Ameriprise Financial (AMP) 26 Jan 232022 Q4 Earnings call transcript

Welcome to the Q4 2022 Ameriprise Financial, Inc. Earnings Conference Call. My name is Dennis, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. Instructions]. [Operator

this recorded. reminder, is conference a being As

I Charity. Alicia, turn the to Alicia call over you will now may begin.

Thank morning. Quarter you, Welcome to Ameriprise good operator, Financial's Earnings Call. and Fourth

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

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

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

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

Some of risks and management's These involve and that be performance. of make future today's may a statements number operating call forward-looking expectations only speak date plans statements forward-looking reflecting and as on events we uncertainties. this about and overall

found materially make earnings to these to our A to forward-looking statements sample actual cause XX-K shareholders list results be our or update statements. of publicly could obligation forward-looking factors different We annual report. report from that XXXX our XXXX risks in fourth be no and and revise can release, quarter

and facilitates call adjusted management meaningful on our reflecting that page today of more financial understanding core Below the a operating On the our X, see by which results. focus business believes operations analysis. performance of operating will fourth of unlocking, by management operating at followed that, the the enhances results, the GAAP Many you top underlying trend on makes the the you'll Slide see adjusted for quarter. results comments of our results excluding our

to it turn Jim. I'll that, with over And

joining everyone, earnings quarter and thanks our fourth Good morning, for call.

completing release, a our in an Ameriprise quarter, delivered saw year in you XXXX. excellent fourth strong As

will clients our give to and Walter an then the well. serve I'll continue navigate uncertainty our you discuss financials. update and on exceptionally business, We

down equity with X% XX% environment. Let markets were sequentially. market average me start Equity the down markets year-over-year, with the

at level. longer So far have continues as see will backdrop, for stickier? bit higher question inflation high a is, eases, to to if this raise continue to is will With a Fed However, rates some markets to be year, rebound maintain The they we're starting Or more? rates a remains extent still that to inflation strong inflation in the Ameriprise position.

$X.X continued the up Revenues XX% equity EPS impact to down and best good for to were were income Earnings records, a both relating industry. at new quarter the excellent markets. billion, year-ago for of be the among and ROE on from the the and only nicely fixed the up X% with XX% year, in

year-ago. well Importantly, we're to down X% a compared also managing expenses expenses total with

and decline and translation Assets difficult trillion and income foreign were largely equity currency Under markets, the fixed by Management. in Administration to driven a Management $X.X down markets steep lower Asset

businesses combination differentiated is in deliver our market As across to consistent a returns which generates our good and cash business, level consistently quarters, our cycles. ability able in previous the of and invest position results. to free of competitive strengthening flow We're

and from continue we positions. clients more engaged about In good remained working our with strong in businesses. Now and Advice Management, deliver flows Wealth and to as closely leadership quarter on and build advisors I'll client talk the our comprehensive had for a last year we their very & client results more advice quarter solutions. fourth for benefiting We our record below our had highest in flows $XX is client just fact, than billion, And Total I'll and quarter which quarter nearly the $XX the billion. were were at the strong, highlight flows second year. very that record

growth level of even us. appropriate split appropriate maintaining growth certificate a with in of which flows we've business We're is for this into the Bank, the and which this key good climate advisory year, is Ameriprise area non-advisory environment. investment our and With into an mix in cash an the balances seen accounts,

investing capabilities. bank, our us been with and rate deepen With the to we've to interest consistently and The further to our flexibility bank regard engage environment relationships enables expand in clients. provides this important

has more than this grown $XX nearly to billion. bank Our XX% year

have pledged business, to deposit We and track year. lending-based launch we're our on good more growth in and this products loan

Our billion certificate year. up nearly company $X $XX the has also billion, grown to for

Clients And year Clearly, Services navigate XXXX why to recently, volatility. Customer of trust, we're And trust is was Forrester's a high advisors. year. recognized so one investors positive for and last and of they're our Newsweek and level trusted companies our having experience that That's Trust leads with as to market important. rating for #X very the highlight advice in which the engagement Ameriprise challenging ranked being XXXX our just in America's that Index, a of we strong Financial most for. level new complements satisfaction

remained productivity, look up also X% market $XXX,XXX Let's challenging a in which advisor strong, at per nearly environment. advisors to

tools driving advisors level was and investments, making Power And integrated provide, our outstanding providing advisors reasons and support our customer for really by consecutive for service as marketing the experience recognized growth in for fourth productive their so One important are We're phone J.D. helping well practices. in advisors. of for engage we branding, the clients year, support we're Ameriprise including of technology. the

