Archive for April, 2013

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Sunday, April 28th, 2013 EN No Comments

Thomas Moran and Robert Edwards Named to Barron’s Magazine Top 1000 …

NAPLES, Fla., April 26, 2013 /PRNewswire/ — Thomas Moran and Robert Edwards , Managing Directors – Investments Senior PIM Portfolio Managers of Moran Edwards Asset Management Group of Wells Fargo Advisors in Naples, Florida, have been named to the Barron’s Top 1,000 Advisors List.

Barron’s rankings are based on data provided by over 4,000 of the nation’s most productive advisors. Factors included in the rankings are assets under management, revenue produced for the firm, regulatory record, quality of practice, and philanthropic work.

With over 30 years of experience in the financial services industry, Tom Moran has received local, national and industry recognition for his ability as a financial advisor. Moran was ranked by Barron’s as the #1 Advisor in Southwest Florida in its list of Top 1,000 Advisors for 2010, 2011, 2012, and now 2013 and was ranked by Barron’s among the Top 100 Advisors in the Nation in 2010, 2011, and 2012. He was also named to the prestigious Top 100 Wirehouse Advisors list for the second consecutive year, in the September 2012 issue of Registered Rep Magazine. Tom’s experience and solid reputation as an experienced professional in his field have also made him a reliable source for various media outlets.  He has been interviewed and quoted by Forbes, Barron’s, and Gulfshore Business, and has authored articles on a variety of financial and economic topics for local and national industry magazines.

A financial advisor for over 29 years, Bob Edwards has earned numerous national and local recognitions including being recognized by Barron’s Magazine as one of America’s Top 1,000 Financial Advisors for 2011, 2012, and now 2013. He has been listed locally in Gulfshore Life Magazine as one of Southwest Florida‘s “Five Star Financial Wealth Managers” from 2006 through 2012. In addition to advising an affluent clientele in Naples, Bob counsels other wealth managers and has been a frequent industry speaker at conferences for financial professionals in Atlanta, Boston, Chicago, Dallas, Orlando, Philadelphia, and San Diego.

Moran Edwards Asset Management Group, formerly known as Moran Asset Management Group, is a money management practice responsible for managing in excess of $2 billion in client assets as of December 31, 2012 and has served the Naples Community for 30 years. Moran Edwards Asset Management Group is located at 5801 Pelican Bay Boulevard, Suite 200 in Naples. For more information, call 239.254.2200 or visit


SOURCE Moran Edwards Asset Management Group



Saturday, April 27th, 2013 EN No Comments

Buy Maruti Suzuki on correction: Baliga

Ambareesh Baliga, Managing Partner-Global Wealth Management at Edelweiss Financial Services advises to buy Maruti Suzuki on correction.

Baliga told CNBC-TV18, “I surely have faith in Maruti Suzuki. But at these levels despite really surprising results, I think it is a bit too expensive and looking at the sort of numbers, which will come on a monthly basis over the next three to four months, I think that could be disappointing to a certain extent and that should give you a buying opportunity at lower levels. So surely, I will wait for a correction to buy this stock.”

Maruti Suzuki touched its 52-week high Rs 1,690.40 and 52-week low Rs 1,077 on 26 April, 2013 and 04 June, 2012, respectively. Currently, it is trading 1 percent below its 52-week high and 55.38 percent above its 52-week low. Market capitalisation stands at Rs 50,551.59 crore.


Saturday, April 27th, 2013 EN No Comments

Voices: Feroz Ansari, on Helping Clients to be Happier

Voices is an occasional column that allows wealth managers to address issues of interest to the advisory community. Feroz Ansari is a partner and senior principal at Compak Asset Management in Newport Beach, Calif.

I’ve watched how the business model in the financial industry has evolved from brokerage firms to a wealth-management model. The industry is still changing and I think it has to move toward a “life adviser” concept where advisers go beyond simple wealth management to add value for their clients.

I first looked into the effects of happiness and financial advising with Dr. Sonja Lyubomirsky of the …


Friday, April 26th, 2013 EN No Comments

CIBC toe-dipping in US with a revamped roadmap

Canadian Imperial Bank of Commerce is edging back into the United States as the bank hunts for growth, having retreated to Canada several years ago following a series of costly missteps south of the border.

CIBC chief executive officer Gerry McCaughey told shareholders at the bank’s annual meeting that the recent purchase of a wealth management firm based in Atlanta serves as a blueprint for CIBC’s revamped U.S. strategy.

Two weeks ago, the bank spent $210-million to buy Atlantic Trust Private Wealth Management, a company that manages about $20-billion (U.S.) of assets and caters to the investment needs of high-end clients. Though small in size and dollar value, the deal represents the kind of acquisitions the bank is looking for in the United States.

Rather than make big bets in the U.S. that come with sizable risk, the bank is looking for smaller deals that focus on wealth management and asset management, which are less volatile than investment banking.

