Wirehouse metrics reflect different strategies

Newly compiled <i>InvestmentNews</i> research shows how the nation's biggest brokerages rank across four key metrics.
OCT 02, 2015
By  Ellie Zhu
Adviser headcount
Source: InvestmentNews Data
Head count ticked to a new low for Morgan Stanley, although the firm's CEO, James Gorman, told analysts on a conference call that he is comfortable with the scale. Merrill Lynch, meanwhile, has added to recent gains, which it attributes to recruiting wins and some payoffs from updates it made to its training program. Wells Fargo reported a slight increase after losing some people. UBS continued to tick down, but executives said that 60% of the departures were low producers.
Asset per rep
Source: InvestmentNews Data
Assets per adviser has grown consistently and generally mirrors adviser productivity. It was somewhat flat from the first quarter as AUM overall remained mostly flat.
Annualized productivity per rep
Source: InvestmentNews Data
“In the land of the wirehouses, the game has become assembling a collection of top producers,” says Alois Pirker, a research director in the wealth management consulting division at Aite Group. UBS pulled farther ahead of Merrill Lynch as it reported it was generating more revenue despite fewer advisers. Merrill's declines have come almost concurrently with its turnaround in headcount. Bank of America Merrill Lynch CEO Brian Moynihan said it was taking time for trainees and new hires to build their business. Meanwhile, Morgan Stanley has come from behind to nearly overtake Wells Fargo.
Assets under management
Source: InvestmentNews Data
Note: Certain data points are unavailable for Wells Fargo in 2012 and Merrill Lynch and Morgan Stanley in 2010
Morgan Stanley and Merrill Lynch remain neck-and-neck on assets under management. Both are growing at a relatively equal pace. Overall, AUM was relatively unchanged at most firms from the first quarter, a fact that executives attributed to weak market performance.

Latest News

Trump to name new Fed governor, jobs data head in coming days
Trump to name new Fed governor, jobs data head in coming days

President says he has a ‘couple of people in mind’ for central bank role.

JPMorgan’s asset management arm targets Europe retail investors in active ETF tie-up
JPMorgan’s asset management arm targets Europe retail investors in active ETF tie-up

Wall Street firm partners with Dutch online broker to fuel push into EU market.

UBS to settle outstanding Credit Suisse RMBS case with $300M payment
UBS to settle outstanding Credit Suisse RMBS case with $300M payment

Agreement with the US Department of Justice comes eight years after settlement.

GeoWealth secures $38M in funding round led by major alternative investment manager
GeoWealth secures $38M in funding round led by major alternative investment manager

Series C funding will accelerate unification of TAMP’s model portfolios.

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.