Ameriprise Financial, Inc. (AMP) is a Minnesota-based diversified financial services company providing wealth management, asset management, insurance, and retirement planning solutions to individual and institutional clients. Founded in 1894 and valued at a market cap of $43.8 billion, Ameriprise operates through a nationwide network of financial advisors supported by integrated brokerage, banking, and advisory platforms. The asset management giant has substantially underperformed the broader market over ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from_______________________to_______________________ Commission File No. 1-32525 AMERIPRISE FINANCIAL, INC. (Exact name of registrant as specified in its charter) Delaware 13-31806 ...

Industry Overview - The Zacks Investment Management industry is under pressure from rising technology and AI-related expenses, which are expected to impact near-term profitability despite potential long-term efficiency gains [1][4] - The industry is characterized by companies managing securities and funds for clients, earning revenue through service fees or commissions [3] Key Themes Influencing the Industry - Rising Expenses: Increased technology and AI-related costs are expected to hurt profits in the near term, alongside elevated compliance costs due to regulatory requirements [4] - Demand for Passive Investing: A shift towards low-cost passive funds has compressed fees and intensified competition, leading to reduced revenue per dollar of assets and limiting earnings growth [5][6] - Mergers and Partnerships: Firms are pursuing mergers and partnerships to achieve scale, cut costs, and diversify offerings in response to competitive pressures [7][8] Performance Metrics - The Zacks Investment Management industry has underperformed the S&P 500 Index, with a collective gain of 8.4% over the past two years compared to 41.6% for the S&P 500 [13] - The industry's current Zacks Industry Rank is 137, placing it in the bottom 44% of over 250 Zacks industries, indicating a bleak earnings outlook [9][10][11] Valuation Insights - The industry has a trailing 12-month price-to-tangible book ratio (P/TB) of 4.07X, significantly lower than the S&P 500's 11.78X, indicating a discount compared to the broader market [17][19] - Compared to the broader Finance sector, the Zacks Investment Management industry is trading at a discount, with the Finance sector's P/TB at 6.06X [19] Company Highlights Ameriprise Financial (AMP) - As of December 31, 2025, Ameriprise had total assets under management of $1.7 trillion, with a CAGR of 9.2% in net revenues over the past five years [24][25] - The company has been restructuring its business and focusing on core competencies to improve market share [26] - Ameriprise shares have gained 4.2% in the past three months, with a Zacks Rank of 2 (Buy) [28] SEI Investments Company (SEIC) - SEIC administered $1.9 trillion in assets as of December 31, 2025, with a CAGR of 9.9% in total assets under management over the past five years [31][32] - The company has made strategic acquisitions to enhance its business capabilities, including the recent acquisition of Stratos for $440.8 million [35][36] - SEIC shares have gained 0.7% in the past three months, also carrying a Zacks Rank of 2 [36] Federated Hermes, Inc. (FHI) - Federated Hermes had $902.6 billion in assets under management as of December 31, 2025, with a CAGR of 7.8% over the past five years [38][39] - The company has been actively seeking alliances and acquisitions to expand its global presence [39] - FHI shares have gained 14.2% in the past three months, maintaining a Zacks Rank of 2 [42]

Core Insights - The launch of Altruist's AI-powered tool on the Hazel platform has caused significant concern among investors, leading to a decline in wealth management stocks, with Charles Schwab's stock dropping nearly 11% and Morgan Stanley falling almost 5% [1] - Despite the sell-off, major wealth management firms are not retreating but are instead expanding their AI capabilities, indicating a belief that AI will reshape the industry [3][4] Industry Developments - AI is increasingly being utilized as a co-pilot for financial advisors, assisting with tasks such as taking meeting notes, drafting emails, and conducting research [4] - Major firms like Morgan Stanley are developing AI tools across three main functionalities: enhancing co-pilot features, creating an AI agent for client interaction, and building a portfolio construction engine [6] - Schwab is implementing AI in call centers to improve client response times and has identified over 200 potential use cases for AI across its operations [4]