The Atlantic Trust deal came after the bank purchased a 41-per-cent equity interest in U.S. asset manager American Century Investments for $848-million in 2011.

“These acquisitions are aligned with our strategy and risk appetite and are indicative of the type of investments we look forward to making in the future,” Mr. McCaughey said.

The bank’s entry into the U.S. private wealth market comes after CIBC retreated to Canada in recent years, in a bid to return to its core operations and to leave behind several costly mistakes south of the border. Among them, CIBC took a $2.4-billion hit to settle a lawsuit over its dealings with failed energy trader Enron Corp. It also sold off the bulk of its capital markets business to Oppenheimer Holdings Inc. after suffering deep losses from subprime lending during the U.S. credit crisis.

Mr. McCaughey has spent the past several years shifting CIBC’s strategy, moving it away from riskier assets such as structured debt and investment banking, and toward lower-risk areas such as fee-based businesses. Wealth management is considered one of those areas, since it makes money by charging clients fees, but doesn’t tie up the bank’s own capital.

Even though CIBC has worked hard to strip risk out of its operations, some analysts believe CIBC’s new strategy of being so heavily weighted to Canada alone may itself prove to be a risky play, leaving the bank little choice but to expand outside the country.

CIBC “has the highest exposure to the domestic Canadian market among the Big Five banks,” Stefan Nedialkov, an analyst with Citigroup said in a recent research note.

In particular, the bank has the most exposure to the Canadian mortgage market, with 70 per cent of its loan book coming from residential real estate, he said. “Such a high exposure could become a liability should Canada’s housing market cool down more than expected, or if unemployment rises meaningfully.”

Several Canadian banks have been looking to expand in wealth management through acquisitions in recent years, including Royal Bank of Canada and Bank of Montreal. CIBC has been among the most aggressive, also buying the banking assets of McLean Budden Ltd., a Canadian firm that also caters to high-end clients, in August.

Mr. McCaughey said the Atlantic Trust deal in the U.S. gives CIBC “a strong growth platform in the U.S. high-net-worth segment,” and signalled more deals of that size could be expected.

However, some analysts are concerned that the bank’s expansion into the asset management business in the U.S. will result in it returning to investment banking activities in the U.S., which were at the root of the bank’s previous problems.

“This is likely to raise some concern surrounding a broader foray into the U.S.,” Barclays Capital analysts John Aiken said in a research note after the Atlantic Trust deal. “We like the high net worth wealth management segment, but questions may arise about whether or not this could lead to a back-door re-entry into a broader full service brokerage at some point down the road, which got CIBC into trouble in the past.”

Mr. McCaughey told the annual meeting the bank is not deviating from its goal of being a low-risk financial institution. “We have the right strategy for our time,” he told the annual meeting. “It is a strategy that will guide us to growth and success, even in an uncertain world.”

More Discussion on CM-T; ABX


Friday, April 26th, 2013 EN No Comments

Hargreaves to unveil tiered pricing structure in autumn

Hargreaves to unveil tiered pricing structure in autumn

Hargreaves Lansdown is set to announce a tiered pricing structure and offer commission-free units in autumn, according to chief executive Ian Gorham.

Speaking to Wealth Manager following the FCA’s long awaited publication of a policy statement on the platform industry, Gorham said he did not anticipate the rules, which include the banning of payments from product providers on an ongoing and historic basis from 2016, would materially impact the company’s revenues or profitability. He said there were no surprises in the rules and welcomed the two-year sunset clause.

‘What we have said for a while is what we are interested to do is replace revenues from commission and replace with revenues from fee-charging.  This will definitely be our primary source of revenue in the future and will obviously have quite big implications for where our revenue comes from. I don’t expect it will have a material effect on revenue and profitability.’

While Gorham (pictured) was unable to confirm whether Hargreaves would opt to price itself around the 25 basis point mark, he said the firm was planning to come out with a charging structure around autumn time that would be ‘competitive but not crazy’.

‘What I would say is we want to be competitive but not ridiculous. You have to take into account that we believe that as a platform company we are doing our job properly, offering a great service, information and we want to have enough profit to re-invest in service because that is fundamentally important,’ he said.

Gorham said the business will look to come up with a charging structure that represents what the he describes as a ‘good deal for both small and large investors’. ‘We certainly won’t penalise small investors,’ Gorham added.

As a result, he said a tiered percentage base was likely to form the basis of its new charging structure. He said the regulation, coupled with the retail distribution review (RDR) had eaten up resource and management time, estimating that around 30-40% of his time had been spent on regulation.

However, he was unable to estimate how much compliance with the rules had cost the company. Having had time to prepare, he said most of the costs had already been absorbed, with client communication and some IT development work still left to implement now the rules have come out.

Hargreaves said it will also now seek to reclaim costs from fund management groups and investment providers, which the business may formerly have absorbed. These include pricing errors, communication regarding mergers and acquisitions of fund business and subsequent mergers.

