Ameriprise Financial (AMP) 25 Jul 242024 Q2 Earnings call transcript

Welcome to the Q2 2024 Earnings Call. My name is Briana, and I will be your operator for today's call. [Operator Instructions] As a reminder, the conference is being recorded.

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

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

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

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

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

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

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

analysis. trend over focus that comments our of A can it forward-looking the from more management the of We results you the I'll a our enhances see at operating statements. On risks for XXXX earnings XXXX adjusted and of XXXX on materially will Many Below core management results. And cause see the release, our call financial Slide quarter our Jim. operations by adjusted second that GAAP page statements on underlying which facilitates be today report meaningful with quarter. reflecting forward-looking the to to actual and operating to our results, the second business turn our of factors makes that, our XX-K X, sample believes understanding performance of that, these list results different obligation be shareholders, make to the in update revise found report. could and annual you or publicly no top

Good morning, everyone.

in record delivering environments. strong our Ameriprise years As our operating of half in quarter the you in strong results operating of year, many continuing another over first delivered saw release,

landing. in that landscape will markets soft external continue expectation the the there be be good the with a quarter, at Looking to

people assume sticky, come remains inflation going to down. that While it's

and that U.S. is expected. longer instability And upcoming the could geopolitical ongoing take election. there However, than also the

of that our were clients. With of all a excellent. this our is top quarter So backdrop, mind results second for as

In were also reached record positive billion. excellent and new a revenues of markets high. results, from to Earnings disclosed is our terms XX% up in with results fact, new a were business severance $X.X in excluding of $X.XX. EPS, costs increasing operating This also X%

generated and nearly our free and also was and another flow equity return be million We cash continues XX% to XX% of returned on to $XXX best-in-class. shareholders,

trillion, client $X.X XX% market net Our appreciation. good and assets were management year-over-year with under inflows up administration

adept We by We that seeing some at up investment from we year. benefit agenda have discipline also been additional that in maintaining freed for reengineering strong the reinvestment. is which why complemented resources, the will a through costs additional significant quarter you're severance our is

important industry was In client of onetime at works, down on Wealth what to those centered accolades. Ameriprise on Client excellent fact, X%, the we excluding advise X we receive know X.X continue costs. quality and delivered through G&A In and remains stars, building out Management, satisfaction experience. we're engagement

Total Management range. we're $X XX%. $XXX strong assets attracting client also up at clients to million the in was billion, Wealth $XXX,XXX in The new --

to and and a research client advise adviser firm proposition trusted our work underscores value continues want Ameriprise appeal recent most that relationship. Our to a premium to who with trusted people like

wrap ship are increasing for also products, XX%. reached a year beginning higher at opportunity grew increase and growth transactional $X.X total to to back billion, flows $XXX a other ago. For Cash XX% year-over-year future us. though of up which was Wrap nicely, up, an billion, activity assets balances a from wrap the still client quarter, represent and also level, to XX%

and remain growth capabilities and support satisfaction engagement integrated the and another XX% CRM Productivity for acquisition quarter. in-person personalization effective capabilities excellent. We're growth needs efficiency, and We exceptional client continue We're based interactions. digital drive and our advisers on $XXX,XXX to on tools to identifying and and focused provide our also complement client helping new enhance leveraging deepening analytics opportunities. increased using for in to to both advisers, automation

as Our billion. quarter nearly value drove quarter. a grew contributions up were our and nice feel from to Strong force we the income. about bank added XX,XXX in another our differentiated experienced we total good Ameriprise, assets advisers, At closed proposition. at the advisor $XX in XX We and investment as earnings net increase year-over-year, pipeline well

lending in notable our adviser and volumes engage interest banking loan pledge as good in client our with advisors solutions. have to growth continue clients in We their

quarter, consistent caring that the group practices, them a Protection our another are of a helps largest XX% what recognition of Ameriprise that culture built force our but firm have contributor positive top supportive is time just our at & spent together to appreciate They During successful we and practices. advisor I've not results. conference. businesses that And and our with we the Retirement highly have or

to our As insurance needs. appropriately areas. incorporating serve targeted our solutions more they're We're complex driving advisors advice, good clients' annuity provide sales in

to mix annuity were year free cash XX% we up our and overall continue very good up position. For from were sales and sales feel ago, XX%. RPS product to a our VUL continues insurance, add flow, earnings about structured and example, in to nicely and

