Welcome to the Q2 2024 Earnings Call. My name is Briana, and I will be your operator for today's call. As a reminder, the conference is being recorded. I will now turn the call over to Alicia Charity. Alicia, you may begin.

Thank you, operator, and good morning. Welcome to Ameriprise Financial's Second Quarter Earnings Call. On the call with me are Jim Cracchiolo, Chairman and CEO, and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take questions. Turning to our earnings presentation materials that are available on our website. On Slide 2, you will see a discussion of forward-looking statements. Specifically, during the call, you will hear reference to various non-GAAP financial measures, which we believe provide insight into the company's operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website. Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties. A sample list of factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our second quarter 2024 earnings release, our 2023 annual report to shareholders, and our 2023 10-K report. We make no obligation to publicly update or revise these forward-looking statements. On Slide 3, you see our GAAP financial results at the top of the page for the second quarter. Below that, you see our adjusted operating results, which management believes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. Any of the management makes on the call today will focus on adjusted operating results. And with that, I'll turn it over to Jim.

Good morning, everyone. As you saw in our release, Ameriprise delivered another strong quarter and first half of the year, continuing our record of delivering strong operating results over many years in various operating environments. Looking at the external landscape in the quarter, markets continue to be good with expectations of a soft landing. While inflation remains sticky, people assume that it's going to come down, but that could take longer than expected. Additionally, there is ongoing geopolitical instability and the upcoming U.S. election, which is top of mind for our clients. With that as a backdrop, our second quarter results were excellent. In terms of our operating results, revenues were up 9% from positive business results in markets, reaching a new record of $4.2 billion. Earnings were also excellent, with EPS, excluding disclosed severance costs, increasing 17% to $8.72, marking another high. We generated free cash flow of 90%, returning another $693 million to shareholders, and our return on equity was nearly 50%, continuing to be best-in-class. Our assets under management and administration were $1.4 trillion, up 12% year-over-year with good client net inflows and market appreciation. We have also adeptly maintained a significant investment agenda complemented by our strong reengineering discipline for reinvestment. We freed up additional resources, which is why you're seeing some additional severance costs in the quarter that we will benefit from through the year. In fact, G&A was down 2%, excluding those one-time costs. In wealth management, we are building on what we know works: quality engagement centered on advice and delivered through the Ameriprise client experience. Client satisfaction remains excellent at 4.9 out of 5 stars, and we continue to receive important industry accolades. Total client assets in wealth management were strong at $972 billion, up 17%. We continue to attract new clients in the $500,000 to $5 million range. Our most recent research underscores that our premium client value proposition continues to appeal to those who want to work with a trusted advisor and a trusted firm like Ameriprise. For the quarter, total client wrap assets reached $535 billion, an increase of 18%. Wrap flows also grew nicely, up 34% year-over-year to $7.5 billion, and transactional activity was up, increasing 19% from a year ago. Although cash balances are still at a higher level, they are beginning to shift back to wrap and other products, which represent a future growth opportunity for us. We continue to provide exceptional support and capabilities for our advisers; both satisfaction and growth remain excellent. Productivity increased another 11% to $968,000 in the quarter. We focus on leveraging our integrated and effective CRM engagement tools and digital capabilities for client relationships to complement in-person interactions. We are using automation and analytics to drive efficiency, helping advisors enhance personalization based on client needs and identify new growth opportunities. Our advisor force grew to nearly 10,400 in the quarter, adding another 52 experienced advisors. We feel good about our pipeline as well as our differentiated value proposition. At Ameriprise, total assets were up year-over-year, and we closed the quarter at $23 billion. Strong contributions from bank earnings drove a notable increase in net investment income. We continue to see good advisor and client interest in lending with notable growth in pledge loan volumes as our advisors engage their clients in our banking solutions. During the quarter, I spent time with the top 10% of our advisor force at our largest recognition conference. They appreciate what we have built together and understand that Ameriprise is not just another firm or a group of practices, but that we have a supportive and caring culture that enables them to have highly successful practices. Moreover, our retirement protection businesses consistently contribute to our positive results as our advisors provide more advice, appropriately incorporating annuity insurance solutions to serve complex client needs. We are driving good sales in our targeted areas. For example, structured annuity sales were up 60% from a year ago, and in insurance, VUL sales were up 24%. RPS continues to add nicely to our overall earnings and free cash flow, and we are optimistic about our product mix and position. In asset management, the active industry remains dynamic. Our team is focused on client needs and generating attractive investment performance. Total assets under management increased 4% to $642 billion, as market appreciation more than offset net outflows. We continue to demonstrate good investment performance across asset classes and time periods? Globally, 68% of our funds are above the median for the 3-year period on an asset-weighted basis, nearly 80% for 5 years, and 90% for 10 years. We have 114 4- and 5-star Morningstar-rated funds globally. Turning to flows, total outflows were $4 billion, improving $1.3 billion from a year ago. Excluding the legacy insurance partner asset transfer, which came through both in retail and institutional channels, retail saw overall gross sales improve by $1 billion from last year with slight improvements in redemptions. Though we experienced net outflows, our equity results outpaced the industry, and we see an opportunity to gain more flows in fixed income. Institutional flows were slightly positive in the quarter, driven primarily by wins in the APAC region. Additionally, we are placing more emphasis on models, SMAs, and ETFs, which are beginning to gain traction. We continue to focus on transforming our global asset management business to gain greater operational efficiencies while leveraging resources and technology globally. Our G&A expenses decreased 6% in the quarter, with several additional actions underway to further derive benefits throughout the year. In Asset Management, we are maintaining good fee levels and margins. At Ameriprise, our model and overall firm has enabled us to perform exceptionally well over market and environmental cycles. We continue to leverage our global capabilities while steadily investing in technology, digital tools, analytics, AI, products, and solutions across our complementary businesses. In June, we celebrated our 130th anniversary, positioning ourselves as one of the select public companies with this legacy of success and performance. Our ROE of 50% is consistently among the best. Ameriprise has been the #1 performer for total shareholder return among the S&P 500 Financials since our spin-off in 2005, continuing to deliver excellent returns to shareholders in a significant way. Looking forward, we have the right strategic focus, growth investments, a talented team, and meaningful opportunities to drive greater growth. Now, Walter will provide more details on our financials.

