Brownson, Rehmus and Foxworth
Brownson, Rehmus & Foxworth is a financial advisory firm with billions in assets under management (AUM). Principally located in Chicago and one of SmartAsset's top financial advisor firms in Illinois, the firm offers personalized financial counseling and non-discretionary investment advisory services to its clients.
Brownson, Rehmus & Foxworth also has offices in New York City and Naples, Florida.
Brownson, Rehmus & Foxworth Background
Founded in 1969, Brownson, Rehmus & Foxworth is a privately-owned corporation that continues to be controlled by its active principals. It is a boutique firm whose structure allows it to provide quality personalized financial and investment advice to each of its clients.
The firm is currently controlled and owned in equal percentages by nine active principals. Founder Frederick O. Brownson is no longer an active principal or employee, but he continues to own a 10% non-voting, non-dilutable equity interest in the firm in the event of a sale or liquidation.
Brownson, Rehmus & Foxworth Client Types and Minimum Account Sizes
In general, Brownson, Rehmus & Foxworth provides financial counsel and non-discretionary investment advisory services (meaning that it does not have the power to execute trades for clients without clients' prior written authorization) to the following types of clients:
- Individuals
- High-net-worth individuals
- Pension and profit-sharing plans
- Trusts
- Estates
- Private foundations
- Endowments
- Qualified retirement plans
- Senior corporate executives
- Charitable or tax-exempt organizations
Each principal of Brownson, Rehmus & Foxworth establishes relationship asset minimums or annual fee minimums at his or her own sole discretion, usually based on what the principal deems his or her preferred minimum size of client. That being said, the individuals and families that the firm advises typically have in excess of $5 million of substantial investment assets. Minimum annual fees vary between principals, but tend to start at $25,000.
Services Offered by Brownson, Rehmus & Foxworth
As stated above, Brownson, Rehmus & Foxworth offers personalized financial counseling and investment advisory services to its clients on a non-discretionary basis. This may include determination of financial objectives, identification of financial obstacles, cash flow analysis, insurance review, education funding and retirement and estate counseling.
Additionally, the firm may provide an ad hoc or project-based consultation to a client on an hourly basis if the principal or lead advisor deems such consultation appropriate given the circumstances.
Brownson, Rehmus & Foxworth Investment Philosophy
The first step in Brownson, Rehmus & Foxworth's advisory process is to gain an in-depth understanding of the client's current financial situation, needs, goals, objectives, attitudes, constraints, past experiences with investments, tax-sensitivity as well as their tolerance and capacity for risk.
The firm generally focuses on long-term investing and highly diversified portfolios. Investment recommendations may include: no-load mutual funds (shares are sold without a commission or sales charge) and ETFs, equities, warrants, corporate debt securities, commercial paper, certificates of deposit (CDs), municipal securities, U.S. government securities, options contracts, futures contracts, interested in limited partnerships and investment company securities. The firm also recommends third-party sponsored private investment vehicles that are not available to the broader public, including but not limited to private equity and credit funds, diversified hedge funds and private investment real estate funds.
Fees Under Brownson, Rehmus & Foxworth
Brownson, Rehmus & Foxworth charges a base fee to each client that is determined by the appropriate principal and approved by the client on a periodic basis to reflect the client relationship. Each principal will negotiate with each client to determine the amount of base fee the client will be charged based on a number of factors, including but not limited to the amount of assets under management, anticipated future assets, types of assets, complexity of services, service intensity, degree of custom work, time requirements, number of entities, number of the client's family members served, east of interaction and travel requirements.
Based on the various factors, the firm charges a base fee typically ranging from 0.15% to 1.00% of AUM, with fee rates generally lower for clients with more AUM and higher for clients with fewer AUM. The firm may agree with a client on additional fees on a case-by-case basis.
With regard to corporate clients, Brownson, Rehmus & Foxworth is retained by a corporation to provide financial counseling to key officers and executives. The firm charges an advisory fee on a sliding scale based on a variety of factors, including but not limited to the total cash compensation paid to the executive, the range of services provided and the complexity of the executive's financial affairs.
For ad hoc or project-based consultation, the firm will charge the client an hourly fee, depending on the services provided and the experience, knowledgeand skill of the consultant. Hourly rates generally range from $150 to $500 per hour.
Learn more about advisors' typical costs here.
What to Watch Out For
According to its Form ADV filed with the Securities & Exchange Commission (SEC), Brownson, Rehmus & Foxworth does not have any disclosures on its record. A disclosure is a regulatory, criminal or disciplinary action on a firm's record.
Again, it's important to note that the firm only provides non-discretionary investment advisory services, meaning that it does not have the power to execute trades for clients without clients' prior written authorization.
Opening an Account With Brownson, Rehmus & Foxworth
To open an account with Brownson, Rehmus & Foxworth, you can visit the firm's website or call (312) 346-5850.
All information is accurate as of the writing of this article.
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