Wells Fargo is bringing together different parts of its Wealth and Investment Management unit and reportedly exploring the sale of its Asset Management business. Copyright © 2021 ALM Media Properties, LLC. Your article was successfully shared with the contacts you provided. 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'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 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. 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 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. The sale is likely to fetch around $3 billion for the company. Thanks for contacting us. The sale is likely to fetch around $3 billion for the company. “I just want to be clear. When inquired by Reuters, Wells Fargo declined to comment, while US-based GTCR and Reverence did not respond to requests for comment. 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. We are bringing our brokerage and wealth businesses together into one client-facing structure.”. 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. All Rights Reserved. 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. 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 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. Performance including sales charge assumes the sales charge for the corresponding time period. In this news, we discuss the Exclusive: Wells Fargo to negotiate with buyout companies in asset management industry – sources. This story has been shared 1,629 times. Wells Fargo does not endorse and is not responsible for their content, links, privacy, or security policies. He has been cutting costs and shedding noncore businesses. The sale is likely to fetch … 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. Its total asset level was flat at $1.9 trillion. Wells Fargo has been dogged by problems since 2016 when the company was fined for creating millions of fake accounts. 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. 1,629, This story has been shared 1,267 times. 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. This traditional allocation will not only fall short on returns but actually increase risk, according to BlackRock strategists. The business managed $607 billion as of Sept. 30, $307 billion of which were in Wells Fargo funds. 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. Bank executives have signaled repeatedly that the worst of the fallout is in the past, but elevated operating losses have persisted. Exclusive discounts on ALM and ThinkAdvisor events. He has said he is targeting $10 billion in savings annually over the long term. It sold its retirement plan services business to Principal Financial Group Inc last year for $1.2 billion. Both Hays and Wellborn will continue reporting to Sommers. Get the latest best practices, relevant stats and industry trends - quickly and easily. 1,267, This story has been shared 836 times. 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. 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. 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. Learn more about our capabilities. How to Exceed Investor Service Expectations: An Advisor's Guide to Expanding Value Propositions. News: Exclusive: Wells Fargo close to deal with buyout firms for asset management business – sources. We are exiting them because they are not core to serving our core customer base on the consumer and large corporate side. 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. American banking major Wells Fargo is reportedly in discussions to offload its asset management arm to a private equity consortium. However, as part of … 836, © 2021 NYP Holdings, Inc. All Rights Reserved Access practical suggestions and clear insights for portfolio management - easily and quickly. Answer these questions to ensure you can increase client satisfaction and prospect engagement in 2021. 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 Asset Management provides the expertise, strategies, and portfolio solutions you need to achieve your investment goals. Just weeks after Morgan Stanley agreed to buy Eaton Vance, Wells Fargo is weighing the sale of its asset management business, two people familiar … 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. 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. Do Not Sell My Personal Information, Your California Privacy Rights Wells Fargo & Company WFC is looking to divest its asset management division, per Reuters. Your Ad Choices 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. Chicago-based GTCR and New York-based Reverence did not respond to requests for comment. According to the bank, “In late September, Barry Sommers … shared his vision of WIM client teams. 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. 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. The company is also said to be considering a potential sale of its asset management business. Sitemap 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 … In the third quarter, the bank’s Wealth & Investment Management unit had a 64% drop in net income from last year to $463 million. 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. 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. 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 & 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. Public offering price (POP) is the price of one share of a fund including any sales charges. As of Sep 30, 2020, the company’s asset management division had about $607 billion under management. Net asset value (NAV) is the value of one share of the fund excluding any … However, as part of … 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. New figures released by the bank include the average level of yearly revenues (fees and commissions) per financial advisor. (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 … 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. Do Not Sell My Personal Information. Wells Fargo declined to comment. The bank overall had a 56% year-over-year slump in profits to $2.04 billion. Wells Fargo & Company WFC is looking to divest its asset management division, per Reuters. When inquired by Reuters, Wells Fargo declined to comment, while US-based GTCR and Reverence did not respond to requests for comment. Investment products and services are offered through Wells Fargo Advisors. 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. 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. 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. 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 … The sale is likely to fetch around $3 billion for the company. We are not exiting them because of the asset cap,” Scharf said. A Wells Fargo spokesman declined to comment. A Raymond James executive predicts gradual recovery, an earnings boost and continued success for tech stocks. Earnings per share sank 55% to $0.42. The sale is likely to fetch around $3 billion for the … Wells Fargo has been dogged by problems since 2016 when the company was fined for creating millions of fake accounts. Preserve wealth with help from advanced tax planning and risk management strategies. 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 … “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. Sorry, your blog cannot share posts by email. WIM includes the Private Bank and Abbot Downing operations. 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. He … 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 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. They have been cutting costs and shedding noncore businesses. 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 unit’s restructuring plan was first reported by Financial Advisor IQ early Friday. The sale of the asset management business a step to turn Wells Fargo around following a years-old sales practices scandal. 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. 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. The best way to deliver quality service is by understanding what clients want from your interactions. 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 & Company WFC is looking to divest its asset management division, per Reuters. The sale of the asset management business a step to turn Wells Fargo around following a years-old sales practices scandal. 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The wealth and investment management division is led by Barry Sommers, the former head of JPMorgan Chase’s wealth management business that Scharf recruited in June. Privacy Notice Wells Fargo has reportedly fired more than 100 staffers after... Post was not sent - check your email addresses! Wells Fargo plans to keep its wealth management business that caters to high-net worth clients, the sources said. 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. (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 is exploring a sale of its asset management business after posting a 57% drop in third-quarter profits, Reuters reported on Thursday.. 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. 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. The cap prevents Wells Fargo … 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. Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com. Wells Fargo is reportedly in talks to sell its asset management arm. 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. 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. … Online Account Access Log In Register. Terms of Use 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. Advance your career and take your firm's production to the next level with FREE practice-management tips. Wells Fargo (NYSE: WFC) has about 27,500 employees in the Charlotte region, according to … Wells Fargo & Co.'s efforts to streamline its business, aren't an indication that the firm is considering selling its asset management unit. 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. Wells Fargo & Company (WFC Quick Quote WFC - Free Report) is looking to divest its asset management division, per Reuters. We've received your submission. Both Bank of … 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 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 … Propelling the Advisor-Client Journey with a Robust Client Portal. 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. Advisor Technology Outlook: Questions You Should Be Asking Your Advisor Tech. 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 … The asset management side has more than $500 billion under management and the company expects a sale of several billion dollars. 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. 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wells fargo asset management sale 2021