Trader Talk

Many of the world’s biggest asset managers say they’re increasingly struggling with some of the rules guiding the $35 trillion market for environmental, social and governance investing. Much of the confusion revolves around defining the social aspect. The guideposts are generally seen as confusing and this is “going to become a bigger issue going forward,”
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Americans expect their financial advisors to act in their best interests, an expectation that can only be achieved through education, commitment to ethics and rigorous enforcement of high ethical standards. During my 20-year career at the SEC, I worked in the enforcement division, where we focused on investor protection, developing programs designed to detect various
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Prudential Financial said it would sell its full-service retirement business to a unit of Canada’s Great-West Lifeco for $3.55 billion as the life insurer continues implementing Chief Executive Officer Charles Lowrey’s three-year transformation plan. The business will be purchased by Great-West’s Greenwood Village, Colorado-based Empower Retirement division. Prudential expects total proceeds of about $2.8 billion
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A Houston, Texas-based midsize independent broker-dealer will pay $750,000 to settle a FINRA case for alleged systemic supervisory failures relating to excessive trading and variable annuities, according to the signed agreement. The firm, NEXT Financial Group, was also censured and required to retain an independent consultant. Atria Wealth Solutions, which acquired NEXT in June 2019,
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In today’s climate of environmental, human and health crises, investors are interested in purpose-driven investments that align with trends, shareholder returns and employee desires. This new expectation is shifting the way organizations transact with both internal and external stakeholders. To succeed as an investment professional, you must take a holistic view of your investment strategy.
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As clients increasingly commit money to make a positive impact on society, “impact-first investing,” which puts social and environmental benefit ahead of financial return, is a logical next step for philanthropically inclined individuals and families looking for a way to make a difference. But they’ll need help from financial advisors, many of whom are already
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Interest in cryptocurrency has gained serious momentum in 2021. As waves of new retail investors join established institutions in evolving their investment strategies, your clients with crypto holdings may welcome ways to leverage their cryptocurrency gains and offset the tax implications. Contributing cryptocurrency to a donor-advised fund (DAF) has become a popular strategy to strategically
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Charles Schwab reported mixed results for the second quarter as net income was up significantly from the year-over-year figures but down slightly from the first quarter. The Westlake, Texas-headquartered financial services company reported $1.3 billion in net income for the second quarter on revenue of $4.5 billion, helped along by the country’s returning normalcy, the
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The workplace, self-directed and retail wealth management giant that Morgan Stanley amassed through acquisitions in the past two years is humming to the tune of record revenue. After supplementing its existing wealth management unit with the purchases of employee stock and retirement plan firm Solium in 2019 and self-directed investing service E-Trade last year, the
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Target-date funds for the next generation of retirees have underperformed broader indexes over the last five years. They have also recorded significant outflows. The top-performing 2025 target-date funds, with at least $100 million in assets under management, notched an average five-year gain of roughly 11%, Morningstar Direct data show. Over the past year, the same
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The current resurgence in value stocks calls for a discerning eye to gauge the different factor exposures driving the value rotation. Value’s resurrection began late last year as COVID-19 vaccine distribution campaign geared up and expectations for economic reopening increased. This coincided with a market shift that favored value stocks over more expensive companies exhibiting
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The SEC has settled unrelated cases with two wealth management firms for improper disclosure of conflicts of interest. On Friday, the SEC announced that Kestra Advisory Services would pay $10 million for allegedly failing to disclose compensation received by its affiliated broker-dealer for investing clients in certain mutual funds. Kestra Private Wealth Services paid an
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As markets rose and clients clamored to invest more, both with advisors and digitally, JPMorgan Chase’s Asset and Wealth Management unit reported $1.2 billion in net income for the second quarter of 2021 on revenue of $4.1 billion, a record, the bank announced July 13. The unit, which includes the New York-based bank’s financial advisors
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A sometimes overlooked wealth management sector spanning thousands of banks and credit unions is turning into one of the most in demand for industry giants’ recruiting. With the goals of boosting their own wealth management services and adoption among their substantial client and member bases while retaining their most productive advisors, the institutions are changing
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