Ameriprise Financial reported a decline in asset flows within its Advice and Wealth Management division, as advisor transitions and recruiting variability weighed on results. According to the company's earnings update, net inflows fell 14 percent year over year to $4.2 billion.
AdvisorHub reports that the decline largely stemmed from outflows tied to the planned termination of Ameriprise's relationship with Comerica Bank. As part of that transition, 89 advisors moved to Fifth Third under a separate transaction. Those advisors oversaw approximately $195 billion in client assets, including $18 billion in securities-related business. Ameriprise confirmed that it received a $25 million termination fee in connection with the shift.
A pending agreement with The Huntington National Bank may serve as a counterbalance. That transaction, announced in February, is expected to bring approximately 260 advisors and $28 billion in client assets onto the Ameriprise platform later this year, as reported by AdvisorHub.
According to AdvisorHub, executives also cited uneven recruiting trends and cautious client behavior as contributing factors. Chief Executive Officer James M. Cracchiolo described recruiting activity as inconsistent, noting that market conditions and competitive dynamics influence hiring outcomes. Chief Financial Officer Walter Berman echoed that assessment and emphasized a disciplined approach to recruiting incentives.
AdvisorHub also reports that Ameriprise has chosen not to match the largest transition packages offered by competitors. The company is concerned that while significant upfront payments may attract advisors, they do not necessarily ensure long-term retention.
Financial Advisor Transitions consults with advisors nationwide regarding employment transition options and strategies to preserve and protect their practices during any transition.
