Ameriprise Financial (AMP) 25 Jan 242023 Q4 Earnings call transcript

Welcome to the Fourth Quarter 2023 Earnings Call. My name is Krista, and I'll be your conference operator for today's call. [Operator Instructions] And as a reminder, this conference is being recorded.

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

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

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

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

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

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

uncertainties. cause Some report. make be actual speak quarter statements our and in to factors plans forward-looking report about to and our results be call revise or different shareholders today's of that our we A annual statements make and involve statements. be operating to as fourth only on future can statements sample forward-looking, these the from may and XXXX list and overall forward-looking We number that and risks date no expectations of XX-K could obligation reflecting forward-looking publicly These of performance. found update management's XXXX release, a events earnings materially XXXX risks

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

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

you. XXXX each Good morning, started well off for everyone. of that hope I

We've an proud Ameriprise value in to navigated propositions. our and the strong well, year. our the uncertainty accomplished. and clients, earnings of further of I'm As excellent a supported strength what quarter delivered we've demonstrated our team you environmental saw release, fourth our complete

the the start XXXX economic are timing interest know more new environment. continuation of there positive What and and the to questions was operating reductions. regarding inflation year, rate Regarding of end the we growth,

markets are course, Of unpredictable.

preparing the successful However, is climate. expertise uncertain even at Ameriprise, our to our business clients in be both an and

with to Now move let's our results. that backdrop,

up continued quarter, positive the again the with And revenue EPS our be growth release. for strong organic referenced in XX% robust, XX% normalized consistently and in to earnings among press reflecting generated markets. growth good ROE is X%, the up the We or XX% industry. our nearly items For best growth

full adjusted results. excellent delivered also year operating We

billion, X%. Excluding to unlocking XX%. and $XX.X up the XX% EPS $XX.XX, Earnings was $X.X was billion. increased And items revenue our another we referenced, up

In near fact, results $X.X administration under Ameriprise, were trillion. these an and all-time for are management assets and high at record

help Across and business' to the team. we're our complement with firm, talented positioned investors and capabilities very the experience client compelling well

quarter. some Wealth to regard With strong another Management business delivered highlights.

Our efforts productivity engaging achieve on creates clients in more advice-based and of more flows which are our higher goals our satisfaction, centered net people helps client their and growth. experience,

record of quarter. in up million new bit quarter, Total client up flows picked $XXX acquisition to increased billion, were XX%, $X a approximately Client assets in up the Total segment. client client $XX transactional especially $XXX,XXX in the and was nicely billion. the activity a to

markets deployed products as these assets clients the cash with expect be we maintain return continued billion. clients environment, levels assets about more to cash the given to $XX However, time, fully. higher and to Over will growing further

productivity our among in growth adviser after the industry. Year year, best consistently the is

the per In adviser new high increased quarter. in of another $XXX,XXX to fact, XX% a it

they Our highly engaged, field force is the culture. Ameriprise value and

support proposition joined the grow productive us. with a given advisers and the As integrated to Ameriprise that their who practices. to Comerica advisers, clients us client which provide advisers brought their leadership the tell has value strong first-class we service on quarter, need to XXX experienced Recruits the associating they them technology In we includes and recruit. board

certificate client to hold our Bank assets to in and nicely. grow and increased at assets more to benefits institutions. XX% deepen relationships further they bank $XX client provide bring good other that billion. Our of continues and banking opportunity We here see

As see, the results. not investment our strong business still. And is you driving can and we're consistent focus standing in

for engage We these continue e-meeting relationship find identify clients Advisers prospects. organic drive and to leveraging We're our and tools enhancements to opportunities. and to to experiences our also invest clients enhance our dashboards secure and accelerating and and manage significantly further their public integrated adviser that using as platform their practices, to and growth on as advanced customer growth. online mobile ability more well efficiency capability, deliver sites analytics digital

strong month, highlight that than be is need and energized continues this awareness and where Ameriprise to Earlier They also build contact segments and opportunity off to ability growth and position prospects brand I met significant. leaders across success XXXX. more highly are steady, engaged in concentrating. on our ever, that's Clients we're our about meaningful field to year. and the and advice our with I'd and our kick

