In Practice December 30, 2006

Merrill to Offer Better Bonuses to Advisers

Merrill Lynch has launched a new 2007 Focus on Growth bonus program for its 15, 700 financial advisers, through which its advisers will be eligible to receive payouts equal to as much as 30% of their revenue.
Reported by

The firm’s new bonus program works in addition to the firm’s current incentives for advisers, in which bonuses are predominantly based on a growth in client assets and fee-based business, according to published reports.

 

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2007 Focus on Growth will allow for bonuses of 10%, 20% and 30% of commissions and fees earned over the prior 12 months. This production-based incentive plan, therefore, offers reason for advisers to increase all business but, according to published reports, advisers must continue to grow their fee-based work.

The Markets December 29, 2006

ICI: ETF Assets Grow to $396B in November

The total combined assets of the nation's exchange-traded funds (ETFs) climbed 3.5% to $396.73 billion in November, according to an Investment Company Institute (ICI) news release.
Reported by
During the month, ETFs grew by $274.7 billion, up from a $268 billion increase in October. Of that amount, $229.9 billion was in Domestic (broad-based) funds, and $44.8 billion was in Domestic (Sector/Industry) funds, according to the ICI data.

Meanwhile, assets in Global/International Equity Index funds were up $95.3 billion in October to $101.7 billion, and assets in Bond Index funds rose from $19.9 billion to $20.2 billion.

During November, the value of all ETF shares issued exceeded that of shares redeemed by $3.09 billion, far less that the $19.8 billion reported in October. In 2006, ETFs have experienced a net issuance of $56.98 billion.

The total number of ETFs increased by 18 in November over October, ICI said.

Over the past 12 months, ETF assets increased $107.8 billion, or 37.3%, ICI data showed. Assets in domestic equity ETFs increased $60.63 billion since November 2005, and global equity ETF assets hiked $42.5 billion during that period.

The full ICI report is here.

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