Q : Can you explain the drivers behind the softer flows in Q2 and whether you expect a return to normal growth rates? A : Jim Cracchiolo, CEO, noted that the softer flows were due to tax payments and the Liberation Day lull, which kept investors on the sidelines. However, flows began to recover later in the quarter and are expected to pick up further in July. Despite some lumpiness from recruiting and terminations, the overall positioning remains strong, with a core client base that is less reactive to market fluctuations.

Market volatility and seasonal tax payments contributed to slower flows in the second quarter, impacting overall growth.

Distribution expenses in the wealth management segment increased by 10%, reflecting growth in advisor productivity but also indicating higher costs.

Ameriprise Financial Inc ( NYSE:AMP ) was recognized by Kiplinger’s Reader’s Choice Award for outstanding overall satisfaction and by Fortune as one of America’s most innovative companies in 2025.

The company continues to invest significantly in technology, digital capabilities, and AI to enhance client experience and advisor productivity.

Earnings per share increased by 7%, and the company maintains a strong return on equity at 52%, one of the best in the industry.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

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Q: How is the competitive environment affecting distribution expenses and recruitment packages? A: Jim Cracchiolo explained that distribution expenses are primarily driven by increased advisor productivity, which is up 9%. Recruitment packages have seen a slight increase due to competitive pressures, but the focus remains on long-term growth and maintaining a balanced proposition. Some irrational behavior in the market persists, but Ameriprise is committed to offering competitive yet sustainable packages.

Q: What is Ameriprise’s strategy for recruiting advisors, and how is the market evolving? A: Jim Cracchiolo stated that the recruitment pipeline has improved, with a focus on selling the total value proposition to advisors. Ameriprise aims to attract advisors who align with their values and commitment to client experience, leveraging technology and support to enhance productivity. The company is not just offering large checks but is focused on sustainable growth and advisor success.

Q: With top-line growth slowing in wealth management, is there an opportunity to pursue larger outsourcing deals or increase recruitment efforts? A: Jim Cracchiolo emphasized that Ameriprise is focused on recruiting and has increased competitive packages to attract advisors. The company is also enhancing centralized channel business and institutional efforts. However, they are not pursuing roll-ups of advisor networks, preferring to maintain a strong focus on delivering a quality client experience.

Q: How does Ameriprise plan to fund the growth of its loan book, given the current deposit levels? A: Walter Berman, CFO, explained that as the bank’s securities portfolio rolls over, spreads are expected to increase, contributing to net interest income improvement. The company is launching liability products, such as high-yield savings and CDs, to fund loan growth and diversify the liability portfolio.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.