Oct 30 (Reuters) - Asset and wealth manager Ameriprise

Financial ( AMP ) reported a rise in third-quarter profit on

Thursday, driven by a surge in asset values as markets climbed

to record highs.

WHY IT'S IMPORTANT

The results underscore how record equity markets and renewed

investor optimism have lifted earnings across the asset

management industry, with rising portfolio values translating

into higher fees.

That momentum has also strengthened client engagement across

the sector, driving higher activity levels.

BY THE NUMBERS

Ameriprise said assets under management, administration and

advisement rose 8% and reached a record high of $1.7 trillion in

the quarter ended September 30.

On an adjusted basis, operating profit rose 17% to $965

million, or $9.87 per share. That compares with $828 million, or

$8.10 per share, a year earlier.

Adjusted operating net revenue increased 9% to $4.7 billion,

driven by asset growth.

KEY QUOTE

"Our strategic investments, disciplined expense management and

strong financial foundation help us to effectively navigate and

grow across market cycles," CEO Jim Cracchiolo said.

CONTEXT

Persistent consumer strength has kept the U.S. economy on track,

driving equity markets higher, as investors continue to take

risks despite lingering trade tensions and geopolitical turmoil.

For asset managers, profits depend on the balance between

client flows and the performance of the portfolios they oversee.

Earlier this month, BlackRock ( BLK ), the world's biggest

asset manager, also reported record assets under management,

driven by a rally in global markets and its recent dealmaking

spree that boosted fee income.

(Reporting by Manya Saini in Bengaluru; Editing by Shinjini

Ganguli)