Cetera Investment Advisers is a large firm that partners with thousands of financial advisors around the U.S. In fact, the firm sets itself apart due to its dual offerings for financial advisors and retail investors.
Services available to these firms include a selection of investment-centric programs and more practical services, like market research tools, technology and more. The firm is the main subsidiary of the parent company Cetera Financial Group.
Cetera Investment Advisers Background
Cetera Investment Advisers was founded in 2010 when private equity firm Lightyear Capital LLC acquired three broker-dealers from ING Group: Financial Network Investment Corporation, Multi-Financial Securities Corporation and PrimeVest Financial Services. Following the merger. The firm is a wholly owned subsidiary of Cetera Financial Group, which is ultimately owned by GC Two Holdings, LLC and GC Three Holdings, LLC.
Adam Antoniades currently serves as CEO of Cetera Financial Group, while Michael Durbin is CEO of Cetera Holdings, the holding company for Cetera Financial Group.
The financial advisors that Cetera works with hold a plethora of certifications, including the CFP®, chartered financial analyst (CFA), certified investment management analyst (CIMA), chartered alternative investment analyst (CAIA) designations and more.
Cetera Investment Advisers Client Types and Minimum Account Sizes
Through its network of financial advisors, Cetera indirectly works with more than 400,000 individuals with and without a high net worth. The firm also serves thousands of institutional clients, including retirement plans, charitable organizations, government entities, businesses and banks.
The minimum account size at Cetera varies by account type and advisory program. However, clients with Preferred or Prime accounts are subject to a $50,000 minimum deposit. The minimums associated with the firm's xMA® Program vary even more:
- Equities only: $100,000
- Fixed-income managers who use equities and ETFs: $100,000
- Managers who use individual fixed-income issues: $250,000
You can, however, open an account at Cetera with less than the minimum balance. But if you do, your money will be placed into a money market fund until the minimum is met. The firm reserves the right to waive any minimum account size requirements at its discretion.
Services Offered by Cetera Investment Advisers
Cetera is a large-scale network of financial advisors that indirectly offers a wide range of financial and investment services to clients. The firm provides the following advisory programs:
- Firm-sponsored programs
- Preferred Asset Management Services
- Prime Portfolio Services
- Mutual Fund/ETF Advisory Program
- xMA Next Generation Managed Account Program
- InvestPath Program
- My Advice Architect Program
- Third-party money management programs
- General financial planning
- General consulting
- Plan advice
Cetera Investment Advisers Investment Philosophy
Each of Cetera's partnered financial advisors looks to have a unique relationship with clients in order to provide customized financial planning and investment advisory services. As such, there is no standard investing strategy that Cetera sticks to on an overall basis. However, many affiliated advisors begin working with a client by gauging their long-term investment objectives, risk tolerance, time horizon, liquidity needs and more.
Within its various advisory programs, Cetera uses several types of securities. These include stocks, bonds, covered call options, fixed-income securities, mutual funds, structured products, exchange-traded funds (ETFs) and unit investment trusts (UITs).
Fees Under Cetera Investment Advisers
Depending on the program, Cetera charges various management fees. Although shown in annual percentages, these fees are typically charged on a quarterly basis based on the amount of invested assets in your account. Here's a breakdown of what you might pay for each program:
| Cetera Investment Advisers Fee Schedule | |
| Program | Maximum Annual Fee Range |
| Prime Account | 1.25% - 2.50% |
| InvestPath Account | 0.35% - 1.00% |
| Preferred Account | 1.00% - 2.25% |
| Mutual Fund/ETF Account | 1.50% - 2.75% |
| xMA Next Generation Account | 1.50% - 2.90% |
| Plan Participant Advice Program | 1.50% - 2.25% |
Financial planning fees do not have a set fee schedule, as they're determined on a case-by-case basis. Fees may be changed or negotiated with the client at the discretion of the firm.
What to Watch Out For
As of July 2024, Cetera had 26 disclosures listed on its Form ADV, including a criminal disclosure related to advisory affiliates of the firm, although the documentation includes little detail.
Cetera is a network of financial advisors, so you cannot work with the firm directly. Instead, you must work with a financial advisory firm that's partnered with it in order to access its programs. Keep in mind that Cetera affiliates may also be registered representatives of a broker-dealer and/or an insurance agent. In these additional capacities, they may receive sales commissions on certain transactions, which represents a conflict of interest. However, Cetera is a fiduciary and must act in its clients' best interests.
Opening an Account With Cetera Investment Advisers
If you'd like to find out how to work with a Cetera advisor, you can go online to its website and submit a contact form. You can also call the firm at (800) 245-0467
All information is accurate as of the writing of this article.
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