Headquartered in Monument, Colorado, Advisors Asset Management functions as a registered investment advisor (RIA). What's unique about the firm is that it functions as both a RIA and registered broker-dealer, and it specifically caters to financial professionals and their clients. The fee-based firm and its financial advisors manage assets for individuals and institutional clients.
Advisors Asset Management Background
Advisors Asset Management was founded in 1979. Since then, it has worked to provide holistic portfolio solutions to a range of clients. But the firm differs from the average RIA in that it provides services designed to benefit other financial professionals and their clients. Advisors Asset Management’s client base also includes broker-dealers, and along with its RIA status, the firm is a Member FINRA/SIPC.
Advisors Asset Management Client Types and Minimum Account Sizes
Advisors Asset Management’s clients include high-net-worth and non-high-net-worth individuals, other investment advisors and companies, pension and profit-sharing plans, charitable organizations and businesses.
The minimum account size Advisors Asset Management requires depends on both the account type and the strategy under which it’s based. For accounts with fixed-income strategies, the firm requires $250,000. Accounts with equity strategies require a $100,000 minimum account size.
Services Offered by Advisors Asset Management
Advisors Asset Management offers supervisory services to UITs, as well as investment portfolio management services, distribution services and other products.
- Investment Solutions
- UITs
- Mutual Funds
- Managed Accounts
- Exchange-traded funds
- Fixed income
- Structured products
- Sales and Distribution
- UITs
- Mutual Funds
- Managed Accounts
- Exchange-traded funds
- Bond Services
- Portfolio Support
- Technological Services
Advisors Asset Management Investment Philosophy
Advisors Asset Management believes in equipping financial professionals with the tools they need to help its clients succeed. More specifically, the firm says it strives to understand and manage the risks that interest rates and credit exposure pose to fixed-income portfolios. The firm describes its approach to investment management as one that implements fundamental, technical and charting analysis to forge client-specific investment strategies. Through its fundamental approach, the firm analyzes businesses from a holistic approach. Its assessment may include everything from a business's financial statements and management, to its competitors and competitive advantages. With its technical approach, however, the firm works to identify and exploit price patterns and market trends. The firm uses charting to identify trends for individual securities.
Advisors Asset Management applies four steps to its investment process. First, it selects investments relative to its tactical duration targets. The firm then selects investments relative to the credit exposure value which complements the firm’s macroeconomic perspectives. The firm also selects investments in relation to spread analysis, maturity, coupon, duration and credit quality. Finally, Advisors Asset Management aims to structure portfolios in ways that diversify maturity and duration exposure. Through the final step the firm also strives to diversify across the capital structure, revenue source, geography, issue characteristics and position sizing.
The firm has an Investment Committee that meets quarterly and reviews economic, macroeconomic and market conditions. The committee uses the meeting to determine investment strategies in relation to such conditions. Advisors Asset Management also employs long-term and short-term purchases and trading when it feels such an investment strategy is beneficial to a holder of a separately managed account.
Advisors Asset Management Fees
The firm’s advisory fees are based on each client’s percentage of AUM. But the fees vary for different funds and account types. In addition, the firm retains the discretion to negotiate fees and services, and existing clients may encounter lower or higher fees than new clients. For portfolio management services to separately managed accounts, clients may encounter fees for fixed income strategies that range from 0.20% to 2.00%. The fees for equity strategies range from 0.45% to 2.50%. However, Advisors Asset Management acknowledges that some accounts may have fees that fall outside of that range. For sub-advisory services, the firm may charge a fee of 0.25% to 0.70% of assets sub-advised.
Advisors Asset Management may also provide management for non-discretionary accounts for clients such as investment advisors, financial services firms, broker-dealers or banks. The fees for such services are negotiated between the firm and the client. For wrap fee programs, clients may pay a monthly or quarterly fee of up to 0.60% of assets managed by the firm. The firm also charges fees for supervisory and evaluation services for UITs. It’s also important to note that, in addition to advisory fees, end-investors may also be responsible for brokerage, transaction and custodian fees associated with their accounts. The fees for mutual funds and ETFs are variable.
What to Watch Out For
Advisors Asset Management has three disclosures according to its SEC-filed Form ADV. All three are of a regulatory nature, with two of the three applying to advisor affiliates of the firm.
As a fee-based firm, some of the employees at Advisors Asset Management can earn commissions from the trading of certain securities. While this presents a potential conflict of interest, the firm abides by fiduciary duty.
Opening an Account With Advisors Asset Management
If you’re interested in opening an account, you’ll have a few options for getting in touch. On its website, the firm offers a contact information form that connects clients with firm representatives. You can also call the firm at any of its locations to set up an appointment, or you can stop by one of the firm’s physical locations.
All information was accurate as of the writing of this article.
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