Cincinnati Asset Management, Inc. (CAM) is a large financial advisor firm that boasts nearly $3 billion in assets under management (AUM). As you can likely infer from the firm's name, it's headquartered in Cincinnati, Ohio. CAM does not provide financial planning services, as it instead only offers portfolio management. The firm works with a wide range of clients, both on the institutional and individual level.
CAM is a fee-only firm, which means all of its compensation comes from client-paid fees.
Cincinnati Asset Management Background
Cincinnati Asset Management was founded in the city of Cincinnati in 1989. It has been in business providing portfolio management services ever since. William S. Sloneker, the firm's chairman and managing director, is its principal owner. He, along with two family members, own nearly half of the firm.
Of the portfolio managers at the firm, several hold financial certifications, such as chartered financial analyst (CFA), certified investment management analyst (CIMA) and chartered alternative investment analyst (CAIA).
Cincinnati Asset Management Client Types and Minimum Account Sizes
Cincinnati Asset Management's client base includes both institutional and individual clients. When it comes to individuals, however, the firm only works with high-net-worth individuals. Institutional clients that currently work with the firm include pension and profit-sharing plans, charitable organizations, state and municipal governments, a handful of insurance companies and corporations.
The minimum account size at CAM varies based on the type of account you open. They go as follows:
- Investment-Grade, Investment-Grade Corporate Bond ESG Aware, ESG Leaders and High Yield Strategies: $100,000
- Broad Market Strategy: $300,000
- Short Duration Strategies: $250,000
- Combined Strategies: $200,000
- Enhanced High-Yield Strategy: $500,000
Certain wrap fee programs may require other minimums.
Services Offered by Cincinnati Asset Management
Cincinnati Asset Management provides its clients with portfolio and asset management services. It notably does not provide financial planning and financial consulting services to its clients, though. All assets are managed on a discretionary basis, and the firm offers some wrap fee programs if clients are interested in such an arrangement. For reference, a wrap fee program combines all advisory, custodial and transactional fees into a single rate.
Portfolios managed by CAM tend to consist mainly of fix-income securities and bonds. Clients can also utilize a number of specific investment strategies and model portfolios, such as:
- Investment Grade
- High-Yield
- Enhanced High-Yield
- Short Duration
- Broad Market
- Combined
- Short Duration Investment-Grade
- Short Duration High-Yield Only
- Investment Grade Corporate Bond
- ESG Aware and ESG Leaders
Cincinnati Asset Management Investment Philosophy
Cincinnati Asset Management works with clients to determine their investment objectives so that portfolio managers can create plans that reflect the needs of each client. The firm develops an advisory agreement with new clients that details the extent of their services. This may also include information about the sepcific types of management styles or model portfolios that will be used. Clients may also impose restrictions on how their assets are managed.
Different strategies and models are comprised of varying types of investments and allocation percentages. Capital preservation is a key, overarching goal of every strategy, though.
Fees Under Cincinnati Asset Management
Fees for asset management services at Cincinnati Asset Management are charged based on a percentage of each client's total AUM. Specific fee schedules vary based on the specific model portfolio or strategy the firm uses to manage a client's assets.
| High-Yield Corporate Bond Fee Schedule | |
| Portfolio Value | Base Fee |
| Under $250K | 0.75% |
| $250K - $500K | 0.75% |
| $500K - $1MM | 0.60% |
| $1MM - $5MM | 0.55% |
| $5MM - $10MM | 0.50% |
| High-Yield Enhanced Fee Schedule | |
| Portfolio Value | Base Fee |
| $500K - $1MM | 0.60% |
| $1MM - $5MM | 0.55% |
| $5MM - $10MM | 0.50% |
| Investment-Grade Corporate Bond Fee Schedule | |
| Portfolio Value | Base Fee |
| Under $1MM | 0.30% |
| $1MM - $10MM | 0.275% |
| $10MM - $25MM | 0.20% |
| Broad Market Corporate Bond Fee Schedule | |
| Portfolio Value | Base Fee |
| $300K - $500K | 0.45% |
| $500K - $1MM | 0.45% |
| $1MM - $5MM | 0.425% |
| $5MM - $10MM | 0.35% |
| Short Duration Strategy Fee Schedule | |
| Portfolio Value | Base Fee |
| $250K - $500K | 0.30% |
| $500K - $1MM | 0.30% |
| $1MM - $5MM | 0.27% |
| $5MM - $10MM | 0.24% |
| Short Duration High-Yield Only Fee Schedule | |
| Portfolio Value | Base Fee |
| $250K - $500K | 0.45% |
| $500K - $1MM | 0.45% |
| $1MM - $5MM | 0.425% |
| $5MM - $10MM | 0.40% |
| Short Duration Investment-Grade Fee Schedule | |
| Portfolio Value | Base Fee |
| First $1MM | 0.25% |
| Next $9MM | 0.20% |
The Investment Grade Corporate Bond – ESG Aware strategy carries a flat 0.25% annual fee, and the ESG Leaders strategy carries a flat 0.27% annual fee. When strategies are blended, the firm charges an annual fee based on the weighted fees for the blend.
What to Watch Out For
Cincinnati Asset Management has a clean legal and regulatory record in the eyes of the U.S. Securities and Exchange Commission (SEC).
Note that this firm does not offer financial planning services. So if you need help planning for retirement, building out an estate plan or prepping your taxes, you'll need to look elsewhere.
Opening an Account With Cincinnati Asset Management
If you're interested in becoming a client of Cincinnati Asset Management, go to the firm's website and submit a contact form. You can also visit the firm in person at its Cincinnati office or call (513) 554-8500 if you prefer working over the phone.
All information is accurate as of the writing of this article.
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