Two Top-Producing Advisers Leave Merrill Lynch--Street Moves

  By Michael Wursthorn 
 

Merrill Lynch Wealth Management lost two more financial advisers this week, including one from its ultra-wealthy client team.

James Hulburd, a high-net-worth adviser who managed more than $1.5 billion, left Merrill Lynch for UBS Wealth Management Americas, while John Van Donge, a $600-million adviser that worked with similar clients, as well as smaller ones, resigned to join Stifel Financial Corp.

A Merrill Lynch spokeswoman confirmed the departures, but declined to comment further.

Mr. Hulburd, who had been at Merrill Lynch since 2001 and was a member of its elite private-banking and investment group, wasn't available for comment.

Mr. Van Donge said the decision to move was simple: It's better for his clients.

"[Lower] fees are definitely a part of it," Mr. Van Donge said in an interview. "But what came down to it for me was that Stifel cares more about the client than Bank of America does."

Mr. Van Donge believes Stifel allows its advisers to tailor their services to the needs of the client as opposed to taking broad approaches to situations.

The 17-year Merrill Lynch veteran also said his former firm had benefited from its purchase by Bank of America in areas such as lending and the ongoing rollout of a new adviser platform, Merrill Lynch One. But he noted that clients, overall, lost something in the process.

"I think Merrill Lynch has become Bank of America," Mr. Van Donge said. "The downside is that they look at clients as customers."

Mr. Hulburd and Mr. Van Donge, both of whom work in California, weren't the only Merrill Lynch defections this week. Bank of America Corp.'s wealth management unit also lost Douglas Twohill, a 33-year veteran, and five-year Merrill Lynch adviser Steven Scalici to UBS. Together, those two had more than $300 million in assets and nearly $3 million in production.

Brokerage firms' advisers who serve the ultra-wealthy are some of the most sought after professionals in the industry, making retention a priority. For its part, Merrill Lynch has managed to attract more assets than it has lost this year in both the high-net-worth space (clients with $1 million or more in assets) and the ultra-high-net-worth segment (clients with $10 million or more in assets), a person with knowledge of the matter said.

Most recently, the firm recruited a trio of advisers from UBS that serve ultra-high-net-worth clients last month. Together, they oversaw $500 million in assets and had nearly $5 million in production.

The firm's headcount has been growing. Its parent reported last month that 155 new advisers joined the firm in the third quarter to bring its total headcount to 14,000, with the vast majority of those hires coming in through Merrill Lynch's training program.

(Street Moves chronicles the migration of executives on Wall Street, with a particular emphasis on financial advisers with more than $1 million in annual production and those who manage more than $100 million in client assets. Michael Wursthorn can be reached at 212-416-2218 or at [e-mail].)

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