experience Protection, doing and driving it's our an sales. resulting is business and on ease needs The These consistently Next, contributor. the in with business & sales. comprehensive Retirement is focused good we're strong team a better clients' in serve of providing a solutions earnings help best-in-class

in X%, our annuity up sales were sales good our Protection by structured product. with driven sales product. variable up Total higher-margin were XX%, VUL

just to evolving serve In protection product lines addition, needs. to help core our introduced we our clients' enhancements further income and new

serve Management, Asset evolving in Moving to continue we clients an to market.

billion appreciation driven under management foreign positive fourth grew quarter, exchange. Assets in market to the nicely and X% up by $XXX

terms color flows. some on In of

Though in in U.K. remained redemptions year mutual a and gross with of they were we had slowed bit seeing sales industry. and retail a we're pickup some outflows from in soft, fund the retail a improvements pressured, Europe. have remained line U.S. Our ago.

outflows institutional, were changes. due to expected including the global as portfolio we we took For our elevated management to resources, realign actions

we're investment performance the regaining and our research is to reflects extensive concentrating expertise. are delivering team is that, competitive Performance momentum. capabilities sales product consistent Our that on and critical

income and X-, very And Morningstar numbers. Like numbers lineup. refine analytics. and as processes our funds strong, while and we Our managers, deal highlight doing to pressure expenses X-year rated X-star in X- our that investments, while other capabilities. great nice and our industry on including effectiveness XXX focused our globally. well good the reducing I we're global saw and XX-year to a have and and making operating active fixed a pickup our We're are X- we leveraging in enhancing managing data continue efficiency as in distribution servicing performance We're

of great over many was it Ameriprise, a our for years. growth So another year significant continuation and

on return we the of best demonstrate financial record industry. shareholders. strong including performance, that, one ability to of addition, our with built the our to consistently In And we generating ROEs in

In another million, for the $XXX year, returned Ameriprise fourth full returned we and shareholders. the $X.X to quarter, billion

shareholders share X a Over in substantial amount XX%. to reduction years, that a resulted we returned of count the last

at Ameriprise As be is earns. we achieved well consistently industry underscored performance the to I look Ameriprise, strong accolades continue by positioned. The we

the of clients. X.X out this the type recognition our year, client Over stars the is of in of course from X satisfaction we received.

the adviser best and Our ranks industries. employee across all engagement among

in one of highest services. scores trust customer financial have We the

experience the service years row. has outstanding category in Power in customer is phone from the J.D. a winner us our Management support for Ameriprise for awarded adviser Wealth X Kiplinger's.

best inclusion. military-friendly and as a been X we've to as a years place row, employer in a for addition, In work disability recognized

among Managed on list. is of Street XXXX Finally, Best Management Ameriprise Journal the Top Wall Companies the XXX

a we the year our have firm immensely I'm XXX as continue people, success business of and overall, foundation For enter and business, our we our together to great XXXX. proud the in strong. in are opportunity

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

you, Thank Jim.

Jim our business strong demonstrate quarter As leverage model the this diversified market continue across cycles. said, results to of

and the that release. $X.XX we These expense appreciation. called share-based Ameriprise's grew items compensation expense for regulatory elevated mark-to-market on of $X.XX resulting impacts accrual, related in $X.XX EPS substantial to Underlying included share out the quarter adjusting severance $X.XX, to from a price from of XX% after in expense,

You their associated items of these magnitude. and been would not have aware

up ended I and Across segment. items market to we opportunity $X.X and only billion tightly in noted. management firm, quarter the X% appreciation. of under flows the XXXX normalized G&A manage increased Assets benefiting revenue at the to from the within $XX client administration to relative trillion, expenses XX%, continue each

on We the across million severance $XX to and to uncertainty the take in of in given quarters. disciplined margins discretionary expenses by the third manage the the firm continue a as evidenced approach recognized environment macro fourth

we to At Wealth make the continue particularly investments same Management. growth, time, drive in business to

and continue As a into we'll maintain base we year XXXX, we expense discipline flat a for at same minimum. the the move will

