Strategic Investment in Technology and AI for Client Engagement
Ameriprise is investing heavily in technology, digital capabilities, advanced analytics, and AI to enhance client experience and adviser productivity.
Investments include intelligence dashboards, automation analytics, and a new Signature Wealth platform launched in June to manage client assets more holistically.
Management emphasizes these investments as key to maintaining competitive advantage and adviser engagement, with productivity up 11% to $1.1 million per adviser.
Analytics recurring sales hit a Q2 record, driven mainly by equity risk models.
Equity index ETF AUM linked to MSCI indices surpassed $2 trillion, with total index ETF and non-ETF AUM at $6 trillion.
Fixed income index ETF AUM linked to MSCI indices reached $84 billion, contributing to the highest quarterly ABF revenue ever.
MSCI Inc. delivered strong Q2 2025 financial results with revenue growth over 9%, adjusted EBITDA growth over 10%, adjusted EPS growth nearly 15%, and free cash flow exceeding $300 million.
Private capital solutions run rate grew nearly 13%, with new product launches and strong client interest.
Retention rates remained stable overall but showed softness in analytics, sustainability, and hedge funds segments.
Subscription run rate growth was double-digit across banks, broker-dealers, wealth managers, hedge funds, and asset owners, with active asset managers holding steady at 6%.
Sustainability and climate subscription run rate grew 11%, with climate solutions growing nearly 20%.
Total run rate growth was 11%, driven by record ETF AUM linked to MSCI indices, with asset-based fee (ABF) run rate growth of 17%.
Year-to-date, MSCI repurchased $286 million of shares at an average price of $557, reflecting confidence in the franchise.
FFO per share diluted as adjusted was $2.33 for 2Q 2025, up 1.3% compared to prior quarter.
Occupancy at quarter end was 90.8%, down 90 basis points from prior quarter, with year-end 2025 guidance reiterated at 90.9% to 92.5%.
Other income averaged about $20 million per quarter, consistent with recent history.
Recognized impairments of real estate of $129.6 million during the quarter related to non-core assets.
Reiterated full year 2025 FFO per share guidance at $9.26 midpoint.
Same property NOI was down 5.4% and up 2% on a cash basis for the quarter.
Strong balance sheet with $4.6 billion liquidity and longest average debt maturity of 12 years among S&P 500 REITs.
Trailing 12 months G&A cost as a percentage of NOI was 6.3%, the lowest in 10 years, with expected annual savings of approximately $49 million for 2025.
Venture investments realized $60 million gains in first half 2025, consistent with prior quarters.
Strategic Focus on Operational Excellence and Technology Adoption
Management emphasized the importance of operational excellence supported by in-house technology, including AI, to improve resident experience and leasing efficiency.
AI implementation has enhanced leasing processes, providing 24/7 resident inquiries and freeing up staff for more personalized service.
Future plans include expanding AI applications into resident communication and maintenance, indicating a strategic move towards tech-driven operational improvements.
Sale of Legacy Financial Guaranty Business and Strategic Transformation
The Wisconsin OCI recommended approval of Ambac's sale of its Legacy financial guaranty business, with a hearing scheduled for September 3, 2025.
Final approval of the sale is the last condition before closing, which is expected to significantly reshape the company's business focus.
Post-sale, Ambac plans to implement strategic initiatives including rebranding, expense realignment, new executive compensation, and investments in data and AI to accelerate growth and profitability.
Management emphasized that these initiatives are aimed at completing the business transformation and positioning Ambac for strong growth into 2026.
Ambac aims to create material shareholder value through these strategic moves and expects to provide updated guidance after the sale concludes.
Dafinchi