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EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects
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EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Dec 25, 2015

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Page 1: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS

Frances McMorrisEditor-in Chief of On Wall Street

Editorial Director, Special Projects

Page 2: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

On Wall StreetTHE AUDIENCE

As of the end of 2011, there 629,518 registered representatives.On Wall Street covers financial advisors/brokers/wealth managers

who are employees of the largest full-service, national and regional brokerage firms.

On Wall StreetTHE AUDIENCE

As of the end of 2011, there 629,518 registered representatives.On Wall Street covers financial advisors/brokers/wealth managers

who are employees of the largest full-service, national and regional brokerage firms.

(Source: FINRA.org)

Page 3: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Wirehouse Head Count

0

5,000

10,000

15,000

20,000

17,30817,156

15,2656,200

Merrill Lynch

Morgan Stanley

Wells Fargo UBS

Page 4: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Regional Head Count

12,717

6,000

2,2001,732

900 650 400 270

1,400

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Edward Jones Raymond James & Assoc.

RBC Wealth Americas Stifel Nicolaus

Oppenheimer Janney Montgomery

RW Baird Hilliard Lyons

Scott & Stringfellow

Page 5: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

• The War for Talent/Compensation Competition

• Capturing more of a high-net-worth client’s assets

• Retirement Income Distribution

• Global Investment/Emerging Markets

• Investment and Tax Strategies & Products: Mutual Funds, Annuities,

Separately Managed Accounts, Exchange-Traded Funds

Market Trends In Wealth Management

Page 6: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

The Dominant Force in Market ShareWirehouses and Regionals Will Continue To Control Market Share of Client Assets

Even Though the Number of Advisors in This Channel is Trending Down.

0%

20%

40%

60%

2010 2013

Source: Cerulli

Page 7: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Trends and ImpactsAdvisors are moving from wirehouse to wirehouse; from

wirehouseto independent B/D and RIA; from IBD to IBD

• Wirehouses, banks and IBDs consolidated to shore up solvency. • Four large wirehouses remain; regionals are gaining share of advisors

IMPACT ON READER • Individual advisors are still struggling with how to define their value

after 10 years of managing money in a flat to down market. • Advisor must “re-engage” clients with new communications and

services• Use technology to free them to spend “face time” with clients …• Wirehouse advisors need to understand new compensation structures• All advisors need news about structural and competitive changes• Culture shock an issue as advisors move

Page 8: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

The coming “fiduciary standard” could reshuffle the competitive cards

• The Securities and Exchange Commission is still devising a uniform fiduciary standard for all financial advisors, regardless of whether they work for broker-dealers or as registered investment advisors.

IMPACT ON READER• Brokerages will lose 4%-10% of their broker-generated profits each year

by some estimates • Costs will include new compliance and training as well as new software

(SIFMA) • Broker-dealer reps want training. (Financial Planning/On Wall

Street/Envestnet poll)• Firms will have to provide greater supervision over advisors, transparency

and disclosure to investors

Trends and Impacts

Page 9: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

GLOBALIZATION

• High-Net-Worth individuals continue to move investments beyond their home regions (Capgemini World Wealth Report)

• Among U.S. investors, the equity mutual funds with the highest inflows in 2010 YTD were overseas funds (Morningstar)

Trends and Impacts

Page 10: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Trends and Impacts DEMOGRAPHIC DYNAMICS

The Retirement Wave is coming and we’re unprepared

• Baby Boomers have started turning 65 in big numbers. (US Census)

• As of 2010, 57% of Americans expect their spending in retirement to be lower than it is today, and 70% of retirees intend to work for pay. (EBRI)

• Today, a man's average life expectancy at 65 is 17.2 years (to age 82), roughly 32% longer than in 1970 (US Census)

• A 65-year-old woman today can expect to live another 20 years, on average, compared to 17 in 1970.

Page 11: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Trends and Impacts

IMPACT ON READER • Advisors will need to help clients stretch money to last 30+ years.

• Market volatility could have greater impact on portfolios in decumulation mode. New products will have to supplement/replace Medicare, Social Security and

traditional pensions.

• Need for retirement planning and cross-sell (long-term care, annuities, etc.). Advisors, especially at banks, struggle with both.

Page 12: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Products Sold by Readers to Their High-Net-Worth Clients• IRAs/Keoghs • 529 College Savings Plans• Fixed Income/Bonds• Common Stock• Variable Annuities• Mutual Funds (LOAD) • Exchange-traded funds• REITS• Alternative investments

Page 13: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Serving Readers and Online ViewersEditorial Content

On Wall Street - the monthly print magazine• In-depth coverage of the companies and people that

shape the industry• Retirement issues in The Wealthy Retiree• Investment strategies in Peak Performance• Practice Management in The Practice

(Careers, Case Study, Compliance)• Compensation - Special, unique, exclusive

coverage every March• Top Branch Managers of the Year• Top 40 Under 40 every December• Recruiters Roundtable

Page 14: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

New Broker-Dealer Survey - June 2012

• Unique database of the employee/advisor firm universe• Ranks firm by total revenue• Breaks down revenue by fees and commissions • Cites Number of Reps• Cites Average Production Per Rep• Cites Commission & Fee-based products revenue

Page 15: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Women Advisor ForumsA LIVE EVENT SERIES HAS GROWN 6 forums in 2012 - 5 forums in 2011 - 4 forums in 2010

Page 16: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

OnWallStreet.comAdvisorTV: online video interviews with leading industry figures

Page 18: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Onwallstreet.com/Online

BLOGS AND SOCIAL MEDIA• The Smart Advisor blog• Twitter• LinkedIn• Facebook• Women Advisors Forum

community

E-NEWSLETTERS• Daily newsletter & Breaking News

Alerts• Monthly Wealth Management

newsletter

Page 19: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

Content Analysis - Comparison to Rivals

Source: Lodestar/onwallstreet.com user study July 2010

Page 20: EDITORIAL and MARKET TRENDS UPDATE: WIREHOUSES AND REGIONAL FIRMS Frances McMorris Editor-in Chief of On Wall Street Editorial Director, Special Projects.

On Wall Street’s Brand Strength• Serves the wealthiest & most successful advisor

channel

• These advisors control $4.64 trillion in client assets

• Exclusive coverage of advisor compensation trends

• Expert commentary on issues and subjects affecting the audience such as the Annual Recruiters Roundtable

• A Multimedia Brand with live events such as the Women Advisor Forums, online web coverage including AdvisorTV and specialized awards such as the Top Ten Branch Managers of the Year.

• Access to and interviews with the leaders and major players of the firms in this channel