Thank you, Jim. Adjusted operating EPS grew 17% to $8.72, adjusted for $0.19 of severance expense associated with the company's reengineering initiatives, reflecting earnings growth across all of our businesses. The diversified nature of our businesses drives consistent financial performance across market cycles, setting us apart from most in the financial services industry. Assets under management and administration increased 12% to $1.4 trillion, benefiting from strong client flows over the past year and equity market appreciation. This has resulted in strong 9% revenue growth across our businesses. As you know, we continue to manage expenses tightly to maintain strong margins. G&A expenses were down 2%, excluding severance expenses, demonstrating our continued focus on reengineering and operational transformation. We continue to selectively invest in areas that will drive future business growth, particularly in wealth management. We will maintain our expense discipline in 2024 to achieve growth and shareholder objectives. Our returns remain strong, with a consolidated margin of 27.4%, excluding severance expenses, and a best-in-class return on equity of 50%. Balance sheet fundamentals, including excess capital and liquidity, remain very strong. Our diversified business model benefits from a significant and stable 90% free cash flow contribution across all business segments. We returned $693 million of capital to shareholders in the quarter. In 2024, we continue to expect to return 80% of operating earnings to shareholders. On Slide 6, you'll see strong results from Wealth Management. Client and wrap assets increased 17% and 18%, respectively, from strong net flows and market appreciation over the past year. Wrap flows were strong in the quarter, at $7.5 billion, or a 6% annualized flow rate. In the quarter, adjusted operating net revenues increased 13% to $2.6 billion due to growth in client assets, increased transactional activity, and an 11% increase in net investment income in the bank. This drove revenue per advisor to a new high of $968,000, up 11% from a year ago. Total cash balances, including third-party money market funds and brokered CDs, were $81.9 billion, which was over 8% of clients' assets. Clients remain heavily concentrated in yield-oriented products, with highly liquid products like money market funds being favored over term products like certificates and brokered CDs. We are beginning to see clients put money back to work in wrap and other products on our platform, which we expect to continue over time as markets and rates normalize, creating a significant opportunity. Cash balances, excluding money market funds and brokered CDs, were $40.6 billion driven by normal seasonal tax patterns and the transition of cash related to the Comerica partnership and other products. Underlying cash sweep was stable in the quarter as expected, a trend that continues in July. I want to provide additional perspective on sweep cash. Our cash sweep is a transactional account for money in motion that is in between investments or for cash to pay fees, similar to a bank checking account. Cash sweep is not meant to be an investment option for significant cash balances over extended periods. We have a broad range of higher-yielding products available for clients seeking to hold cash for longer periods, which is where a large portion of the excess cash has gone. As a result, our clients generally have very low cash rebalances, which are now approximately $6,000 on average. At this point, we do not anticipate any changes in our approach to cash sweep. Adjusted operating expenses in the quarter increased 13%, with distribution expenses up 17%, reflecting business growth, including Comerica and increased transactional activity. G&A expenses were flat at $409 million, reflecting investments for business growth offset by reengineering initiatives. This combination of revenue growth and well-managed expenses enabled the business to sustain an operating margin of 31%. Turning to Asset Management on Slide 7. Financial results were very strong in the quarter, and we continue to manage the business well through a challenging environment for active Asset Management. Total AUM increased 4% to $642 billion, primarily from higher equity market appreciation, partially offset by net outflows. In the quarter, operating earnings increased 35% to $218 million due to equity market appreciation and disciplined expense management, which more than offset the cumulative impact of net outflows. The margin was 38%, reflecting strong market appreciation and expense discipline. Adjusted operating expenses decreased 2%, with general and administrative expenses down 6% from a year ago, reflecting the benefits from comprehensive expense management initiatives taken to date. We are looking globally, especially in EMEA, to enhance operating efficiency and manage expenses to be well-positioned going forward. Let's turn to Slide 8. Retirement & Protection Solutions continued to deliver good earnings and free cash flow generation, reflecting the high quality of the business that has been built over a long period. Pre-tax adjusted operating earnings in the quarter increased 4% to $196 million, fueled by strong markets and higher interest rates, partially offset by elevated distribution expenses linked to strong sales levels. Overall, Retirement & Protection Solutions sales improved in the quarter, with protection sales up 21% to $93 million, primarily in higher-margin VUL products. Variable annuity sales grew 45% to $1.4 billion, showing strong momentum in our structured products. Turning to the balance sheet on Slide 9. Balance sheet fundamentals and free cash flow generation remains strong with growth in excess capital to $1.7 billion. We have diverse sources of dividends from all our businesses, enabled by strong underlying fundamentals. This supports our ability to consistently return capital to shareholders and invest for future business growth. In the last year, we returned $2.6 billion of capital to shareholders, including $693 million in the quarter. Ameriprise's consistent capital return drives long-term shareholder value. Now let's finish with Slide 10. Ameriprise delivered excellent growth in the second quarter, continuing our long track record across market cycles and our commitment to profitable growth. Over the last 12 months, revenues grew 10%, earnings per share increased 15%, and ROE grew by 90 basis points, excluding unlocking. We returned $2.6 billion of capital to shareholders. We had similar growth trends over the past 5 years, with $0.07 revenue growth, 16% EPS compounded annual growth, return on equity improvement nearly 13 percentage points, and we returned $11.9 billion of capital to shareholders. These trends are consistent over the longer term, as well. Compared to most financial services companies, this differentiated performance across multiple cycles speaks to the complementary nature of our business mix and our focus on profitable growth. With that, we'll take your questions.

