CUNA Brokerage Services is a financial advisory firm with billions in assets under management (AUM). As its name suggests, it is both a broker-dealer and an investment advisor and mainly provides its services through a network of financial institutions that are mostly credit unions. Although its headquarters are in Waverly, Iowa, CUNA Brokerage Services has over 1,000 branches across the country.
As a fee-based firm, CUNA advisors receive commissions from selling certain securities and insurance products to clients, along with customary advisory fees.
CUNA Brokerage Services Background
Established in 1983, CUNA Brokerage Services is 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) and certified financial planner (CFP) designations, among others.
CUNA Brokerage Services Client Types and Minimum Account Sizes
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 Group StrategicPortfolios Platform
- FundStrategistPortfolios (FSP): $10,000 or $25,000
- GuidedPortfolios Program (GPP): N/A
- CUNA Mutual DirectPortfolios Program (DPP): Depends on selected investment managers
- CUNA Mutual AdvisorPortfolios Program (APP): $25,000
- AssetMark platform: $10,000 - $1 million
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 Group StrategicPortfolios Platform: These include the CUNA Mutual FundStrategistPortfolios program, the CUNA Mutual GuidedPortfolios program and CUNA Mutual AdvisorPortfolios Program, which all focus on mutual fund and ETF investments. There is also the CUNA Mutual DirectPortfolios Program, which is a separately managed account option.
- 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. Strategies range from conservative to growth and 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) | 0.25% - 0.40% | 1.00% |
| Lockwood Asset Allocation Program (LAAP) | 0.20% - 0.40% | 1.00% |
| CUNA Mutual Group StrategicPortfolios Platform Fees | ||||
| Program | Platform Fee | Strategist Fee | Maximum Advisor Fee | Maximum Client Fee |
| FundStrategistPortfolios (FSP) | 0.10% - 0.40% | 0.02% - 0.47% | 1.00% | 1.87% |
| GuidedPortfolios Program (GPP) | 0.15% - 0.50% | 0.02% - 0.42% | 1.10% | 1.67% - 2.02% |
| DirectPorfolios Program (DPP) | 0.25% - 0.60% | 0.22% - 0.50% | 1.10% | 1.85% - 2.20% |
| AdvisorPortfolios Program (APP) | 0.10% - 0.30% | N/A | 1.10% | 1.20% - 1.40% |
Fees for financial planning services are negotiated on a case-by-case basis and will not exceed $7,500 annually. In some instances, fees may be charged at a flat or hourly rate, and will not exceed $2,000 per quarter or $8,000 per year. Fees for investment management services are calculated and paid on a quarterly basis.
What to Watch Out For
CUNA Brokerage Services has a single disclosure listed on its Form ADV. The regulatory action dates back to 2001 and involved a $100,000 fine for the firm's alleged failure to establish proper written supervisory procedures for certain sales, maintain records showing the rationale for exchange and demonstrate reasonable efforts to obtain customer information needed to determine suitability.
Another thing worth noting: Advisors at CUNA are all brokers and insurance agents. In their non-advisory roles, they earn transaction-based fees and commissions that can pose conflicts of interest. That said, the firm is legally bound by a fiduciary duty to act in clients' best interests no matter what.
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. Alternately, you can call the firm at (800) 369-2862.
All information is accurate as of the writing of this article.
Retirement Planning Tips
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