XX.X%. strong. the XX.X% equity And Our excluding I balance on best-in-class items consolidated a The we return have margin of fundamentals remain sheet noted. was

unrealized significant to loss strong and billion. capital excess reduction positions Our $X.X remain in net we've $X.X a billion and the only seen liquidity position

$X.X flow Our contributions XX% benefits year, significant shareholders of segments. allowed track and from to in differentiated our stable cash across business the continuation all diversified of return record. capital billion This to a model business free us

that mentioned $XX Ameriprise initial institutions its flows. on added billion in the presence that The with partnership client successfully in Comerica Bank expanded our channel. I financial closing an Lastly, November of

of benefit timing financial the Given conversion, the in limited the quarter. there was

strong business our driven were momentum X, Slide On by in key XXXX results see across you'll measures.

X%. XX.X%. the Assets And adjusted operating adjusted was Pretax XX%, up operating earnings with XX%. margin grew revenues pretax grew

across enables consistent performance. consistently cycles. market Ameriprise our drives balance nature businesses value our our diversified this The strengthens of model shareholder and that is to drive It

from growth markets. billion, flows, increased net driver Management Ameriprise assets and business, had strong of as on higher and can per the client up the growth. client We the you billion year-over-year key deepening $XX reached Slide $XXX,XXX and to from The XX% driven coming equity joining experienced by Management over billion Wealth of the X. XX% year, the business of past growth organic the is inflows prior with from Wealth along year, adding the see $XXX advisers. relationships existing quarter, quarter $XX in higher Revenue revenue, productivity enhanced clients in spread firm, with adviser new

brokerage billion transactional flows. both initial of quarter, about to you flows can billion X, partnership, addition and billion net financial improved In underlying see client of $XX X% increased in accounts results Slide operating in $X.X drove in the Management. Wealth assets activity. strong to business included adjusted the related revenues This client Comerica growth the On how for wrap from to and performance $X

market the in full of we our While did markets beginning-of-month practice. given were quarter, favorable the quarter the billing the appreciation realize not benefit in

appreciation end wind We are the with starting significant our backs the year. with the year at the market to

a cash $XX.X Total brokered funds money new and including reached quarter at market this high third-party CDs balance, billion.

We stability up free sequentially. into positions underlying our January. in has cash continued have This X% with client seen cash stabilization

and our on creates a will of This money products certificates. put opportunities into for Additionally, see money brokered in other continue markets our back CDs be over sustainable financial as a new flowing clients significant work to to we time. cash remain The normalize into forward. from market money going and to platform well redeployment significant as and funds wrap benefits source earnings as

the quarter Adjusted operating reflecting increased X%, expenses expense with balances. in asset up distribution higher XX%,

only accrual, regulatory year. full and G&A quarter the Excluding X% was X% for the in declined the up

invest to business continue discipline this in will growing in We this maintaining XXXX. while expense

In growth underlying basis combined the consistent for XX.X%, discipline. with expense year. points with full revenue XX expanded our margin total, the is reflecting to our level margin This

by Turning to and billion, translation, managers. a strong from the Slide and AUM active primarily through to X% outflows. quarter, offset for managing were we higher exchange in X. Financial equity on foreign Asset asset very challenging partially markets $XXX business Management environment increased the Total net well results are

Like retail managers, global risk-off pressure and experienced sentiment. other a investor active volatility flows from market we

had as $X breakage included that changes outflows $X part of expected of management we made institutional addition, our billion from portfolio initiatives. reengineering of In billion

of area and strong. XX-year and X- X-, focus critical another is performance remains investment long-term [performance] Investment

improvements earnings We operating net quarter the a of income and strategic higher opportunities, impact increased million equity In performance municipal tax in cumulative performance also mortgage had income disciplined offset management strength notable as $XXX X-year the expense more the in than result fixed of strategies. which in exempt and outflows. from appreciation, market quarter, fees

