Articles published 11/2022
Vanguard Group steps up share-the-misery pricing to reduce revenue crunch, the first time since 2008-2009 that it jacked up more fund fees than it cut
The $6.7 trillion Malvern, Pa., giant was already edging away from share-the-love pricing before market-downturn, AUM jolts exacerbated the trend.
November 29, 2022 at 9:57 PM
RIAs need to race to zap COLAs, install incentives ahead of December performance reviews or face ramifications magnified by spiraling inflation and low morale
Paying staff too little, or too much, is always a risk, but 8% inflation and 20% dip in asset-based revenues from markets magnifies the downside potential of a cost-of-living default alienating talent or killing profits
November 29, 2022 at 12:02 AM
Amid $90 million 'A' raise, 33 Google executives join two Google CEOs and 140 VC investors to launch 'kickass' robo, pitching AI, performance fees and private equity to accredited investors
Wealth technology experts have doubts that even a transplanted Google AI super brain will ask the correct right-brained questions, but they also see promise in a no-brainer VC distribution pipeline.
November 24, 2022 at 2:07 AM
The Labor Dept. will publish the proposed 'Biden' DOL Fiduciary Rule (likely) next week, it says, but today it de-fanged the Trump ESG prohibitions
Two years after President Biden took office, the federal agency is ready to unleash a centrist DOL rule that eviscerates Trump's influence but stops short of Obama's stringent proposal.
November 23, 2022 at 2:15 AM
Josh Brown and Barry Ritholtz want rock-star culture and rocketing growth in one RIA so they hired Jay Tini to manage the paradox
The dynamic New York City super-blogger duo now have a $2.8 billion AUM RIA and a 'massive fanbase' to cultivate, but they also foresee a need to rein in and retain
November 22, 2022 at 2:38 AM
Biz Briefs: Envestnet's sweet terms net $575 million after seeking $350 million ~ Ron Rhoades fights for right to write by tweet ~ InvestmentNews is packaged for sale ~ Chuck Schwab pays for red wave
Bill Crager is pulling out the stops and purse strings; Western Kentucky isn't all basketball; Charles 'Chuck' Schwab plunks more cash on GOP, and Sallie Krawcheck stumps for the Dems.
November 19, 2022 at 1:44 AM
Biz Briefs: SEC cracks down anew on RIA reverse churning ~ Envestnet borrows $350 million to buy its own stock ~ Fidelity is creating a crypto waiting list while exec questions crypto ecosystem
Fed up SEC is ready to take on all nonsense at once; stock shocks, Orwell's new name game; Fidelity hosts a line dance
November 18, 2022 at 2:56 AM
CI Financial will cut off U.S. RIA unit from Canadian cash infusions as part of 2023 IPO but with a giant parting gift -- total forgiveness of its substantial mountain of debt
The Toronto asset manager, drenched in $2.7 billion of debt, promises an imminent IPO of a larger-than-planned stake in its $126-billion AUM to pay off lenders.
November 17, 2022 at 2:27 AM
After Envestnet rebuffed an ESG hedge fund's demand for a board seat, the fund managers sent a shrill, scalding letter in retaliation to force the issue
The Berwyn, Pa., firm invited invective by allegedly stiff-arming the startup ESG fund's request, even though it holds a 7.2% stake in the company.
November 16, 2022 at 2:49 AM
SEC crackdown on 'set-and-forget' advice alarms RIAs, who face new 'burdensome' and 'expensive' reporting to curb alleged 'conflicts of interest' over 'deceptive' outsourcing
The spike in RIAs outsourcing functions formerly kept in-house triggered the crackdown, but is the red tape worth it? advisors ask
November 15, 2022 at 3:59 AM
Savvy raises fresh $11 million from VC backers to fuel an RIA-on-steroids craze that could scale the wall of doubt of RIA experts and eclipse robo-advisors
The unsolicited California cash bought into the New York City startup's vision and early success in attracting advisors, their assets and a disdain for legacy software inconveniences.
November 12, 2022 at 2:38 AM
Bill Crager reads the room and commandeers State Street's old RIA custody unit for Envestnet with FNZ deal
With sandbox rules out the window, Envestnet CEO will private label re-branded State Street Wealth Manager Services -- 'one of biggest long-term opportunities to date,' analyst writes
November 10, 2022 at 10:48 PM
LPL Financial prepares to enter the 'OSJ' channel -- this time as an owner, headed by a former executive whose staff advises $40-billion
The Fort Mill, S.C.-based IBD may thread the needle with the OSJ purchase, though it will compete with other OSJs it serves
November 9, 2022 at 1:11 AM
After Fidelity grabs huge slice of NTF market, Charles Schwab & Co. undercuts OneSource by creating a second NTF program where zero commissions apply to 930 mutual funds for half price
The Westlake, Texas broker will now take a 12- to 19-basis-point fee on the new (institutional no-transaction fee) INTF platform versus the 40-basis-point shellacking by OneSource.
November 8, 2022 at 1:13 AM
After major activist arm-twisting, Blucora cashes out of software holding to double down on legacy H.D. Vest broker-dealer unit it bought seven years ago
The $73 billion AUM Dallas firm now has $720 million in cash to pay off debt and put toward turning the old Roger Ochs franchise into a world class wealth manager.
November 4, 2022 at 2:47 AM
RIA recap: Bernie Clark promises to 'be there' for coming TDA-Schwab system snafus; Fidelity gets custody win; Vanguard dishes out big tax bill to investors
Schwab RIA chief petitions for 'patience' for coming merger inconveniences but 'repapering' is no culprit; Carrie Pomerantz gets Schwab board seat; Addepar wins $65 billion AUM contract.
November 3, 2022 at 1:59 AM
Farther struts its startup magic and shows why a $375-million RIA can be worth $50 million -- by getting four advisors to bring books of business just to be part of the enterprise
The San Francisco firm claimed its software was at another level and now advisors are betting careers on it, though not of the UHNW variety imagined
November 2, 2022 at 3:27 AM
Goldman Sachs fought the squid, but the squid won as CEO David Solomon puts the United Capital-Ayco RIA back under the control of house asset managers
Solomon acknowledges he's largely reunifying wealth management and asset management to regain synergies after trying to give the in-house RIA agency.