Suneet Kamath from Jefferies is on the line with your first question.

I wanted to start with the cash sweep commentary, Walter. It doesn't sound like you're planning on making any big changes, but I know in the past, you've said that's always subject to the competitive environment. Obviously, we've seen a handful of companies take some actions on their cash sweep rates. So I guess the question is, I'm trying to reconcile those two. Is it that the moves that those peers are making are catching up to you? Or is your client account size different that you're just not experiencing the same need to make those changes?

Okay. Let me start by saying that we operate under regulatory and fiduciary standards. We believe that focusing on the transactional aspect of cash in motion is appropriate and aligned with our objectives. I can't comment on what is happening with the wirehouses, as I don't have that insight. What I do know is that all the actions we've taken to ensure that the funds are in sweep are primarily for transactional reasons, and most of this money is under $100,000. Our rates are competitive, and we maintain the necessary level of cash to operate effectively. This is our focus, and we are comfortable with our position. We will obviously assess the situation as it develops, but based on what we have today, we believe our approach is entirely appropriate.

Got it. Okay. And then just another one on the bank. At the fourth quarter call, Walter, you said you expected bank net interest income to be higher in 2024 than in 2023, which seems to be the case year-to-date. But then you also made a comment about 2025. Just wondering if you think that you could continue to see bank net interest income growth as we move into 2025 over 2024, and maybe unpack some of the underlying drivers.

As I remember what I said, clearly, 2024 over 2023, but I still believe it will be slow. Yes, the net interest income should be higher. That statement, I think, is still valid.

And the drivers there.

Well, the driver is, obviously, we're investing over 6%. We feel that as maturities and our short duration improve, that will give us that momentum. And we are adding, but we'll be measured in how we go about it.

Ryan Krueger with KBW is on with your next question.

First one was just, can you disclose how much of your client cash is specifically held in your wrap advisory accounts?

It's about $12 billion.

Got it. Okay. Great. And then I guess another question was just on recruiting. Your experienced recruits have slowed down a bit year-to-date. Can you comment on what you're seeing from a competitive environment for hiring experienced advisors? And any thoughts on the slowdown, and your expectations for the rest of the year?

Yes. We observed a bit of a slowdown into the second quarter. We can't tell you exactly why; it looks like people are staying put a little based on markets, etc., moving into the seasonal period. However, we see a good pickup in our pipeline again, and we think that will improve as we go forward. But other than that, speaking with the team, that's really what they perceived.

Alex Blostein from Goldman Sachs.

I wanted to revisit your comments regarding clients starting to put capital to work in wrap. We've observed net flows pick up a little. Can you talk about where the cash is coming from? Is it coming out of the $40 billion, $41 billion balance currently in sweep and your certificates business, or is it coming from other sources, like money market funds that sit off balance sheet or outside of the sweep program? Also, could you remind us how much cash is still on the sidelines outside of that $40 billion, $41 billion number?

If I understand your question correctly, our total cash is about $80 billion to $81 billion. Therefore, in money markets and in third-party CDs is about $40-some-odd billion. We are seeing that certainly money is still coming into money markets, but it has slowed a little on the CD side. From that standpoint, we are observing less activity in CDs, and there is a shift. People are staying shorter as they're trying to take advantage of the yield curve. That's the trend we are currently seeing.

Got you. What I'm trying to get to is clients are rerisking and extending duration to put capital to work, which you capture in your wrap program, which is great. But should we expect that to put any pressure on the $40 billion balance across your sweep and certificates business? Or could that remain fairly stable as money comes out of other forms of cash options?

Good question. We do anticipate that, economically, that would be beneficial to us. We've had new money go in there. Yes, as it gets redeployed, that would be beneficial, and we think that would certainly be a source of repositioning.

Okay. Got you. A quick follow-up. G&A is very well managed. I believe if you look at this quarter, excluding severance, you're around $910 million for Q2. How should we think about G&A evolving through the rest of the year? I know you highlighted a number of savings programs that you continue to implement, but any early thoughts on your 2025 G&A outlook would be helpful.

For 2025, I can say that we feel expenses are being well managed. Certainly, as we reposition and look at our process changes and efficiencies, I believe you should expect well-managed expenses but with investments for growth. We've demonstrated this in prior years, and certainly in 2024, we will manage expenses in proportion to our revenue and maintain our margins.

Brennan Hawken with UBS is on with your next question.

Curious to drill down a little bit on the $12 billion of sweep within advisory accounts. How much of that $12 billion includes Ameriprise as a fiduciary or investment advisor? Specifically, what portion of that $12 billion would be in the employee channel and in portfolios where Ameriprise managed or centrally managed those accounts?

A lot of our central models are really run by outside managers, with institutional oversight. Even in those types of models, it's roughly around 2%. In our advisor discretion, it is actually less than on the institutional models. So as you look at it, we haven't broken that out between employee and non-employee, as these models are run in certain ways. But, as Walter said, it's a very low balance. There is constant trading activity, fees being pulled, and foreign taxes being paid. Hence, a lot of the actual cash, if there are any higher balances, whether institutional or otherwise, is moved into money markets and other short-duration products. So that's how we look at it and manage it, and we have disclosed that clearly. From a client and legal perspective, we feel very comfortable with what our practices entail.