active industry management, asset remains the dynamic. clearly, In

generate increased Our net appreciation offset attractive team billion on investment market than Total $XXX remains client as focused X% assets to outflows. more management performance. under needs an and

above for have XX% across basis X with for asset years and to asset-weighted nearly period funds X-year XX years. median investment performance an continue on good for time XX% XX% Globally, and classes the periods. are our We of the

and Morningstar-rated X- globally. funds XXX, have also X-star We

outflows ago. billion, were $X $X.X billion to flows. Total year a Turning from improving

which through institutional Excluding channels. the legacy retail insurance and partner asset transfer, both came in

outpacing the beginning to flows an in equity In industry, had from sales gain last slight in outflows, billion the Institutional positive SMAs are in putting Though APAC retail, overall, primarily we net gross wins with traction. in are results a more see ETFs additional models, redemptions. we fixed improvement $X quarter, in And on from year up gain improvement and in we're to the our emphasis and region. driven we're flows were slightly income. opportunity

to our technology We transforming leveraging resources business and global globally. efficiencies, gain focus Management operational Asset on to greater continue

G&A our X% expenses that have Management, maintaining levels quarter, the to saw in margins. fee further throughout good year. benefits good the additional You underway and decreased of we're actions and number In Asset we derive a

model has to cycles. market our firm overall very well Ameriprise, environmental enabled perform At and us over and

digital, invest businesses. and We continue to leverage technology, our analytics, in solutions products as well as our steadily complementary AI, global capabilities across

XXXth and we're recognized a of our legacy performance. And with one of this of and public select number in efficiently anniversary June, companies we success

for way. Our XX% has returns and returns TSR, significant to ROE among been a #X since XXXX among the Ameriprise the Financials spin-off best. XXX S&P in and we deliver in consistently shareholders is performer our of continue excellent the to

Looking forward, and have we growth to investments, team strategic greater focus, the growth. a right talented opportunity a drive meaningful

Walter? Now additional on our financials. Walter provide will color

from Thank market of drive nature financial operating to services associated our new with for $X.XX, EPS consistent performance XX% all across grew cycles reflecting The of of reengineering businesses. growth Adjusted you, adjusted across apart diversified our most the earnings industry. initiatives, our businesses Jim. sets $X.XX company's us financial and severance expense

X% across appreciation. client Assets over flows businesses. from growth This and under XX% to in market strong resulted increased the management $X.X equity past has revenue and administration trillion, strong our year benefiting

to you reengineering X%, margins. transformation. our As tightly G&A to operational know, we continued demonstrating expenses on maintain down severance expenses manage and continue were expenses, strong excluding focus

will areas future in continue drive to Management. Wealth in that selectively invest We growth, particularly business

growth shareholder XXXX will maintain We objectives. and our achieve discipline expense to in

Our and strong. severance of of liquidity a consolidated remain very including strong a expenses returns XX%. margin capital of XX.X%, sheet equity with Balance fundamentals, excess remained best-in-class excluding and return

in we diversified of XX% segments. expect return to the returned free benefits stable from all of significant shareholders. model earnings Our flow to across contribution capital quarter. In XXXX, operating to to cash million business continue We XX% $XXX and business shareholders

Wealth year. X, strong were Wrap respectively, the XX% Slide market increased flow $X.X see and at rate. in annualized assets flows X% and appreciation flows the over strong results or wrap Client On and from a Management. past the billion XX%, you'll from net quarter, strong

client billion XX% income from in the activity revenues revenue in investment in per quarter, to $XXX,XXX, ago. increase In the transactional net growth and up advisor adjusted a drove XX% XX% This $X.X of increased operating bank. net increased assets high to from year new a

Total cash which clients' money including billion, were market third-party balances, funds brokered $XX.X and of was X% CDs over assets.

funds than market concentrated yield-oriented products money heavily like favor term brokered certificates in with remain and being like clients As more highly products CDs. liquid in products

and Underlying opportunity. Cash significant cash see rates normal excluding as funds to beginning back to patterns put $XX.X cash and platform, normalize, was continue and clients products. transition the wrap, products our billion trend time and of We Comerica and July. other continues and to seasonal to driven brokered related were and that other work market quarter money CDs, partnership markets the in by money creates we which expect in a tax this as in on over are expected, stable sweep balances,

provide some on perspective sweep I additional want to cash.

is cash sweep is pay account which Our investment a similar money is significant transaction periods. to bank is not investments Cash to over sweep for that cash or fees, meant between a an account. cash to extended checking balances option in for be for motion in

where to a hold for cash of portion large of range cash broad gone. the a is over clients extended has have We available which higher-yielding excess periods, seeking products

our As approximately point, changes not very in average. a generally which cash cash result, sweep. approach anticipate At are rebalances, $X,XXX now we our to do on have low this any clients

with expenses the growth, reengineering of million, a for increased revenue and XX%, investments in growth quarter flat distribution including This reflecting expenses $XXX in at transactional expenses resulted reflecting operating Adjusted margin business an Comerica XX%. G&A operating activity. well-managed expenses XX%, by growth, sustaining offset increased initiatives. and business of of were combination business

a and Financial from on market very strong business Management the through challenging we the higher Management. by Total to equity Asset increased primarily outflows. to appreciation, to continue Asset Turning manage in for $XXX well Slide net AUM billion, quarter, results active X. offset X% environment partially were

XX% quarter, increased was as market and and of than net to $XXX more management, cumulative earnings impact of appreciation outflows reflecting appreciation strong result expense which margin million expense XX%, operating offset discipline. In and equity market disciplined a the the

reflecting initiatives the a ago, expense from expenses operating decreased and to benefits comprehensive X% with management Adjusted expenses taken date. from X% administrative general year down

We in and going well we enhance are manage expenses to globally, positioned EMEA, operating efficiency are so especially forward. looking

X% the expenses time. million, to rates, and sales higher continued markets strong to Let's Pretax from Solutions partially X. associated has $XXX a earnings benefit higher to in adjusted with quarter strong Retirement reflecting that the generation, business operating levels. distribution interest period by increased of quality reflecting offset the been Slide free over the deliver of Protection turn built earnings and long good & flow high cash

billion, Protection sales products. Overall, Retirement XX% improved million, $XX Solutions higher-margin primarily XX% Variable strong products. in to the with in grew sales structured to annuity $X.X & with up quarter, Protection VUL sales momentum our in

cash balance in growth the with strong fundamentals sheet sheet excess to billion. capital Turning Slide and flow generation remains X. $X.X on Balance free to

sources the and growth. invest for enabled We ability quarter. strong of fundamentals. $XXX capital have including consistent year, billion $X.X our all dividends last capital shareholders, return to capital million our consistently future supports long-term to value. business in by the businesses shareholders from This In shareholder return we diverse Ameriprise returned of underlying drives to

across of the to our finish continuation let's is growth. growth cycles excellent long delivered and market in which our Ameriprise with commitment profitable XX. second Now a record Slide track quarter

XX%, Over billion the of capital basis and per XX% share earnings revenues unlocking, grew months, to returned XX we ROE shareholders. increased excluding grew XX $X.X and last points,

X points, equity with We had capital to similar growth XX% return XX EPS growth, and on past we $XX.X growth, nearly billion compounded revenue shareholders. the percentage years returned X% annual trends over of improvement

longer focus trends we'll to our that, differentiated your These term companies, multiple on cycles this business financial across questions. most growth. With mix consistent the nature well well. services Compared complementary as profitable the over are performance speaks our of take to as as

Kamath Suneet with online first Instructions] Jefferies [Operator your is from question.

the sweep with commentary, start to wanted Walter. I cash

sound companies you're I changes, said making handful actions but like of So in their environment. always subject the we've know big cash the Obviously, competitive rate. you've it on seen that's to planning some take doesn't any sweep on past, a

of Is trying the is are those are it making So I size reconcile X. different sort to not I'm make the client is that just you're catching question up you? of those experiencing sort that the changes? guess peers account moves your same to need Or those to that

we we and really transactional regulatory cash operate it. think Okay. totally know you aspect what's is all motion, I $XXX,XXX, -- appropriate comment on is and me we ensure that the that that I know the what feel really understand -- it don't is I have is in $X,XXX. aligned. we I And -- and its do therefore, with actions transactional let the -- I what within guess money certainly I is the place looking as can't we from -- majority it's for standpoint fiduciary of really you under sweep it's purposes. know, and wirehouses. to of are And in sweep the start taking levels under standards. we in all at taken balances -- at account I and

think and competitive, necessary Our that rates appropriate cash we to of is the operate. are we keep level

what it comfortable we appropriate. think at And as goes, with that have the today, of totally we'll is things us, So but very we feel looking evaluate obviously, we we -- it's that. focus and

it. Got

then another the bank. one just And on Okay.

