Clients to have broadest range of choices and price options - including
Internet channel - to access information, advice and guidance, financial
planning, cash management, investment, asset and liability management,
e-commerce services
NEW YORK, June 1 /PRNewswire/ -- Merrill Lynch today announced a new model
for personal financial services in the Digital Age, combining its world-class
advisory and research capabilities with a powerful technology platform.
"We have the world's most capable network of financial consultants, who
start from the understanding that people's financial needs go far beyond
trading stocks, and that most want the advantage of objective, professional
advice and guidance. We believe we are creating a comprehensive framework
that will revolutionize the concept of personal financial services in
America," said David H. Komansky, Chairman and Chief Executive Officer.
Starting in July, Merrill Lynch will introduce to US investors a complete
spectrum of relationship options and financial management tools that will
empower them with new flexibility and access, ranging from personalized
service from Merrill Lynch financial consultants to economical, self-directed
investing via the Internet.
Clients will be able to customize the global power of Merrill Lynch to fit
their unique and changing personal preferences and needs, with the added
convenience of unified account access and reporting.
"Whether clients want advice and guidance from a skilled financial
consultant, convenient, self-directed Internet investing, or some combination,
they'll get it at Merrill Lynch," said Mr. Komansky. "We're proud that
Merrill Lynch is uniquely capable of offering this vast range of services
under one roof, backed by our history and reputation for global market
intelligence, quality of advice, and financial strength."
"Charles Merrill revolutionized financial services in the 20th century
with the simple yet powerful promise that the client's interest would always
come first," added Herbert M. Allison Jr., President and Chief Operating
Officer. "Today we are pleased to show how we'll carry that vision into the
21st century, as the preeminent financial advisor for client achievement in
what is fast becoming a 24-hour-a-day financial world. This is a natural
extension of the client-focused strategy that has attracted over $1.5 trillion
in client assets worldwide over the past several decades."
"We've designed an integrated approach that empowers investors by
providing the broadest range of options to create a financial plan and then
execute it 'your way,' through investment, asset management, liability
management, and sophisticated cash management," said John L. Steffens, Vice
Chairman.
"We've also vastly expanded our e-commerce program, including a
business-purchasing hub and our popular Visa(R) Signature(SM) rewards-points
program, through which our customers can earn substantial financial benefits.
Every investor, whether affluent or in the wealth-accumulation stage, will be
able to access Merrill Lynch in a way that provides exceptional value,"
Mr. Steffens said.
The Power of Merrill Lynch -- Your Way
Components of Merrill Lynch's client-focused program will include the
following relationship options:
One fee, total access: A new account with no commissions and pricing
based on household assets, at a blended rate of one percent of equity and
mutual fund assets and 30 basis points of cash/fixed-income assets; minimum
annual fee: $1,500. Fee percentages will decline as assets grow. For an
annual, asset-based fee, clients can receive a broad range of Merrill Lynch
services, including:
-- Personalized service from a Merrill Lynch financial consultant, with
periodic review of portfolio performance.
-- Unlimited transactions for most investors in most equities, mutual
funds and fixed-income products at no additional charge. Orders can be
placed via financial consultant, telephone or Internet.
-- Financial Foundation(R) plan with periodic updates.
-- Visa Signature card and rewards program, with a broad range of cash
management services, including no-fee ATM transactions worldwide.
-- Merrill Lynch OnLine(SM), and access to Merrill Lynch research.
-- e-Commerce link, including discounts and Visa(R) Signature(SM) rewards
points, to dozens of vendors.
-- An unlimited number of eligible accounts can be linked.
This service will be available starting in July.
Traditional financial consultant relationships: Clients will have the
option of continuing to do business with a Merrill Lynch financial consultant
under the existing commission structure.
Also, a full range of discretionary asset management services will
continue to be available, along with specialized services for high-net worth
individuals with assets of $5 million or more.
For people who want the convenience of doing business via toll-free
telephone number, an Investor Services Center is available 24 hours a day,
seven days a week, for information, advice and transactions.
Internet channel: For clients preferring a self-directed approach to
investing, Merrill Lynch will introduce a new online financial service,
designed to address investment, planning and cash management needs.
-- Basic charge of $29.95 per trade for US equities.
-- Online purchase of no-load and load mutual funds.
-- Fixed-income and other products.
-- Online access to cash management services and Merrill Lynch research.
This service will be available starting in December, 1999.
New Tools for a Total Financial Relationship
Other components of the program will give individuals and independent
business proprietors powerful new tools to manage their total financial
resources:
Enhanced Cash Management Account(R): Through enhancements to the landmark
CMA(R) financial service, clients will be able to easily segregate checking,
savings and investment activities with the convenience of Internet access and
a unified monthly statement. Features include:
-- Convenience of Internet access via Merrill Lynch OnLine(SM).
-- Money market account sweep, with FDIC insurance up to $100,000.
-- Available credit, including overdraft protection and margin credit.
-- The Visa(R) Signature(SM) card and rewards program.
-- A full range of cash management services, including checking, ATM
access, direct deposit, electronic funds transfer and bill-paying.
e-Commerce: Merrill Lynch is establishing a world-class e-Commerce
offering for its online clients. Through this vastly expanded "commerce
network," the Merrill Lynch online client community will substantially magnify
the purchasing power of each of its members. Special services will be
available to independent business owners.
-- Discounts for goods and services from dozens of new e-Commerce partners
will be available through Merrill Lynch OnLine(SM), with the added
benefits of Visa Signature rewards points.
-- Independent business owners will receive discounts on thousands of
products through the WCMA(R) Account and a link with Works.com, one of
the most effective purchasing hubs for small businesses.
The Role of the Financial Consultant
Merrill Lynch believes that technology guided by human wisdom continues to
be the path by which clients will most effectively achieve their financial
goals.
A professional, experienced financial consultant -- accountable, committed
to long-term performance, equipped to provide advice suitable to all market
conditions and augmented by technology -- is central to Merrill Lynch's
client-focused business strategy.
The company anticipates a substantial, multi-year expansion of its
financial consultant workforce, which now numbers nearly 14,000 in the US.
Statements made today may include forward-looking information subject to
risks, uncertainties and other factors that could materially affect actual
results. These are described in the company's form 8-K, which is available at
the SEC's website, http://www.sec.gov.
SOURCE Merrill Lynch & Co., Inc.
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http://www.merrilllynch.com
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http://www.prnewswire.com/comp/555800.html or fax,
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CONTACT:
Media Relations: Richard Silverman,
212-449-9205, Susan Thomson, 212-449-2004, or Investor Relations:
William L. Hartman, 212-449-8818, all of Merrill Lynch
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