Making the Financial Times "300 List" for registered investment advisors (RIAs) in 2019, AdvisorNet Financial provides wealth management services through its independent advisors. The Minneapolis-based firm also conducts business under the name AdvisorNet Wealth Management. Currently, its network of advisors have more than $1.98 billion in assets under management (AUM).
AdvisorNet Financial Background
AdvisorNet Financial can trace its roots back to 1959 when it formed as Stommen & Associate. Back then, the firm had five associates (plus founder Clair Stommen) and one staff member. Today, AdvisorNet Financial is an RIA that employs more than 130 individuals.
Its portfolio partners team, which provides investment research and back-office support, features an accredited wealth management advisor (AWMA), a chartered market technician (CMT) and a chartered investment management analyst (CIMA).
AdvisorNet Financial Client Types and Minimum Account Sizes
Through its independent advisors, AdvisorNet Financial works with individuals, trusts, non-profit organizations and business entities. It generally does not require a minimum investment for asset management services.
The firm also sponsors a wrap fee program, which it extends to a small percentage of clients. Under this arrangement, clients pay one single specified fee that covers advisory services, brokerage transactions and custodial costs.
In addition, AdvisorNet Financial advisors consult sponsors of qualified retirement plans such as 401(k)s on various matters including selection and monitoring of investment options for their plan offerings.
Services Offered by AdvisorNet Financial
AdvisorNet Financial Investment Philosophy
AdvisorNet Financial provides investment advice in accordance with the client’s goals and financial situation. The firm doesn’t restrict itself to specific securities. Depending on your needs and risk tolerance, your portfolio may invest in the following types of investments:
- Mutual funds
- Fixed income securities
- Collateralized mortgage obligations,
- Exchange-traded funds (ETFs)
- Independent investment managers and/or programs
- Select alternative investments
Fees Under AdvisorNet Financial
For investment management services on a non-wrap-fee basis, the firm generally charges asset-based fees according to the following tiered schedule:
|Portfolio Value||Annual Fee Schedule|
|$0 - $250,000||2.50%|
|$250,001 - $500,000||2.25%|
|$500,001 - $1 million||2.00%|
|$1,000,001 - $5 million||1.75%|
The firm’s wrap-fee program includes trade execution, custody, reporting and investment management fees. The single, bundled fee generally follows the the tiered schedule below:
|Portfolio Value||Annual Fee Schedule|
|$0 - $250,000||2.75%|
|$250,001 - $500,000||2.50%|
|$500,001 - $1 million||2.25%|
|$1,000,001 - $5 million||2.00%|
For financial planning services, AdvisorNet Financial typically charges a fixed fee based on the complexity of the services requested.
AdvisorNet Financial Awards and Recognition
As mentioned earlier, AdvisorNet Financial ranked among the Financial Times 2019 "300 List" for RIAs. To qualify for consideration, firms must have at least $300 million in AUM and a strong three-year growth rate, which the publication takes to reflect client satisfaction.
What to Watch Out For
Most advisors are also registered representatives of a broker-dealer and licensed insurance agents. On top of presenting potential conflicts of interest, these additional roles have different standards of conduct - which can be confusing. So when receiving a recommendation, clients should be sure they understand what it is based on and whether and how the advisor and firm benefits.
According to its latest disclosure documents, AdvisorNet Financial or an affiliate may have been charged with a misdemeanor in relation to its business practices within the past 10 years. Either party may also have been found in violation of certain rules by a self-regulatory organization or commodities exchange.
More About Finding the Right Financial Advisor
- AdvisorNet Financial’s services are limited when it comes to financial planning services. If you want more comprehensive advice around specific topics like retirement savings and estate planning, you can use our advisor matching tool. It recommends up to three local advisors based on your needs and preferences.
- Be sure to ask potential advisors about their credentials. Not all have industry certifications, so those who do have that much more training. They may also be held to higher standards. Certified financial planners (CFPs), for example, must always provide advice in the best interests of their clients.
All information was accurate as of the writing of this article.