Brown Capital Management (BCM) provides investment supervisory and financial planning services to a wide range of clients. The firm is based in Little Rock, Arkansas and is on the smaller side compared to national standards.
As a fee-only firm, all of Brown Capital's compensation comes from the fees that its clients pay. On the other hand, a fee-based firm would earn both client-paid fees and third-party commissions for things like insurance sales.
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 multiple certified financial planners (CFPs), including Brown.
Brown Capital Management Client Types and Minimum Account Sizes
BCM offers its investment advisory services to the following types of clients:
- Non-high-net-worth individuals
- High-net-worth individuals
- Pension and profit-sharing plans
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:
- Equities
- Bonds
- 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:
| Investment Management Fee Schedule | |
| AUM | Annual Fee |
| First $1,000,000 | 1.50% |
| Next $1,000,000 | 1.00% |
| Above $2,000,000 | 0.75% |
Below, you can see what you may end up paying as a client at Brown:
| *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 Brown Capital Management* | |
| Your Assets | Brown Capital Management Fee Amounts |
| $500K | $7,500 |
| $1MM | $15,000 |
| $5MM | $47,500 |
| $10MM | $85,000 |
BCM charges the above investment management fees on a quarterly basis, in advance. For financial planning services, the firm charges a fee of $200 per hour. Hourly and asset-based fees may be negotiable.
What to Watch Out For
There are no disclosures present on Brown Capital Management's SEC-filed Form ADV.
As of 2022, Brown Capital is only registered to operate in two states, Arkansas and Texas.
Opening an Account With Brown Capital Management
To contact BCM, visit its website or call the firm over the phone at (501) 503-0001.
All information was accurate as of the writing of this article.
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