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BTG Pactual 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.

BTG Pactual Asset Management U.S. (BTG) is a fee-based firm providing advisory services to individuals, private investment funds and various other institutional clients. Based in New York City, the financial advisor serves nearly 200 clients. Currently, the firm has billions in assets under management (AUM).

BTG Pactual Background 

Founded in 2011, BTG Pactual is wholly owned by Banco BTG Pactual S.A., a Brazilian investment firm. BTG also works with BTG Pactual Timberland Investment Group, LLC to offer investment advice to managed accounts or private funds focused on timberland investments. 

BTG Pactual Client Types and Minimum Account Sizes 

BTG’s minimum account size requirement of $1 million applies to individuals, private investment funds, pension funds, insurance companies, banks, foundations, endowments, trusts, estates, family offices, proprietary accounts, BTG affiliates and other institutions. 

Services Offered by BTG Pactual

BTG mainly provides discretionary and non-discretionary portfolio management services to institutional clients and individuals, but the firm also serves as a sub-advisor for private funds. 

BTG Pactual Investment Philosophy 

BTG says it uses an “absolute return” approach to its investment process, and the firm applies both top-down and bottom-up analysis to find investment opportunities. In providing traditional and alternative investments, BTG employs an extensive range of strategies, including: currencies, merger arbitrage, event driven and special situations, corporate and sovereign debt, long/short credit, asset-backed securities, global rates and foreign exchange, structured products and relative value equities strategies. 

The firm may invest in U.S. treasuries, asset-backed securities, swaps, bonds and equities. 

Fees Under BTG Pactual

There are generally three types of fees at BTG. The firm charges private fund fees, managed account fees and performance-based fees. For private funds, BTG charges up to 2% of AUM, and the firm says the fees may vary depending on size, strategy and complexity. 

Managed accounts come with negotiable asset-based fees. For performance-based accounts, BTG charges a fee based on a share of capital gains (or capital appreciation of) a client’s AUM. 

Clients may also encounter custody fees, transaction fees and trading and brokerage fees.

What to Watch Out For 

This firm has seven regulatory action disclosures that involve one or more of BTG’s advisory affiliates. Its most recent violation was settled in 2015 when Banco BTG Pactual S.A. paid a $50,000 fine for allegedly violating a New York Mercantile Exchange rule.

This firm has performance-based fee and asset-based fee arrangements, so conflicts of interest may arise if advisors favor performance-based accounts solely because they provide more compensation than asset-based accounts. A conflict of interest also exists where advisors favor performance-based accounts generating higher fees that other performance-based accounts. In addition, fees generated from certain private funds may be higher than others. 

As a fiduciary, BTG has policies and procedures in place to reduce such conflicts, but its potential conflicts of interest are still important to keep in mind.  

Opening an Account with BTG Pactual

For those interested in opening an account at BTG Pactual, submit a contact form on the firm's website.

Tips for Investing

  • One effective way to save money for retirement is by putting your earnings into an employer-sponsored defined contribution plan. Defined contribution plans are tax-advantaged accounts that allow employees to set aside pre-tax money to save toward retirement. There are various types of defined contribution plans, each with different contribution limits, so it’s important to research and consider which plan best suits your financial situation. 
  • Another option for planning out your finances is by hiring a financial advisor. SmartAsset’s free financial advisor matching service pairs you with up to three advisors who serve your area. You can interview your advisor matches at no cost to decide which one is right for 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.

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