CIBC Private Wealth Management is a fee-based financial advisor firm headquartered in Chicago, Illinois. An indirect subsidiary of Canadian Imperial Bank of Commerce (CIBC), the firm also has offices located in other major cities around the U.S.
The firm primarily works with high-net-worth individuals, though it also serves a number of corporate and institutional clients. It’s earned numerous accolades and awards from financial publications including Barron’s, Financial Advisor, Financial Times, Bloomberg and Family Wealth Report.
CIBC Private Wealth Management Background
CIBC Private Wealth Management is an indirect subsidiary of Canadian Imperial Bank of Commerce (CIBC), which is a financial institution based north of the border in Canada. It is publicly traded and has been in the banking business for over 150 years.
CIBC bought out the Atlantic Trust Private Wealth Management group of four large firms in 2014 in an effort to extend its client reach in the U.S. This network included Whitehall Asset Management in New York, Pell Rudman Trust Company in Boston and Stein Roe Investment Counsel and Geneva Advisors in Chicago. Through its ownership of these firms, CIBC’s roots can be traced as far back as 1923.
CIBC Private Wealth Management Client Types and Minimum Account Sizes
High-net-worth individuals make up the bulk of CIBC Private Wealth Management’s client base. The firm also manages assets for investment companies, profit-sharing and pension plans, charitable organizations, government entities and corporations.
In most cases, the minimum investment required to open a new account with CIBC Private Wealth Management is $1 million. However, the firm says it does engage in service arrangements with other advisory groups that have lower account minimums.
Services Offered By CIBC Private Wealth Management
When working with an advisor at CIBC Private Wealth Management, you’ll have access to a large number of client services. These include investment management, financial planning, corporate and institutional services and more. The firm divides its offerings into the following areas:
- Investment management
- In-depth client profiles
- Portfolio customization
- Investing strategy creation
- Wealth strategies
- Retirement planning
- Annual tax reviews
- Tax minimization
- Risk management
- Personal financial security
- Philanthropic gift planning
- Estate planning
- Insurance review
- Medicare/long-term care planning
- Private banking
- Incorporation of deposit accounts into financial plans
- Use of secured lines of credit for liquidity
- Corporate/institutional services
- Cash management across bank deposits, bonds and fixed-income securities
- Customized investment portfolios
- Escrow services
- Custodial services
CIBC Private Wealth Management Investment Philosophy
CIBC Private Wealth Management uses a standardized system for client portfolio creation. The process begins with a face-to-face meeting, in which you and your advisor will work together to create an investment policy statement. This will be based on your personal risk tolerance, liquidity needs, personal financial goals and time horizon.
Once this is developed, your advisor will select a number of investment types for your portfolio based on the aforementioned statement. The firm tends to use equities, warrants, corporate debt securities, mutual funds, CDs, real estate, oil and gas partnerships, municipal securities and options contracts in client portfolios, though the exact investment types chosen will depend on each client’s unique situation.
Fees Under CIBC Private Wealth Management
CIBC Private Wealth Management has four different fee schedules for its client accounts. More specifically, the firm has a different fee schedule for wealth management accounts, new accounts with equity and balanced portfolios, new accounts with fixed-income portfolios and new accounts with cash portfolios.
| Fees for Wealth Management Services | |
| Portfolio Size | Annual Fee |
| First $5MM | 1.20% |
| Next $5MM | 0.80% |
| Above $10MM | 0.60% |
| New Accounts with Fixed-Income Portfolios | |
| Portfolio Size | Annual Fee |
| First $10MM | 0.50% |
| Next $20MM | 0.35% |
| Above $30MM | 0.25% |
| New Accounts with Cash Portfolios | |
| Portfolio Size | Annual Fee |
| First $50MM | 0.20% |
| Next $50MM | 0.15% |
| Above $100MM | 0.10% |
| New Accounts with Equity and Balanced Portfolios | |
| Portfolio Size | Annual Fee |
| First $5MM | 1.00% |
| Next $5MM | 0.80% |
| Above $10MM | 0.60% |
All fees from CIBC Private Wealth Management are charged on a quarterly basis, in advance. The firm uses the fair market value of your investments to calculate the fee. There's also a $10,000 minimum annual fee for each of these services, though that requirement is negotiable.
What to Watch Out For
CIBC Private Wealth Management has five disclosures reported on its Form ADV.
The firm faced a major legal issue in 2016. The Ontario Securities Commission (OSC) in Canada found that the firm had been charging its clients too much in investment fees for nearly 15 years. The OSC required that these be repaid, which amounted to a total of $73 million. Additionally, the firm also had to pay $3 million towards investor protection initiatives and another $50,000 to cover the costs associated with the investigation.
CIBC Private Wealth Management is a fee-based firm, which means that it earns compensation outside of the fees its clients pay. Some of its employees will receive commissions for including certain investments and/or securities in your portfolio. This could cause a conflict of interest, as these employees may be incentivized to include these investments in client portfolios. However, the firm is a fiduciary though, meaning it is required to act in your best interest at all times.
Opening an Account With CIBC Private Wealth Management
If you visit CIBC’s website, you’ll find a list of its advisors that shows where they are located and how you can reach them. Once you find an advisor you want to work with in your location, you can simply call the listed phone number or stop by to talk in person. If you want to speak to someone from the company’s main directory instead, call (312) 368-7700.
All information is accurate as of the writing of this article.
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