Ameriprise Denies Retention Strategy Shift as Advisor Productivity Hits $1.2 Million
Updated
Updated · Wealth Management · Oct 30
Ameriprise Denies Retention Strategy Shift as Advisor Productivity Hits $1.2 Million
2 articles · Updated · Wealth Management · Oct 30
Summary
High-90% advisor retention and flat year-over-year headcount were Ameriprise’s main rebuttals to reports that it had broadly shifted to bonus-driven retention deals.
Executives told analysts the firm still uses case-by-case arrangements tied to succession, practice acquisitions and liquidity needs, not a programmatic campaign to stop departures to RIAs.
Two large teams still left in the quarter, including a $4.3 billion Bedford, New Hampshire group and a $1.3 billion Bloomington, Minnesota team that launched independent RIAs.
Record advisor productivity of $1.2 million, up 13%, and a 28% pretax adjusted operating margin underpinned management’s argument that organic growth and long-term support remain the core strategy.
Third-quarter results were mixed: non-GAAP EPS of $11.26 missed estimates by $0.51, while revenue rose 6.1% to $5.19 billion and topped expectations by $110 million.