CUNA Brokerage Services, Inc. is a financial advisor firm with approximately $2.2 billion in assets under management (AUM). The firm is located in Waverly, Iowa, and its main business involves partnering with financial advisors at credit unions across the U.S. The firm currently works with more than 550 such clients. Through these advisors, the firm indirectly works with individual investors to provide services like investment portfolio management and financial planning.
As a fee-based firm, CUNA receives commissions from selling certain securities and insurance products to clients, along with customary advisory fees.
CUNA Brokerage Services Background
CUNA Brokerage Services was established in 1983, and it's a wholly owned subsidiary of CUNA Mutual Investment Corporation, which is in turn under the ownership of CMFG Life Insurance Company. Robert Trunzo is the president and CEO of CUNA Mutual.
Through its advisory relationships with credit unions and other financial institutions, this firm works with financial advisors that hold certifications like chartered retirement planning counselor (CRPC), accredited investment fiduciary (AIF), certified financial planner (CFP) and more.
CUNA Brokerage Services Client Types and Minimum Account Sizes
Indirectly through its advisory affiliates, CUNA offers services to mostly individuals below the high-net-worth threshold. Other common clients of the firm include high-net-worth individuals, retirement plans, charitable organizations, businesses, trusts and estates.
CUNA Brokerage Services has a plethora of advisory programs at its disposal. Many of these originate from other firms, but not all of them. Here's a breakdown of the minimums associated with CUNA's various offerings:
- Managed Investment Strategies Program
- Lockwood Investment Strategies (LIS): $250,000
- Lockwood AdvisorFlex Portfolios (AFP): $50,000
- Lockwood Asset Allocation Portfolios (LAAP): $50,000
- CUNA Mutual StrategicPortfolios Platform
- CUNA Mutual GuidedPortfolios Program (GPP): $75 minimum annual fee
- FundStrategistPortfolios (FSP): No specified minimum
- AssetMark platform: $10,000 - $1,000,000
- FTJ FundChoice
- Mutual fund accounts: No minimum
- ETF accounts: $25,000
Services Offered by CUNA Brokerage Services
CUNA Brokerage Services offers a range of investment management and financial planning services to clients. Clients can choose to invest in any strategy they please, as long as they meet the requirements.
- Managed Investment Strategies Program: This strategy includes a few advisory programs from Lockwood Advisors: the Lockwood Investment Strategies (LIS) program, the Lockwood Asset Allocation Portfolios (LAAP) program and the AdvisorFlex Portfolios (AFP) program. All of these services are investment management programs that feature either customized or model-based asset allocation plans.
- CUNA Mutual StrategicPortfolios Platform: These include the CUNA Mutual FundStrategistPortfolios program and the CUNA Mutual GuidedPortfolios program, both of which focus on mutual fund and ETF investments.
- Financial planning: This services looks to help individuals with many different aspects of personal financial planning, including retirement planning, cash flow planning, credit management, education fund planning and more.
CUNA also offers their services as wrap fee programs.
CUNA Brokerage Services Investment Philosophy
Since CUNA Brokerage Services provides so many different programs, platforms and strategies, the firm has a variety of different investment approaches. Most services offer a variance of strategies that range from conservative to growth, depending on the client's personal risk tolerance. Many strategies and programs utilize mutual funds and ETFs, though some focus on a wider range of securities, like stocks and bonds. The firm may also use computer software to develop financial and investment plans.
Advisors evaluate portfolios and potential investments using fundamental, technical, charting and cyclical methods of analysis. These methods are informed via primary and secondary sources of information, many of which are publically available. The firm places significant emphasis on due diligence when it comes to evaluating individual investments and overarching investment strategies.
Fees Under CUNA Brokerage Services
Fees for services at CUNA Brokerage Services vary significantly depending on the service you subscribe to and the type of strategy that's used in the management of your money. Here's an overview of what to expect:
|Managed Investment Strategies Program Fees|
|Program||Program Fee||Maximum Advisor Fee|
|Lockwood Investment Strategies (LIS)||0.30% - 0.75%||1.00%|
|Lockwood AdvisorFlex (AFP)||0.24% - 0.37%||1.00%|
|Lockwood Asset Allocation Program (LAAP)||0.20% - 0.40%||1.00%|
|CUNA Mutual StrategicPortfolios Platform Fees|
|Program||Platform Fee||Strategist Fee||Maximum Advisor Fee||Maximum Client Fee|
|FundStrategistPortfolios (FSP)||0.10% - 0.40%||0.02% - 0.27%||1.00%||1.37% - 1.67%|
|GuidedPortfolios Program (GPP)||0.15% - 0.50%||0.02% - 0.27%||1.10%||1.52% - 1.87%|
|FTJ FundChoice Program Fees|
|$0 - $50K||0.45%|
|$50K - $100K||0.30%|
|$100K - $500K||0.20%|
|$500K - $1MM||0.15%|
|$1MM - $5MM||0.10%|
Fees for financial planning services are negotiated on a case-by-case basis and will not exceed $5,000 annually. In some instances, fees may be charged at a flat or hourly rate. Fees for investment management services are calculated and paid on a quarterly basis.
What to Watch Out For
CUNA is a fee-based firm, which means that part of its compensation comes from commissions earned from the sale of specific investment and insurance products. This is a potential conflict of interest, as advisors have an extra incentive to sell these products. Despite this arrangement, the firm is still bound by fiduciary duty, legally binding it to act in your best interest no matter what.
- Establish proper written supervisory procedures for certain sales
- Maintain records showing the rationale for exchange
- Demonstrate reasonable efforts to obtain customer information needed to determine suitability
Regardless of the presence of this disclosure, CUNA is a fiduciary.
Opening an Account With CUNA Brokerage Services
It's not difficult to open an account with CUNA Brokerage Services. All you need to do is go online to its website and submit a form to find an advisor at your credit union. You can also call the firm at (800) 369-2862 if you prefer working over the phone.
Retirement Planning Tips
- It can be helpful to work with a financial advisor when creating a financial plan for your future. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
- When planning for retirement, don't forget to take Social Security payments into account. Although this income may not be enough for you to live on in retirement, it can still play a significant role in your retirement income plan. If you're unsure of what you might be in line to receive, stop by SmartAsset's Social Security calculator.