Great. You spoke to increased engagement in your banking offering. Some competitors have indicated we may be observing the beginning of an improvement in pledge loan growth. Are you seeing that or perhaps even just early signs of that?

Yes. We observed nice increases in our pledge loans as we go through the year. We plan to launch another rate one, which we know has been popular in the industry. That will be introduced over the next quarter. We've also seen some increases as we started to introduce some direct CDs and savings programs for cash coming in externally from our clients. Again, we are just beginning that process, but we believe that as we launch these additional products in the bank, advisors will look for them. We expect them to build assets as well as manage some lending activities appropriately.

Steven Chubak with Wolfe Research is online with your next question.

I wanted to ask about the competitive landscape and net new asset trends more broadly. Rep flows, as you noted, were quite strong in the quarter, which is certainly encouraging. But consolidated flows were a bit weaker. I know on the last quarter's call, you mentioned some irrational actors with more aggressive pay packages potentially impacting organic growth. Can you provide any updates on the outlook for that?

Certainly, as you indicated, wrap was quite strong on the client side. We observed lapsing in both certificates and annuities, which impacted performance. Our growth rates feel aligned with the industry, hence, we are gaining traction, and we feel comfortable with that trajectory.

Yes. We noticed a bit of a slowdown in the second quarter overall. As we assessed the situation, it appeared that there were outside influences affecting advisors' activities due to the markets, among other things. However, we've seen growth in our pipeline, which suggests we will likely improve moving forward.

That's helpful. I'd like to follow up on the Asset Management margin. Despite fee pressures, the operating margins continue to run above target. Can you comment on the margin outlook over the next few quarters? Do you believe you can sustainably maintain margins above the longer-term target of 31% to 35% unless impacted by negative or exogenous market shocks?

As you saw, we are maintaining consistent stable fee levels. Yes, we experienced some additional outflows with a very low fee basis. We're adjusting our model and expense base while leveraging technology and global resources. By doing so, we anticipate that we can maintain a strong margin for the business. We are actively investing in growth, so we are not cutting from areas that we wish to expand. As previously mentioned, we have gained flows, even if those numbers have not yet reflected it to your satisfaction with models, as more money flows into these areas. Additionally, we are beginning to gain traction in SMAs, which we believe will be advantageous, alongside our continued pursuit of active ETFs.

Wilma Burdis from Raymond James is online with your next question.

I know you talked a little bit about the margin, but do you think there's a lot of room for improvements on expenses in the Asset Management segment?

Yes, we believe there is room for further improvement. As previously noted, we took additional severance in the second quarter, part of which was for the Asset Management business. We are pursuing ongoing changes to enhance processes and tighten operations, along with freeing up resources and eliminating operations that aren’t generating anticipated value. We are actively pursuing those changes, and more adjustments will be made moving forward.

I know you don't get asked much about the insurance business anymore, but the margins seem quite good. It looks like you experienced some growth in the quarter. Is growing this segment a priority at this time? How are you thinking about the future of that business?

Yes. We're seeing good growth in the insurance and annuities sectors, particularly with structured instruments and VUL products, both of which are strong offerings for us. The initial growth might not fully reflect earnings due to distribution expenses incurred upfront. However, over time, increased sales volumes will contribute to our earnings mix. We have also noted very good rates on the investment side, as we reinvest on the spread. Consequently, we believe this business will be a consistent and robust contributor, generating substantial free cash flow for buybacks. We feel optimistic about its outlook. We also observed good performance in our LTC business, which is generating commendable earnings as we continue to implement adjustments like rate increases and appropriate investing.

Thomas Gallagher from Evercore ISI is on with your next question.

Walter, just to come back to the cash sweep. Based on your response to Suneet's question, it sounds like you aren't very focused on what the big peers are doing competitively regarding cash sweep crediting rates. Does that imply you don’t see it as a huge concern for Ameriprise, either competitively or regulatory? Is that a fair conclusion?

The question is that I don't completely understand what the drivers are. However, we certainly understand their rates and factor that into our evaluations. That's all you should read into it. Certainly, we do evaluate the competitive landscape when we look at it. But it’s important to note that I just can’t comment on the specific drivers or elements behind the changes from peers.

