Vanguard has long maintained two platforms—a legacy mutual-fund-only offering and a brokerage—but it is now pressuring longstanding mutual-fund customers to switch over to the brokerage wing or incur a new $20 annual fee on each fund they own. The fees, which will apply to investors with less than $1 million in the mutual-fund-only platform, appear to target some of Vanguard’s most loyal nonwealthy clients.
In other most-read wealth management articles this week:
Advisors’ book club. Advisors know that education is a big part of their job, from teaching basic financial literacy to helping manage emotions and expectations in times of market volatility or a family financial crisis. In this week’s Barron’s Advisor Big Q feature, we asked several advisors which books they recommend to clients. Responses ranged from lessons from the life and career of legendary investor Warren Buffett to insight into financial decision-making from author Michael Lewis.
Student loan forgiveness. The Biden administration this week announced its long-anticipated policy for forgiving student loan debt, which presents a distinct opportunity for advisors to connect with the younger generation of clients’ families. Eligibility is capped at individuals making $125,000 a year or couples earning $250,000, which would exclude wealthy clients but could include their adult children.
Texting troubles. Industry regulator Finra has sanctioned two brokers for alleged misconduct relating to improper communications with clients over text message. A former Wells Fargo advisor accepted a 30-day suspension and a fine for texting with a client about securities transactions, while another broker (formerly at
Ameriprise
) has been barred from the industry for refusing to turn over documents to Finra in an investigation involving numerous complaints of unauthorized trades as well as improper texting.
Equitable’s RIA acquisition. Equitable is expanding its wealth management portfolio with the acquisition of Penn Investment Advisors, a registered investment advisor with 950 clients and $600 million in assets under administration. Equitable picked up the RIA from Penn Community Bank in what the firm says will be an ongoing acquisition campaign as it looks to build out its Equitable Advisors unit.
Seeking greater voice. Black and Hispanic investors are seeking more control over their investment decisions, according to a new J.P. Morgan Wealth Management survey, which also found that those segments of investors are more interested in socially conscious investing than white investors. The survey also found that Black and Hispanic investors are more focused on building generational wealth.
Elsewhere this week, we caught up with Jim O’Donnell, who helms
Citi
Global Wealth, a unit that
Citigroup
set up last year to unite its consumer wealth business and its private bank for the ultrawealthy. In our Barron’s Advisor Q&A, O’Donnell discusses how the unit has been benefiting from referrals from other Citi businesses, how it plans to double its advisor ranks within six years, and why a degree in comparative religion helped him in his Wall Street career.
Have a great weekend.
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Source: https://www.barrons.com/advisor/articles/weeks-best-fee-hike-at-vanguard-51661536814?siteid=yhoof2&yptr=yahoo