Trader Talk

Before 2020, most firms used digital technology as a client retention strategy; those that really embraced digital used it to create new revenue streams, attract new clients with new offerings and generate value for their firms. Then came the coronavirus, forcing the hands of all wealth managers to expedite their efforts. And, to different extents,

The New York Stock Exchange in lower Manhattan in New York City. Spencer Platt | Getty Images Earnings hopes wilt as fresh Covid outbreak throws 2021 reopening in doubt. That’s the story of earnings season so far.  It’s the one word investors didn’t want to hear: lockdown. Never mind it’s mostly in Europe, and only partial. ”Lockdown light”

Tax-efficient funds with the best returns of the decade managed to outpace the broader industry. But does that mean it’s a good long-term strategy? The 20 mutual funds and ETFs with tax-cost ratios lower than their peers generated an average 10-year gain of 14.89%, according to Morningstar Direct data. So far this year, the same

We are less than one month away from the next CFP exam window, meaning hundreds of candidates for CFP certification are busy studying and preparing to accomplish a major career milestone. Spanning approximately 72 financial planning topics across eight subject areas, the CFP exam is among the most comprehensive of professional examinations, testing candidates’ ability

We are now accepting nominations for two prestigious rankings: Top 40 Advisors Under 40 and Top Regional Advisors Under 40. Each year, we recognize the accomplishments of this elite cohort of young advisors employed by wirehouses and regional broker-dealers. The deadline for nominations is Tuesday, Dec. 1. Results will be announced in early 2021. You

Dividends and buybacks are bouncing back.  At the end of the first quarter, there was tremendous concern that the levels of dividends and buybacks would be cut dramatically.  There have been cutbacks, but there’s good news amid the bad. The good and bad news on dividends For lovers of dividends, the end of the first quarter

With the coronavirus pandemic prompting more people to use apps for all their financial needs, the behind-the-scenes fintechs that underpin digital investing are attracting renewed notice — and funding — from PE firms. Digital trading platform DriveWealth has raised another $56.7 million, bringing its total fundraising to more than $100 million. Drivewealth is perhaps best

In its third acquisition of the year, LPL Financial acquired trading and rebalancing software firm Blaze Portfolio for at least $12 million. Blaze, a 10-year-old firm based in Chicago, works with 135 investment firms to provide advisor-facing trading systems through its proprietary software. The firm has more than $120 billion in assets in its systems,

The IRS issued its annual inflation adjustments for tax year 2021, revising more than 60 tax provisions, including tax rate schedules, standard deduction amounts and more. The standard deduction for married couples filing jointly for tax year 2021 is increasing to $25,100, up $300 from the previous year. For single taxpayers and married individuals who

Twenty days after closing its $22 billion deal for TD Ameritrade, Charles Schwab is cutting about 1,000 employees in an effort to reduce redundancy, according to the company. Schwab notified employees on Oct. 26 that it would terminate 3% of the company’s combined workforce. “We have begun notifying individuals that their roles have been eliminated

Rockefeller Capital Management hired its 25th team this year, a former Merrill Lynch group that oversaw $550 million in client assets. The firm, which is backed by private equity, is part of the Rockefeller family office. Since it’s expansion into wealth management, the company has been aggressively courting top wirehouse talent in a bid to

Does it matter for stocks who wins the White House? Is there anything unusual about the candidates this year that could impact the markets, regardless of who wins?  For answers, we turn to Ed Clissold, chief U.S. Strategist for Ned Davis Research, who has studied elections and the impact on markets going back to 1900.  This

International and cross-border financial planning is a common, yet not well-understood area of professional expertise in financial planning. There are more than 40 million foreign-born individuals living in the United States and 9 million Americans abroad. Serving these clients requires specialized knowledge to avoid major pitfalls. Financial planning for the average client comes with its

Wells Fargo is exploring the sale of its asset management unit, a business that could fetch more than $3 billion, according to a person briefed on the matter. The bank, which has been reviewing its strategy, began discussing a possible deal with other asset managers and private equity firms last month, according to the person,

After further postponing in-person hearings due to the coronavirus pandemic, FINRA may make video conferences a permanent option for arbitration cases. “I think Zoom is here to stay in some capacity,” Laura McNamire, regional director of FINRA Dispute Resolution Services, said Oct. 21 during a virtual panel at PIABA’s annual meeting. “It’s something that we

