Are the Challenges Faced by Ameriprise Financial (AMP) Temporary?

Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equity market continued its rally in the third quarter, with the S&P 500 Index rising 8.12% during the quarter. Bonds also finished higher in the quarter, with the Bloomberg U.S. Aggregate Bond Index increasing 2.03%. The composite returned 4.33% gross of fees (3.82% net of fees) in the third quarter, compared to a 5.33% return of the Russell 1000 Value Index and an 8.12% return of the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Aristotle Capital Value Equity Strategy highlighted stocks such as Ameriprise Financial, Inc. (NYSE:AMP). Ameriprise Financial, Inc. (NYSE:AMP) is a diversified financial services company. The one-month return of Ameriprise Financial, Inc. (NYSE:AMP) was -2.06%, and its shares lost 7.70% of their value over the last 52 weeks. On October 15, 2025, Ameriprise Financial, Inc. (NYSE:AMP) stock closed at $481.27 per share, with a market capitalization of $45.37 billion.

Aristotle Capital Value Equity Strategy stated the following regarding Ameriprise Financial, Inc. (NYSE:AMP) in its third quarter 2025 investor letter:

“Ameriprise Financial, Inc. (NYSE:AMP), the asset and wealth manager, was a primary detractor during the quarter. Equity volatility, institutional outflows in Asset Management and slower Advice Wealth Management flows weighed on near-term stock performance—despite record client assets of $1.6 trillion. We view these headwinds as temporary, with advisor productivity, client engagement and asset growth remaining strong. Over our time as shareholders, Ameriprise has consistently executed on its shift toward fee-based, lower capital-intensive financial advice and asset management businesses, and away from insurance. Today, the Advice & Wealth Management and Asset Management segments together account for over 80% of company revenues, supporting a more asset-light, higher-margin business mix. This evolution has freed up significant capital for reinvestment and shareholder returns—$3 billion returned over the past year—with an 85% payout ratio targeted in the second half of 2025. In an environment of heightened volatility and macro uncertainty, Ameriprise’s core offering of trusted, long-term financial advice becomes even more essential. We believe, this, along with a diversified model, disciplined execution and a strong balance sheet, provides management the flexibility to invest in the business while continuing to deliver meaningful returns to shareholders over time.”

In another article, we covered Ameriprise Financial, Inc. (NYSE:AMP) and shared the list of most undervalued quality stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.