the firm, had highly attracted We good. our the firm. advisors productive recruiting. to looks stability quarter the and are and another and proposition value XX of pipeline to advisors strength with good Turning joining the

results investing the growth up which consistently organic are is Management including to to generate business, with Advice XX% helping the we strong the drive in earnings Wealth continue bank, to results. & year-over-year. and drive overall, firm's So continue

quarter & out. to environment our ability the earnings to were and in where Protection let's to Retirement the Solutions, due XX% invest rate improved up Now turn

returns. very Overall, focused business and very of This as As I'd variable one that a ranked benefits, life the of our very without fixed away were of the we note variable meet from part annuities insurers. that products our focused recently living our industry. strategy, structured consistent life products. RiverSource down stable We're was and with much on on products given is delivers DI risk sales most profitable and universal products tolerances. flow cash our move good

$XXX markets Equity FX the billion a market XX%. well to quarter earnings. impact. driven were of cover when billion I'll assets were negative our volatility that outflows. in Asset by $X.X insurance legacy to a XXXX Overall on our our as business were U.S. flows XX% pressured and this, clients significant out Asset headwinds the as priorities. Now the tough $X.X down execute navigating management industry, faced the under as included to and depreciating With Management Similar we focused strategic down year which declines billion, in partner Management. globally, markets due was

In market reinvested retail, billion, gross outflows overall, that driven were we the increased weak of net and including sales redemptions. were pressured both by conditions which in $X.X dividends,

In selling addition, loss in in U.S., of the tax there we believe a heightened December. was level

of regard to Global net in billion, to insurance XX-year inflows we with five we investment Institutional, performance, legacy Turning were partners have numbers. wins solid to three, continue strategies. nice and $X some excluding LDI With in

is long-term However, while our track. we investment our investment, given numbers alternatives, expense our have Management, are invest weakness in globalizing to Asset one discipline In research, responsible BMO which They on in include priorities. we market operations and integration, continuing year's maintaining volatility.

a of well we lineup environment improves, serving strong situated. will a on focus capabilities, And the products and our have be We clear as clients.

position very the in focused firm, to well and a the quarter while fourth is Overall, across we clients the the and continue returned engaging on strength much be in environment. strength able to our execute of shareholders. of continuing a bank, entering our And we're we capital invest return and diversification including to growth $XXX the XXXX, level. at this to of to continuing In million shareholders differentiated with to Ameriprise business, alone,

it and then questions. your to over turn Walter, I'll take we'll

Adjusted Thank you, quarter EPS this the demonstrate the Jim. to Ameriprise strength strong, full-year. for in continue $X.XX value were quarter very the increased and and XX% XX% the of Results increased we to proposition.

now Our of in its Wealth diversified earnings quarter. XX% businesses year was business XX% Fundamentals particularly from operating supports total, ago. the Wealth Management across which strong. Management, represents market mix & very demonstrated performance adjusted certainly were a in In cash good up cycles,

substantial Retirement earnings the results Asset Management, financial generate quarter. free business to continues headwinds flow. the segment solid in and facing the Solutions cash declined industry, like Protection And is this & and from

on aspects of focused the we remain business We the that can control.

growth, client We business are our profitable of expanding and executing disciplined expenses. bank completing and managing to needs BMO investing exceeding the integration the a and approach for including priorities, while meeting maintaining all

for year. the In excluding BMO, fact, were total flat expenses,

flow balance fundamentals cash free and generation remains Our sheet strong.

totaling the of continuing certificate million we and quarter, capital billion grow the bank $X.X returned In the company. to while $XXX full-year, to shareholders, for

these We have businesses. dedicated capital significant grow to

Let's to turn X. Slide

markets trillion, $X.X Management quarter down This with in depreciating down these expect XX%, Administration As the and equity you respectively. markets, Under driven XX% was markets at ended fixed and and Assets XX%. would by

of the of year. Asset Additionally, the AUM the U.S. Management weakening at euro, with end the the Management by XX% of levels outside Asset the pound AUM were impacted and

with a the $XXX AUMA interest to expense excellent earnings dynamics reflecting coupled high revenues of new the Despite million as a discipline. declined levels, result reached lower revenue billion pretax only the operating $X.X higher discussed, X% and net I earnings diversified of

turn our Advice and to growth continues Management differentiated Management of momentum, proposition. to strong X. a value Wealth Let's deliver Wealth reflection & organic Slide business on

to $XXX market challenging XXXX. declined the With assets XX% backdrop, clients' billion in

flows remain over X% sustained billion very the the the at billion over past have full-year. net two in years. for we strong a However, and client of quarter Total growth record $XX reached $XX

