While elements of the wealth-management business have been roiled by the fiduciary rule and preparations for its June 9 efficient date, Morgan Stanley isn’t among them, writes WSJ Wealth Adviser’s Michael Wursthorn.
The financial institution stated that whereas the rule has had a chilling impact on recruiting, dealer attrition has been low and the brokerage has been higher capable of retain and discover expertise.
“It’s all been positive from that perspective,” Jonathan Pruzan, Morgan Stanley’s chief monetary officer, stated Wednesday whereas discussing first-quarter outcomes with analysts. “We’re prepared if it does go into effect.”
In the primary quarter, Morgan Stanley’s wealth unit reported $four.06 billion in income, up 11% from the year-earlier interval, on greater asset-based charges and commissions. Net revenue for the unit rose 31% from final yr, to $647 million. The unit’s pretax revenue margin, a key efficiency metric, rose Three proportion factors from final yr, to 24%.
Morgan Stanley collected $18.Eight billion in new fee-based belongings by way of the primary three months of the yr, pushing its stockpile to a document $927 billion. Of the unit’s $2.2 trillion in shopper belongings, about 42% reside in fee-based accounts, up from 40% a year-earlier.
Below, a number of the greatest evaluation and perception from WSJ writers and columnists, and infrequently past, on investing, the wealth-management enterprise and extra.
Watching Wells. The Office of the Comptroller of the Currency revealed the outcomes of an internal review that found agency supervisors missed or failed to address warning signs about Wells Fargo’s risky sales incentive program, saying financial institution examiners knew of reviews of gross sales integrity violations way back to 2010, however “did not take timely and effective supervisory actions.”
Government shutdown. Of all of the geopolitical considerations on the market, one of many few that doesn’t appear to vex merchants and buyers is the specter of a authorities shutdown when the federal authorities’s present funding runs out on April 28. That’s not a nasty angle, since a shutdown might not be bad for the stock market anyway.
Wednesday’s markets. U.S. stocks were mixed as power shares slid with the worth of oil and buyers parsed one other spherical of company earnings stories. The Dow Jones Industrial Average misplaced 119 factors, or zero.6%, to 20404. The S&P 500 slipped zero.2% and the Nasdaq Composite gained zero.2%.
PLANNING AND INVESTING
Better than anticipated. While authorities surveys and a few teachers typically paint a pessimistic image of retiree funds, a brand new research that pulls on tax filings exhibits that many new retirees are doing pretty well at matching their pre-retirement incomes.
The findings point out that the median retiree managed to switch 103% of his or her pre-retirement spendable revenue, which means “spendable income rose for more than half of taxpayers,” the paper says.
While the research appeared solely on the preliminary years of retirement, one of many authors believes retirees proceed to switch a big share of their pre-retirement incomes all through retirement.
Watching Your Wealth podcast. Ascensus College Savings’ Peg Creonte discusses why parents and grandparents should think twice about co-signing for a student loan, and why a 529 could also be a strong choice.
BUSINESS AND PRACTICE
Aggressively passive. BlackRock, the world’s largest cash supervisor, posted will increase in income, revenue and belongings beneath administration as investors continue to favor lower-cost index-tracking funds.
TRAVEL AND LIFESTYLE
The Middle Seat. Flying may be robust on fits and clothes, however savvy vacationers know the tips to staying sharp on the street. Here, your guide for wrinkle-free travel.
POINT TO PONDER
Have Americans gone smooth? Tyler Cowen, a professor of economics at George Mason University and co-host of the favored Marginal Revolution weblog, thinks it’s attainable.
In his new ebook, “The Complacent Class,” Mr. Cowen details a populace that has drawn inward rather than finding and facing new challenges. The end result, borne out in a number of financial and social measures, is pretty bleak.
“The American economy is less productive and dynamic, Americans challenge fundamental ideas less, we move around less and change our lives less, and we are all the more determined to hold on to what we have, dig in, and hope (in vain) that, in this growing stagnation, nothing possibly can disturb our sense of calm,” he writes.
– FPA Retreat 2017 / Braselton, Ga., April 24-27
– Morningstar Investment Conference / Chicago, April 26-28
– Advicent Innovation Summit / New York, May 18
– NAPFA Spring National Conference / Bellevue, Wash., May 16-19
– Fi360 Conference / Nashville, Tenn., May 21-23
– CFA Institute’s 70th Annual Conference / Philadelphia, May 21-24
– FPA NorCalConference / San Francisco, May 30-31
– AICPA Engage 2017 / Las Vegas, June 12-15
– FPA NexGen Gathering / Chicago, June 23-25
– In|Vest 2017 / New York, July 11-12
– RIIA Summer Conference 2017 / Salem, Mass., July 17-18
– XYPN17 And FinTech Competition / Dallas, Aug. 28-31
– Insider’s Forum 2017 / Nashville, Tenn., Sept. 6-Eight
– ADISA 2017 Annual Conference / Las Vegas, Oct. 23-25
– IMCA Private Wealth Advisor (PWA) 2017 / Chicago, Oct. 16-17
– FPA Minnesota 2017 Annual Symposium / Minneapolis, Oct. 16-17
– FinCon 2017 / Dallas, Oct. 25-28
– The SRI Conference / San Diego, Nov. 1-Three
The Wealth Adviser briefing covers subjects of particular curiosity to wealth managers, monetary planners and different advisers. It’s delivered to subscribers by e mail every workday morning; you’ll be able to join e-mail supply right here: http://on.wsj.com/WealthAdviserSignup. Please ship ideas, recommendations or different feedback to firstname.lastname@example.org or Wealth Editor Brian Hershberg at email@example.com.
Follow WSJ Wealth Adviser on Twitter: @WSJadviser
SOURCE: MoneyBeat – Read complete story here.