THE SUMMARY
This time on the Pulse: net-net, wirehouses lost advisors while RIAs gained them in 2019; sovereign funds are showing signs of age; and a look at who’s getting rich in the green economy.
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THE QUOTE
Before we start, here’s a question for you. What’s the best way to motivate colleagues? Well, the views on that topic of one famous military leader may surprise you. We’ll tell you more shortly.…How do you get the best out of your co-workers? It starts with trust, according to US General George Patton, whose daring strategies helped the Allies win WWII. “Never tell people how to do things,” Patton once said. “Tell them what to do, and they will surprise you with their ingenuity.”
THE NEWS
Investment News "Financial advisers continued to bolt from Wall Street in 2019"
Wirehouses, Insurance BDs Hemorrhaged Advisors in 2019
Two wealth-management delivery channels saw net outflows of financial advisors in 2019: wirehouses and insurance-company-owned broker-dealers. That’s according to a report in InvestmentNews.
The four wirehouses — Merrill Lynch, Morgan Stanley, Wells Fargo and UBS — saw a net headcount decrease of 1,398 advisors, by InvestmentNews’ count. Insurance broker-dealers coughed up a net loss of 653 advisors.
Meanwhile, independent broker-dealers — names like LPL, Commonwealth and AXA — saw a loyt of movement in and out, but when the dust cleared that channel gained 1,288 advisors in 2019.
Most impressively, RIAs saw a net increase of 990 advisors last year. Meanwhile, regional brokerages — a category that includes outfits such as Raymond James, Baird and RBC Wealth Management — also saw a net increase in advisor headcount, but only to the tune of 197.
InvestmentNews says shrinking channels suffering from more complex payout structures, carrot-and-stick incentives to cross-sell banking products, and other policies that have made it harder (but perhaps more desirable) for advisors to jump ship in recent years.
Take it with a spoonful of skepticism, however. Despite all the precise-sounding numbers, InvestmentNews’ research is based on anecdotal evidence rather than audited company disclosures.
Reuters "Sovereign wealth funds move mainstream, make less contrarian bets"
Sovereign Wealth Funds Get More Stodgy with Age
Sovereign wealth funds are getting more conservative, according to a report by Reuters.