maybe NII then I expected in which than be quarter also Walter, higher about made think seems you comment case fourth you call, 'XX, a the 'XX So the said at you year-to-date. to But 'XX. would be bank

underlying think you NII continue you over the 'XX we to growth maybe if drivers? as could unpack some that 'XX, and bank into move wondering see Just of

As said, I still should 'XX, believe but it the yes, still interest slow, but I it's statement clearly, be I 'XX remember what That over think income valid. higher. was I net but

And there? drivers the

we're Well, the obviously, is, X%. over driver investing

we short but adding, us obviously we'll as maturities And we're adding. And give measured, being momentum. a that but duration, so we will are feel it that that in

your Ryan next with Krueger on KBW question. with is

one was wrap you of your much client First your how can just, held is accounts? specifically disclose in cash advisory

It's about $XX billion.

it. Got

guess was I recruiting. another Okay. on question then just And

experienced experience down the your from Your year? of why seeing a a the hiring Can just kind slowed any advisors? the on environment have bit slowdown, for competitive And what you year-to-date. of on expectations you're for thoughts recruits rest and comment

would a bit slowdown as We in the into it moving and into people exactly of, Yes. pipeline in guess, a the I you second put We based stay can't markets, cetera, see the why pickup again, sort We quarter. our of into bit on again. like a a -- seasonal. tell little et looks good

team, And that that's will forward. so But what than we they saw. we to improve really other go as think speaking that, the

next Goldman from online Blostein with is Alex Sachs your question.

outside the that to of capital still that $XX like billion starting of this up to just in balance cash bit is billion, go billion funds how put your maybe Can kind number? about Is money and And little sources balance sweep or to ultimately of work $XX currently the much those market So billion, your money coming sidelines work where sits from $XX remind back from? I we out clients is sweep cash business in wanted program? saw and that you flows or to kind out ultimately talk comments of bit. certificates wrap. regarding coming to sit on of the coming net us other pick outside a off sheet it a the $XX little

if question -- the about -- about think Alex, cash understand, I billion. I our your is total $XX So

probably slowed coming -- so therefore, money $XX-some-odd and still money money a are and it's markets money on certainly seeing is we say markets, -- is third-party the And CD And would in -- but I they're in about into, CDs billion. side. markets and that little

staying now. standpoint is we're curve. the that less People shorter a so advantage as from CDs That's there take -- in to And shift. they're we are from standpoint, trend seeing seeing the yield that that on and about is trying there are

should comes stable what capture forms put wrap extend of and cash to business? to guess I other rerisk kind pressure in trying options? of which remain duration which work, and balance sort capital get is could any across of economics billion your you. clients to But as certificates put on fairly Got expect $XX that money is the to program, sweep I'm that you your Or of those in out we great.

would that an it beneficial, money would anticipate we source will the of think and -- there. do standpoint, from us. had in because, Good obviously, yes, be beneficial certainly, was be And question. that to new economic We as go We've repositioning. redeployed, that be a gets

quick Got And follow-up. a then Okay. you.

well really G&A managed. So

think of you that number evolving G&A I think at if the sort rest like to some you of highlighted quarter, severance, look excluding you're sort $XXX the of for kind through this something should you I million find. at know of or think How savings you that a programs continue year? of QX. And I about like

of sort would outlook G&A be helpful. any maybe on So XXXX your thoughts early

we other Listen, at we're on are certainly changes there. say our managed. efficiencies that 'XX, we certainly, process look being the expenses feel that I as and well reposition can we're And -- and getting

So I 'XX. think certainly for I going be investing We're we continue. said as feel the 'XX, confident business. we in to will

to say I are growth. see be investing So should but you well-managed going expenses, for would we

the you margin. operated So I and and expenses in caught in it's think especially our way our manage it revenue seen certainly, 'XX, portion a to -- we in years have manage up we've prior certainly our

your Brennan question. Hawken UBS next is with with online

Curious of sweep bit advisory accounts. $XX down little the to on drill within billion a

or of would you $XX know include Ameriprise a that do what investment portion fiduciary So billion advisor. as

channel would models advisor? portfolios a or the So any what Ameriprise of portion where that in be is managed specifically, in Ameriprise little more central $XX employee centrally the and billion with where

and managers, is models are there. A really lot our of central outside by oversight run institutional

less actually institutional even roughly or on type even in so. than And models, it's X% discretion, around our So it's again, and models. advisor of -- in those the

it. look would I probably you as at say So

in these between cetera, nonemployee, et employee, because certain run are all Now ways. haven't that models we out broken

