Merrill Lynch names new head of alts group

Bank of America Merrill Lynch has named a new head of its Alternative Investments Group, as demand from its advisers for alternatives is expected to double assets over the next three to five years. Keith Glenfield, former chief operating officer of Global Wealth & Retirement Solutions, started in the new role this week.
OCT 19, 2012
By  JKEPHART
Bank of America Merrill Lynch has named a new head of its Alternative Investments Group, as demand from its advisers for alternatives is expected to double assets over the next three to five years. Keith Glenfield, former chief operating officer of Global Wealth & Retirement Solutions, started in the new role this week. Merrill Lynch advisers have approximately $45 billion in alternatives today, with $25 billion in private placements and $20 billion in alternatives mutual funds. Andy Sieg, head of GWRS, expects those assets to double over the next three to five years. “We see alternatives as a space that will enjoy very strong growth,” he said in an interview. “Clients are using them for a host of reasons, from diversification to enhanced returns.” The demand also has led the brokerage to begin publishing a “nontraditional mutual funds” guide to help educate advisers about the strategies. Alternatives mutual funds are seeing faster growth than traditional alternatives at Merrill Lynch, thanks to the liquidity and slightly lower pricing. However, private equity, which is available only through private placements, has seen the biggest increase in use among Merrill Lynch advisers, Mr. Sieg said. “Our sales in private equity will raise about 70% more in capital than last year,” he said. He declined to disclose the exact figures.

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