Seeking Alpha

Wells Fargo has big plans for asset-management

  • Known internally as the "Big Hairy Audacious Goal," Wells Fargo (WFC +0.2%) aims to double the size of its asset-management operation to more than $1T of AUM over the next decade through (small) acquisitions and aggressive selling to big-fish investors, reports the WSJ.
  • The move comes as other parts of Wells' business - notably mortgages - stagnate (bank revenue fell 1.5% Y/Y in Q2), and major acquisitions are pretty much verboten in today's regulatory environment.
  • Investors may be steering away from mutual funds and toward passive products like ETFs and index funds, but it hasn't stopped JPMorgan from racking up $17B of inflows in 2013, and another $17.5B so far this year. Wells, on the other hand, saw $1.6B of outflows in 2013 and another $1B YTD. Goldman Sachs - the only other of U.S. banks ranking among the top 50 asset managers - like JPMorgan, also saw sizable inflows during this period.
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Comments (3)
  • NYCTEXASBANKER
    , contributor
    Comments (2819) | Send Message
     
    The only way they get to 1 T is to find a lot of brain dead rich people. There trading platform is very old. You can't do a simple buy write combination. Then again when I asked when the would have a buy write added to the platform the person at the other end asked what a buy write was. I get 200 free trades because of my mortgage so I use them for simple limit trades anything more and you are pushing the envelope.
    19 Aug 2014, 05:07 PM Reply Like
  • FleetUSA3226
    , contributor
    Comments (837) | Send Message
     
    Look with a competitor like Vanguard there is no way I would advise anyone to use Wells even though I love the stock.

     

    I've overheard financial planning advice at my local Wells branch to humble neophytes. Obviously WFC won't get rich off these people but neither will the neophytes. It was sad to hear.
    19 Aug 2014, 06:46 PM Reply Like
  • Phr3d
    , contributor
    Comments (304) | Send Message
     
    Glad your investment advice and experience was comparatively good at uhmm.. competing banks..

     

    Not sure that individual phone trades is the focus of this effort, but I could be wrong - if individual support needs work, I hope they will do so, particularly if it -could- produce $1T in a decade.
    20 Aug 2014, 02:45 AM Reply Like
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