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Big Brokerage Firms Are Starting To Spend More Money On Bonuses (The Wall Street Journal)
Most major brokerage firms have been focusing on cutting overall costs. However, they spent more on bonuses in the fourth quarter, reports Michael Wursthorn.
Much of this has to do with retention. There’s been a huge trend of advisors leaving the big firms in favour of opening up their own smaller practices as of late.
Big brokerage houses are working to come up with alternative ways to incentivise their team to stay. Some firms are offering top talent “lucrative signing bonuses of as much as three-time’s an adviser’s production,” writes Wursthorn.
US Economic Growth Is Improving (Advisor Perspectives)
“Financial markets have been experiencing a pocket of volatility, which has undermined investor confidence. We do expect that oil prices will stabilise and experience a moderate bounce from oversold levels, which should help calm markets,” writes Robert Doll of Nuveen Asset Management.
“US economic growth is improving, corporate earnings should be decent (outside of commodity-related sectors) and the fiscal drag is fading. The Fed is likely to rise rates, but will do so carefully and modestly,” writes Doll.
A Coalition Of Seven Banking-Related Trade Groups Wants Retailers To Pay For More Of The Costs Of Cyberattacks (Financial Advisor Magazine)
A coalition of seven banking-related trade groups “is petitioning Congress to require businesses where a data breach occurred to refund customers and pay other costs. The coalition noted the attacks happen much more often at retailers than banks,” reports Ted Knutson.
The group also wants banks and credit unions to be allowed to tell customers when a cyber assault has happened at a retailer.
Snowden Lane Just Scooped Up A $US225 Million Team From Merrill Lynch (Financial Planning)
A Merrill Lynch team managing $US225 million in client assets left the wirehouse to join the independent firm Snowden Lane Partners, reports Andrew Welsch.
“Snowden’s president, Greg Franks, said in a statement that the firm had identified Pennsylvania as key market for their growth strategy, and that he expected several more teams to join Snowden in the Keystone State,” reports Welsch.
Back in October, two Merrill advisors who managed $US270 million under the wirehouse joined Snowden’s New York office.
A recent Morgan Stanley Wealth Management Investor Pulse Poll revealed that affluent investors are feeling optimistic about the new year. 93% of affluent and and high-net-worth investors said that they expect their portfolios to improve or stay constant this year, reports Michael S. Fischer.
“87% of respondents named technology as the top sector for investment in 2015, followed by 75% favouring biotechnology, 71% pharmaceuticals, 69% energy and 65% health care,” reports Fischer.
However, three-quarters of high-net-worth investors are considered the Middle East, Ukraine and Russia as “undesirable” places to invest. Foreign conflicts were a major concern for investors.
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