FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Clients are investing on the side (Investment News)
A survey conducted by financial research firm Hearts & Wallets has found almost half of households with between $US100,000 and $US5 million in investable assets do some of their own investing in addition to using an advisor. Chris Brown, a partner and co-founder of Hearts & Wallets says, “Investors tend to bucket their money, and the more wealthy they are, the more they will bucket their money.” According to Investment News, this represents an opportunity for advisors because as their clients age they are more likely to not take a do-it-yourself approach to investing, and those assets will be there for the taking.
The Fed doesn’t want to repeat a costly mistake (Business Insider)
Market participants still believe there’s a good possibility the Federal Reserve will raise rates at some point in 2015. However, the Fed wants to make sure it doesn’t replay the events of 1937. That’s when the central bank raised its reserve requirement ratio, wreaking havoc on both the stock market and the real economy. The Dow Jones Industrial Average tumbled 49% and the unemployment rate jumped.
S&P 500 boards are ageing (Bloomberg)
Bloomberg reports data obtained by executive recruiter Stuart Spencer shows 40% of S&P 500 board members are 64 or older, up from 18% in 2005. Directors staying longer presents a double edged sword for companies. On one hand it’s nice to have their experience, but it also means they might be unfamiliar with the newest trends in the industry. One reason board members might be staying longer is the pay. The average director has seen their wages jump 13% since 2012 to $US277,237, according to Spencer Stewart.
Morgan Stanley revamps its overseas client service (Think Advisor)
Morgan Stanley has limited the number of its offices that can work with international clients to 12. According to Think Advisor, that means only 400 advisors will have the chance to mange the money of international clients who have more than $US500,000 in their accounts. “By creating a specialised group of financial advisors trained to serve the unique needs of nonresident clients and backed by dedicated resources designed for this client segment, we will invest in and grow this business, which is already one of Morgan Stanley Wealth Management’s fastest growing specialised segments,” the company said on a fact sheet outlining the initiative.
Advisor team leaves Northern Trust for Raymond James (Financial Planning)
William Kaehr and Paul Rashid are leaving Northern Trust and taking their $US250 million in client assets to SAGE Private Wealth Group, an Illinois-based independent firm under the Raymond James umbrella. Financial Planning reports the duo took in approximately $US2 million in revenue at Northern Trust.
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