capital markets
Advisors and clients bring divergent market perspectivesPosted by RJ and Makay on Mar 15, 2012 |
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Assumptions for 2012 market portfolio returns vary between advisors and their clients, according to the most recent Russell Financial Professional Outlook (FPO) survey. Surveyed advisors on average expect 3.9% returns for a conservative portfolio, 5.9% for a balanced portfolio and 8.3% for an aggressive portfolio. Polled advisors say their clients have even higher expectations for their investments.
U.S. Regulators told lawmakers last week that they will adjust prohibitions on banks’ proprietary trading per Volcker rule restrictions, but will resist calls to altogether drop the measure that sprang from the Dodd-Frank Act. Federal Reserve Governor Daniel Tarullo, along with top officials from four other agencies, defended the rule at a House Financial Services joint subcommittee hearing in Washington.
The wealth management unit of Wells Fargo & Company reported weaker than expected fourth quarter 2011 results Monday. The firm attributed the tepid quarter to volatile investment markets and reduced client activity. Client assets within Wells Fargo Advisors declined 3% from Q4 2010 to $1.13 trillion, the company said. Fee-based income in the segment fell 2% to $198 million. The firm added 75 advisors in 2011 to bring its total to 15,263.