fund hedge of but uneven are an reflect throughout fees important is institutional other and performance in excellent year. fees business part accounts, and Performance the performance recognition of our our the

million we million. in both XXXX While in only fees the fourth fees included $XX and fourth of had quarter and XXXX 'XX, $X million the this included $XX performance performance quarter in year

and efficiency globally going expenses integration operational enhance We well are at where are the BMO we so areas looking are can and we positioned manage of forward. finalizing

the excluding translation the in quarter. performance X% impact and was compensation. of G&A XX% foreign target exchange And our was down margin in from range fee the

target the further Looking ahead, said, in XXXX continue as range. preserve action given our in margin will to Jim environment we take to expense

Let's higher reflecting sales the with reflecting earnings Retirement annuity million, the Solutions in cash adjusted in primarily in over built of high protection sales good quality turn Solutions investment been continued & up VUL business X% million, that in long earnings sales X% a XX. period $XXX increased XX% to sales Slide Retirement the quarter the & Protection generation, free improved has structured of to higher-margin Protection billion, Pretax grew deliver flow operating time. to Overall, the of to yields. $X.X Variable annuities. majority products. $XX to variable with and quarter,

last same XX. delivered to focus through over XXXX, XXXX In Turning and the on changing solid capital basis X% Slide And the revenue profitable higher year in cycles, markets growth. higher from equity to and points market longer earnings, reflecting revenues Ameriprise Earnings growth term XX%. XX% has excellent done XXX our grew increased expenses and and differentiated client nearly share per inflows. from ROE well-managed trends, return. from net interest increased

the past multiple to revenue the have X of and basis compared XX% growth we and nature of our to mix Wealth This improvement cycles peers ROE. EPS annual years, our and Management and complementary the our Over X% performance growth across differentiated points of generated is business business. speaks X,XXX in compounded

XX. Slide Turning to

can significant You see X/X operating of driving company's contributor Management Ameriprise's to performance, earnings. Wealth was the a successful

frame, And productive of with annualized support $XXX,XXX from per advice X% an more time Management at Wealth becoming model, up putting has on the adviser to margin XXXX. industry-leading with year, profitably are with XX% basis advisers XXX XX%, expanded And that basis are of in Our our in the points revenue we XXXX. earnings over our pretax since growing nearly levels. growth

on Slide Now sheet let's XX. finish with balance the

for and solid return Our cash capital sheet have invest strategy, flow generation growth. continuing our to while free a fundamentals supported execute consistent ability balance to

and shareholders, past fourth in In of to through returned with our XX over shareholders But reduction $X.X price we repurchase included XX%. the to share billion net quarter. resulting of the $XXX, count an $XXX at XXXX, This years, shares in dividends we billion of million X share in million repurchase. the $XX returned average a

Looking be differentiation for Ameriprise. ahead, will management of a to point capital continue

your questions. that, take With will we

of Your Brennan Instructions] UBS. [Operator question comes first line from from Hawken the

I'd like the to start with bank.

in So to be the markets kind we've sense, see XXXX. balances? I into there's are billion. what expectation pickup you $X indicated give a $X maturities believe yield or Can where for that given And on maturities you've what got of of in likely rates those might in not billion XXXX? expected visibility you're today, whether you have those

Sure.

me have scenarios when -- been still it the when our interest basically the are income look standpoint, question looking in close XXXX X%. Again, curves, And be interest -- through. rates forward answer that anticipate From the So have from differentials, payoff be allow reinvestments, let $X 'XX, and way. we to in to the it's that still adding runoff standpoint. we will these net again, at generation using us -- coming very we -- XXXX rates higher me XXXX the at both in income And But be will in years. will $XX billion. a And it net billion and at higher because 'XX. 'XX the than we are a in that evaluate various this will let and

