Wells Fargo is close to selling its asset management business, and the likely buyer is a private equity consortium headed by GTCR and Reverence Capital Partners, according to Reuters. Do Not Sell My Personal Information. But Wells Fargo's asset management AUM within that total has still largely stagnated around that level for some time now, according to S&P Global Market Intelligence data. Wells Fargo (WFC +0.9%) is exploring the sale of its asset management business, which would represent the biggest move by the bank since Charlie … When inquired by Reuters, Wells Fargo declined to comment, while US-based GTCR and Reverence did not respond to requests for comment. Wells Fargo’s asset management business — part of the wealth unit — could be sold for over $3 billion, according to sources who spoke with Reuters for a report published Thursday. All Rights Reserved. The latest advisor headcount of 12,908 advisors is down 815, UBS Wealth Reports Dwindling Advisor Headcount, Asset Outflows in Americas, Buffett Inches Toward Wells Fargo Exit as Scharf Sets Course, More Reasons to Rethink the 60/40 Portfolio, Wells Fargo Wealth Unit Boosts Profits, Releases More Advisor Data, Sign Up for the Portfolio Builder Newsletter, Sign Up for the Inside Wealth Management Newsletter, Sign Up for the Career Advantage Newsletter. As the needs of your clients and prospects change, make sure your technology can keep up. Wells Fargo Pondering Sale of Asset Management Arm Wells Fargo reportedly is exploring the sale of its asset-management arm, a business that could fetch more than $3 billion, as it … Wells Fargo Bank branch is seen in New York By Joshua Franklin and David French Wells Fargo (NYSE:WFC) & Co is in exclusive talks to sell its asset management business, which manages more than $607 billion on behalf of customers, to a private equity consortium led by GTCR LLC and Reverence Capital Partners LP, according to people familiar with the matter. The sale is likely to fetch around $3 billion for the company. The bank has been grappling with these costs since 2016, when it entered a settlement with regulators that detailed millions of phony accounts employees had created in customers’ names without their permission to hit sales targets. Just months since the ground breaking $7 billion sale of Eaton Vance, the asset management sector continues to consolidate, with two notable auctions hitting milestones. Wells Fargo & Co is in exclusive talks to sell its asset management business, which manages more than $607 billion on behalf of customers, to a … Wells Fargo had started to trim the division even before Scharf because CEO. It also has dropped by 2,178 advisors, or 14%, from Sept. 30, 2016, when news of the bank’s fake-accounts scandal broke widely. Wells Fargo’s asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in a sale, two of the sources said Thursday. Wells Fargo is reportedly in talks to sell its asset management arm. Wells Fargo & Co. is exploring the sale of its asset management unit, a business that could fetch more than $3 billion, according to a person briefed on the matter. The sale of the asset management business is one of many steps taken by Scharf to turn Wells Fargo around following a years-old sales practices scandal. Wells Fargo & Co. is exploring the sale of its asset-management unit as the biggest banks choose paths of diving deeper into the business or getting out. Wells Fargo has reportedly fired more than 100 staffers after... Post was not sent - check your email addresses! He has been cutting costs and shedding noncore businesses. Wells Fargo also said that it will lower its real-estate expenses substantially, with total office space to be reduced by 15% to 20% by the end of 2024. In this news, we discuss the Exclusive: Wells Fargo to negotiate with buyout companies in asset management industry – sources. The bank is now on its third CEO since the scandal and has underperformed most of its peers in the last four years as it has dealt with the aftermath. Wells Fargo (WFC +3.1%) is in exclusive talks to sell its asset management business to a private equity group led by GTCR LLC and Reverence Capital … “By creating one overarching management structure, we will simplify processes, improve how we operate, and deliver even better and faster service for our clients,” Wells Fargo added. … The potential deal would illustrate how Scharf is looking at drastic moves, beyond cost cuts, as he seeks to turn Wells Fargo around following a years-old sales practices scandal. … Wells Fargo reported a 57 percent drop in its third-quarter profit earlier this month, missing Wall Street’s expectations, as persistent costs continued to haunt the bank. By David French (Reuters) - Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank's biggest shake-up since former Bank of New York Mellon chief executive Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday. The one big unknown constantly dogging Wells Fargo is the asset cap placed on the bank by the Federal Reserve in 2018 for its fake accounts scandal. Wells Fargo & Company WFC is looking to divest its asset management division, per Reuters. The former CEO of Wells Fargo Asset Management, Kristi Mitchem, told Pensions & Investments in July 2017 that the retail banking sales scandal resulted in … Wells Fargo is bringing together different parts of its Wealth and Investment Management unit and reportedly exploring the sale of its Asset Management business. The sale of the asset management business is one of many steps taken by Scharf to turn Wells Fargo around following a years-old sales practices scandal. They have been cutting costs and shedding noncore businesses. The asset management business, which is part of Wells Fargo’s wealth and investment management division, offers mutual funds and retirement products. Julia Wellborn, head of Private Wealth Management, will lead client experience across WIM, as well as “the strategy and model for the high- and ultra-high-net-worth client segments across all channels,” it explained. Both Bank of … Wells Fargo & Company (WFC Quick Quote WFC - Free Report) is looking to divest its asset management division, per Reuters.The sale is likely to fetch around $3 billion for … Your Ad Choices Oct 22 (Reuters) - Wells Fargo & Co WFC.N is exploring a sale of its asset management business, in what would be the U.S. bank's biggest shake-up … 1,629, This story has been shared 1,267 times. A Wells Fargo spokesman declined to comment. New figures released by the bank include the average level of yearly revenues (fees and commissions) per financial advisor. The US Federal Reserve has placed restrictions on Wells Fargo’s balance sheet, to be lifted only when the management team can prove it has sufficiently improved risk management and controls. Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions. The news comes about a week after the bank said several hundred financial advisors have been included in recent layoffs, which started in August, and two weeks after rival wirehouse Morgan Stanley said it was buying asset manager Eaton Vance. It sold its retirement plan services business to Principal Financial Group Inc last year for $1.2 billion. However, as part of … Advance your career and take your firm's production to the next level with FREE practice-management tips. We are bringing our brokerage and wealth businesses together into one client-facing structure.”. The sale of the asset management business a step to turn Wells Fargo around following a years-old sales practices scandal. Wells Fargo declined to comment. The asset management side has more than $500 billion under management and the company expects a sale of several billion dollars. (Reuters) – Wells Fargo & Co is in exclusive talks to sell its wealth management business, which manages more than $ 607 billion on behalf of clients, to a private equity consortium led by GTCR LLC and Reverence Capital Partners LP The reason. Wells Fargo's asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in a sale, two of the sources said. Wells Fargo & Co.'s efforts to streamline its business, aren't an indication that the firm is considering selling its asset management unit. Wells Fargo & Co. is exploring the sale of its asset management unit, a business that could fetch more than $3 billion, according to a person briefed on the matter. Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank’s biggest shake-up since former Bank of New York Mellon chief executive Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday. Scharf told analysts on the bank’s third-quarter earnings call this month that he expected to create some room on Wells Fargo’s balance sheet by exiting non-core businesses. Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank's biggest shake-up since former Bank of … Asset management firms have seen the fees on services decline dramatically over the past decade, and most analysts anticipate the trend to continue. Just weeks after Morgan Stanley agreed to buy Eaton Vance, Wells Fargo is weighing the sale of its asset management business, two people familiar … According to Reuters, which cited unnamed sources, Wells is in exclusive talks to sell its asset management arm to a private equity group led by GTCR LLC and Reverence Capital Partners LP.. A spokesman for Wells Fargo declined to comment when approached by Citywire. 836, © 2021 NYP Holdings, Inc. All Rights Reserved Wells Fargo is exploring a sale of its asset management business after posting a 57% drop in third-quarter profits, Reuters reported on Thursday.. Net asset value (NAV) is the value of one share of the fund excluding any … Wells Fargo’s asset management business — part of the wealth unit — could be sold for over $3 billion, according to sources who spoke with Reuters for … Wells Fargo has been dogged by problems since 2016 when the company was fined for creating millions of fake accounts. News: Exclusive: Wells Fargo close to deal with buyout firms for asset management business – sources. This story has been shared 1,629 times. The sale is likely to fetch around $3 billion for the company. Sitemap Wells Fargo’s asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in … The bank overall had a 56% year-over-year slump in profits to $2.04 billion. The company is also said to be considering a potential sale of its asset management business. Advisor Technology Outlook: Questions You Should Be Asking Your Advisor Tech. Wells