It's as very balance. things or activities, pulled, ] Walter said, being down paid, [ is, the so, low is a it constant trading taxes and like that. there foreign by being X% fees But

-- a they as as there's lot any higher well. moved markets it's the whether institutional short-duration balance, and this money into So and though products of are otherwise, not or cash, if actual other

legal So is. We and we that's appropriate. And a feel and how very what look clearly. it, has it with from we manage very that been a disclosed clients that at that comfortable and perspective,

be note Great. of And improvement offering. your banking some then competitor we've growth. we pledge that spoke may engagement increased in heard yours some the in you loan firms, beginning to And firms of seeing

you're that perhaps early that? just of whether curious even or seeing So signs

Yes.

So pledge we we, the saw nice year. increases in go through as our loan again,

We will one be which has know been in the launching another ], rate [ credit industry. popular we out

we will and be coming so. and board starting savings from started that cash CDs as up. that put activities Again, or in these for externally with come next can increase no, bank, We've from quarter as over some think looking on well lending that appropriate. some over to as then seen time, direct like But as of also launch or them, we our some we and products gone assets for built other the we're we we deal the the So advisors to that just clients. feel programs in will, are they

Okay. But the pickup loan yet? in pledge no specific

Do it nice get you I we for in the but saw quarter. don't of nice Yes, we in a -- pickup pickup. you, a it can saw have we me. front

with is next online question. Wolfe Chubak Steven Research with your

asset any strong the a quite and competitive as the on weaker can the actors, just know seeing wrap net consolidated broadly, more in sign, alluded for of you're we packages, just landscape of were pace certainly the to impacting but quarter's of trends about an what were more I growth call, improvement? quarter, on irrational some encouraging some flows aggressive you last noted, potentially in outlook ask bit new to Wanted flows, update you get sort the terms mark-to-market organic hoping just pay

and -- that our So the we certainly, wrap rates, they're strong lapsing impacted and aligned in quite client, And look was indicated, annuities, we as -- industry. you both and it. they that were saw on our certainly the certificates some at growth feel we with

traction, getting feel from with standpoint, we are that it. comfortable we So

feel we see comfortable. so And we trajectory. that Basically,

same I a quarter particular. your little overall. is any of and in we look was say, looked guess, just bit -- very usual the looked looked of with Yes. way okay, at to the across much it the some there industry. as there the we did I a market mean as And add people at slowing, activities, didn't clearly, in the everything. and second advisors, point, And of we it Outside the

outlier. an we're like wasn't it So

then just run operating margin, the on on Asset target. the to despite And my above pressure the margins fees, follow-up continue Management for

So over to the the you I speak hoping can you or of sustainably the you to few could see. market shocks? to barring certainly above next target any XX% encouraging run margin quarters, was longer-term whether outlook believe negative exogenous XX%,

our saw, a pressure we're additional to consistent expense et cetera, received global some flow as very that a basis. a technology, we And fee are the base, Yes, helps we you and levels. offset leveraging that outflows any basis. low we that our stable with model Well, we resources, from continue maintaining had to do adjusting fee leveraging

Again, we based maintain barring what conditions, a sort we're the in on doing. business can market good we that of think for margin changes

We are investing.

we in. So we're areas grow cutting not from to want that

to has not flows, you with the more money numbers we models, though As I even gone gained discussed mentioned, it's there. so in we in

well We're and forward. looking as be will traction active go think as well ETFs as And starting some SMAs, be we will we as in we gain good in ETFs. we to which pursue even

doing. get resources based that expenses are use our time, things globally to investments on up the same there So the to trying resources more made we we've we free are efficiencies. At are and and

Wilma is your Raymond Burdis with from James next question. online

but a do for headroom more [ think segment the in ] expenses margin, you Asset lot in about little know you a I bit talked the there's Management?

