Pre-tax operating earnings at Ameriprise Financial’s advice & wealth management unit were $212m in the fourth quarter of 2014, an increase of 33% compared to $160m in the corresponding period of 2013.
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Net revenues at the unit were $1.2bn, an 11% increase compared to $1.1bn for the previous year period driven by asset growth in fee-based accounts from client inflows and market appreciation.
Advice & wealth management unit’s operating expenses rose 7% to $1bn as business growth resulted in higher distribution expenses.
During the quarter ended 31 December 2014, total retail client assets grew 9% to $444bn driven by client net inflows, client acquisition and market appreciation. Wrap net inflows stood at $3.1bn with wrap balances increasing 14 % to $175bn.
Asset Management
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By GlobalDataThe pre-tax operating earnings at the asset management unit grew 6% to $198m, driven by equity market appreciation and continued revenue and expense reengineering.
The unit’s operating net revenues increased 1% to $830m from $824m in the year ago period, primarily driven by growth in assets from market appreciation and partially offset by the impact of net outflows.
Total segment assets under management increased 1% to $506bn from $501bn a year ago, reflecting market appreciation, more than offset the cumulative impact of net outflows and the impact of foreign exchange.
Asset Management unit’s net inflows were $5.7bn in the quarter primarily driven by inflows from third party institutional mandates, the launch of a CLO, and strong reinvested dividends.
Overall, the company’s fourth quarter 2014 net income rose to $426m, up 43% from $298m a year earlier.
Ameriprise Financial chairman and CEO Jim Cracchiolo said: "We’re bringing in significant client net inflows, growing our assets under management and increasing advisor productivity.
"Our operating return on equity for the year increased to 23%- another record high. 2014 marked the fourth consecutive year when we’ve returned more than 100% of our operating earnings to shareholders."
