This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“Total client assets ended the quarter at $524 billion, up 18% year-over-year.”
“There are signs we are in the early stages of a rotation, with investors moving out of bond funds and into equities. But I would call it a mini rotation, as opposed to the great rotation at this point”
“I think we’ve hit a point where I think we’ve gone from worried about the economy and whatnot, and I think we all have to keep those in front of us here. But I think we’ve hit a point where people are now starting to think about a rising rate environment.”
“We do have a view on when rates start to rise and that’s based on — the current forecast would be late ’15, early ’16, in that range when — or particularly, when Fed funds is up around 75 to 100 points, and to us, is when it’s sensitive, that you have that plan for. That’s probably not until early ’16. And so we have time to make — track to where we want to be. But to be in the right position at that time, you would want to shorten duration from where it is today and you want to build up your float balances such that you have lots of flexibility to manage through a rising rate environment and take advantage and build your earning power at that point. And when we talk to our bigger investors, they’re really focused on that. And they’ve been quite clear not to give away our long-term upside here.”
“if you take our margin accounts, the buying power has not gone up as the market, in general. And the reason for that is our most widely held stock, our most actively traded stock and our most margin stock is Apple, and — which has not participated in the rally, which has drawn in the buying power. So I don’t think there’s anything, as I call it, secular going on other than — a very large company that makes a big part of our margin book has not participated in this rally over the last year.”
“We did see, in the RIA channel, a little bit of a shift back to cash towards the end of the month. They were — if you went back to May and previous quarters, where they were at all-time lows in terms of cash and as a percentage of client assets, so they were fully in the market, and I think they took some profits off the table and put it back in cash ”
“up until very recently, even in products, people were — they were very conservative. And so I think that you are seeing a shift now”