of There and continued market the a up to productivity accounts in growth. per a advisor see $XXX,XXX, over we While reached Revenue continue XX% solid pickup business two as accounts. clients from and distinct ARAP has years past to into navigate been flows the brokerage enhanced going backdrop. certificates flows level

earnings from see expenses XX% a client you and transactional depreciation down lower growth with and expenses as pressure exceptional, reached was up margin distribution operating On Slide strong X, transactional higher X% XX% lower can activity. activity exceeded assets. reflecting lower of Adjusted Management interest declined record and Wealth and organic XX%, market profitability

by full-year, Expense in the higher volume-related was bank from XX% grew organic for the in increased and And investments strong growth. G&A in quarter. G&A growth activity quarter the X%. the driven continued

expenses Additionally, included to unusually low staff the levels relating prior year T&A. and

which in Cash Cash slightly, balances to certificate have included $XX levels. $XX billion quarter historic to balances. year-over-year sequentially billion, bringing closer it of the rebalances increased declined and

are to laddering as grown XX% liquidity have clients garner certificates yields. higher year-over-year However,

yield. to build this the our complement client appetite year for a the to products deposit certificate meet out growing we to are and offering, our As savings in bank continuing

quarter. quarter with the size As operating with The clients most rates continuous a and And $X,XXX rising high-quality, reminder, sequentially continue yield ended benefits basis into duration earnings additional XXX points benchmarking total basis certificates our account the securities. accounts provides cash balances. cash gross our and cash of XXX sweep of points, reached capture grow translated prior of from the the with bank by only against average assets of competitive XX% higher to has basis This to the bank interest it. being the year constituting The fee the in remain points up working over in This flexibility with XXX majority driving our to balances investing year are $XX capacity the further. longer entries of billion with over in industry. and

These interest rate investments that create of benefits multiple period. sustainable changes regardless year will over

in to approximately New strong growing from yield basis spreads This supplemented growth balance the been quarter nearly has certificate $XX basis points. with XXX the within XXX gross worth were mine above our cash. nearly of purchases with billion and quarter a sheet fee in assets the company points

to move interest on credit grown on and quality. year, trajectory the a we of were $X moving In earnings from first yield, high to to our in continuing growth maintain the balance half sheet. XXXX, incremental while billion bank on are As we bank's the we into the generate

XXXX. the of yielding into in the throughout $X We we previously indicated, our as year. we billion And to reinvest balances additional of the maturities assets will expect transfer approximately back of half course

XX%. XXXX down driven remained depreciation X. both pound foreign challenging retail Management the backdrop negative were market as and us decrease period $XXX by remained income well by offset and AUM euro as as impacts. than during Let's Slide for challenged the global more ongoing on Flows turn XXXX, In fixed the pressure. This Asset was exchange and inflows industry. double-digit institutional equity during and was net billion, to

in net XXXX. XXXX reminder, billion which a As the impact had transfer, $XX benefited asset U.S. from limited BMO flows

outflows. result On Slide and challenging million, manage and of Earnings financials XX, the a you of occurs depreciation net can market in see XX% deleveraging reflect environment reflect the market a this as asset that were continuation decline business. $XXX

prior as the of period as included $XX current fees, addition, quarter mark-to-market unfavorable $XX year included well performance million while In adjustments. million the only million $X in

to margin quarter a XX%. declined the in result, As

Importantly, were Expenses on and the and fee with managed, compensation expenses on we our well down control timing performance can are priorities. and expenses. remain expense XX% G&A continued areas down from focused executing strategic we other disciplines, total expenses of mark-to-market lower

results reminder, last partial include expenses. of a As BMO-related a quarter year

discretionary trade-offs managing very we on environment. As move continue to expenses will to spending revenue we and committed remain tightly make forward, the market-driven and based

with estimated Let's portfolio, turn at & lower sales and the Results flow clearly generation an XXX% deferred Retirement were enhanced increased We with of driven earnings ratio levels. cost to investment Slide a year-end. XX% in repositioning quarter of Solutions cash remain the capitalized yield XX. Protection RBC amortization profile. by differentiated acquisition from and risk lower well strong

declined with the our living Consistent impact market sales as well the of annuities a discontinue volatile in as quarter actions industry, from of with result benefits. the as the environment variable to sales

Now is in with only account $XX billion past billion of $XX products living guarantees, value year. decline from benefit a

