Focus Financial is a fee-based firm that is based in Minnesota. Among the firm’s advisors are certified financial planners (CFPs), accredited investment fiduciaries (AIFs) and accredited asset management specialists (AAMSs), among others.
Focus Financial Background
Founded in 1993, Focus Financial is an independent registered investment advisor (RIA) firm providing various advisory services to retail and institutional clients. The firm is owned by several individuals, and none have a majority share in the company, according to the firm’s brochure.
Focus Financial Client Types and Minimum Account Sizes
Focus Financial works with both high-net-worth individuals and non-high-net-worth individuals, as well as retirement plans, charities and businesses.
The firm doesn’t have a minimum account size requirement listed on its Form ADV.
Services Offered by Focus Financial
Focus Financial offers the following advisory services:
- Financial planning
- Portfolio management
- Pension consulting
- Selection of other advisors (including private fund managers)
Focus Financial Investment Philosophy
Focus Financial conducts investment research using several strategies. Among these are economic analysis, trend analysis, technical market analysis, fundamental analysis and technical trend following. The firm also relies upon specific criteria when making investment selections. For instance, Focus Financial selects mutual funds by reviewing things such as performance history, the industry sector in which the fund invests, the performance history of the fund’s manager and more.
The firm mainly invests in open-ended mutual funds purchased at net asset value (NAV), no-load and load waived mutual funds, exchange traded funds (ETFs) and variable products.
Focus Financial Fees
Focus Financial lists several different fee schedules which apply to different types of accounts and advisory services. We’ve listed those below:
| Fee schedule for accounts custodied at Pershing, Schwab, Fidelity and TD Ameritrade Institutional* | |
| Amount of assets | Management fee |
| $0 to $249,999 | 1.00% - 2.00% |
| $250,000 to $499,999 | 0.875% - 1.90% |
| $500,000 to $999,999 | 0.750% - 1.75% |
| $1,000,000 to $1,999,999 | 0.500% - 1.50% |
| Above $2,000,000 | 0.250% - 1.25% |
| *Fees above will be in addition to custodian transaction fees and other custodial fees. | |
| Fee schedule for Vision2020 Wealth Management Platform - Advisor Managed Portfolios Program | |
| Amount of assets | Management fee |
| $100,000 to $249,999 | 2.00% |
| $250,000 to $499,999 | 1.875% |
| $500,000 to $749,999 | 1.650% |
| $750,000 to $1,249,999 | 1.425% |
| $1,250,000 to $1,999,999 | 1.200% |
| $2,000,000 to $4,999,999 | 1.000% |
| $5,000,000 to $24,999,999 | 0.975% |
| Above $25,000,000 | 0.775% |
| Retirement Plan Consulting Services | |
| Amount of assets | Management fee |
| Up to $2,500,000 | 1.25% |
| $2,500,000 to $5,000,000 | 1.00% |
| $5,000,000 to $10,000,000 | 0.75% |
| $10,000,000 to $20,000,000 | 0.50% |
| $20,000,000 to $30,000,000 | 0.35% |
| $30,000,000 to $50,000,000 | 0.20% |
| Above $50,000,000 | 0.10% |
| Fee Schedule for Orion Portfolio Solutions - Advisory Fee Schedule | |
| Amount of assets | Management fee |
| $0 to $249,999 | 1.00% - 2.00% |
| $250,000 to $499,999 | 0.875% - 1.90% |
| $500,000 to $999,999 | 0.750% - 1.75% |
| $1,000,000 to $1,999,999 | 0.500% - 1.50% |
| Above $2,000,000 | 0.250% - 1.25% |
What to Watch Out For
Focus Financial doesn’t have any disciplinary actions, or disclosures, listed on its record within the past 10 years. One thing to consider, though, is that the firm’s fee-based compensation arrangements can create a conflict of interest, since advisors who are also insurance agents or brokers may develop an incentive to sell certain products for personal gain.
Though Focus Financial has a fee-based fee structure, it operates under a fiduciary duty, meaning it must act in the best interests of clients at all times.
Opening an Account with Focus Financial
If you’re interested in setting up an account with Focus Financial, you can visit any of the firm’s Minnesota offices or you can contact a representative over the phone.
All information was accurate as of the writing of this article.
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