Cracchiolo is upbeat on recruiting, asset growth at Ameriprise

Ameriprise Financial (AMP) said Monday that it recently recruited a financial advisor from LPL Financial (LPLA).

Charles A. Smith of Gilbert, Arizona, has some $165 million of client assets and is now part of Ameriprise’s employee channel. The advisor also has some 15 years in the business.

He was with LPL Financial between October 2007 and October 2014, after working with Trusted Securities Advisor Corp./MONY Securities Corp., as well as First Global Capital Corp., according to FINRA records. 

Ameriprise said last week that it has a total of 9,696 advisors, up four from Q2’14 but down 65 from the year-ago period.

The number of its employee advisors stands at 2,100 — a drop of 15 from the prior quarter and 135 from Sept. 30, 2013. It has 7,596 franchisee reps, which is up 19 from Q2’14 and up 70 from Q3’13.

Its quarterly retention level for employee reps is 91.9% as of Sept. 30 and 94.6% for franchisee advisors. 

“Overall, our advisor force is strong, and our retention as well as satisfaction rates remain very high,” said Ameriprise Chairman and CEO Jim Cracchiolo on an earnings call with analysts posted Wednesday by Seeking Alpha. “In terms of recruiting experienced advisors, we brought in another 81 in the quarter. The productivity of the advisors we’re attracting continues to grow, and our recruiting pipeline so far in the fourth quarter looks quite good.”

Ameriprise says its advisors have 12-month fees and commissions that average $483,000, while LPL Financial, which has about 13,900 affiliated reps, says its FAs’ average yearly production is $248,000.

“Our priority is to bring in new clients and assets to Ameriprise and to deepen relationships so we can continue to increase retail client flows,” Cracchiolo explained. “In September, we were back on the air with a new commercial from our ‘Real Questions, Real Answers’ advertising campaign featuring our confident retirement approach.”

Advisors using this approach, he adds, “have had meaningful increase in net flows. We’re also investing in and helping our advisors take advantage of our technology, marketing, and social media capabilities to increase their productivity, gain new clients and deepen current relationships.”

— Check out LPL Q3 Earnings Meet Lowered Estimates as Profits Fall 12% on ThinkAdvisor.