Protection corporate insurance was in-force higher million of investment actions direct The reposition bonds, XXXX. total remain the $XXX in assets. represents taken longer-duration income in concentrated maintaining portfolio. These a investment generate asset one-third the a to into high-quality while higher accumulation investment actions result In in margin we the portfolio. VUL, of primarily will sales quarter, repositioned which income increase

well diversified remain On strong our is our portfolio Slide balance investment XX, positioned. sheet fundamentals and AA-rated

were liquidity yields effectiveness very that Despite XX%, excess capital at overall AA+ portfolio. market remained quarter, accretive the purchases quarter, in remains rated at company were volatility new the money the to VA During strong. continued hedging and and holding strong

growth. return generates model consistent This to business a diversified capital and stable while continuing flow. invest to level and free of differentiated to shareholders, Our for significant enables deliver company cash the

the we a billion. bringing the $X.X shareholders, During million of total shares year X.X repurchased the $XXX million returning for quarter, to capital total of to

capital past return strategy by five share XX%. years over count Our the reduced has our

With that, we'll questions. your take

Thank you.

session. And go with question-and-answer of the from Hawken begin ahead. line your the UBS. now [Operator will question Please We Instructions] is first Brennan

taking questions. Good morning, thank you for my

that's at Wealth and certainly flagged seen in the growth certificate with the management wealth You business, consistent other what firms. we've

how growth we would impact So that your that on of so type that as stay deposit sustainable? be deposit beta type you take up as shift about mix of long think that should high, to rates of corresponding seemed expect And beta a shift and should step the quarter. that this

we think move should that, so continue to will higher? And that

Walter. is Yes. This

their So develop have our continue and trend -- them the you with and in answer sort is bank, in yes out products we see going see you'll new our CGs, that with line. And are rates are to to certainly And coming should, of a capabilities -- navigate XXXX, standpoint, which we certainly for and clients choice. this looking on will we from up. the our deposit on interest to sweep, situation enhance advisors giving them beta also are certainly and

offering being wide we certainly significant see forward. But move opportunities and that standpoint. are as choice, are competitive we a from we good We

I Yes. the many space. with That makes said, And sense. that's in wealth of like your consistent competitors

quarter think business for So encouraging bit -- -- about been that certainly and growth wealth, overall it's when shifting net X% the a a new challenging in for gears we follow-up and in been competitors. strong asset staying have trends what annualized little some

numbers, it, practices but wallet and I rather recruiting of advisors existing clients. it's As not share driving expanding their understand really the growing

and future? So to encourage what into done have that trend hopefully you sustain the

Jim. is this So

is advisors do need. the really the achieving continuing in this time, really or your they advice the very time. not through based think Part situation just over much a providing with having goals of how are on cycle you on about journey market the market the engage around We really and client the focused quarter current

and engagement we that is I that really help do and good so And provided that, them dividends. capabilities tools think the paying to

actually quarter of amount It's had. was strong had we and at $XX the last actually highest so really full-year. you only a saw year, the highest more. quarter $X.X of for billion we And fourth that year, was second inflows fourth the as was The record last quarter And billion. client

the that to consistently we advisors the advice helping So and around and really over time. that engagement want continue more do journey value that proposition

you my thank for taking Great, questions.

Please with the is Your line ahead. Research. of next question from Steven go Wolfe Chubak

good in impressive. very Hey, AWM Walter. morning, just Jim is Anagnostakis and Michael Steven. expansion wanted AWM This with the margin on to I start for Certainly, around here. was one

XX% You had roughly.

do suites what as to here, make is Thanks. pause Fed margin ongoing at wealth the view a the plan in of the peak inclusive you you Assuming bank? pretax

Sure.

quarter, having the What Walter. XXXX. and to and the sustainable going to we're productivity certainly of achieved side strong growth joining. the we relates but to fourth it's is contributing And certainly also a it the earnings activities. it as shift in cash our we as certificates that, core So see There going basically with basically and us in generating bank and is

sustainability So think Fed well over years. we positioned are we it that take with has of will the profitability basically pause, that play the duration now multiple is a that does if

we feel it have impact. Obviously, comfortable. So some will

that We in but position the the an Fed have we we're looks as the sustainability feel happens just activities is excellent grow to as in those long what evaluate end, short not two on and we end, but what it to profitability. doing ensure

it. Thanks. Got

gears So Retirement I to my -- wanted Protection -- maybe & and here. just to for follow-up, shift I

business quarterly provided the quarter? incremental had actions quarters? you & we you that versus had do you a the believe be in million next only taken in should Protection portion had that Thanks. You run could prior expect noted the in cadence what much portfolio. rate Retirement And benefit that captured of results for $XXX new How

completed but a being $XXX ways, in we probably with in the that some we place with quarter. the But out. comfortable the quarter. rate probably people in There's always a in $XXX started yield. what see seen with that's one-year I'm We fourth estimating have that but But so million, about, the it's going go and we still taking over little we first million certainly the cycle. areas talked investments, that the Yes, improvement range, ways it's to I've weren't will yes, and run you're

year. would say like for $XXX So million range the I more the

Okay, got my it. Thanks again taking for questions.

