Acadian Asset Management is a financial advisor firm with more than 100 financial advisors managing $84 billion in client assets. Its headquarters are located in Boston, but you’ll find secondary branches in London, Singapore, Sydney and Tokyo. The firm only works with institutional clients, meaning it does not offer services for individuals. (If you're looking for an advisor firm that works with individual clients, our financial advisor matching tool can find one that meets your needs.)
Acadian is a fee-only firm. This means that all of the firm’s compensation comes from the management fees that clients pay. By contrast, many advisor firms are fee-based, which means that the firm can earns compensation through other sources that could present a conflict of interest.
Acadian Asset Management Background
Acadian Asset Management has been providing investment advice since its founding in 1986. According to the firm’s Form ADV, “BrightSphere Affiliate Holdings, LLC, part of the BrightSphere group (formerly known as Old Mutual or OMAM), owns 100% of the Class A (voting) interest of Acadian while an Acadian Key Employee Limited Partnership (“Acadian KELP LP”) owns 100% of the Class B interest which provides financial participation in the profitability of the firm. The Acadian KELP LP is comprised of the majority of senior staff and senior investment team members.”
The firm employs a total of 110 advisors, some of whom have earned advisory certifications such as chartered financial analyst (CFA) and chartered alternative investment analyst (CAIA).
What Types of Clients Does Acadian Asset Management Accept?
Acadian Asset Management works with around 300 clients, roughly a third of which are pooled investment vehicles. The firm also manages assets for investment companies, pension and profit-sharing plans, charitable organizations, government entities, sovereign wealth funds, corporations, foreign retirement plans and Taft-Hartley plans. Acadian currently doesn’t have any individual clients.
Acadian Asset Management Minimum Account Sizes
Acadian Asset Management generally requires a minimum account size of $50 million, although it may decide to accept smaller accounts if it so chooses. For those interested in investing in a fund that Acadian advises, minimum investment amounts can vary. You can find these minimums in the funds’ prospectuses.
Services Offered by Acadian Asset Management
Acadian Asset Management provides investment management to a wide range of clients. It offers a deep catalogue of different investment strategies within these services. Here’s a breakdown:
- Investment portfolio management
- Risk-adjusted investment planning
- Active management
- Customized to clients’ needs
- In-house risk modeling, return forecasts and transaction cost estimates
- Responsible investing
- Portfolio monitoring
Acadian Asset Management Investment Philosophy
Acadian Asset Management relies on automated, quantitative analyses to help inform its investment decisions. When considering equities, the firm maintains a database of tens of thousands of potential securities. It then uses proprietary software to generate expected returns several times per day and ranks these possible investments accordingly. From there, advisors will construct portfolios by combining this information with factors specific to each client, like their risk tolerance and liquidity needs.
The firm uses four main investment strategies:
- Core Equity: Strategies that use quantitative analysis to optimize a portfolio of equities tailored to a client’s needs.
- Long-Short Equity: This is similar to the Core Equity strategy, but it involves long-short practices. This is the act of buying and holding onto equities you believe will increase in value and short-selling equities you believe will decrease in value.
- Managed Volatility: This is a strategy that seeks to exploit a mispricing of risk within a cross section of equities. Low-risk equities are the centerpiece of portfolios using this strategy.
- Multi-Asset: A strategy in which advisors construct a portfolio containing several diversified asset classes including equity, fixed-income, currencies, commodities and more.
Fees Under Acadian Asset Management
For its investment advisory services, Acadian charges fees as a percentage of each client’s assets under management (AUM). These charges are broken down first by which of the firm’s four overarching investment strategies you select, and then by the individual strategy you go with. Annual fees for each of Acadian’s large-scale strategies adhere to these rates:
- Core Equity: 0.15% - 1.50%
- Long-Short Equity: 0.65% - 2.00%
- Managed Volatility: 0.20% - 0.75%
- Multi-Asset: 1.00% flat fee on all balances
What to Watch Out For
For certain client accounts, Acadian Asset Management will charge performance-based fees. The firm states that these fees are negotiated on an individual basis. The firm’s Form ADV also highlights the following: “Some concerns regarding performance fee accounts (are) that a manager will have a financial incentive to follow a more risky or speculative trading approach within the account or that the manager may allocate investment opportunities to a performance fee account at the expense of other non-performance fee accounts.”
Despite the above fee arrangements, Acadian abides by fiduciary duty. As a result of this, it is legally bound to act in clients’ best interests at all times.
Acadian Asset Management has no disclosures listed on its Form ADV, giving it a clean legal and regulatory record.
Opening an Account With Acadian Asset Management
To get in touch with Acadian Asset Management, you can call the firm’s only U.S. office in Boston at (617) 850-3500 or send an email to email@example.com. You can then speak with a firm representative who can advise you on if Acadian is the right firm for you.
Where Is Acadian Asset Management Located?
Acadian Asset Management has its headquarters in Boston in the financial district, just a short walk from Boston Harbor. The firm operates four global offices in London, Singapore, Sydney and Tokyo as well.
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