After four straight quarters with its wealth manager adding about double the advisory assets compared to two years ago, Ameriprise CEO Jim Cracchiolo is almost ready to call it the new normal.
In a call after the Minneapolis-based firm disclosed its fourth-quarter earnings on Jan. 27, an analyst noted that the record wrap advisory flows came in well above the normal range of $4 billion to $5 billion prior to the pandemic. The analyst asked Cracchiolo if the firm would be able to continue that level of organic growth, and the firm’s CEO answered “yes,” with the caveat that equity volatility could make it hard to predict. The firm’s “base of activity is much stronger than it was two years ago and three years ago because of what we’ve been doing” on technology for advisory clients, expanding existing relationships and the base of possible customers, he said.
“That has translated to the flows that you’re seeing,” Cracchiolo said, according to a transcript by the website Seeking Alpha. “Our client acquisition was up strongly this year, including in the segment that we really wanted to grow, which is the $500,000 to $5 million category. We’re starting to work on moving even further upmarket to higher net worth. We’re also focused on some of the younger generation as we bring through the remote and the digital capabilities that we’ve been investing in.”
To see the key takeaways from the earnings announcement and call, scroll down our slideshow. For coverage of Ameriprise’s prior quarterly earnings, click here.