Ameriprise scored a major recruiting win under an agreement to take the place of LPL Financial as the brokerage and advisory service provider to a multibillion-dollar credit union's program.
Kinecta Wealth Management — a wealth management program with 20 financial advisors managing $2 billion in client assets on behalf of members of Manhattan Beach, California-based Kinecta Federal Credit Union — will leave LPL for the Ameriprise Financial Institutions Group by the end of the year, Kinecta and Ameriprise said on April 10. The move follows Ameriprise's addition last year of roughly 100 advisors managing $18 billion at Comerica Bank's wealth program, as LPL's rivals notch a few notable gains, chipping away at the firm's recent dominance in bank and credit union-based teams.
"Our new partnership with Ameriprise Financial allows us to offer an elevated level of service backed by powerful digital tools and technology to help our clients achieve their goals with greater confidence," Donna McNeely, the president of Kinecta Wealth, said in a statement. "We're confident we'll have top-notch expertise and resources behind us with Ameriprise, and we're excited to bring new capabilities to our advisors and clients."
READ MORE: Comerica recruits, client flows help Ameriprise rake in earnings of $2.9B
Representatives for LPL Financial declined to comment on Kinecta's exit while citing a policy against discussing moves by individual institutions within its network. The firm is currently bringing over 85 advisors with $16 billion in client assets from Wintrust Financial's wealth arms by the first quarter of next year — alongside 150 other bank and credit union teams joining LPL as part of its pending acquisition of Atria Wealth Solutions.
Ameriprise carried out the transition of the first $15 billion from Comerica's program in the fourth quarter, which capped off a year in which the firm's net new assets jumped by 25% to $53.3 billion and its advisor headcount rose by a net 98 year over year, or 1%, to 10,367. The firm first entered the bank and credit union channel of the industry when it acquired Investment Professionals in 2017.
"The team at Kinecta is deeply rooted and well respected in the communities they serve — and they saw an opportunity to make an even bigger impact on clients' lives in partnership with Ameriprise," said Jay McAnelly, group vice president at Ameriprise Financial Institutions Group. "Their decision to move to Ameriprise is a testament to our differentiated value proposition, the breadth of our services, and our commitment to providing an outstanding experience for clients."
READ MORE: Shrinking headcounts a growing problem
The credit union launched its wealth arm in 1991. The institution traces its history to 1940, when 12 engineers at Hughes Aircraft started the credit union, according to its website. Following its merger three years ago with Xceed Financial Credit Union and other growth over the year, the credit union has 28 branches in California, New York and Florida, with more than 270,000 members and $6.8 billion in total assets. McNeely, the president of the wealth arm, first affiliated with LPL in 2010, according to FINRA BrokerCheck.
