Squirreling new assets at BoA/Merrill; revenue dip at Goldman’s wealth unit
Financial Planning
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BoA WEALTH EARNINGS: The thundering herd has become a scurry of squirrels, Bank of America's wealth earnings Tuesday suggested.?
Despite another consecutive quarter of declining profit and revenue, the Wall Street megabank's wealth businesses flaunted one major trump card in the third quarter: their squirrel-like ability to gather new assets at scale, including attracting some of the world's wealthiest pocketbooks. ... "We believe we are entering the largest asset-gathering opportunity that FAs have seen in decades," said Lindsay Hans , president and co-head of Merrill.
GOLDMAN SACHS WEALTH EARNINGS: Despite having a record haul from management fees in the third quarter, Goldman Sachs' Asset and Wealth Management division saw a 20% decline in its net revenues.
That plummet was primarily due to losses in both public and private equity investments, much of the latter in real estate. With its 20% year-over-year drop, Goldman's net revenue for its Wealth and Asset Management unit stood at $3.23 billion in the third quarter. With expenses deducted from that, its earnings came in at $129 million.
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PROFESSIONAL DEVELOPMENT: The nonprofit Wall Street Bound launched about five years ago at the School of Business at Medgar Evers College. Since then, more than 620 undergraduate students from an array of colleges have completed its Wall Street Direct training and other programs offered by the organization, with 80% of them moving on to full-time jobs or internships at companies such as Morgan Stanley, Mizuho Bank, U.S. Bank, Empower and other big names in finance collaborating with the organization. Financial Planning named founder Troy Prince, CAIA one of the "21 people who will change wealth management in 2021."
M&A: Following heavy consolidation in recent years, the lion's share of retail wealth has ended up at the biggest industry shops.?
A new report by industry research firm Cerulli Associates found that 58% of all retail client assets in wealth management were housed at the top 10 largest broker-dealer firms by assets under management. These 10 firms also reported among themselves 123,000 financial advisors — accounting for 42.2% of the industry.
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