Ameriprise Profits Rise But with Fewer Financial Advisors

From the Desk of Jim Eccleston at Eccleston Law Offices:

In 2014, Ameriprise Financial’s wealth management reported $792 million in profits, up 33% year-over-year. Total client assets in the last quarter in 2014 for the firm’s wealth management division rose to $444 billion, a 9% increase year over year. Total revenues for wealth management grew 11% year-over-year, rising to $1.2 billion from $1.1 billion.
However, the firm’s financial advisor headcount was down. The number of employee advisors fell to 2,083 from 2,205 for the year-ago period. The ranks of independent advisors grew year-over year, rising to 7,589 from 7,511.
Retention rates were slightly down. For employee advisors, the figure fell to 91.2% for the fourth quarter in 2014 from 92% for the same period a year ago. For independent advisors, the rate dropped 94.5% from 94.7%.
There was some consolidation in the independent advisor channel, as some advisors prepared for retirement by selling or transitioning their practices to other advisors.
Productivity remained strong across both channels, but especially among new hires.
In a press release, the firm said recruiting remained strong as Ameriprise picked up 73 experienced advisors across both channels during the quarter. Productivity grew 13% year-over-year, rising to $496,000 in operating net revenue per advisor.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

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