Core Insights - Ameriprise Financial has grown to nearly $23 billion in assets, aiming to deepen client relationships and contribute to stable earnings through new offerings like checking accounts and home equity lines of credit [1] - The company's approach in wealth management is framed as a "stewardship model," focusing on profitability, efficiency, and risk management while maintaining talent [2] - Ameriprise has rebuilt its bank post-2012 to service clients better and create stable earnings, currently at its lowest exposure to short-term interest rates with about $7 billion in off-balance sheet cash [4] Business Model and Strategy - The integrated business model of Ameriprise includes wealth management, asset management, and insurance, designed to work together rather than as standalone units [6] - Advisor growth is a key driver of net new assets, with the company adding 91 advisors in the last quarter and targeting a long-term average growth of about 4% in net new assets [7] - The company is investing in its remote, team-based model for advisor growth and succession planning, focusing on attracting higher-value advisors and affluent clients [9] Financial Performance and Capital Management - Ameriprise has a strong capital and liquidity position, returning 88% of capital to shareholders through dividends and buybacks in 2025, with a target of 85% to 90% returns [16] - The asset management business has about 15% to 17% participation in the wealth network, with ongoing efforts to improve performance and return to positive net flows [14][13] - Insurance, which represented about 80% of profitability in 2005, now accounts for about 15%, but remains strategically important for stable cash flows [15] Product and Service Development - The "Signature Wealth" initiative aims to combine wealth and asset management capabilities for more efficient client management, launching 38 new SMAs [12] - The firm has attracted nearly $45 billion into third-party money market funds and CDs, indicating potential for cash redeployment as rates decline [10] - Ameriprise's asset management platform has launched active ETFs and interval funds, with expectations for growth in discretionary areas through Signature Wealth [13]

Core Insights - The February reporting season in Australia is underway, with major ASX-listed companies expected to report earnings that meet or exceed expectations, particularly in the financial sector [1][2][4] Financial Sector Performance - The financial sector is pivotal in shaping market sentiment, with the Commonwealth Bank's strong results setting a positive tone for the season [2][3] - ANZ Group reported a cash profit of $1.9 billion for Q1, with group revenue at $5.7 billion and a net interest margin increase of 3 basis points [7][9] - AMP Limited's FY25 results showed a statutory profit of $133 million, down 11.3% YoY, with a significant drop in share price following the announcement [13][16] ANZ Group Highlights - ANZ's performance was driven by effective cost management, with expenses below expectations and 60% of planned workforce reductions completed [8][10] - The bank's net interest margin improvement reflects favorable funding and pricing dynamics, consistent with trends across major banks [9] AMP Limited Highlights - AMP's overall profit was in line with expectations, but margins were softer due to strong growth in funds under management impacting average margin outcomes [14][16] - The bank's core profit declined by 10% to $55 million, influenced by higher digital investments, although net interest margins improved [18] Future Outlook - AMP provided margin targets for FY26, indicating modest pressure ahead, with limited scope for operating leverage without significant revenue changes [19][20] - The transition to new leadership at AMP raises questions about strategic direction, margin stabilization, and investment focus [21][22]

Core Business Overview - Ameriprise operates three core businesses: a wealth management franchise with over $1.1 trillion in assets under advisory, a global asset management platform with more than $700 billion in assets under management (AUM), and a robust insurance business [3]. Integrated Business Model - The company emphasizes its integrated business model, which leverages capabilities across its three business segments, allowing for seamless and efficient service delivery to customers [4]. - This integrated approach has contributed to the company's resilience and growth during various economic crises [4].

