Net Interest Income Outlook
Q: Can you provide guidance on net interest income expectations for 2024 and 2025?
A: Management expects net interest income in both 2024 and 2025 to be higher than in 2023 due to reinvestments at rates close to 6% and maturities of $3 billion in both years - , - ,. -

Asset Management Expense Reductions
Q: How are expense reductions in Asset Management impacting the business and flows?
A: The company proactively evaluated expenses, resulting in the reduction of 12 portfolio managers and closure of certain funds, impacting about $2 billion in assets - , - ,. - Management believes these actions improve efficiency without significant negative commercial impacts - ,. -

Cash Balances Redeployment
Q: What opportunities exist to redeploy substantial cash balances on the sidelines?
A: Clients hold over $82 billion in cash, about 8–9% of total client assets, nearly double the usual amount - , - ,. - As rates normalize, these balances could reduce to 4–5%, offering opportunities for redeployment into higher-margin products like wrap accounts. -

AWM Margin Sustainability
Q: Can you sustain over 30% pretax margins in Asset & Wealth Management despite potential rate cuts?
A: Management is confident in sustaining margins above 30% in AWM, citing expected higher NII in 2024 and effective expense management - ,. - Variables like market conditions could impact margins, but they feel reasonably confident. -

Capital Return and Payout Ratio
Q: How should we think about the capital return trajectory and payout ratio going forward?
A: The payout ratio was 79% for the year - ,. - Management has strong capital return capacity and intends to continue at similar levels, adjusting opportunistically - ,. -

Potential Reinsurance Transaction
Q: Any updates on potential reinsurance transactions in Retirement & Protection Solutions?
A: Management sees opportunities due to recent industry developments and believes the bid-ask spread is aligning, making a transaction more feasible - ,. -

Bank Growth Expectations
Q: What are the expectations for growing the bank's assets in 2024?
A: The bank plans to increase assets at a slower pace, being more measured after a substantial shift, and will evaluate sweep balances to support growth. -

Expense Initiatives Beyond Asset Management
Q: Are there expense management initiatives outside of Asset Management, and what's the timeline?
A: Actions are already in place with benefits expected in 2024, aiming for flat expenses despite substantial investments; management has high confidence in execution. -

Technology Investments for Advisors
Q: What technology initiatives are in place to differentiate the Ameriprise platform?
A: The company offers integrated platforms including CRM, e-meeting capabilities, AI tools, and mobile/web functionalities, enhancing advisor efficiency and client engagement. -

New Money Yields on Cash
Q: What are the new money yields on the $3 billion rolling over, and what maturities are being invested in?
A: New investments are made at yields just under 6%, with maturities around 3.5 years. -

Comerica Cash Balances
Q: Why is Comerica Bank cash high as a percentage of assets, and will advisors redeploy it?
A: The high percentage is recognized, and there's an opportunity to reduce it as advisors guide clients to redeploy funds over the next six months - ,. -

NII Expectations Clarification
Q: Is higher NII expected for all cash economics both on and off-balance sheet?
A: The earlier expectation of higher NII referred specifically to the bank; it's the bank's NII that's expected to be higher - ,. -

Cash Trends in January
Q: Can you speak to cash trends seen in January and expectations for balances?
A: Cash levels have stabilized with a slight increase as of two days ago; seasonality effects are being observed - ,. -

Investment Profile in RPS
Q: Can you provide an update on the investment profile of the Retirement & Protection Solutions book?
A: Investments have taken advantage of rate situations and are largely completed; a pickup is expected going forward from intercompany cash. -

Expense Allocation Among Segments
Q: What happened with the $15 million redeployment out of corporate into segments?
A: Adjustments were made to intercompany crediting rates to reflect current conditions, impacting net interest income among segments without affecting the overall company. -

Affiliation Options and RIA Growth
Q: How is the company approaching growth in the RIA channel?
A: Management is focused on developing distribution platforms and capabilities to engage the RIA channel, recognizing its growth. -

Balancing Expense Cuts and Flows
Q: Are expense reductions causing outflows, and how is this balanced?
A: Some outflows occurred due to proactive decisions to close or merge funds with low payback; management believes these actions are manageable and improve efficiency. -

Growth Areas in Asset Management
Q: Were growth areas identified during the Asset Management review?
A: Yes, opportunities were identified, particularly in fixed income and credit, where there's potential for greater market share. -

Interest in Third-Party Sidecars
Q: Is the company interested in risk transfers involving third-party sidecars?
A: Currently, this is probably not of interest, as such arrangements are typically for growth, and the company already has a large share. -

Margins in Asset Management
Q: Are you managing to historical margin targets in Asset Management?
A: Management is comfortable with current margin levels but acknowledges potential for increase depending on market conditions and expense control. -

Cash Level Stabilization
Q: What's the status of cash levels year-to-date?
A: Cash levels in sweep accounts have stabilized with a slight increase through two days ago; seasonal effects are being considered. -

Advisors' Client Cash Holdings
Q: Is there a reason clients' cash might not come to Ameriprise?
A: The cash is already at Ameriprise, held in money markets and brokerage CDs; over time, some may move into bank products being developed. -

Investment in RPS Portfolio
Q: Any color on reinvestments in the RPS portfolio and rate sensitivity?
A: Investments to capitalize on rate situations are complete; future pickup is expected from intercompany cash. -

Off-Balance Sheet Yield Compression
Q: Why did off-balance sheet broker-dealer yield compress, and when will it normalize?
A: Compression resulted from taking on $2.5 billion from Comerica, which will transition over the next six months, leading to rate increases - ,. -

Reallocation Among Segments
Q: Can you explain the expense reallocation among segments?
A: Adjustments to intercompany crediting rates were made to reflect current conditions, affecting net interest income among segments but not the overall company. -

Advisor Platform Differentiation
Q: What technology initiatives help the platform stand out to advisors?
A: Integrated CRM, AI capabilities, and state-of-the-art systems enhance advisor efficiency and client engagement, differentiating the platform. -

Layoffs and AUM Impact
Q: Can you comment on the size of AUM affected by the layoffs of 12 PMs?
A: The layoffs impacted funds with about $2 billion in assets; most were related to strategic decisions on fund efficiencies. -