Jefferies. with from Suneet Your is ahead. go next the question Kamath of line Please

thanks. Yes,

to back I deposits on similar paying rates certificates, on about those you're both to fee Advice two, fairly do Management, products? other? you favorable going agnostic you versus balance the So but that Or of think the had margin about gross compare? & And think those think when again, two we sheet we between Wealth yields, as benefits those more in is one are than terms how

Are yes. on or saying certificates you bank

but the results, we has Clearly, the our concentrating very certainly Okay. getting a we that's higher margins in good very are bank where And have growth, than CD the margin certificates. we're strong and business.

will the better is margin bank, CDs different but of But potential strategies. activity, and strategies grow growth investment the versus we generated. being a we primary of answer And the a is coming in lift it percentage is And going capacity we that's the is, get we have two. be to CDs. Certainly, real those bank profitability and the liquidity and larger the to sweep larger earnings generating good take so because feel in in a the will in the

differential? and way to is that margin Yes, dimension there a

just a see we that. onto but can it and give I'm is take and more if have insight at the better bank, can at you, that don't I telling No, look it, we

course $XXX investment about and way Makes Yes. investment will next bank any expect about Is over level of you Or the you to that business for I that capital in then, the guess, something certificates you the continue expect the year. talked both And sense. into an XXXX? the think year? that million of

Yes.

yes. So answer the is short

from be is matter capacity equity us cash to very considering it we is really, the and will We it our have It's closing. giving obviously a And continuing and good of returns. it. do it's standpoint, that. And

it it sneak more of looks could that there then risk that And extending long-term like as taking less on sign solution read we one well. into is portfolio is if I the transfer much? maybe in reading you're that maybe a it. care Got too as Or into advantage Should likely? business, the duration

third and Yes, we've case possibly. time, now the in short protection. taking the longest was. LTC advantage year Listen, kept and And for the we're both direction with where

can are the we it's providing with out as investment profitability, So that see lengthening you capabilities certainly we're claims us. quarter side the we the it's running business good the in and garnering from that demonstrated both fourth on now duration, but standpoint, we're and

of So managing great, we'll no, if right it something look. that's But there. comes we're we're taking along, advantage now, a that's and opportunity take the

Okay, thanks, Walter.

is with of Research. Autonomous question from ahead. go next Please Bass Your the line Erik

In mentioned think Hi, Investment even your at was you negative of adjusting I items. target million thank margin one-time the But I think $XX Management, for of about you. range. these, low-end the

about in for So emergence XXXX? how the then and we saw the you thinking of of given year? the that AUM should rebound And over BMO quarter the course synergies some be fourth are margins the you improvement expecting

interesting you look situation and an of depreciation because dislocation exchange. look you is at this the as equity taking the markets, the course, income, It's fixed foreign at at especially stage

but control. is that managing this do just actions on But we are don't -- track. of things margins you lot other the the would we nature, synergies it's dependent a there's mentioned, deleveraging, things is. that but and -- -- from as that point, industry through, that certainly look are at I'm like we like at BMO we're say But of it's I it, control, heavily taking. So the on we things standpoint

feel that we from So comfortable standpoint.

we variables lot activity market now now, lot but that a are margins to a breach certainly related but through, there's cognizant we the that's think are managing. So that I of of

market well don't the improvement but the -- hold occurred in it we Pound, I front as appreciation et listen, mean, far enough, cetera. We if will as again, as international see as on you've seen the know pickup some

changing that's a That not range headwinds bit. And little relieved we of think we helpful. will be as we're a have move the forward. our So

to it. Got capital then maybe management. And moving

for fourth about returned I bit you the was full-year, quarter, little earnings the shareholders in lower. to think the XX% a percentage of

should still capital about uncertain the the to being given think Or target? at allocated this outlook? come macro we all the right So and/or down has being the XX% bank

Okay.

You go ahead.

we've look the we capital of there strong. it, companies one at very highest returning and been year as So out was in last even

So as capital. we additional company, have capital, Walter But strong said, look all to which well which are flexibility. some uses continuing the we as to forward, of bank, require going as certificate as is grow we're good but the returns are our

In up capital. well BMO now we the of as bank that We growing past years, freed have the the to used some purchase tremendously. as

return generate we're on that shareholders. investments So well cash we percentage will return the both free that how we utilize our in as flow far good as as as think that rate said, business, and as to we But the shareholders. to we depend going will to continuing core

down but is because still it from a was other strong So opportunities, coming be those it will growth where of return.

