![]() Client assets? over $758B, which includes so-called wrap assets, which is a finance term for accounts where a "wrapped" sort of fee/fees cover all the management/brokerage/admin expenses for an account, a fairly popular solution. And this relatively new, in its current iteration, segment, is delivering superb results after superb results. It combines wealth and asset management into an appealing structure where WM drives over 85% of the company's revenue - this is important, as Wealth management is far less cyclical than Asset management, as it depends on very long-term deep client relationships that can tolerate downturns and upsides alike.Īsset persistency is a keyword you want to remember when you look at Ameriprise Financial, and its ability to across market cycle capture not only assets but appealing fees.įrom 2012 and up to 2012, the mix has changed from 44% RIS to 21% Retirement and protection, to be over 57% pre-tax Wealth management & advice earnings. ![]() It's high-level, but at the same time, can work with small accounts and customers. It's diversified, but at the same time, fully integrated. The company in its current iteration splits between two segments, as follows. In that same time, AMP has returned over $21B to shareholders, and works with a 48.1% RoE, excluding AOCI - those are some absolutely superb numbers. Let's begin with some high-level and longer-term ones to give you a feel for why I'm generally "always" positive about this company's prospects. While it may look in the short term that you're getting a deal, that may not be so sure. At the current share price, the company is still 324% above its 10-year high and only 12.78% below its high. ![]() Even with my negative view of the company in my last article, AMP's ability to consistently grow its revenues and profits over time has never been in question.īut the core for my investing is always What price am I paying, and what am I getting? Furthermore, AMP has very consistent historical growth. Rowe ( TROW), and others, even including Swiss banks such as Julius Baer. This includes peers like BlackRock ( BLK), Blackstone ( BX), Investor ( OTCPK:IVSXF), T. How do I know this?īecause Ameriprise Financial, in terms of the ever-important Return on Equity, is at the 98th percentile in terms of asset management companies. ![]() Its history is short - prior to 2005, it was actually, believe it or not, a division of American Express ( AXP) but was spun off at this point to become its own entity.Īnd this journey has gone really quite excellent. The lion's share of the company's profitable operations is centered around wealth management. It's also one of the largest broker-dealers based on AUM, and this set of offerings included, when I started writing on AMP, wealth management, asset management, insurance annuities, and estate planning. It's one of the Fortune-500 companies, and the largest banks and finance companies across the United States, as well as the world. Updating on Ameriprise Financial - The results were good, let's look forward to the valuation So, with that out of the way - let's get back into it. Why?īecause Ameriprise Financial is down 12.08% since the time, with the S&P essentially flat. This was exactly the right choice to make at the time. My recent article detailed why I considered AMP a hold. Hence, why I am an active manager of my investments - not a "Buy and Hold" forever investor. the capital I've invested since selling has multiplied even more than the variance between my RoR and the RoR you see above. Seeking Alpha article (Seeking Alpha AMP) While the total RoR since my initial COVID-19 article is higher at this time including dividends. When I sold, my RoR for the final portion was over 170% total RoR. The company was in fact one of my original Coronavirus discounts. I've been covering and making money with this company for years. Ameriprise Financial ( NYSE: AMP) is a great company - absolutely no doubt about that, let me assure you.
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