Speaking about the longer term implications for the platform market, he said he now views the environment as a ‘brave new world’. ‘It means we have got consistency across the piste.


Friday, April 26th, 2013 EN No Comments

Morgan Stanley Duo Joins Merrill Lynch

NEW YORK–A pair of high-producing financial advisers from Morgan Stanley (MS) have joined Bank of America Corp.’s (BAC) Merrill Lynch Private Banking and Investment Group in Houston, Texas.

Craig Massey …


Thursday, April 25th, 2013 EN No Comments

Important Clarity on a Controversial Chinese Bank Product

After months of leaking figures to the local press, the China Banking Regulatory Commission has finally published official numbers on the volume of wealth management products issued by banks.

Bank wealth management products – typically short term investments marketed by the banks as safe but more profitable alternatives to deposits – have proliferated over the last couple of years, raising concerns about the extent to which banks have been moving assets off their balance sheets and shifting risks to unassuming investors.

Associated Press

Part of the difficulty in assessing those risks has been the lack of official data on the size of bank issuance, and its composition. The CBRC has finally delivered a little clarity.

According to the regulator’s 2012 annual report, distributed to journalists Wednesday, there were 32,152 outstanding individual wealth management products worth a total of 7.1 trillion yuan ($1.1 trillion) at the end of 2012. The report didn’t provide a comparison with previous years, but as recently as 2010 wealth management products were only a minor part of banks’ business.

According to the report, about 32% of the total funds outstanding are invested in bond and money market products, 21% are being kept as bank deposits, 30% are invested in credit products (which typically refers to loans or other types of debt), 11% went into equities and 1% to financial derivatives.

Buyers were primarily individual, retail bank customers, accounting for about 62% of the total value of outstanding products, with institutions buying about 32%, and 6% being sold to private banking clients.

Wealth management products are attractive to Chinese households, who typically have few other appealing options for investing their money. The country’s stock markets are notoriously fickle, while interest rates on traditional bank deposits often fail to keep up with inflation. And real estate, while potentially very profitable, is subject to increasingly tight restrictions among fears of a bubble.

As they’ve grown in popularity, wealth management products have become a concern for regulators because there is significant ambiguity over who bears the risk – the investor or the bank – if the assets underlying a product don’t deliver the promised return. That was brought home in December when the collapse of a product sold by Huaxia Bank Co. resulted in street protests by investors in Shanghai.

Huaxia declined to repay the investors, saying that the branch had only marketed the product and that it was created by a third-party investment company. The investors were later repaid their principal by a company that had promised to guarantee the product’s repayments.

Newscom and AFP

Products marketed but not created by banks might not be included in the CBRC data. Still, it highlights the risks the banks face.

Interestingly, banks at every level of the food chain have been selling wealth management products. While the Big Four state-owned banks – China Construction Bank, Bank of China, Industrial Commercial Bank of China, and Agricultural Bank of China – account for the lion’s share of what’s issued, the CBRC report said that 96 rural credit cooperative were also selling them.

Over the last year the CBRC has repeatedly increased its monitoring and regulation of wealth management products. In late March it rolled out its most sweeping regulatory changes to date, limiting the amount of products backed by equities and non-bond debt the banks can sell, and requiring the banks provide investors with more detail about how their money is being used.

However, it’s clear from its annual report that the CBRC feels the advent of wealth management products is clearly a positive development.

“In recent years, banks’ wealth management operations have developed quickly…helping meet the diversifying financial needs of customers, adding to the financial income of citizens, and accelerating the transformation of banks’ business model,” the report said.

That suggests the regulator is happy to see the volume of wealth management products continue to rise. The trick will be for it to stay on top of the risks even as the banks innovate around the rules.

– Dinny McMahon

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Thursday, April 25th, 2013 EN No Comments

China watchful on wealth management products – The Star Online


BEIJING: China will heighten oversight on wealth management products in 2013 by taking a closer look at money flows off banks’ balance sheets to reduce financial risks at a time when growth is slowing in the world’s No. 2 economy.

The China Banking Regulatory Commission also said yesterday it remained committed to cutting risks from loans to local government financing vehicles this year, but stopped short of any detailed action.

”We will increase regulation on the structure and sales of wealth management products and keep monitoring where the money is channelled,” it said in its latest annual report.

Last month the regulator ordered banks to strengthen checks on the underlying assets of a range of wealth management products, and limited such assets to 35% of banks’ total outstanding wealth management products, or 4% of their total assets, whichever is lower.

Late last year, an instrument sold through Hua Xia Bank failed to pay its annualised return, and China’s CITIC Trust announced a payment delay on one of its products. – Reuters


Thursday, April 25th, 2013 EN No Comments

Wells Fargo Hires Advisers From Morgan Stanley, Edward Jones

Financial advisers from Morgan Stanley Wealth Management and Edward …


Wednesday, April 24th, 2013 EN No Comments