Displaying items by tag: assets

Bringing home the bacon.

Before taking their talent to UBS Wealth Management, a five person Connecticut team was grinding, managing $700 million in Greenwich, according to a recent announcement, reported advisorhub.com. The team had been at Merrill Lynch.

Also bidding Merrill adieu was John Foley, who managed $340 million in client assets. He landed at RBC Wealth Management, the announcement indicated.

In terms of recruitment, it seems Merrill’s been a favorite target of UBS. That includes a group of 18 in Columbia, South Carolia. A total of $2.6 million was managed by the team. 

In other industry activity, LPL Financial scored a group of finance advisors with $260 million in client assets, according to investmentnews.com. Specializing in retirement programs for schools, universities and hospitals, known as 403(b) plans, the group had previously been at Valic Financial Advisors Inc.

“We specialize in financial education and breaking down complex financial situations to a place where clients can better understand and be more comfortable with their decisions,” said financial advisor Angelo Burns in a statement. He’d been at Valic since 2011.

Retail and direct indexing, it seems, forge quite the cozy twosome.

Fueled by clients with assets of between $2 million and $3 million, by 2026, direct indexing will represent one third of retail separate accounts, according to the second annual white paper commissioned by Parametric Portfolio Associates, released by Cerulli Associates, according to financeyahoo.com. Financial advisors were the target.

Assets in directing indexing where projected to expand at a five year CAGR of 12.3% to hit $825 million by 2026, according to the report.

There’s a “gigantic swath of the market” serving these clients who could benefit from such a product due to their tax needs,” said Tom O’Shea, research director and one of the report’s authors. He added that. compared to other investment vehicles like separate accounts and ETFs, the projected rate’s “aggressive.” 

While financial advisors and their clients might not be exactly flocking to direct indexing, the financial services industry’s bent on persuading the financial planning industry that almost every investor can receive a boost from direct indexing, according to investmentnews.com.

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(New York)

Investors in fixed income need to be aware of a brand new loophole that was just opened to Delaware-based companies. A new provision allows companies (specifically LLCs) to split in two and divide their assets and liabilities between them as they see fit. The rule would allow companies to put certain assets beyond the reach of creditors, for instance putting debt in one entity and assets in another. The big problem is that most bonds don’t have provisions to protect against this behavior because it didn’t exist as a concept or legal process until it was approved this month. Another issue is that many contracts are written from the perspective of New York law, but that might have not much weight with Delaware-based rules.

FINSUM: This is a messy problem for anyone who owns private or smaller company debt. We thought investors should be made aware right away.

(New York)

2017 was great news for the wealth management market, especially for fiduciaries. The total AUM for the RIA market grew an astounding 20% in 2017, and not all of it was because of market gains. Alongside AUM growth, revenue also increased a median of 15.8%. That led to a great deal of new hires, which correspondingly sent profit margins a bit lower. According to one wealth management market analyst at TD Ameritrade, “Clearly firms feel they are producing enough to warrant the added headcount … It’s a very good sign here in terms of firms willing to reinvest in talent”.

FINSUM: The RIA market continues to look very strong as clients keep moving in that direction.