And Okay. mechanical then of one question. sort

But my the tied off-balance quarter-over-quarter, of compressed sheet Comerica. So substantially. that's sweep tied yield it's broker-dealer billion pretty cash $X.X to to that understanding

of crediting that is normalize? is off like to was And due And rate? promotional right? and some -- to temporary roll expected that or So kind that was when

is now So talking you're that if about to? referring a sequential what basis, rate sheet on off-balance the we're

exactly. Yes,

So for There's on that that change. been towards will that basically we $X.X rate certainly our take transition did you through But And and Comerica, no months. a that yes, -- the same ex-Comerica. X will the billion over rate has increasing. the . [indiscernible] next work base stayed -- should

from Your question KBW. from comes Ryan of the Krueger next line

to the up I wanted just interest on net on First, income. comment follow

give -- the and of can made did what when you any than In that in rates terms be you assumed what sense the that XXXX, color there? more forward or curve, you higher of XXXX you Was forward using us any XXXX terms to expecting comment? of

then forward referring run what was as are statement my the We but to that, using curve forward the in But we curve forward latest the sensitive. was -- curve.

to any moving you expectations Great. how course of of the Okay. bank asset in for terms and color just size 'XX? And on then size of what Can you cash the give potentially think grow -- could balance suite bank. the some over the the kind of bank of the into

Sure.

we accounts. and really little stability right sweep seeing So our are growth now, in

And we buffer very feel So we there. still comfortable about have it.

So see slower we But because but certainly we've be are that, that amount. a be that we substantial balances support as as a increasing more will placed pace that. we forward evaluate and shifted go measured would these at but evaluating sweep we'll you it

will be So increasing I that would a pace. it but at say slower

comes Your Goldman Sachs. next line Blostein Alex the from from question of

please Alex, ahead your question. with go

Can hear guys you me?

Yes.

to question sidelines. amount have the ask guys around you a guys you cash a on wanted I substantial that of

the the areas get where frame else, something about wrap of you from I sort revenue through with think north billion. of coming that products. could the likely could you of lift about investment this you that know think talk would it sort into But capital maybe And was some as talked of of into some that? respect how go that? you or of to I what $XX are accounts some

You're our on... sits cash about today where talking

not think or I money stuff Where it's are is other shift? whole where there's sweep, that's could that funds. the earning in that balances those market actually not and But whether CDs guys do you lot, So been a capital the right?

Yes.

balances are CDs So and term money in will roll that off. those brokerage short markets

And they probably market. likely wrap type alternatives. most I go they fixed into a so if evaluate portfolios, would would advisers cetera, and that do, portion, income, back, the they as imbalanced did, will will that back put say programs, of equities go into I whether et would include think type And a back reasonable portion which both

bit we've as pickup of transactional the in there, in well quarter. fourth other of a side the some activity seen On it, a

some go duration type as into well. back longer look type as So transactional will they that products of activities at

and advisers market for as really over they their money work at the that's again, time So look to clients. put

question And obviously just firm hear operating around to the you. then second around leverage my comments got was outlook. for your I and encouraging G&A

If seems you than it margin asset think about targets, Obviously, sort management But sort these of trying not very like you roll something to? the the very historical could that ranges. be in to your be of materially really are in just longer-term more thing. fees through, manage you're those Or a the terrible the business a still good are off to business of as managed? going output tightly the and are expenses XXXX obviously it's to start because kind higher of

Yes.

in the that obviously, the in expenses, AWM, even the not in on we've controllable proactive So very of board. just aspect been but managing AM, across

Obviously, forecast at conditions right levels going but we put we So of certainly, Asset increase. be in markets. comfortable not get where the have comfortable with right, that sets as factors current our and make to is the flows, Management right feel But control have, have on with I'm yes. we progress it goes, -- exactly several with now, potential. with or relates we that if our that as we the markets place have relates And as to margin. we're set we of that other on it we can -- think certainly going the But things it on I it dependent capability but G&A will to --

Research. comes Wolfe Your of from next the Steven question line Chubak from

So wanted just with to off a on question start AWM the margin.

quarters, for your larger tailwinds, the guided incremental next to growth. NII absence have lower some of wealth given of given sustain few Just wirehouse peers the investments organic to margins

of the revenues in spread curve? your sustain face can will 'XX. more margin that you line forward you Walter, with be in that do cuts the in noted, AWM of XX% north in believe pretax rate even But resilient You

