Tyler Mulier

Tyler Mulier asked about Ameriprise's asset management performance, specifically inquiring about other strategies or regions contributing to higher performance fees beyond strong hedge fund performance, and the outlook for hedge fund performance.

Answer

Chairman and CEO Jim Cracchiolo noted good flows across various disciplines, including equity retail (Dividend Income, Contrarian Core), institutional (Japan, fixed income), and hedge funds, as well as real estate in Europe. He acknowledged impacts from LDI rotations but expressed optimism for 2026, citing strong performance and efforts to gain share in fixed income.

Tyler Mulier questioned Ameriprise's asset management performance, specifically asking about other strategies or regions contributing to the strong hedge fund performance and higher performance fees, beyond what was already mentioned. He also sought additional color on the hedge fund performance and its outlook.

Answer

Chairman and CEO Jim Cracchiolo detailed good flows across various disciplines, including equity retail (dividend income, contrarian core), institutional strategies (Japan), fixed income, hedge funds, and real estate in Europe. He acknowledged impacts from LDI but expressed optimism for 2026, particularly for improvements in fixed income performance.

Tyler Mulier, on behalf of Brian Drab from William Blair, questioned the sustainability of the aftermarket business's growth, given an implied deceleration in Q4 guidance. He also asked about visibility in the Aerospace & Defense segment and the potential for tough comparisons in fiscal 2026.

Answer

CEO Tod Carpenter attributed the aftermarket's strength to typical seasonality where Q3 and Q4 are strongest, combined with successful market share gains. For Aerospace & Defense, he confirmed long-term project visibility but noted that near-term lumpiness is difficult to predict due to supply chain uncertainties. He expressed confidence in the segment's strength despite these challenges.

Tyler Mulier of William Blair & Company inquired about the Grove Lane initiative, asking for the rationale behind choosing a joint venture structure and where the initial efforts will be focused, particularly given the current market uncertainty for individual investors.

Answer

Chairman and CEO Michael Sacks responded that the individual investor channel represents a significant, long-term growth opportunity due to its under-allocation to alternatives, which transcends short-term market volatility. He explained that the JV structure is strategic for attracting top-tier talent by offering ownership and entrepreneurial incentives. The structure also includes a future option for GCMG to acquire the venture once it is more mature and accretive.