Wealth Adviser Briefing: Trading Activity Stalls, Deutsche Bank’s Badwill, Ritzy Film FestApril 16, 2019
JPMorgan Chase increased its advisory ranks slightly during the first quarter. The number of Wealth Management unit client advisers grew to 2,877 by the end of the quarter from 2,865 at the end of last year, the bank said in an earnings supplement. Year over year, headcount increased 9%.
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
PLANNING & INVESTING
Trading Activity Stalls as Stocks Approach Records: Trading volumes have fallen as major indexes climb toward all-time highs, the latest sign that investors remain cautious despite 2019’s powerful stock rebound.
From Dow Jones Newswires
Investors have piled into exchange-traded products that wager on volatility this year, sending $2B into funds betting on a rise in turbulence, according to Deutsche Bank. This stems from “demand for protection from retail investors,” according to the firm. Market volatility has receded recently, with the Cboe Volatility Index, or VIX, hitting the lowest level since October last week. The interest in so-called long volatility ETPs indicates some are betting on markets to grow rockier despite the recent calm. One of the biggest volatility ETPs, the iPath Series B S&P 500 VIX Short-Term Futures Exchange-Traded Note, has recorded about $800M in inflows this year, FactSet data show. (firstname.lastname@example.org; @gunjanjs)
Goldman Sachs says it will pull-back from investing its own money into deals and instead raise outside funds that it can clip a steady management fee from, CFO Stephen Scherr says. “We will be prudent and patient as we reduce our on-balance sheet investing activities and bring on more client money,” he said. WSJ reported last month that Goldman was looking to raise outside funds for its proprietary investing group, which manages about $30B and has been wildly profitable over the past decade. But those profits are little valued by shareholders–and penalized by regulators–because they are obscure and risky. Management fees tend to be more stable and thus get a richer valuation. “Given the strength of our investing teams we believe this effort can bear fruit with limited incremental spend,” Scherr says. (email@example.com; @lizrhoffman)
BUSINESS & PRACTICE
Deutsche Bank-Commerzbank Deal Might Rest on Mountain of ‘Badwill’: Deutsche Bank will likely depend on an obscure but valuable accounting quirk —known as negative goodwill, or so-called badwill—to make a deal for smaller rival Commerzbank workable.
Starbucks Working With Cypress Creek Renewables on Texas Solar Farms: Starbucks said it is working with Cypress Creek Renewables and U.S. Bank on a portfolio of solar farms across Texas.
Investors Handed an Oilman a ‘Blank Check’ Company. Here’s How It Turned Out: Two years ago, investors handed veteran oilman Jim Hackett a $1 billion check and sent him to seek riches in shale drilling. Today, the company he founded with their money is teetering on financial ruin.
TRAVEL & LIFESTYLE
Tribeca Film Festival Touts Red Carpet Treatment for VIP Pass Holders: Exclusive $25,000 tickets draw deep-pocketed cinephiles but also criticism that ‘it’s more about being ritzy’ than movies.
The Wealth Adviser Briefing covers topics of interest to wealth managers, financial planners and other advisers. The content is curated by the Dow Jones Newswires team using articles from the Newswires, Barron’s, MarketWatch and The Wall Street Journal. The briefing is delivered to subscribers by email each workday morning at 6:30 a.m. ET. You can sign up here for email delivery.
For more information about our services for financial professionals, please visit DowJones.com