Balasa Dinverno Foltz, LLC
Balasa Dinverno Foltz (BDF), also known as CI-BDF Private Wealth after a 2020 partnership with CI Financial Corp., is a large financial advisor firm with billions of dollars in client assets under mangement (AUM). The firm is headquartered in Itasca, Illinois, which is located near Chicago O'Hare international airport. The firm offers its services to a variety of individual and institutional clients. The firm's services include both financial planning and investment management.
This is a fee-only firm, which means all of its compensation comes from client-paid fees. On the other hand, a fee-based firm is one that earns both client-paid fees and third-party commissions.
Balasa Dinverno Foltz Background
Balasa Dinverno Foltz has been in business since 1986, when it was founded by co-founders Mark Balasa, Armond Dinverno and Mike Foltz. Today, only Balasa still works at the firm, and he is co-chief investment officer (CIO) with firm president Chad Carlson. CI Financial Corp., a Canada-based wealth management company, is the principal owner of the firm through an affiliated entity, CI U.S. Holdings.
Many of the firm's advisors are certified financial planners (CFPs), chartered financial analysts (CFAs) and certified public accountants (CPAs). In addition to its Itasca office, the firm also has offices in downtown Chicago.
Balasa Dinverno Foltz Client Types and Minimum Account Sizes
Balasa Dinverno Foltz offers its advisory services to a range of clients. The firm works with individuals both with and without a high net worth. More specifically, this includes business owners, families, attorneys, divorcees, widows, insurance brokers, financial professionals and agency owners. Institutional clients of the firm include retirement plans, charities, businesses and government entities.
BDF does not require a minimum investment, but though it does call for a $10,000 minimum annual fee.
Services Offered by Balasa Dinverno Foltz
Balasa Dinverno Foltz works with clients to provide investment advisory and financial planning services. Investment advising, also known as portfolio management services, are provided to clients based on their individual financial and investment objectives. Financial planning engagements may include advising on topics like estate planning, retirement planning, education funding and more.
Balasa Dinverno Foltz Investment Philosophy
Balasa Dinverno Foltz looks to tailor its investment strategies to the needs and goals of its clients. Advisors meet with clients to craft an individual investment policy and an asset allocation strategy. These determinations are based on each client's risk tolerance, investment objectives, income needs, time horizon and any other relevant information.
While the specific investments used to flesh out client portfolios varies by each client, advisors tend to use a combination of equities, fixed-income securities, mutual funds, exchange-traded funds (ETFs) and other exchange-traded securities. The firm primarily relies on fundamental and technical methods of analysis.
Fees Under Balasa Dinverno Foltz
Balasa Dinverno Foltz charges advisory fees for portfolio management based on a percentage of each client's AUM. The firm utilizes a single fee schedule for these services. For context, a 2018 study by RIA in a Box shows the average annual advisory fee is 0.95% of AUM.
|Balasa Dinverno Foltz Fee Schedule|
|Portfolio Value||Base Fee|
|$1,000,000 - $3,000,000||0.90%|
|$3,000,000 - $5,000,000||0.80%|
|$5,000,000 - $10,000,000||0.60%|
It's important to note that the firm does charge a minimum annual fee of $10,000. Therefore, accounts with fewer than $1 million will pay more than a 1.00% annual fee. If you decide to work with BDF, this is about what you can expect to pay for investment management services:
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Balasa Dinverno Foltz*|
|Your Assets||Balasa Dinverno Foltz Fee Amount|
BDF may include financial planning services and their fees as part of your investment management agreement. Stand-alone financial planning fees, however, are charged on either an hourly or fixed fee basis. Fixed fees generally range from $7,500 to $10,000, while hourly fees can vary from $200 to $300 per hour.
Balasa Dinverno Foltz Awards and Recognition
Balasa Dinverno Foltz has a number of awards to its name, including:
- Named to RIA Channel's 2020 Top 100 Wealth Managers
- Named to the Financial Times' 2020 list of the Top 300 Registered Investment Advisors
- Named to Barron's 2020 Top 100 RIA Firms
- Named to FinancialPlanning.com's 2020 Top 150 RIA Firms
What to Watch Out For
Balasa Dinverno Foltz has a clean legal and regulatory record, according to its SEC-filed Form ADV.
Opening an Account With Balasa Dinverno Foltz
If you're looking to open an account with Balasa Dinverno Foltz, go to the firm's website and submit a contact form. You can also call the firm at (630) 875-4900 or visit any of its two Illinois offices.
All information is accurate as of the writing of this article.
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