Baystate Wealth Management (BWM) is a fee-based financial advisor that oversees more than $1 billion in assets under management (AUM). Even with this large sum of money under its control, BWM only employs seven advisory employees. Investment management and advisory are Baystate’s core services, as it does not provide its own financial planning or consulting. If you’re looking for these offerings in addition to portfolio management, the firm can recommend outside advisors.
Baystate Wealth Management Background
Baystate Wealth Management has been registered with the SEC since 2010, but its history stretches back as far as 1996. The firm was founded by chairman and managing member David Porter. President Thomas Neal O’Connor, CEO Gregory Pinto and Porter are the firm’s principal owners.
There are six advisory certifications across the seven-person team at BWM. The firm employs three chartered financial analysts (CFAs), two certified financial planners (CFPs) and one chartered alternative investment analyst (CAIA).
Baystate Wealth Management has a partnership with MML Investors Services, LLC, a financial services company that’s connected to MassMutual. This relationship dictates that the two firms act as co-advisors to BWM’s client base.
What Types of Clients Does Baystate Wealth Management Accept?
Individual clients claim two-thirds of Baystate Wealth Management’s AUM. The firm also commonly works with high-net-worth individuals, ultra-high-net-worth individuals, athletes, individuals involved in athletics, family businesses, trusts, corporations, foundations and corporate pension and profit-sharing plans.
Baystate Wealth Management Minimum Account Size
If you want to become a client of Baystate Wealth Management, you’ll need at least $250,000 ready to invest. The firm reserves the right to waive this requirement at any point in time.
Services Offered by Baystate Wealth Management
Baystate Wealth Management is entirely focused on investment advising and management. This means that, unlike much of its competition, the firm does not have proprietary financial planning or consulting services. Here’s a list of the services BWM can offer:
- Discretionary and non-discretionary investment advisory
- Creation of:
- An investment policy statement (IPS)
- Asset allocation strategy
- Continued meetings with your Baystate advisor
- Determination of your personal investment objectives and risk tolerance
- Model portfolios with unique strategic and tactical allocations
- Creation of:
- Recommendations of outside advisors for financial planning and consulting
Baystate Wealth Management Investment Philosophy
The primary concern behind Baystate Wealth Management’s investing philosophy is to match its strategies with your personal situation. That’s why, first and foremost, the firm will work with you to develop your investment policy statement, or IPS. This all-important document lays out your risk tolerance, financial goals, liquidity needs, time horizon and any other relevant details.
As a firm, BWM is in favor of investing for the long term. Taking things a step further, Baystate explicitly states in its Form ADV that its main strategy is “controlling risk, dampening volatility and protecting potential downside risk.” That’s why the firm prefers investments like exchange-traded funds (ETFs), exchange-traded notes (ETNs), index funds, mutual funds, bond funds and individual bonds.
Fees Under Baystate Wealth Management
Baystate Wealth Management utilizes two separate fee schedules: “Advisory Fee One” and “Advisory Fee Plus.” Clients of BWM are gifted complete discretion between these two choices. While the firm has not released any specific rates, it does state that its fees will not surpass 2.50% annually.
- Advisory Fee One: This is a wrap fee program, meaning that all charges are combined into a single rate.
- Advisory Fee Plus: Clients who select this must not only pay the base management fee, but also any necessary transactional, brokerage and other extraneous fees.
BWM uses an annualized, asset-based fee structure. However, these charges are broken down into quarterly payments based on the market value of your account on the last business day of the preceding calendar quarter. You can have Baystate’s fees deducted directly from your account balance. Otherwise, you’ll be sent an invoice.
What to Watch Out For
Baystate Wealth Management is a fee-based firm, meaning part of its compensation is earned from sources other than client fees. More specifically, some of BWM’s advisors receive commissions for the sale of certain securities and insurance products. Although this represents a possible conflict of interest, the firm abides by fiduciary duty. This legally binds Baystate to act in its clients’ best interests at all times.
Based on the information in its Form ADV, Baystate Wealth Management has a clean legal and regulatory record.
Opening an Account With Baystate Wealth Management
If you want to reach out to Baystate Wealth Management and open an account, you can call the firm at (617) 982-5200. The “Contact Us” tab on BWM’s website features a contact form if you’d prefer a member of the firm’s staff to call you. All you need to give is your name, phone number, email address and an abbreviated overview of your needs.
Where Is Baystate Wealth Management Located?
Baystate Wealth Management is centrally located in Boston, Massachusetts at 200 Clarendon Street. Its office is on the 25th floor.
How to Start Buying Investments
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