I'd at it in that So this point time. at leave

Got it, you. sense. makes Thank

of Gallagher Evercore go Your Please is the ISI. next line with from ahead. question Tom

of maybe down, could that. whether you coming or or impact? some give Good it over-earning this XXXX, so a quarter? number, & LDTI quantify any is all run If $XXX will $XX does positive contemplate the us follow-up it $XXX or that million if up that million back? why And morning. indication Or your if Was on the Walter, negative just Protection, you have rate was can impacts. doesn't, accounting for million right Retirement a with

We're No, take on the [indiscernible] And quarter. that with that. settle not. we're it from does does approach contemplate we'll not the to that. evaluating that still LDTI. going That standpoint, And before obviously so

the to improvement relates lower, of -- it it's why profitability that on part we're lower As sales. again, was

activities so to we're that. And relates it looking as at

gave that SOP, there at place, change that standpoint, took that comfortable that range so equity we're year, changes it and things in we're on a that continue million are positive we're anomalies the other markets the what and lift plus the huge we -- I'm saying it investments the so gives you some getting what from you basically in with that And that was as -- no for situation, about and There's in a just PTI question when we'll repositioned. indicating guys $XXX that for lift. the look

still a Walter, of contemplate the bit of that extra Or XQ is to would spread at $XXX get? does static more look And million expect that you it? little a

of from volume to No, on it. still confident since certainly year. for come at the we're still continuation but feel it's down the whether ability But the the very $XXX of in that actually, has this investing, we since that, stage, point, spread just the generate million the

And then in about think should the flows versus wrap my of we margins is brokerage Okay. how the AWM. follow-up the and fees

economics of two, if But margins? how do you impact overall I think the into just of the to wrap understand over your commission-based. more now to stronger going I brokerage, how particularly little just your has a XXX points compare that's see we're to basis fees. flows is going The non-wrap want curious,

Yes.

but of overall wrap as flows markets, business, still fees So we the bit good had but okay, Erik, also I the firm. look think as we the depreciation impact the you Tom, wrap into we've slower had a flows, at -- for which the

I don't that, And feel permanent. so that's

As on I said, we also down some transaction side. the had commission being volume

that settle to of programs. probably So would back see say, the as part into continue I they are, you'll going if wrap markets

conservative of regarding again brokerage been into the getting some activities, what we You'll some which have in And negative depending quarters. with based few now. contracts you that pickup appreciation will the was more market, the some in also that, of really a on in right happens may see see the last hopefully back on -- commission side people investing

in exactly quarters would So dynamics shift I probably together But regard. can't what few occurring the a over that last say like there's that really bunch of is. piece I

Okay, thanks.

of Your with Siegenthaler is the next Bank Craig of line from America. question

And Hi, Mark Is third-party priced your a which contracts too. possibility for offer incremental looks floating historically of into and a bank with extending from curious filling taking flow, up [indiscernible] for on there was that were of believe in while those on spread. cash of visibility and kind this capture also your like? were suites off had I higher following bank? you deposits I then kind that, any let also some on you would is if what Craig. seeing yield contracts, demand pressure AWM. I any question within duration of the environment more

Okay.

answer months ago, The is about let a So was deposits you couldn't couple back way. -- me give that. there answer of certainly

is from the there -- evaluating basis, sheet. this appropriate and on for is it demand, at balancing our clearly, balance Now standpoint, what cash really more back balance we what but are bringing is

good So relationship. we this very have been doing through We've not multiple promontory, promontory years [indiscernible]. for a

relationship long our banks, short. of a combination laddering So have when and and do we

So we the we standpoint, from a from assessing bring balances situation our are to still balance it's it, good the demand more back are there to coming on both suite our from on the -- good but fact sheet and and capacity in. attracting

cycles, kind that a that say competitive taking historical management affect gears just program, we is be past your follow-up And consideration? I was that a great with there that's bit. looking for different little at solution this significant cycle the of should rates. for you a switching would like Really cash into quick would anything allocations allocation and from clients curious,

Into the [indiscernible].

trying capabilities there. We have to the our clients cognizant are very -- give

as and and other makes that has Fed ships going the alternatives. been and been it So evaluating things trend

gives yes, the them we're important that a also shortly I mentioned. into as But bank, And do their building alternatives for will also that. at the different set of to you're we really continue is capability to very thing So seeing that. laddering look which

our certainly grow you're our and and balance capability on and product the adjusting sheet So sheet, in to capabilities bank balance balance insert. either sheet and the just the having

so you Thank much. Great.

from Alex is question next Your the with Sachs. ahead. Goldman of Please line Blostein go

this Hey all, is Thanks taking behalf Luke for Alex. question. on the of

of in So looking off? rolling bank, of What here what's you keeping the securities up are kind few to picking at had on reinvestment billion of topic incremental a you XXXX. spread relative maturing

Okay.

