it's think it's probably be a dollars But emergency point, a would juncture. and say, I this where dramatically to yeah, been that from up I from money there would to client it's good perspective Walter's very transactional. keeping is important have. levels at It's think positional,

Alex Blostein

little different banks into more. buckets, of Got wish terms bit to the it. And hoping I then dig a in channel the we've

the sweep brokerage next The more of you of year broker pricing? to obviously think as for flattish, spread or potentially the But Could the start as funds of on so? it's or demand feels player top see your now, been cash banks, have a other other over becomes on banks market pricing remain that that. some it's right demand kind few kind deposits. improve and in any you improvement liquidity diminishes from starting year like to Are weak, you Are bank market. see of a Fed pretty of to quarters. we guys You discussion over from no bit a next any pretty the It obviously, that sweet in dynamic bank plus. starting significant into been moving sort last own

Walter Berman

through on demand haven't way change discussions the working characteristics. we've basically but I and Walter. not price, in much seen a its much. seen little It's It's

Alex Blostein

Thanks Great. so much.

Operator

Jefferies. have next We our from question with Suneet Kamath

Suneet Kamath

Good Thanks. morning.

on RBC talking to the stock. wanted the strong, seems start of XX% capital as you're pullback return, and about given position the is very quite earnings. capital the ratio excess But Just the well, like it strong in remains operating given

Just we could of the the exceed as the wondering And think about XX% we buybacks? year? how balance about you're thinking

Walter Berman

XX% we about evaluate we now and is as think that is area I are the But just right a the not but I good -- of I an would We say, talk have barometer target the we will through. would evaluate capacity, right barometer. do. in listen, changing say quarter, would XX% look what it the we options each is XX% certainly now, we

Jim Cracchiolo

point, side right of sense. we opportunities. on on other I what I a that But up the but think happens or bit we it's we Suneet, based to make sense. flexibility in for in we've we flexibility. the will that opportunity to think on you this range deploy there where given deployed Yeah, us if But have little is targeted down at and times also to, feel Walter's made it market, of a feel at based juncture the want We've environment the necessary still

Suneet Kamath

guess, Got fees BMO, this of you of all-in to on kind it. guess expect And the I sight kind sort I at from performance the had year? the what performance in this of been but is you'd do on is strong, of fees, any related you point? mentioned have Or and of they've line two I that some quarters, think then of past balance

Jim Cracchiolo

think say one I could of would and the complement. Walter things I

we've So the BMO its business, business, added and and institutional estate, with cetera. an alternatives first all, real some does of it which et of is have

when product or cetera. fees in total as fees a them. when So more if get percentage gets same But that's no, that of performance total also performance liquidated, performance years more you et the have have it's things had asset on there's maybe have ago, upon the accrued is of base. number you we well, it because said, larger answer dollars a someone based not lumpy. two And fees, should the But

So don't... I Walter,

Walter Berman

it's No, the I think point. exactly

what they a these And it predict look are solid, gets can't at to We property But can't base it do we a give it. have or you have generates at look where do we fees. private you generate more And But in certainly solid us. We it. you business performance And little as happy certainly, even equity. we we're a it's predictability that. difficult solid environments, the for of certainly, just earnings.

Suneet Kamath

last maybe And environment. just the it. on then Got just Yeah. one,

bank here It that this keeps in the done you million guys $XXX about, the kind that we've on side market pulled weakness, sound a these of kind the guys contingency aggressively. just of like you expect I'm more the expense gone doesn't that through upside cycle. the from of versus the what expense past? you think you're when have difference what have curious, the talked I in bit periods is comfortable doing pretty that lever past, you is that And you little

Jim Cracchiolo

is, would Suneet, you this. what is the mentioned there. always say, One I yes, Well, upside there's

would looked years grown is a the I not rate. the have not, you base have few at much last us higher good, expense market has been thing normally probably really say when our other at over we we The even if

I deal think with have might some other have to that. really and companies

only business increase I year-over-year. were a growth go haven't. and quarter of Same I Columbia even think expenses Threadneedle, of Wealth we the Advice mean, was thing, BMO up in in that added, all made. few we're look flat the outside & at that their percent the expenses investments relatively with have in we

spigot we turn would I So, well business things I will and say want make like that weakening. the well. so we handle speak, we that therefore, But support also the to still and that activity good to would we feel if are say sure we have

high we're expenses. growth. looking to we'll activity feel is, those what -- think gone - well have So, things got you we like at that expense we But tighten down, if really and on I overly been yeah, haven't the has but balance

Suneet Kamath

Got it.

you. Okay, thank

Operator

was question. concludes thank for That gentlemen, conference. and our participating. This last you Ladies today's

now disconnect. may You

Ameriprise Financial (AMP) 26 Apr 222022 Q1 Earnings call transcript