For Merrill Lynch, emphasis on new clients and cross-selling paying off

For Merrill Lynch, emphasis on new clients and cross-selling paying off
The Thundering Herd is doing more business with new households.
APR 16, 2019

Merrill Lynch's effort to motivate financial advisers to reel in new clients and cross-sell financial products from parent Bank of America is working, with the company reporting Tuesday that its wealth management advisers are on track for six new relationships each this year. Gross new household acquisitions by advisers are up 41% year over year, with the Thundering Herd bringing in a record 17,625 new client relationships in the first quarter. The update was part of Bank of America Corp.'s earnings call. Merrill Lynch advisers made 41,000 referrals to other parts of the Bank of America franchise, with a quarter of those leading to new business, said a senior Merrill Lynch executive who asked not to be named. It's part of the firm's focus on an expanded role for its advisers, said the executive. "Advisers see the growth strategy bearing fruit in local markets," the individual said. In 2017, Merrill Lynch released a compensation plan for its brokers that rewarded those who brought in at least five new clients, while cutting pay for advisers who fell short. This year, the firm increased the number of new households that advisers need to do business to six. Merrill Lynch's headcount at the end of March was 14,761, down less than 1% when compared with the previous quarter and the same quarter last year. Bank of America's global wealth and investment management unit reported its best quarter ever with $1.05 billion in net income, according to the company. That was a $127 million year-over-year increase, or a 4% gain. Revenue for the group of $4.8 billion was down 1% compared with the first three months of last year, according to the company, which pointed to lower market valuations, brokerage revenue and general pricing pressures, which were offset by asset flows and the increase in new households.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management