So maturing $X during year. yes, billion about we have the

don't what's thinking have get we'll can at. in the will be good that from reasonably range we up pick exact, we versus to So stepping from to points, I'll but I so but we what are now, have XXX the pick XXX spread basis maturing back, invest it. up right will

in Got if Helpful. how the thinking gears about Do firm-wide. any $X.X the G&A you growth on Thank think then about? right to you. switching firmwide off That's XXXX billion, And awesome. you're base $X.X billion to is base, of thoughts you. have this

I to analyzing investing it margin At Yes. we've for managed, are always think our we to as Listen, it. time, -- disciplined very growth. ensure the the manage in we relates expenses that same managing capabilities we're

disciplined and remain look and and go from will getting are we that we we we that standard where is evaluating. shifting the as at that So constantly efficiencies

we will seen would ranges that very tightly. we be certainly I driven sustainable, the the expenses our manage you've as So say believe it's is ranges but situationally

Thank Great. you.

is Your the Please from next question ahead. Schmitt line with Blair. Jeff William of go

business. certificates much being about into or shifted But Hi, funds that, sorting good other guess, just I some shifted of and the Management, on maybe sort morning. a that's thinking have in you how mutual sense sort be some if third-party you investments? the Wealth has In may of capturing of do cash

Yes.

clients sideline So fixed in started level over would market et that the would in of from imagine, fully or of income. you or and cash you put course higher a things the to move as the year, even the have it as year, they cetera, back last

holding that up client coming at It's consistent in built had pretty has just is certificates. where more of just much money percentage. we're our so on The we and the that amount And here going tremendously. into broken into flows markets, just levels. have cash as a products, other CDs, the went pretty into transactional into of like went We went cash short-duration some not

got program to of programs bit we and certificate our piece that. an that a within launch the of even a deferred some And savings bank, deposit now then we'll capture we into And hopefully, as the own preferred example. actually more, of start when

been through sorting as and raised those into all this But going but there's has new well. levels cash has that come other instruments our overall, in,

As balances, look positional our at versus advisors what what's that transactional.

levels those as like through are feel we consistent things already because why that's have the So pretty sorted year.

that that account mix? value of is maybe maybe a Okay. of there client some greater lower Is I because lower would... peers concentration just the mean, than

at which actually sweep as our our case, is a amount in X%. at than you products, just look look in you're et Well, bit, investing cash I think said, the certificates, actually I if out cetera, you less and

for level clients with consistent that's keep so And on based the our activity. that history and transactional both emergency

So the with all want the to that in clients that's a advisors. garner interest why already I areas of -- I different said, think been I positional money level these has

comfortable. feel actually I So

think, RAP back they back putting comfortable into well duration of in some investment when the products go market. or more that, Now I feel income programs as longer and fixed will

Okay. just on then the portfolio. bank And one

is mainly investments? securities. much rate invested book I But in fixed percentage what think that's -- in of that how MBS

it's levels and the said, at security in majority construction, of certainly The like highest I high rated of majority and structured. AA ladder. Well, fixed. But the isn't the

Thank you. Okay.

Sandler. question Please of ahead. with is line go next the Your Barnidge John from Piper

I on of morning. that Thank of third-party the for should know long-term opportunity. much you persist? Is how accelerated to Good the My anticipated very think we within now? rate that was care. administration pace terminations. run And question claims

Sure.

did relates of not -- but a behind. So there this was But claims. we with effects premium seeing programs quarter, because half was claims benefit along as catch-up had and a the we performance, about you good it basically the combination yes, basically, to trends -- vendor but was are one-time that a of get strong a that indicated, it, increases. our the of continued in And basically as

think the but multiple we have And for It's years. foundational within we expectations it's typical all our elements to in forecast, been there.

again and to the feeling is, of programs comfortable place in are effectively. we that it contain have and that basically do continued the where that And manage get so we we benefits

been for is And the out, spread we've a now to higher investing garnering is able which start good. which portfolio,

an given morning. other That's were been that Asset AUM. reductions There But the There's then lots the Thank G&A reductions, asset And expense restraint some very Management of franchise this for follow-up is across optionality lower you. helpful. there this year. my question. managers announced

Yes.

to saw expenses Management you have and there. as So continue down, business, our manage brought expenses Asset will in really tightly we we

in the Now estate bit responsible some like markets. real we But feel tightened certain of investing. the other good are areas. that have on and opportunity our making in is We inappropriate. And based necessarily see and range we a the of areas appreciation we investments

like overall, favorable. not the we're is and on but the the the current But Now over other & quite the years, Advice the Wealth side, more bank, actually for some it tightly, capabilities company, making expenses year we've as just we in managed build up investments.

