FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
David Robinson is starting a second private-equity fund (Bloomberg)
NBA hall of famer David Robinson’s Admiral Capital Group has raised $US50 million to launch its second private-equity fund, Admiral Capital Real Estate Fund 2, people familiar with the matter told Bloomberg. According to Admiral Capital Group’s website, the partnership targets “real estate assets including office properties, retail shopping centres, multi-family properties, hotels and mixed-used properties that offer attractive returns to investors.” Generally, each of the group’s investments is in the $US25 million to $US100 million range. Bloomberg’s sources suggested Admiral Capital Group would like to raise a total of $US175 million for thr fund.
September nonfarm payrolls disappointed (Business Insider)
US nonfarm payrolls increased by 142,000, missing the consensus estimate of 200,000 by a wide margin, while the unemployment rate held at 5.1%, as expected. Additionally, average hourly earnings were flat on a month-over month basis, and up 2.2% versus last year. Both readings missed their Wall Street estimates of up 0.2% and up 2.4%, respectively. The labour force participation rate fell to 62.4%, its lowest since October 1977.
Q3 was difficult for fund managers (Business Insider)
The third quarter gave fund managers all sorts of fits. A note from JPMorgan noted 67% of mutual fund managers underperformed their benchmarks during the quarter. The worst performance came from funds using the Russell 1000 Growth index as a benchmark as 90% underperformed. On the other hand, those using the Russell 3000 outperformed 70% of the time.
How to set up a succession plan (Financial Planning)
As advisors near retirement they tend to spend less time at the office, but John Williamson, director of strategic initiatives of Wells Fargo Advisors Financial Network, believes that strategy might do more harm than good. Williamson told Financial Planning, a strong plan needs to be put in place to make sure everyone is comfortable as you ride off into the sunset. Williamson says make sure you know how much your firm is worth, have a sound succession plan and make sure everyone involved (successor, employees, family) knows what the deal is.
Former Morgan Stanley advisor sues over racial discrimination (Wealth Management)
A former Morgan Stanley advisor is suing the firm, claiming she was a victim of racial discrimination and that its policies circumvented employees’ civil rights. Wealth Management says Kathy Frazier alleges African Americans aren’t given the same opportunities in terms of both compensation and career advancement as their white co-workers. Frazier left Morgan Stanley for UBS Financial Services in December 2013. Terms of the suit were not disclosed, according to Wealth Management.
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