As we analyze the situation, we have a very low balance of cash in the sweep accounts. We are confident that we effectively manage the transactions and fees associated with that cash. Moreover, we evaluate institutional accounts regularly, and the same principles govern those as well. We’re simply not sure what has changed for wirehouses or others, but until we gain any further insights, we feel comfortable with our current position. From a competitive perspective, the situation remains the same. This cash is not in a position where we desire to leave it in a sweep account, and we have numerous alternative investment options available for our advisors to manage client funds into as needed.

As a proof point, we note that our average balance is under $6,000, compared to about $10,000 to $15,000 for others in the industry. It emphasizes our lower percentages in this area, as we strictly use cash movements.

You don’t see any issues with the new VUL fiduciary standards related to this, nothing on that front that you’re currently focused on? For a follow-up on the RPS segment: your net interest income (NII) has seen significant year-over-year growth, particularly quarter-over-quarter. Given that context, I would have anticipated seeing much more reflected on the bottom line in this segment. Can you provide insight into the other components of your P&L in that business? Are you witnessing higher mortality or disability claims? Is it the annuity earnings that have been a drag? Perhaps some additional perspective on what's driving earnings in this area?

There’s nothing unusual to report. Our disability claims are generally quite good, and our insurance claims align with expectations. Therefore, I do not identify any outliers at present. Your observation is fair. Let me reassess this to determine any aspects that might require further clarification.

John Barnidge from Piper Sandler is online with your next question.

You called out the election in your comments. Can you discuss how you expect that to impact operations and planning? It seems it could impact some asset management product demand, but do you believe it could also influence advisor recruitment or marketing expenses?

I think it's more from a client perspective. Clients want to better understand what the implications are based on who gets elected and how policies may affect their investments. It's a frequent topic during market discussions. We spend time analyzing market strategies and the potential implications of policy changes. The key is to direct clients toward appropriate investments. Consequently, if clients feel confident, they are more likely to put additional assets to work. The same sentiment applies to advisors: if they feel more comfortable, they tend to invest more proactively. However, at this stage, we haven’t detected any substantial changes that would significantly drive the market trends. As we approach the election, it often brings more conversations about investments and how strategies may shift, but I don't anticipate any fundamental changes at this moment.

Can you provide some examples of how you are leveraging global operational efficiencies for the Asset Management business, in ways you might not have done previously?

We've invested considerable effort into integrating the BMO acquisition with Threadneedle, where we have been consolidating operations to fit onto global platforms. This process ensures that we maintain the right data attributes for performance attribution while leveraging research efficiently. We're currently looking to relocate resources across locations such as the U.S., Europe, and India, allowing us to maximize efficiency within our global operation. So we're working hard on enhancing these relationships.

Michael Cyprys from Morgan Stanley is online with your next question.

I wanted to revisit the cash sweep commentary. Could you clarify how and to what extent advisors are compensated based on cash sweep balances? Additionally, given industry movements and understanding your views, how do you foresee the way customers pay for services evolving over time? Do you anticipate a move away from cash sweeps, and how will that impact economics moving forward? What other ways do you see customers potentially compensating for your services?

Again, wherever the client funds are, there is always some transactional activity involved, ensuring timely execution. However, advisors need to ensure client assets are in positions that appropriately align with their financial goals, not locked in margins or pressured decisions. Cash management is a critical aspect, and while we monitor any larger balances diligently, we often see cash moves into preferred money market products or CDs to secure better returns. The goal remains to monitor cash efficiently. Regarding the future, pricing adjustments are common as we evaluate the delivery of our services, but in the near-term outlook, we feel assured in its current state, emphasizing that we're reaching out to clients and meeting their needs appropriately. We believe there are adequate measures in place to address potential shifts actively. We primarily see investments flow into earning instruments. Additionally, advisors are compensated for managing those cash positions, so there is a direct alignment with client needs and ensuring that cash balances are kept low. There's ongoing monitoring ensuring that client funds are repositioned into earning assets rather than merely sitting idle. In the near term, our compensation model is centered around these interactions, and we're continuously evolving our engagement strategies to enhance advisor-client relationships. Regarding asset management in the APAC region, we have a small wholesaling presence, primarily focusing on institutional accounts. We’ve seen gains in traction, particularly with core products in equities and fixed income in that area. We've recently expanded into Japan and also have a presence in Korea, Singapore, and Australia, linking with larger institutions such as pension funds and sovereign wealth funds.

We have no further questions at this time. This concludes today's conference. Thank you for participating. You may now disconnect.