Yes.

that go that that. higher -- But we I will XXXX, variables So I But reasonable that interest income obviously, think our confidence are than be we have certainly indicated, into was be there to will net 'XX. sustain. able as

a reasonable level that. So yes, of I think in confidence we have

a on in the That's just payout XX% sense of follow-up the capital be for return, how to quarters, in the over the payout should thinking about trajectory been this. light excess my wanted next few the great. just And I robust seeing. generation target. But get we've missed came below that Apologies capital we if especially as to

would very came and sheet we you agree from right strong, certainly yes, certainly balance year. the and for And generation. as XX%, we in capacity -- I elements So with the at you, our now, can see remains our capability

is reasonable would expectation. think a I of probably continuation that So strategy a that

question next Your of comes Suneet Kamath from from the Jefferies. line

which Just Management expense start margin, it I defend and business that some feels trying Asset there. But there. reductions starting with Clearly, see we're your you're wanted understand. you're the to potentially impacts commercial like to doing to the

to think you related count reduction. I some to head outflows alluded

potentially thinking cutting the seeing impacts? guess So time you at my right, are some that, same is, where I to commercial expenses you're negative sort of trying but about balance question how

what you the evaluation Well, that payback a -- took, we getting. we saw from it breakage from wasn't basically proactive basically were the of that

a our So on that decision part. was conscious

at has how expense looking can look process Our of efficiency. [March], the been and plan at basically improve but evaluated on we basis

feel very we So good about.

money in we as manageable. redeploy get certainly and other ultimate some that some certainly, basically We breakage, XXXX, saw opportunities we the spillover what the them there have. we in our we give place part, a is we that But get and taking conscious again, believe this some -- you breakage. on There feel year, will but will it's products we return, but saw effects decision manageable -- to be managing to

the can a we management. it's is through expense and it's conscious expense, on So review it's controlling -- which G&A are we -- what of and we again,

billion I client Okay. And guys normally relative it's cash that set expect. on that a would you like I is X%, number just $XX then Got seems about talked about. X%, I it which almost if think it. Is around you think assets, that mean, upwards level to Xx, what total as that kind of that right in in trickle that X% to way think would And range that's normalize the to of it? rates kind cash X% that's back time, set to somewhere the X% in of over you X% front about that to then balance and probably really opportunity down business?

Yes, Suneet.

is amount advisers sort at double sit compared of are tight, et it used yield X-plus they about moves, the holding And market So cetera. like be. where the getting with and to that it clients it, usually on clients their just to to unclear look they're again, a with

that right over holding keep now, uncomfortable there. us redeployed, thing do it's money that for at will I believe be to higher cash So not that rates an extra or but time, clients advised

of firm, money that wouldn't it to Ameriprise? any obviously, like it's products financial do your your why holistic mean I planning. outside sounds And reason but come in there is advisers

is outside there want that or diversification Ameriprise? money why, reason why a perspective might So from anything, either to of any stay

bank whether a before and of our had In have put bigger just was market CDs money Ameriprise. it launching. fact, is is advise where be CDs, CDs brokered that money or we we'll The at the there into lineup brokered

put in into own billion program up nicely. it $XX total. It's and grew it's think that, as I our -- very. did just to certificate a as But So that they well, -- they they

I to think just So talk outlets where the cash. was it the for

institutions. from bank their opportunity to some think there's I they'll money money put in, at the put that And products. currently of is see go Ameriprise. We rebalance rolls think products But we cash as that for as also that's clients at capture the an accounts, we into holding over that to opportunity billion banks, develop it more our us will the $XX advisers more our to work. banking that as or bank

Evercore question Tom ISI. from the Gallagher next of Your line from comes

managing, Asset any the I the layoffs Can in close Management, them? Did First you was question, Did you happened they on that think replace a the and exactly it comment there. just or Just PMs. size merge there? AUM color what were XX you of on more little funds?

