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

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave