Wells Fargo Adds 93 SMA Strategies, Removes 20; Scrutinizes Capital-Return Plan

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Wells Fargo added 93 third-party SMA strategies and removed 20 since April 2024, placing 69 on its recommended list to broaden asset-management offerings. The bank’s robust liquidity and credit strength underpin its dividend increases and massive buyback program, prompting scrutiny over the sustainability of its capital-return strategy.

1. SMA Manager List Revamp

Wells Fargo updated its SMA manager list by adding 93 third-party strategies and removing 20 since April 2024. Of the new additions, 69 have been included in the bank’s recommended product list for advisors, reflecting a strategic push to enrich its asset-management service offerings.

2. Capital-Return Strategy Scrutiny

The bank continues to increase dividends and execute a substantial share buyback program supported by strong liquidity and credit metrics. Investors and analysts are questioning the long-term sustainability of these capital-return measures given evolving regulatory and market conditions.

Sources

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