Merrill Targets Ultra-HNW Clients with New Offices

Contributing Editor

9 February 2006

Merrill Lynch plans to expand its network of offices for ultra-high net worth individuals and small businesses in the US, with new offices planned in Boston, Greenwich, Connecticut, and a second office in Manhattan, according to Robert McCann, president of the firm’s private client group. About one-third of client assets managed by McCann's group come from customers who have at least $10 million with the company, he said in a speech at a Credit Suisse conference in Florida. Merrill has about 300 so-called private wealth advisors serving the market. Mr McCann also said Merrill Lynch is keen to acquire and expand its private-client brokerage business in the US and abroad. "Our margins certainly have the potential to go higher than current levels," he said. "We are focused on balancing near-term profitability with the critical investments that we need for growth. You may see that affect margins going forward quarter to quarter." Merrill is interested in buying other brokerage firms in the US and in expanding into India, the Middle East and parts of Europe, Mr McCann said. He added that Merrill hired almost 700 brokers, or what it calls financial advisors, from competitors last year and hired more than it lost from its four biggest rivals.