breakage, we've merge for we Well, we there them are that that with we the the efficiencies and into effect And other other and basically we institutional. alternatives funds, basically have upon. one then looked products opportunities the where to closed was And on on it can get obviously, was and feel that.

it a of So make we and that. it's based to -- review felt, it, just payback, sense was would it on do capital

Walter, related provide to you able the AUM are to the layoffs, And total that?

of Right was the the now, billion fund the -- -- $X the much. basically pretty in that that was amount

the that size think I it to But of let Right. the are -- able go, XX PMs entirety? that you in was were

that we -- But it related back to I would breakage on is XX, see have to get of majority saw. get to that. we back to you exactly on the back let the but you the me I think still

what there? segments? out it $XX corporate explain The what think redeployment or around all of I segments, million. Was the reallocation Can happened it's that you of happened on into the NII

Yes.

goes the that we And between crediting where the adjusted not was they as segments. AWM remain -- obviously, something be it we transferring that that long in and stay say, that to I really, are. forward So based upon today. based intercompany sets going profitability the will that the would rate evaluated And as [indiscernible] AWM's that and condition were levels saw market-driven, we what we that cash have, so giving will we

not that. as relating element an rate. the shifts amount, was money. it it as we has simple one at as to candidly, the we were net effect income, looked all right that and in to -- it them just not right company It the really models relates the crediting was RPS, on with second our yes, And it's no interest The -- -- was of was and it

Right.

reallocation segments, among sense. that Just a makes

closer 'XX? to sustainable And stepping that XX% conversion, in should of plan XX%? have you where... then to final we you Do an XX% in expect on XX% Do you up follow-up. idea free This remain it Or back 'XX. just cash to flow returned to

see, we of As evaluate opportunistically, at certainly the capacity, continuing the lot as we a are within to -- as we looking flow, and that business. opportunities we you have we we generate cash said, invest and our free

So factor. that's constraining a not

would a now, assume be that we it's just I level then had, to will to we estimate and it. about So opportunistic right reasonable adjust say the

line the Your Lee next question comes from Markets. Capital Kenneth from RBC of

other perhaps Just out, it just could to actions a initiatives. if if these flesh wonder bit looking within be completed management little you just wondering one could you there any the of year? are areas expense Are terms in all -- Management. for frames, on time this And Asset outside further give of

Yes.

saw these from you our put are severance into certainly standpoint, have what million the certainly, So our been all and play. that actionable and, $XX with already plans,

we obviously, -- are expenses especially as of for so substantial you will continue benefit be basically in -- see businesses, in AWM. that the we flat we're should at looking And XXXX our a make various the -- And materializing minimum. at investments to

high have -- it's confidence on we pretty this. So

and the side, of given And follow-up. on developments helpful. then potential transaction reinsurance environment? Very thinking terms just you. rate especially Any one updated just Got in recent the industry RPS

in and always an and creates it And asks we're certainly I opportunity. the bid that certainly the as said, those Yes. coming Listen, feel we opportunity. we we from an transactions, ask. alignment provides are for always have recent standpoint, And think observed that looking bid

McLaughlin Bank from from Your of America. of the next line question Mark comes

seeing that. had and was from had levels stabilization more cash in expected any seasonality you just remarks, like. and I I curious distributions January. have you believe through were you the just if year-to-date of on more color a would rebalancing I opening your redeployments mentioned

as is accounts, that sweep and a complete have ago, little increase. of In seen a X we this stabilization standpoint, days from the

understand observing obviously I through it's seasonality we're that's what But indicated, it. days the to So of and certainly, ago. X

Awesome. other protection. question And then to do and my with had retirement

update the your an investment a You any curious was if in the book. on yield guys us I had sizable give pretty on could profile investment income. you that pickup for net of color

rates to get to idea there. sensitivity a trying Just of better

saw. invested of No, now. out took as that's We situation rate we the advantage

I cash. as of also, the at this much is indicated, pick intercompany And certainly completed get it that will to up So pretty going view. forward

John next comes line from of question Piper Your Barnidge from the Sandler.