that with business. continue, you improving we our of additional And generating the like up we Part and we was So and there second saw, are need. operate the took as quarter. and we things -- severance and resources processes freeing there as feel that Asset was we're aren't that the looking and Management we yes, to efficiencies that changes the in tightening way value continued make in

be And so and as some we move well, adjustments we will further as are actually there forward. pursuing those things

I It know more seem about in bit the seems you Or but margins good asked the you how like guys quarter. don't thinking too the to about insurance grew that interesting grow pretty at little that? Is business this guys get you much anymore, there. a time? are

Yes.

there's very good which the expense got wasn't in cost. when So you and the good products, both And that that growth first annuities, for you instrument VUL are and for distribution is us. because insurance products structured there on more the you're the this earnings actually, flow the the book upfront -- reason

the increase over to So that earnings add will in volumes mix. time, also

also We there. spreads now the investment rates side on the reinvested we very as got good and

will lot a for of consistent think that the that business So buyback. strong, and cash a flow be is good, I free contributor we utilize

adjustments, LTC So earnings business nice invest you rate we as we appropriately again, even invest quarter, good. to had also in out. make we the saw that feel And there the in take continue very and

we're very how the will So good about company. of feeling total the add to that

with Thomas ISI is your Evercore Gallagher online next from question.

to come crediting on doing your cash on answer very aren't it what a you quick competitively on the Suneet's sweep like question, cash Based sounds just to are Walter, peers on big rates. focused X sweep. the just back,

Is expand litigation-wise? more that? Now little fair conclusion? probably it see Ameriprise, on you as competitively, to just can regulatory maybe that a Or you for a implies a don't big me, really either issue that

Okay.

rates, understand evaluation the don't understand of drivers I is question part We through. an what it the is and go So that we their are. certainly

can't a But the we is it. -- should you what at all are that or drivers on was as into what is element read of for. creating some was saying. that we change So it competitive I just look I elements evaluated the Certainly, the comment

low as And the low it, there. We is we through percentage look particularly in do see the have very Yes. very we money at in and that wrap fees. transactions balance, a again, Tom,

or At on these same clearing. don't selling the it of don't go You security. time, you where pulling have to you're a things want some or

So thing. we look accounts, institutional same the at it's

the So we're again, the a not change not is I what comfortable. mean, money. exactly we we from frame, And different, et anything But way. competitive from know very until same sure cetera. this the wirehouse, feel is

of earning it move We other And assets have advisors money models. and rather sweep. thing than in lot of it in those our positional where keep the money, to different is with a we places is type if same

And point, we're under there $XX,XXX industry, Yes. $XX,XXX. and look if -- proof which really And X again, $X,XXX. the between you at

it just So have we motion. it cash used because strictly -- plays with levels there and lesser

And with that that this, to standards see related issues the fiduciary you new focused VUL on don't any front nothing you're on?

[indiscernible] No.

be numbers, as be particularly Okay. I on about just could are that expenses, that And that thing lot, have and that would heard true. lot those and in up I segment in a then NII higher would But strikes told thought I that much is on distribution to The the been your X Even if year-over-year I point your -- it would, up see it's segment. now. right has for guess a better lot. a RPS the is follow-up me segment. would me Jim, NII you quarter-over-quarter, up based your mean run a year sales. rate were ago higher you the as a

the So I Are your Is business? the earnings on of or here little NII, it for hitting it's bottom -- the really what's kind Maybe question of is higher in seeing it have surprising claims? annuity line? what disability the other been of or perspective that going a P&L ship driving a that you bit not a drag? because the on little of strength with seeing components in just is, kind guess that my mortality we're

out. Well, there's nothing that really stands

quite at expectations. and actually you our insurance claims As look claims -- good are and our are it, within disability

So point. end is there no

we to have are would. I we where So guess we thought performing

at and I that stage. fair take because don't at this just me away driving where to Let you're it a see see It's point.

