Aperio Group, LLC is a fee-only financial advisor firm located in Sausalito, California. The firm employs 26 advisors to manage its nearly $24 billion in assets under management (AUM). Aperio Group primarily provides investment management services, with an emphasis on active tax management and portfolio rebalancing. Though most of the firm’s AUM is attributable to high-net-worth individuals, it has a diverse client base.
Aperio Group Background
Aperio Group was founded in 1999. Until January 2016, the firm was owned by its four founders: CEO and chief tax economist Patrick Geddes, chief client development officer Guy Lampard, chief client experience officer Robert Newman and chief marketing and strategy officer Paul Solli. Today, the firm is majority owned by holding firm Aperio Holdings, LLC, though Geddes, Lampard, Newman and Solli still hold shares.
Aperio Group boasts 14 chartered financial analysts (CFA) and three chartered alternative investment analysts (CAIA). One of the firm’s advisors has a certificate in investment performance measurement (CIPM).
What Types of Clients Does Aperio Group Accept?
Most of the assets under Aperio Group’s management belong to the more than 3,400 high-net-worth individuals the firm serves. However, the firm’s client base extends beyond affluent individuals. Aperio Group also serves non-high-net-worth individuals, trusts, charitable organizations, foundations, endowments, families, registered investment advisors (RIAs), consultants, pension plans, profit-sharing plans, investment companies and wealth management platforms.
Aperio Group Minimum Account Size
Aperio Group does not require a strict minimum account size. However, it typically requires a $3,500 minimum annual fee.
Services Offered by Aperio Group
Aperio Group’s services are mostly centered around different styles and types of investment management. Here is the complete list of services the firm offers:
- Separate account management
- Portfolio personalization for:
- Market exposure
- Situation-appropriate tax needs
- Risk tolerance
- Holding restrictions
- Portfolio personalization for:
- Active tax management
- Tax-loss harvesting strategies
- Socially responsive indexing
- Factor tilts
- Constant portfolio supervision
Aperio Group Investment Philosophy
Aperio Group primarily uses index funds and exchange-traded funds (ETFs) in client portfolios, as these investments are inherently diversified because of their national and international scale. Aperio supplements these investments with separately managed accounts (SMAs) that consist entirely of individual stocks. The purpose of these SMAs is to achieve a high level of tax efficiency while taking into consideration clients’ personal needs, such as their level of risk tolerance and liquidity needs.
Aperio Group places a high value on the management and minimization of taxes. The firm has created a comprehensive tax-loss harvesting strategy that it projects could help clients retain an extra 1.03% - 2.40% of their returns over a full decade.
Fees Under Aperio Group
Because separate account management is at the core of Aperio Group’s services, most clients will pay the below annual management fees. Your rate will depend on the index strategy selected for your portfolio, with global strategies being slightly more expensive. There is a minimum annual fee of $3,500.
Like all fees at Aperio, your annual rate will be divvied up into four separate fees that are charged on a quarterly basis throughout the year. The firm bases your quarterly fee on the value of your portfolio on the final day of the last quarter.
|Separately Managed Account Fees|
|Strategy Type||Annual Management Fee|
|U.S. Index Socially Responsible Indexing||0.45%|
|Foreign/Global Index Socially Responsible Indexing||0.50%|
In addition to the above fees, clients may pay other extraneous costs, as is standard at many financial advisor firms. In most situations, these costs will include custodial fees, administrative fees, transaction fees, brokerage fees/commissions and taxes.
What to Watch Out For
Aperio Group does not provide many of the services that people have come to expect from financial advisor firms, such as financial planning. Instead, its offerings are solely focused around investment management. While this can certainly be helpful, it may not meet everyone’s needs. If you’re looking for a firm to help with planning for your estate, retirement or your child’s college education, Aperio may not be the right firm for you.
Aperio Group has a clean record, with no disciplinary or regulatory issues noted in its Form ADV (paperwork filed with the U.S. Securities and Exchange Commission).
Opening an Account With Aperio Group
If you live near Sausalito, California, feel free to stop by Aperio Group and talk to an advisor directly. You can also reach the firm over the phone at (415) 339-4300. Should neither of these options work for you, Aperio also provides a contact form on its website. You’ll need to provide some personal information and a description of the services you want, and then an advisor will contact you.
Where Is Aperio Group Located?
Aperio Group has just one office, which is in Sausalito, California. The office is located in Suite 204 at 3 Harbor Drive, which is right off of Highway 101.
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