Fargo & Co is exploring a sale of its asset management business, in what would be the US bank's biggest shake-up since former Bank of New York Mellon chief executive officer (CEO) Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday. Wells Fargo reportedly is exploring the sale of its asset-management arm, a business that could fetch more than $3 billion, as it looks to revamp its business. They have been cutting costs and shedding noncore businesses. Copyright © 2021 ALM Media Properties, LLC. Do Not Sell My Personal Information, Your California Privacy Rights Public offering price (POP) is the price of one share of a fund including any sales charges. Bank executives have signaled repeatedly that the worst of the fallout is in the past, but elevated operating losses have persisted. Wells Fargo's asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in a sale, two of the sources said. The sale is likely to fetch around $3 billion for the company. This traditional allocation will not only fall short on returns but actually increase risk, according to BlackRock strategists. The sale of the asset management business a step to turn Wells Fargo around following a years-old sales practices scandal. Earnings per share sank 55% to $0.42. Access practical suggestions and clear insights for portfolio management - easily and quickly. The best way to deliver quality service is by understanding what clients want from your interactions. However, as part of … ARK's Cathie Wood: Big Shift From Bonds to Stocks Is Coming, Harry Dent: Market Crash Coming in 2-3 Years; Economy ‘Already Dead’, 33 Undervalued Stock Picks for 2021: Morningstar, 11 Key Pieces of Biden's $1.9T Stimulus Plan. Wells Fargo’s asset management business — part of the wealth unit — could be sold for over $3 billion, according to sources who spoke with Reuters for a report published Thursday. The sale is likely to fetch around $3 billion for the … The sale is likely to fetch … Performance including sales charge assumes the sales charge for the corresponding time period. The unit’s restructuring plan was first reported by Financial Advisor IQ early Friday. But Wells Fargo's asset management AUM within that total has still largely stagnated around that level for some time now, according to S&P Global Market Intelligence data. The latest advisor headcount of 12,908 advisors is down 815, or 6%, from a year ago and 391, or 3%, from the prior quarter. Wells Fargo does not endorse and is not responsible for their content, links, privacy, or security policies. Wells Fargo (NYSE: WFC) has about 27,500 employees in the Charlotte region, according to … A Raymond James executive predicts gradual recovery, an earnings boost and continued success for tech stocks. He … (Reuters) - Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank's biggest shake-up since former Bank of … Wells Fargo reportedly exploring sale of asset management business Wells Fargo fires over 100 staffers for COVID-19 relief abuse Wells Fargo third-quarter profit plunges 57 percent WIM includes the Private Bank and Abbot Downing operations. The sale of the asset management business is one of many steps taken by Scharf to turn Wells Fargo around following a years-old sales practices scandal. He has said he is targeting $10 billion in savings annually over the long term. Online Account Access Log In Register. American banking major Wells Fargo is reportedly in discussions to offload its asset management arm to a private equity consortium. Preserve wealth with help from advanced tax planning and risk management strategies. We are exiting them because they are not core to serving our core customer base on the consumer and large corporate side. Wells Fargo plans to keep its wealth management business that caters to high-net worth clients, the sources said. Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com. Wells Fargo is exploring a sale of its asset management business, in what would be the bank’s biggest shake-up since former Bank of New York Mellon chief executive Charles Scharf joined as CEO last year, people familiar with the matter said. Your California Privacy Rights The asset management side has more than $500 billion under management and the company expects a sale of several billion dollars. The cap prevents Wells Fargo … Thanks for contacting us. Overall, the $1.9 trillion-asset company said that it has identified roughly 250 efficiency initiatives it expects to execute over three to four years. Chicago-based GTCR and New York-based Reverence did not respond to requests for comment. Terms of Use Your article was successfully shared with the contacts you provided. Answer these questions to ensure you can increase client satisfaction and prospect engagement in 2021. Wells Fargo & Company WFC is looking to divest its asset management division, per Reuters. Wells Fargo reportedly exploring sale of asset management business Wells Fargo fires over 100 staffers for COVID-19 relief abuse Wells Fargo third-quarter profit plunges 57 percent The news comes about a week after the bank said, several hundred financial advisors have been included, could be sold for over $3 billion, according to sources who spoke with, The unit’s restructuring plan was first reported by. Propelling the Advisor-Client Journey with a Robust Client Portal. The wealth and investment management division of Wells Fargo, which includes the asset management arm, generated a $463 million profit in the third quarter on … As for the streamlining of the wealth unit, this effort is being led by Barry Sommers, brought in from JPMorgan by Wells Fargo CEO Charles Scharf in June to lead the Wealth and Investment Management business. As part of the reorganization, Wells Fargo Advisors President Jim Hays is set to take on more “responsibility for the combined client structure,” including “the advisors and leaders serving clients in the Private Bank and Abbot Downing along with all of the WFA channels,” the bank said. Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank’s biggest shake-up since former Bank of New York Mellon chief executive Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday. Scharf, the bank's chief executive who took over in late 2019, suggested on an Oct. 14 earnings call with analysts that a sale of some noncore businesses is on the table. As of Sept. 30, the unit’s retail brokerage operations had $1.6 trillion in assets and 12,908 financial advisors, while the wealth management business had $229 million of assets. The sale of the asset management business is one of many steps taken by Scharf to turn Wells Fargo around following a years-old sales practices scandal. Wells Fargo's asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in a sale, two of the sources said. Get the latest best practices, relevant stats and industry trends - quickly and easily. Learn more about our capabilities. Wells Fargo has been dogged by problems since 2016 when the company was fined for creating millions of fake accounts. We are not exiting them because of the asset cap,” Scharf said. Privacy Notice 1,267, This story has been shared 836 times. According to the bank, “In late September, Barry Sommers … shared his vision of WIM client teams. Wells Fargo & Company (WFC Quick Quote WFC - Free Report) is looking to divest its asset management division, per Reuters. How to Exceed Investor Service Expectations: An Advisor's Guide to Expanding Value Propositions. The San Francisco-based bank has discussed a potential deal with asset management companies and private equity firms, according to the sources, who cautioned that a divestment is not certain and asked not to be identified because the matter is confidential. Wells Fargo & Company WFC is looking to divest its asset management division, per Reuters. Asset management firms have seen the fees on services decline dramatically over the past decade, and most analysts anticipate the trend to continue. Wells Fargo explores sale of asset management business Wells Fargo & Co is exploring a sale of its asset management business, in what would be the U.S. bank’s biggest shake-up since former Bank of New York Mellon chief executive Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday. When inquired by Reuters, Wells Fargo declined to comment, while US-based GTCR and Reverence did not respond to requests for comment. Wells Fargo & Company WFC is looking to divest its asset management division, per Reuters. Sorry, your blog cannot share posts by email. Investment products and services are offered through Wells Fargo Advisors. “I just want to be clear. In the third quarter, the bank’s Wealth & Investment Management unit had a 64% drop in net income from last year to $463 million. Wells Fargo Asset Management provides the expertise, strategies, and portfolio solutions you need to achieve your investment goals. The sale of the asset management business is one of many steps taken by Scharf to turn Wells Fargo around following a years-old sales practices scandal. Scharf, the bank's chief executive who took over in late 2019, suggested on an Oct. 14 earnings call with analysts that a sale of some noncore businesses is on the table. The bank is now on its third CEO since the scandal and has underperformed most of its peers in the last four years as it has dealt with the aftermath. As it moves to improve results, Wells Fargo is planning job cuts that may trim up to 20% to 25% of its workforce — representing about 50,000 to 66,000 jobs, according to a report last month in Pensions & Investments. Its total asset level was flat at $1.9 trillion. Exclusive discounts on ALM and ThinkAdvisor events. The potential deal would illustrate how Scharf is looking at drastic moves, beyond cost cuts, as he seeks to turn Wells Fargo around following a years-old sales practices scandal. Both Hays and Wellborn will continue reporting to Sommers. Numerous media outlets have reported that Wells Fargo (NYSE:WFC) is contemplating a sale of its asset management division, which could fetch as much as $3 billion. The business managed $607 billion as of Sept. 30, $307 billion of which were in Wells Fargo funds. If you need assistance, please contact your Wells Fargo Asset Management representative, or email us at WFAMInstitutional@wellsfargo.com. We've received your submission. As of Sep 30, 2020, the company’s asset management division had about $607 billion under management. 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