May 30 (Reuters) - Philadelphia-based brokerage Janney Montgomery Scott LLC has bolstered its broker base in Washington, D.C., with the addition of a veteran adviser who joined the firm from Morgan Stanley Smith Barney.
Adviser Thomas Graham moved to Janney on Thursday after nearly two decades at his old firm, where he managed $150 million in client assets. Graham started with Citigroup in 1994, later joining Morgan Stanley Smith Barney after the merger of Morgan Stanley’s wealth unit and Citigroup’s Smith Barney in 2009.
Graham is the 15th new adviser to join Janney so far in 2012, in what Janney’s Private Client Group President Jerry Lombard said will likely be the firm’s “second or third best year” in recruiting, based on average production of financial advisers joining the firm.
“They like our strength and stability story, and the simplicity of our business model,” Lombard said of advisers who have joined the firm from bigger brokerages. “We’re not manufacturing products; we’re not owned by a bank.”
Graham joined Janney as a senior vice president of wealth management, based in Washington, D.C. He now reports to regional manager Jim Dornan, who joined Janney in November from Morgan Keegan and had also previously worked at Citigroup.
Lombard said he expects to add 40 to 50 financial advisers by year-end, with an average annual production of about $800,000 per adviser. A production of $800,000 usually translates to about $80 million in client assets under management.
Janney, which is owned by the Penn Mutual Life Insurance Co , had 711 advisers in its private client group at the end of March. So far this year, the firm has made several big hires out of top U.S. brokerages including Bank of America’s Merrill Lynch and Morgan Stanley Smith Barney.
Janney’s chief executive, Timothy Scheve, told Reuters earlier this month that the firm plans to increase its total advisers by 5 percent to 10 percent annually.