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Brown Capital Management Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Brown Capital Management, LCC (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.

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: 

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.

Opening an Account With Brown Capital Management

To contact BCM, visit its website or call the firm over the phone.

All information was accurate as of the writing of this article.

Tips for Finding the Right Financial Advisor

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  • Meet prospective advisors in person or talk to them on the phone. Conversations don’t get much more personal than the ones you’ll be having with your advisor. So you want to make sure you feel comfortable talking to yours. Keep looking if you feel a prospective advisor cuts you off or doesn’t seem to get you.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research