Brown Capital Management, LCC (BCM) provides investment supervisory and financial planning services to a wide range of clients. The Arkansas-based advisor firm currently oversees more than $43 million in assets under management (AUM).
Brown Capital Management Background
BCM first opened its doors to the Little Rock, Arkansas community in 2013. Johnny R. Brown II serves as the principal owner. Its advisors have more than 40 years’ worth of combined experience in the financial services industry. They specialize in analytical market research, investments and portfolio management.
The advisory team features two certified financial planners (CFPs), including Brown.
What Types of Clients Does Brown Capital Management Accept?
BCM offers its investment advisory services to the following types of clients:
- High-Net-Worth Individuals
- Pension and Profit Sharing Plans
Brown Capital Management Minimum Account Size
BCM generally requires a minimum investment of $200,000 in order to establish a relationship. The advisor may waive this requirement based on the needs of the client.
Services Offered by Brown Capital Management
BCM can manage portfolios on behalf of its clients. It customizes these portfolios, taking into account several individual factors such as the client’s investment goals, risk tolerance, tax situation and more.
In addition, the firm can offer stand-alone financial planning services specific to the client’s needs. Advisors at BCM are equipped to offer advice on such topics as:
- Investment planning
- Life insurance
- Tax management
- Retirement planning
- College planning through vehicles like 529 plans
- Debt/credit planning
Brown Capital Management Investment Philosophy
BCM usually limits its advice to the following types of securities:
- Mutual funds
- Exchange-traded funds (ETFs)
- Real estate investment trusts (REITs)
- Insurance products including annuities
- Government securities
However, the firm may consider other types of investments if it considers these suitable based on the client’s risk profile and investment needs.
When evaluating these investments, the firm employs several analytical strategies. Among them is fundamental analysis. This method involves determining the performance of a company's stock by looking at key factors such as its financial health, management experience and the quality of what it offers as opposed to that of its competitors. The firm also conducts charting analysis, which entails searching for patterns that may help it find favorable conditions for buying or selling a security.
Fees Under Brown Capital Management
For its investment advisory services, the firm charges fees based on a percentage of your AUM in accordance with this current fee schedule:
|Account Size||Asset-Based Fee|
BCM charges these fees quarterly in advance. For financial planning services, the firm charges a fee of $200 per hour. Hourly and asset-based fees may be negotiable.
Below, you can see how the firm's fees hold up to median rates at the national level.
|*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.|
|Estimated Fee Comparison*|
|Your Assets||Brown Capital Management Fees||National Median Advisory Fees**|
|$1MM||$15,000||$8,500 - $10,000|
|$5MM||$37,500||$25,000 - $32,500|
What to Watch Out For
While investment management services are on a fee basis, BCM advisors who are insurance agents may receive commissions on the sale of insurance products. These commissions vary and will be disclosed when you open an account.
Brown Capital Management Disclosures
At the time of this writing, BCM had no disciplinary or legal events in the past 10 years to report in its SEC filings.
Opening an Account With Brown Capital Management
To contact BCM, visit its website, https://brown-cm.com/, or call the firm at (501) 503-0001.
Where Is Brown Capital Management Located?
BCM is located at:
10816 Executive Center Dr., Suite 103
Little Rock, Arkansas 72211
All information was accurate as of the writing of this article.
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