So let How Okay. that? at get see and back you're look can it me we what is a going, take and

That would great. be

online Piper from with your Barnidge Sandler question. John is next

your impact recruitment such in expecting think can Can impact impact you product election how on how some and imagine you the or you demand, can called comments. You talk do planning to out advisor it you're operations an for Asset that has expense? marketing it about but Management think about

want would in I what perspective, understand hear gets a bit you funds on right? What can from investments? So I the more based does Well, think speaking in, it from think better. policies, it market airwaves. clients how who that and a No. it's even to mean affect client

mind of top hear. the triggered those that always they that's again, So by things of types

at We market what more of type So may be we is investment strategies. is. changes that's the in appropriate, so where it implications provide policy look what of and or of

Now what how in changes, you They as fundamentally change usually do depends it the to conversations, bit a thing whether a on see, more this there work and -- out and think as driving an see see with invest what before that's election If are. it. advisor. they'll are point, far work. changes election. we hold. don't you policy at or they And rotate major there But as clients I more closer there's that impacts they'll little of. think on way. But who I gets put it and to with whether more get money they a in based what same advisers. feel comfortable, I the does that how will implications, don't I -- like don't then It the anything fundamentally feel be people

of maybe question. the the some global talk Can examples efficiencies doing Management operational Asset so? business follow-up you in leveraging for way you the were previously not My about

Yes.

global them example time putting acquisition Threadneedle, we So when have. platforms integrating we've an and that BMO of talk, spent a but as also the I of on lot with energy,

Our all those platform global how ensuring we're across, that the things. are research, attribution we leveraging right trading have various

And them with now that, can locate the more the India, we have the we we in feel people and U.S., who get cetera. move efficiencies, where have consistently, Europe, we in like whether we resources, the more in we some processes et operate have

we that leveraging to then So really that want well with technology more are fully. we as And at efficiencies. to ensure drive the that, we look

sometimes entities, place. across dealt doing that that the we because of we human with the appropriately. overlaps, of until BMO resources the had couldn't a the the were we're in what are those because look technology, acquisition do legal so of lot overlaps of And had all until with really We we until things like the as

opportunity so Is that and for further you? get to efficiencies that. some to further streamline now from there's another And us helpful that

It is indeed. Thank you much. very

question. Michael Cyprys next is online your from with Morgan Stanley

circle Just to the commentary. to back cash sweep wanted

and understand Just if and more commentary you how views but sweep given compensated just are could us to over there, and cash the more clarify way just and extent draconian industry balances? time curious you over for sweep economics the hoping potentially away move shift. see there, your scenario advisors time for broadly things broadly and of time how some what scope movements where out to that the customers from services on and for And evolve plays pay over

pay ways Just you able might for to services? customers are economics? other curious continue be capture how could that to What

you time. you wherever want to at through people But wrong of that on want said, are, don't to do margin, want put right? to you you to timely, I that have you you you the again, other and have transactional Well, -- securities out as -- to settle want it activity don't

So a low cash. of there's always level certain

what and moved. really a for cash we look level, be it to in account is we if do really larger monitor any at Now is that

of further money CDs, lot out cash they where instruments, people you short-term as soar, so And invest of as in market, markets, fixed. or some the duration did various instruments fixed into they are other a income move putting

of so And lower in increase. reality that occurring we actually And than went sweep the actually, rather the it. saw

so map. in institutional and of that's all the same And wrap the thing

positional count, there so want account. advisors earning doing, don't that in in with paid, if something there money even they're cetera. be But to if that's instruments, if more balance is do the it. feel cash cash get we et monitored a high again, and it's sitting very in the not and we that, But because is of that the within comfortable then purpose wrap that's out Now invested that's

is adjustments we and that what to We're for the in cost future that people exactly the concerned, far as to we about will very look asking not of some feel in is you're bringing now. will at. your as have there's if constantly offset term, of services sure some in about right where So occur what you But good that the reasons. always that of near are changes some do pricing what the would

So I'm not sure to you, but that maybe was as clear to as it it wasn't us.

question referenced and a couple the remind elaborate in And some the the I Asset you hoping footprint was countries the you and elaborate then that region. wins terms of APAC your opportunities where of in follow-up of And bit look years you there could some maybe next and of best on just over out on APAC, in Management strategies? us you can there a business. the as see you Great. of on just

Yes.

things mainly more with lot a we institutional as region, both have an core Europe, against, the U.S. it have, And products and various maybe a -- that. it's or of the we like private fixed some in even in things wholesaling, small income, basis. you in working example, et imagine, So as we would like in investment-grade cetera, of is our banks, the but equities

we've estate. gaining seeing bit been traction our as that Same thing, we're in there. some potential real opportunities a So more

bit have those Japan. things Korea Australia. So expanded we in little the and are underway. that, We're We like that in places Singapore, recently a

some things getting So sovereign that. there like pension wealth are funds, larger different institutions we places from some it where mainly from are

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

may You now disconnect.