Ameriprise Financial’s profit jumps on fee income strength

(Reuters) – Ameriprise Financial (NYSE:) posted a 9% jump in second-quarter adjusted profit on Wednesday as rising client asset values boosted the financial adviser’s fee-based income.

Hopes of a soft landing for the U.S. economy and investor euphoria over artificial intelligence have lifted stock markets to record highs this year.

Ameriprise’s assets under management and administration came in at $1.43 trillion in the quarter, a 12% jump from last year, driven by strong client net inflows and market appreciation.

Assets under management depend on two factors – money flowing in and out of the funds and the performance of investments.

Ameriprise’s management and financial advice fees jumped 12% to $2.46 billion, while net investment income surged 14% to $921 million.

Total client assets at Ameriprise’s advice and wealth management business jumped to $972 billion from $833 billion a year earlier.

Its advice and wealth management business primarily targets households with $500,000 to $5 million in investable assets.

Adjusted operating earnings rose to $882 million, or $8.53 per share, in the three months ended June 30, from $807 million, or $7.44 per share, a year earlier.

Shares of the company have gained 11.7% so far this year, compared with a 16.5% jump in the benchmark .