Summary of Ameriprise Financial Conference Call Company Overview - **Company**: Ameriprise Financial - **Core Businesses**: - Wealth management with over $1.1 trillion in assets under advisory - Global asset management platform with more than $700 billion in assets under management (AUM) - Insurance business [3][4] Key Points and Arguments Integrated Business Model - Ameriprise emphasizes its integrated business model that leverages capabilities across its three core businesses, contributing to its resilience and growth during various market cycles [4][5] Performance Metrics - Ameriprise has been the best-performing financial stock in the S&P 500 since its spin-off from American Express in 2005 [6][10] Market Sensitivity and Interest Rates - The company has reduced its reliance on short-term earnings to the lowest level possible, anticipating three Federal Reserve interest rate cuts in the current year [12] - Current off-balance sheet short-term cash is approximately $7 billion, with a duration of 3.8 years and an average earning rate of around 5% [12][13] Wealth Management Business - The wealth management business operates on a stewardship model focused on meeting client needs profitably and efficiently [14] - The bank has reached nearly $23 billion in assets, contributing to the profitability of the wealth management segment [15] Competitive Landscape - The competitive environment for financial advisors is described as aggressive, with increased pressure from independent broker-dealers (IBDs) and private equity firms [27][29] - Ameriprise is adjusting its value proposition to attract and retain advisors amidst competitive offers [19][20] Advisor Growth and Net New Assets - The company added 91 advisors last quarter and aims for continued growth, targeting a 4% increase in net new assets [21][22] - Ameriprise has the highest organic advisor growth in the industry, which is crucial for net new asset accumulation [21] General and Administrative Expenses - G&A expenses are expected to grow at a rate of 0%-2%, with a focus on re-engineering processes rather than just cost-cutting [26] Asset Management Business - The asset management segment is working towards positive net flows, with a focus on improving performance and launching new products [58][59] - Approximately 15%-17% of asset management activity is derived from the wealth management business, providing a competitive advantage [56] Insurance Business - The insurance segment has decreased in size but remains important for providing solution sets to clients [60][62] - The company has adjusted its risk profile and is focused on maintaining quality service without pursuing acquisitions in the insurance sector [63][64] Capital Management - Ameriprise has about $2 billion in excess capital and returned 88% of its capital to shareholders through dividends and buybacks in 2025 [66] - The company plans to opportunistically increase buybacks in favorable market conditions while continuing to invest in business growth [67][68] Additional Important Insights - The launch of Signature Wealth aims to enhance the integration of wealth management and asset management services, providing a seamless investment strategy for clients [44][46] - The recent partnership with Huntington Bank, involving $20 billion in assets and 260 financial advisors, highlights Ameriprise's competitive edge in expanding client relationships [49][50] - The company is actively managing its advisor recruitment and retention strategies to ensure competitiveness in a changing market landscape [19][20]

Ameriprise Financial Overview © 2026 Ameriprise Financial, Inc. All rights reserved. Forward-looking statements The forward-looking statements in this presentation reflect management's expectations about future events, plans and performance. These forward-looking statements and the many assumptions upon which they are based involve risks and uncertainties. A list of factors that could cause actual results to be materially different from those expressed or implied by any of these forward-looking statements i ...

Core Insights - The launch of Altruist's AI-assisted tax planning tool, Hazel, has caused significant turmoil in the wealth management sector on Wall Street, raising fears about the disruption of traditional investment advisory business models [1] - Hazel utilizes deep learning algorithms to analyze complex financial documents in approximately three minutes, offering tailored tax-saving strategies for a monthly fee of $60, which threatens to drastically reduce the costs associated with traditional tax planning [1] - The market reacted negatively, with wealth management and brokerage stocks experiencing a sharp decline, reaching their lowest valuations since April of the previous year [1] Company Performance - LPL Financial (LPLA.US) saw its stock price drop by 8.3%, reflecting investor concerns over service commoditization [1][2] - Charles Schwab (SCHW.US) recorded a significant decline of 7.4%, becoming a highly traded stock on that day [1] - Raymond James (RJF.US) faced its largest single-day drop since the onset of the pandemic, falling by approximately 8.8% [2] - Other established firms like Ameriprise Financial (AMP.US) and Stifel Financial (SF.US) also experienced declines ranging from 4% to 7% [2] Analyst Perspectives - Some industry analysts believe the market's reaction to the "AI panic" may be an overreaction, as the core barriers in wealth management, such as the need for complex behavioral coaching and deep trust with high-net-worth clients, are not easily replicable by automation [2] - Morningstar's research indicates that if traditional firms fail to integrate similar AI capabilities quickly, their customer acquisition costs will continue to rise amid the digital asset transfer wave, leading to fundamental changes in future revenue structures [2]