Wealth management giant UBS added new benefit offerings on Thursday aimed to improve employees’ personal finances, including a partnership with Morningstar and other vendors to address student loan debt, retirement and overall financial wellness. The offerings will be added to the existing UBS Workplace Wealth Solutions platform — launched in January — which received a

Six thousand UBS financial advisors are getting a new platform for market data, investment research, portfolio analytics and risk assessment. UBS Wealth Management is leaving behind the legacy Thomson One product for Refinitiv’s web-based Workspace for Financial Advisors suite. It is available now through UBS’s existing workstation, and will play a starring role on the

LPL Financial poached a growing 50-employee enterprise from Cetera Financial Group, in at least its fifth recruiting grab of the year above $1 billion in client assets. The Tagge Rutherford Financial Group displays on its website the progression of six successively larger offices over its 27-year history in Omaha, Nebraska, all the way up to

Merrill Lynch promoted one of its own to fill a key position left vacant amid recent executive changes at the wirehouse. The firm elevated Steve Alch to the post of Southeast division executive, according to an internal memo seen byFinancial Planning. He replaces Eric Schimpf who was named head of advisory development, a recently created

A former Wells Fargo manager filed a discrimination claim against the bank after losing his job while on medical leave for cancer. Reginald Robinson, 65, alleged race, age and disability discrimination in a complaint filed against the company’s clearing-services business with the Equal Employment Opportunity Commission last month, according to a copy of the document

Is a vaccine the real risk to the market?  Stocks are within 1% to 2% of their historic highs because of the belief that: 1) stimulus of some form is coming, 2) the election will not devolve into chaos, and 3) an effective vaccine will be available in early 2021. Five vaccines — from Moderna,

A London-based wealth manager with global ambitions aims to extend its reach into the U.S. marketplace via a special purpose acquisition company. Kingswood Acquisition’s plan is to raise $150 million through an IPO of 15 million units at $10 apiece to make acquisitions focusing on the “highly fragmented” independent wealth management industry, according to an

For some of the industry’s biggest actively managed funds, neither market volatility sparked by the coronavirus pandemic nor the upcoming presidential election have deterred outsized gains. The 20 top-performing active products with at least $1 billion in assets under management have generated an average 10-year annualized return of more than 20%, Morningstar Direct data show.

J.P. Morgan Securities landed a former Merrill Lynch team that oversaw roughly $1.1 billion and generated production in excess of $4 million, making it the firm’s biggest hire of 2020. The Campbell Group, led by Gwen Campbell, joined J.P. Morgan Securities on Oct. 21 in San Francisco. Moving with her are fellow team members Derek

UBS reported a record pretax profit of $371 million for its Americas wealth management business, up 12% from the same period a year ago. The firm notched the growth even as headcount fell by a net 274 advisors to 6,353 for its Americas business. The figure includes advisors in Canada and Latin America, UBS reported

In the wake of much-needed attention on diversity, equity and inclusion, here’s a universal recommendation for advisors and clients alike: Don’t get ahead of yourself. As financial planners, we follow these steps with clients: exploratory conversations, data gathering, analysis, recommendations, plan delivery, implementation and monitoring. As a strategy consultant for wealth management firms, I find

William Blair expects to pursue a “hybrid” staffing model combining in-office and remote work, Chief Executive Officer John Ettelson said. The investment bank’s businesses are all functioning well with about 90% of employees at home during the pandemic, Ettelson said Monday at SIFMA’s annual meeting, held virtually this year. William Blair, with roughly 1,500 workers

Would you talk differently if you knew a machine was listening to you and grading you based on what you were saying, or based on whether you were using positive or negative words, or even if the sound of your voice was optimistic or pessimistic? Apparently, Wall Street executives are talking differently. They are trying to

The hunt for new hedges is in full gear. While much has been made about the search for yield in a world of ultra-low interest rates, valuations in the U.S. Treasury market also leave very little room for price gains to counteract losses should the high-flying stock market turn lower. It’s a dilemma that could

Charles Schwab’s $22 billion acquisition of TD Ameritrade may be closed, but there are still lingering questions around what Schwab will do with Veo, its former rival’s popular technology platform for independent advisors. While fintech startups worry that Schwab may not offer the same integration support they enjoyed with Veo, industry insiders say the deal