FA Insights is a daily newsletter from Business Insider that provides the top news and commentary for financial advisors.
Where the happiest advisors work (Financial Planning)
A study conducted by JD Power and Associates has concluded that advisors at Edward Jones are the happiest. The company scored 925 points out of a possible 1,000 as it stayed at the top of the list for a sixth straight year. According to the survey, half of all advisors reported a drop in compensation versus the previous year.
The losses for bond investors are adding up (Bloomberg)
Bank of America Merrill Lynch data shows duration — the measure of how sensitive bonds are to changes in interest rates — is at a record high. This means it doesn’t take much for bond investor losses to pile up if they are on the wrong side of the trade. Jack McIntyre of Brandywine Global Investment Management told Bloomberg, “You don’t need a big move to ruin your day, or your year for that matter.” While most investors are bracing for a rise in interest rates. Jeff Gundlach’s DoubleLine Capital thinks bond investors have gotten too bearish, and that the Fed will not hike rates in 2015.
Airlines are being investigated for colluding (Associated Press)
The US Department of Justice is investing the airline industry for colluding to keep airfares artificially high. According to the Associated Press, “As a result of a series of mergers starting in 2008, American Airlines, Delta Air Lines, Southwest Airlines and United Airlines now control more than 80 per cent of the seats in US skies.”
Americans are saving more for retirement (Financial Advisor)
Investment Company Institute reports American retirement assets rose 1.3% in the first quarter to $US24.9 trillion. This represents a 75% increase from the $US14.2 trillion that marked the trough during the financial crisis. According to Financial Advisor, “Most asset categories and fund types increased with the exception of government-sponsored defined benefit (DB) plans, which declined 0.5 per cent to $US5.1 trillion.” Contributions to individual retirement accounts climbed 2.1% to $US7.6 trillion.
Focus Financial lands a big team (Think Advisor)
Focus Financial announced the addition of Relative Value Partners, a team of advisors based in suburban Chicago, who has approximately $US1 billion in assets under management. “Our M&A expertise and value-add programs combined with our almost unparalleled access to capital lends us a unique advantage in attracting high-calibre firms such as these,” Focus Financial CEO Rudy Adolf said in a statement.
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