Houston-based Avalon Investment & Advisory oversees more than $7 billion in client assets under management (AUM). The firm has 45 financial advisors on staff, with many specializations and certifications between them. Avalon Investment & Advisory provides a wide range of investment management services, along with some family office and financial planning offerings. The firm currently places as SmartAsset's top financial advisor firm in Houston and comes in second in our list of the top firms in Texas.
A fee-based firm, Avalon Investment & Advisory allows certain licensed advisors to receive commissions for overseeing securities transactions. This represent a potential conflict of interest, as advisors would be incentivized to recommend such transactions. (By contrast, a fee-only firm earns compensation solely from client fees, thereby avoiding such conflicts of interest).
Avalon Investment & Advisory Background
Avalon Investment & Advisory opened for business in Houston in 2001, with its San Antonio branch coming into existence in 2014. The firm is owned by a combination of in-house employees and The Cynosure Group, a firm located in Utah that works with family offices. No single individual or entity owns more than 25% of the firm's shares, though.
Avalon Investment & Advisory employs 45 advisors across its two offices. Among these are 10 chartered financial analysts (CFAs), two certified financial planners (CFPs) and one certified public accountant (CPA).
What Types of Clients Does Avalon Investment & Advisory Accept?
Avalon Investment & Advisory has around 1,700 clients, and most of them are high-net-worth individuals. The firm also works with non-high-net-worth individuals, pooled investment vehicles, pensions and other retirement plans, trusts, corporations, insurance companies, investment advisors and charitable organizations.
Avalon Investment & Advisory Minimum Account Sizes
Avalon Investment & Advisory prefers to work with clients that have at least $5 million in investable assets. However, this isn’t a hard-and-fast requirement, so those who have less than that may still be accepted as clients.
Additionally, the firm imposes minimums for the private funds it advises. These requirements range from $200,000 to $500,000.
Services Offered by Avalon Investment & Advisory
Avalon Investment & Advisory provides investment management services on both a discretionary and non-discretionary basis to its clients, along with family office services, asset allocation planning and more. Avalon describes family office services as including tasks like:
- Formulating an investment policy statement (IPS) and financial goals
- Performing financial accounting and recordkeeping
- Providing rebalancing advice and coordinating with other professionals, such as attorneys or accountants
The firm also acts as an advisor to four pooled investment vehicles. A division of the firm called Matterhorn Capital Management also provides model portfolios to a number financial intermediaries.
Avalon Investment & Advisory Investing Philosophy
Avalon Investment & Advisory utilizes a collection of 35 distinct investment strategies to construct each client's portfolio. When putting together a portfolio, advisors consider factors like client’s investing goals, risk tolerance and time horizon to determine the most appropriate mix of strategies. About 10 of the strategies focus on investing in fixed-income securities, while the other 25 focus on equity investments.
Fees Under Avalon Investment & Advisory
If you’re receiving investment management services from the firm and your portfolio consists of more than one separately managed account (SMA), then your fee percentage will be determined according to the following schedule:
|Avalon Investment & Advisory Advisory Fees|
|Asset Value||Fee Percentage|
|$0 - $3MM||1.25%|
|$3MM - $5MM||1.00%|
|$5MM - $15MM||0.80%|
|$15MM - $35MM||0.65%|
|$35MM - $75MM||0.55%|
|$75MM - $100MM||0.40%|
However, if you choose to have your portfolio invest entirely in a certain asset class or investment strategy, you may be subject to a different fee schedule or different minimum account size. For family office services, the firm will typically negotiate a fee that depends on the specifics of the client and the services rendered.
What to Watch Out For
Avalon is a fee-based firm, meaning that some members of its advisory staff can earn commissions for overseeing certain securities transactions as representatives of a broker-dealer. While this represents a potential conflict of interest, the firm is still bound by fiduciary duty. As a result, all of its advisors are required by law to always act in the best interests of clients.
Avalon Investment & Advisory has no disclosures listed on its Form ADV. In other words, Avalon Investment & Advisory has a clean record with the U.S. Securities and Exchange Commission (SEC).
Opening an Account With Avalon Investment & Advisory
There are a few different ways to become a client of Avalon Investment & Advisory. You can call the firm’s Houston headquarters at (713) 238-2050 or its San Antonio office at (210) 694-4329. Feel free to stop by the firm's offices and speak with an advisor. Once you’ve made contact, an advisor can talk through your situation and determine if the two of you would make a good fit.
Where Is Avalon Investment & Advisory Located?
Avalon Investment & Advisory calls Houston, Texas home. Its office is on the corner of Waugh Drive and Allen Parkway, west of downtown. The firm also has another location in San Antonio, Texas on Mulberry Avenue.
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