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Author: rafferty

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Is Private Equity IBDs’ Savior or Sorcerer?

20:28 01 August in Articles Written by Jon Henschen by rafferty

By Jon Henschen As featured in the August issue of Investment Advisor magazine   Private equity firms have increased purchasing activity of BDs, but it's a mixed bag for the firms being bought Several years ago, I attended a third-party recruiter gathering hosted by an insurance-owned broker-dealer that was working to attract advisors. During the day-long meetings, the president of this broker-dealer brought up private equity (PE) with a grimace on his face and proceeded to talk about it in terms of deep disdain. His narrative was that as recruiters, we should avoid PE-owned broker-dealers and instead funnel our candidates to the safety and stability of an insurance-owned broker-dealer. In a twist of fate, a PE firm now owns this broker-dealer. I have to assume that this BD president has done a 180-degree turn...

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DOL, SEC Fee Scrutiny Sparks Shift to Passive Investing

17:58 29 July in In the News by rafferty

July 28, 2016 By Melanie Waddell, ThinkAdvisor Use of passively managed funds and ETFs at indie BDs and wirehouses will accelerate, says Broadridge As regulators zero in on ensuring investors aren’t being soaked in fees, independent broker-dealers and wirehouses are abandoning actively managed funds and embracing passively managed ones and ETFs, according to new research by Broadridge. “During the first half of 2016, net new assets for passively managed mutual funds increased by $37 billion, or 14%, for the retail distribution channels, while actively managed funds were down by $24 billion, or 0.6%,” Frank Polefrone, senior  vice president of Broadridge’s data and analytics business, said Thursday in releasing results from the firm’s most recent Fund Distribution Intelligence research. During the first half of 2016, net new assets for passively managed funds and ETFs increased by 9% and 1%...

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John Hancock swims against the tide, doubles down on independent broker-dealer business

19:52 23 June in In the News by rafferty

June 23, 2016 By Bruce Kelly, Investment News     Unlike many insurance companies who are fleeing the high-risk, thin-margin independent broker-dealer business, John Hancock Financial Network, through its independent broker-dealer, Signator Investors Inc., has doubled down on its commitment. Signator in May closed on its deal to acquire 883 registered reps and advisers from Transamerica. Those former Transamerica advisers have $25 billion in client assets and Signator now has close to $50 billion in assets under management, according to Brian Heapps, John Hancock Financial Network's president. After cutting about 200 low producers and adding the former Transamerica advisers, Signator now has close to 2,200 advisers under its roof, almost double what it had before. The average production of its advisers has increased from $125,000 to $175,000 after these moves, Mr. Heapps noted. And Signator will continue...