News That Matters

Tag: investors

Brokerage bombshell: What advisors, investors could expect from a Schwab-TD Ameritrade merger

Brokerage bombshell: What advisors, investors could expect from a Schwab-TD Ameritrade merger

Finance
Pedestrians pass in front of a Charles Schwab bank branch in downtown Chicago, Illinois.Christopher Dilts | Bloomberg | Getty ImagesFinancial advisors who hold their clients' assets at TD Ameritrade are about to face a shake-up.Charles Schwab is in talks to purchase TD Ameritrade for $ 25 billion, and a deal could be announced as early as Thursday, a source told CNBC.The merger would combine approximately $ 3.8 trillion in assets from Schwab and $ 1.3 trillion from TD Ameritrade and create a massive custodian in an industry that already provides less choice for registered investment advisors or RIAs.Not only do these firms hold assets for registered investment advisors and execute trades, they also provide firms with technology to simplify their workflow and allow advisors to focus on fina...
Private equity investors are zeroing in on the financial advice business

Private equity investors are zeroing in on the financial advice business

Finance
Hero Images | Hero Images | Getty ImagesThe registered investment advisor industry may be the perfect playground for private equity investors. It has good growth, high profit margins, consistent cash flow and low capital needs. With roughly 13,000 firms in the industry, it is also highly fragmented, ripe for roll-up, and begging for consolidation."The industry has a lot of the traditional ingredients that private equity investors like," said Brad Armstrong, a partner at Lovell Minnick Partners in Philadelphia. Lovell Minnick Partners is one of the more active private equity investors in the wealth management industry.The firm sold its stake in Mercer Advisors in September and last week announced its latest investment in Pathstone, an RIA focused on ultra-high-net-worth clients, managing $ ...
Individual investors pulled $20 million from Fisher Investments after billionaire’s sexist comments

Individual investors pulled $20 million from Fisher Investments after billionaire’s sexist comments

Finance
Kenneth Fisher, founder of Fisher Investments.Jonathan Fickies | Bloomberg | Getty ImagesIndividual investors at Fisher Investments transferred $ 20 million from the firm the week after the billionaire made lewd comments at a conference, according to a research note from Mercer, an advisor to institutional investors.The development was disclosed on a conference call Fisher executives held on Oct. 14 with Mercer, to discuss the fallout from founder Ken Fisher's comments at the Tiburon CEO Summit, according to the note obtained by CNBC.When speaking at the conference on Oct. 8, Fisher had likened winning new clients to picking up women at a bar. He had used similar language at another conference in 2018.Though the billionaire apologized, institutional investors — including seven government p
The worst money mistakes these top advisors have seen investors make

The worst money mistakes these top advisors have seen investors make

Finance
Witthaya Prasongsin | Moment | Getty ImagesIrish author James Joyce wrote in his novel "Ulysses" that a genius makes no mistakes. "His errors are volitional and are the portals of discovery," he wrote. Talk about hindsight being 20/20. Joyce's spin aside, mistakes can indeed be learning experiences — and we all make them, especially when it comes to finances.Financial advisors make a living trying to help clients steer clear of error when it come to managing money but mistakes do happen. Sometimes it's a matter of sage advice not taken, other times entrenched bad habits or beliefs that just won't yield to common sense. We asked advisors from firms that made the FA 100 list what the worst money misstep they've ever seen a client or other investor make was. Their replies follow.California Fi
An Elizabeth Warren presidency may not be as bad for stocks as some investors fear, strategist says

An Elizabeth Warren presidency may not be as bad for stocks as some investors fear, strategist says

Finance
An Elizabeth Warren presidency would likely be tough on some sectors, but it might not hit stock markets as hard as feared, a Jefferies strategist suggested on Wednesday.Warren, a Democratic presidential 2020 frontrunner, has bashed the rich — proposing a wealth tax — and lambasted the financial industry among other sectors. As the Massachussetts senator climbs in Democratic presidential polls, a growing pool of investors warn that her win would result in major losses for the U.S. stock market."In our industry ... there's a general perception that it would be a significant equity market correction, if she were to win," said David Zervos, chief market strategist at Jefferies. "She would change returns on capital expectations, earning expectations, regulations would go up, taxes would go up,