Aristotle Capital Management, LLC was named after Aristotle the philosopher because the firm's approach aligns with many of Aristotle's beliefs of reaching your purpose and developing excellence.
Aristotle Capital Management Background
Formerly known as Reed, Connor and Birdwell, LLC, the firm has been in business since 1959. Aristotle Capital’s principal owners are Howard Gleicher, Richard S. Hollander (through RCB Acquisition Company, LLC), Steve Borowski, Gary Lisenbee and Richard Schweitzer. In addition to investment advisor and management services, the firm focuses on U.S., international and global equity portfolios. It also offers equity interests to other key employees.
Aristotle Capital Management Client Types and Minimum Account Sizes
Aristotle Capital offers services to institutional and retail separate account clients, registered investment companies, or mutual funds, privately placed pooled investment vehicles and collective investment trusts (CITs).
For separately managed accounts, Aristotle requires an account minimum of $10,000,000, but the firm retains the authority to reduce this value. The private fund, which required a minimum investment amount of $1,000,000, is now closed to new investors. The minimum account size for wrap programs is generally $100,000, but the firm may require a higher value. The investment minimums for mutual funds are outlined in each fund’s prospectus. For unified management account (UMA) programs, the minimum account size isn’t specified.
Services Offered by Aristotle Capital Management
Aristotle Capital serves as an investment advisor to a range of clients, and the firm also sub-advises CITs or mutual funds. The firm offers equity, fixed and balanced portfolio management services for high-net-worth and institutional clients.
- Investment Advisory
- Portfolio Management
- Fixed and Balanced
Aristotle Capital Management Investment Philosophy
Aristotle believes in developing excellence of character among its employees, so that it can better serve its shareholders and clients. The firm believes that establishing a strong client-advisor relationship is the foundation of success. Aristotle also touts on its website that it’s fully committed to its employees, shareholders and its community. Among its employees, the firm strives to create an environment of integrity and hard work. It also works to give back to its local communities, while simultaneously striving for long-term return on investments for shareholders.
When it comes to investing, the firm employs a specific approach toward each client’s individual investment objectives. In addition to taking into account any restrictions placed on an account by a client, the firm also considers time horizons, liquidity needs and tax issues.
Aristotle Capital Management Fees
For separately managed accounts and private funds, Aristotle may charge a fee ranging from 0.30% to 1.00% on AUM. These fees may be negotiated between clients and advisors. The firm may also earn a performance-based fee for separately managed accounts of certain institutional clients. Aristotle Capital charges different annual fees for its various mutual funds. For instance, The Aristotle/Saul Global Opportunities Fund pays 0.70% annually of its net assets, while the Aristotle International Equity Fund pays 0.70% annually. The Aristotle Value Equity Fund pays fees at an annual rate of 0.60% of its net assets. Aristotle Capital also offers sub-advisory services to other mutual funds, but the fee schedules for these are specified in the sub-advisory agreements.
For wrap programs and UMA programs, the client pays for both the program manager’s and Aristotle Capital’s services. The fees may be paid on a monthly or quarterly basis, depending on the negotiated fee schedule. The fee to the manager for wrap or UMA programs generally ranges from 1% to 3% per year of AUM. For the fee paid to the manager of wrap programs, Aristotle Capital receives 0.34% to 0.45% of the entire client account balance. For UMA accounts, the firm receives between 0.25% and 0.45%.
The firm also requires annual management fees for its sub-advisory services to CITs. The annual fee for The Aristotle Value Equity Collective Trust ranges from 0.39% to 0.49%. The annual fees for the Aristotle International Equity Collective Trust, however, range from 0.49% to 0.59%. Fees for the Aristotle Global Equity Collective Trust range from 0.49% to 0.59% based on the share class. Finally, it’s important to note that Aristotle Capital’s advisory fees are exclusive of transaction costs, brokerage commissions and other fees.
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. Fee amounts are based on fee percentage range for separately managed accounts.|
|Estimated Investment Management Fees at Aristotle Capital Management*|
|Your Assets||Aristotle Capital Management Fee Amount|
|$500K||$1,500 - $5,000|
|$1MM||$3,000 - $10,000|
|$5MM||$15,000 - $50,000|
|$10MM||$30,000 - $100,000|
Learn more about advisors' typical costs here.
What to Watch Out For
Aristotle Capital doesn’t have any disclosures as of its latest SEC filing.
The firm doesn’t engage in cross trading or agency cross transactions, and it has a fiduciary duty to its clients. Even though firm employees may partake in personal trading, Aristotle Capital implements policies to ensure this doesn’t create conflicts of interest for clients.
Opening an Account With Aristotle Capital Management
If you’re interested in opening an account with Aristotle Capital Management, you can call or visit any of the firm’s offices to speak with an advisor. You can also contact the firm’s inquiry email, or you can call its customer service number at (949) 681-2100.
All information is accurate as of the writing of this article.
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