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Waterloo Capital Management is the successor to Virtus Private Wealth Management. The fee-based firm specializes in working with high-net-worth individuals, who make up a majority of its individual clientele. With headquarters in Austin, Waterloo Capital Management is on SmartAsset's top financial advisor list for the city. The firm also has an office in Chamblee, Georgia.
Waterloo Capital Management Background
John Chatmas is the owner and CEO. With a degree in finance from the University of Texas at Austin, he has worked for Smith Barney, Morgan Stanley and Morgan Keegan & Company Private Client Group. He acquired Virtus, which became Waterloo Capital Management, in 2012.
The team at Waterloo Capital includes advisors with various professional certifications, including chartered financial analyst (CFA) and chartered retirement planning counselor (CRPC). The firm's executive team holds a lot of experience. Bennet Woodward, chief investment officer, has worked at ING, GLOBALT and Raymond James and co-founded Black Diamond Investment Partners. Donald Simoneaux, director of alternative investments, has put in time at Cambridge Associates, where he specialized in private equity and venture capital, and Mikiel Featherston, director of planning, has more than 35 years of financial planning experience.
Waterloo Capital Management Client Types and Minimum Account Sizes
As noted earlier, Waterloo Capital serves more individuals who have high net worths than those who don't. It also works with:
- Trusts
- Estates
- Retirement accounts
- Pension and profit-sharing plans
- Charitable organizations
- Corporations and other business entities
To open an account, you generally need at least $1 million dollars. The firm, though, may lower the requirement at its discretion or take into account a client's family members' accounts.
Services Offered by Waterloo Capital Management
Waterloo Capital offers investment management either through internal portfolio managers or third-party money managers. It also provides financial planning, which, comes with asset management services or can be stand-alone. Financial plans can cover such topics as estate planning, charitable planning, corporate and personal tax planning, real estate analysis, insurance analysis, business financial planning, retirement planning, family and business succession planning, education planning, mortgage/debt analysis and lines of credit evaluation.
Waterloo Capital Management Investment Philosophy
Like many firms, Waterloo Capital customizes investments to individual situations but primarily invests for the long term. Unlike most firms, however, Waterloo follows the university endowment model. This means that your advisor tracks how universities are managing their money and use that to guide your investments.
The practice describes its allocation model as “structured, systematic and emotion-free.” The approach has four main tenets:
- The university-endowment model: Based on how endowment managers position portfolios, this model helps keep your assets protected during periods of volatility.
- Mathematical optimization: Waterloo’s tool analyzes trailing indices’ performance.
- Tactical overlay: This is the human touch that helps reposition portfolios in the face of changing market conditions, which means your advisors are watching your money for you and responding as needed.
- The final approach is keeping you, the client, at the forefront through constant conversation.
When evaluating investments, Waterloo Capital primarily uses fundamental analysis. Assets may include:
- Equities
- Fixed-income securities
- Mutual funds
- Alternative investments
If deemed approriate, the firm may recommend outside money managers to help diversify your portfolio.
Fees Under Waterloo Capital Management Portfolio Styles
Waterloo Capital Management charges clients who utilize its investment management services an asset-based fee, paid quarterly, in advance, through a direct disbursement.
Investment management fees at Waterloo come in two versions: a standard fee schedule and a wrap-fee program. While standard investment management clients are required to cover fees associated with mutual funds, separate managers, broker-dealers and custodians, these charges are calculated into the wrap-fee program. This of course means that the wrap-fee program is slightly more expensive than its standard counterpart.
Comprehensive asset management and financial planning clients at Waterloo are afforded a similar fee schedule to that of investment management clients. On the other hand, financial planning and consulting clients are subject to hourly fees, fixed fees or a combination of the two.
| Waterloo Capital Management Fees | |
| Service | Fees |
| Standard Investment Management | Maximum annual fee: 2.00% |
| Investment Management Wrap-Fee Program | Maximum annual fee: 2.50% |
| Comprehensive Asset Management and Financial Planning | Maximum annual fee: 2.00% |
| Financial Planning and Consulting |
|
Waterloo Capital's maximum fee for standard investment management is more than double the industry average of 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. That said, Waterloo will negotiate its fees. Learn more about advisors' typical costs here.
What to Watch Out For
The firm reported no legal or disciplinary action in it latest filings with the Securities and Exchange Commission.
Two things to note: Some advisors may be brokers or insurance agents, who collect transaction-based fees or commissions. These can pose a conflict of interest. Also, Waterloo Capital has an economic interest in Intelligent Wealth Solutions LLC, which is an affiliate and which Waterloo Capital may recommend to clients as a manager of separate accounts. This is also a potential conflict of interest. That said, Waterloo Capital is legally bound by its fiduciary duty always to work in its clients' best interests.
Opening an Account With Waterloo Capital Management
The easiest way to contact the firm initially is to send it a message with your email on its website. Alternatively, you can call (512) 777-5900.
All information is accurate as of the writing of this article.
Tips for Financial Planning
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