Asset we're one going increases, have we're then. at to other look disciplined be But necessary, areas those tighten Now will we if et of going to things, market merit more based a areas cetera, that conditions. but Management is to the opportunity of bit on

Thank you.

the from Please ahead. is question go Credit next with Andrew Your Suisse. Kligerman of line

the morning Hey, good Jim Walter. and advisors. Question about

a terms You but your were. new XX light Good, kind playing advisors. this I'm quarter. curious out of of as of you you added that how to pipeline and little see where experienced adding in

Yes.

activities cetera, So always and imagine volatility with with the -- there's timing as we but et advisors. strong conditions, little had added you would actually productivity. would say less a with previous quarter, that very advisors market add the there we it's I did But than year-end the occurred,

and the higher actually a was amount brought So production what in total we from in. perspective,

the good. And looks pipeline very

as lot you We they're think coming a integrated of -- great they see of the because And really that's for because they give we of some a technology being a quality platform. advisors added, types the them really and firm I have really of trust over coming support. really think even great firm. they're So the for benefit that their practices. The the do

good So the opportunity we here. about very feel continue to what

capital -- sort thinking portfolio. but this then Could about company, markets equity apparently Equity capital the to the the insurance you you're up little in are in of parent doing Got it. talk a headwind, And subs repositioning then just expectations RPS. a dividending about on 'XX? the terms tremendous investment bit dividending of for

Sure.

Walter. it's So

look We XXXX. to have the as earnings certainly, and that as and mentioned at to we it, 'XX, I -- certainly related related

We manage a and obviously our ratio. keep will

the stability capability in of with but the And AWM, out very that. and so the RPS, of we coming going on about thing the feel change dividend good certainly bank, growth enough the

the pressure dividending We that from flows a still they parent also of even an coming for they're though are and to have still get opportunity Management, reasonable dividends up amount. dividends because this increase Asset -- and in AWM under

capabilities at the segments, including funding very us as the a XXXX So are of is in our source various parent. cash really we RPS, flow coming out its feeling about -- good for of

one sneak last I Can Awesome. one.

kind status Any of last Just divesting you M&A, terms maintain to think you to on were change blocks. quarter, in that? the going that of seem quo of in

Yes.

reported return like and cetera, let this we put a me et in points, it week. few I insurer. second any environment, you ozone -- there at out has RiverSource basis So looked even insurer mean, this up as out that highest saw a way. of probably highest a large it's the market, the the second thing was by

just Walter with down. balance we I on sense de-risk so said in got sheet at what free how as have business, how the the guarantees it to a is And even look we coming you think the flow, cash

the for are for we're The on lot the risk client. shelf a selling have of appropriate the client. other products alternatives we lower And

bit that good So gone up hand have a that we to now the this and is we're like feel spreads And garner have. we more some. back a invest able out

there continue look listen, with at as a we'll and that be as is depreciating they complement, markets. comfortable But some hand So may to we will this opportunities do. a come them along, have -- particularly

Thanks. Awesome.

with from Today's come go final ahead. of Ryan question Please Krueger KBW. will the line

morning. thanks. Hi, Good

fourth down you seasonality some level in quarter quarter. often would occur sequentially of Is from this with some to something that think first to expect to seen year. the balances come cash I the AWM within we've

Absolutely. Yes.

that's I seasonality part of think do probably the we been same and will we experience expect overall planning. our and

any change. don't see we it's So --

just your -- into there, Got overall in AWM is any maybe then And the Perhaps give more Okay. question on earnings expectation G&A outlook know for a bit expenses expenses. little insight you standpoint. the -- there I have it. AWM, G&A Can 'XX? an in given backdrop from growth you was sense a of

the is on geared making as to discipline sure go with towards we'll we that again, back focus. I think, we payback get

that opportunities we in disciplined will very so it. it and relative But be in situational. to the see, it's in you've And it past. revenue but growth I seen we think we'll will be the And ranges manage the again,

Okay. Thank you.

back of we Yes. and and we back a we mean, pandemic a may those investments from things make growth cut where well other again, and the advisors, as year, cetera. T&E, bounce meetings the in AWM had all in et this in remember, coming continue bank of to thing as I good travel out bringing sort

going way. at will on basis, our And well. to be that on, are that But don't think good that balance managed returns get pretty making see merit we'll But said, you're things be but whatever we in don't I level. as expenses and accelerating a any a other I high have will So there. Walter we're think investments,

We for this at have participating. further today's Thank you no all time. questions This concludes conference.

You may now disconnect.