Are Asset in specific review, of review. in to that to looking In that there surface come get review? were maybe followed reduction products thorough have it clearly out PM PM of this any identified? a In areas Management, growth you larger that

Yes.

some good what felt us managing we did assumed economical those for could they're and performance. we levels assets have wasn't of teams had had have teams is But that areas. and So good in assets, we that those it we small

overall our that doing, the adjustments there. and have made front all portfolios we have reviewed the of in products So capabilities the investment and we office But the we so and yes, side. on

is. environment at income We feel a fixed of and feel arena. good, have equity opportunity a actually fair and always we the think opportunity. the greater do look the part get what continue that that good have we to But to there's in share We we a shop there there's really credit we for that as us

pockets And so And our internationally. where -- want domestically that and we've we're but double really to both we down. picking of evaluated

the and bid the transfers my comment the and about is ask. And follow-up then question risk around

seen market third-party a You've the change of Would to include area sidecars. bit an interest? little be that

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but we look. not. continue not -- It's So to probably

Morgan line question the Your Michael Cyprys of comes Stanley. from next from

This is in Cyprys Mike Morgan of [indiscernible] stepping for Stanley.

clearly growth lot opportunity thinking question in wanted growth. Just RIA We've curious to seen about coming ask broadening the guys how the you opportunity a out to some channel, of are of that for capture picture about just a I'm set to options. the affiliation bigger particular. through

emphasis developing there. on in put we forward will channel distribution platform And as of part distribution well focused the is move team our capabilities as RIA some capabilities. The there intermediary Yes. our as we

XX a what as you platform follow-up, little And doing out differentiate the you you moment next, tech related, Excellent. in us the XX bit itself a terms in tech of stand more over initiatives terms coming have Ameriprise and of advisers at pipeline? in the the what say, have tell what can place about months marketplace, particularly to help you're somewhat to in and the for

the unbelievably all of platform, platform the which our our the for capabilities combination We feel from total advisers, greatest all CRM latest about the of Yes. the and and is technology data good with and that our integrated their use engagement together them of client to can their on portfolios regarding actual meeting engagement, and e-meeting clients actually capabilities they help needs. them their actually the for that put proposals with

capabilities, their our book. AI them in helping opportunities even identify Two,

integrated, models. capabilities deeper much to the which engage advice through them feel capabilities their to are their that good manage that easier have, clients and with we with those planning suite to dashboards we books So really have makes adviser their engagement the all of but the about

all we them So we business. for to mobile the the by that and we're do And heavily. feel and web really have invest to that's continuing complemented good capabilities

strong. So that our have of system, availability very feel type we a state-of-the-art is we

And for feel us. so we a it differentiating point is

William line Blair. Your the Jeff next question Schmitt from comes of from

gross but new will over client that are that $X maturities around investing The I there? of guess, money are X.XX%, billion roll to looks what or cash be yield you type on fee right and X% now, in maybe at what yields on

staying still X%. range a under the we're tad X.X it's And of in now, right Well, the it's range. maturity

of Under advising as of come so cash so your them see on why was And could down? sense high to X%, more assets? advisers will guess, okay. percentage then that be Bank Comerica of that put And a we any to work I that kind

is certainly see engaged -- with one a we down. coming it we I it that's certainly high the do and is reasons It's opportunity, as an there them But it's the of and a Yes, [indiscernible] opportunity. think the percentage. arrangement, give

comes Hawken open. of question line from UBS. is the Brennan line from Brennan, final Your your

NII on expectation of both a the you NII and all sheet, on you I economics up 'XX the 'XX Is off just versus it? to be then is and and said for balance that confirm or to wanted that XXXX part when just click that expect double versus 'XX. cash

for That all. was

And for And expectations seen what because January? better growth you All, expecting. in speak you've to trends than cash were we can okay. it's Excellent. that balances or underpin betas

let for that me on, was Hold was actually I bank. one. you bank the That giving apologize. I the back. on go

bank. the for It's

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This does in conclude further now your today's have for questions may participation, you We no you Thank disconnect. queue and conference our call. this at time.