CUSO Financial Services (CFS) is a registered investment advisor (RIA) and broker-dealer with more than $1.90 billion in assets under management (AUM). The firm offers various asset management programs through investment advisor representatives (IARs). Some of these IARs may also offer stand-alone financial planning services around topics like estate planning and retirement income management.
CUSO Financial Services Background
CFS has been providing investment advisory services since 1997. Today, it exists as a limited partnership wholly owned by Atira Wealth Solutions, Inc., a Delaware-based corporation.
The firm is led by president and co-founder Valorie Seyfert, who has spent more than 30 years in the financial services industry. She’s been ranked as an Ernst and Young Entrepreneur of the Year for San Diego County. In addition, other members of the CFS management team have earned several financial services accolades throughout the years. Most recently, Dan Kilroy was ranked as the 2018 CFO of the Year by the San Diego Business Journal.
What Types of Clients Does CUSO Financial Services Accept?
CFS provides portfolio management services to the following types of clients:
- Individuals including high-net-worth ones
- Corporate pension and profit-sharing plans
- Charitable institutions, foundations and endowments
CUSO Financial Services Minimum Account Size
Investment minimums depend on the type of advisory program or sub-program that clients enroll in. We detail the current figures below:
- First Mercantile, Financial Planning: None
- CAM Active Passive: $25,000
- CAM Funds, CAM ETF, CAM Index, AssetMark Mutual Funds, Morningstar: $50,000
- CAM UMA, CFS Asset Management Account, AssetMark GPS: $250,000
- CAM Managers: $750,000
Services Offered by CUSO Financial Services
CFS offers various asset management programs through its associated IARs and unaffiliated third-party firms. We describe these programs below.
CUSO Asset Management Program (CAM)
CAM provides clients access to different sub-programs that utilize mutual funds, exchange-traded funds (ETFs), managed accounts and separately managed accounts through Envestnet. This RIA serves as the account manager (except for CAM Managers and CAM Strategists accounts managed by third-parties selected by clients).
Envestnet would create an investment portfolio for you based on the information gathered by your IAR, including your risk profile, financial goals, tax situation and other factors. Depending on individual circumstances, Envestnet may place CAM clients in one of the following sub-programs:
- CAM Funds - invests in mutual funds from different fund families
- CAM ETF - invests in various ETFs
- CAM Index Funds - allocates assets among different mutual funds and ETFs
- CAM UMA - invests in mutual funds, ETFs, individual stocks and individual bonds
- ActivePassive Funds - invests in different third-party index mutual funds along with one or more actively managed funds from Envestnet’s PMC Fund Family
- CAM Managers - invests in equities
- CAM Third-Party Strategies - allocates funds across mutual funds and ETFs selected by third-party asset managers who serve as model providers
- CAM Direct I - may invest in equities, fixed-income, American depositary receipts, options and ETFs
CFS Asset Management Account
Clients of this program work with their IARs to create an asset allocation that adheres to the client’s investment goals, risk tolerance and other personal factors. Depending on the information gathered, this account may invest in a variety of different securities. These can include no-load mutual funds, ETFs, stocks, bonds and unit investment trusts (UITs).
This program is available on a discretionary and non-discretionary basis. The former means that clients authorize the firm to make trades in their accounts without getting prior approval.
In this program, assets are allocated across different ETFs as deemed appropriate based on their risk tolerance, financial goals and other factors. CFS would monitor this model portfolio and rebalance it when it considers the move necessary. Clients can access and monitor this account via Jemstep Advisor Pro, an online cloud-based advisor platform.
Created with FTJ FundChoice LLC, this program provides client access to more than 1,700 no-load mutual funds from more than 200 fund families. IARs would use these funds in order to customize model portfolios for clients in this program.
For this program, AssetMark appoints independent investment management firms to create strategic asset allocation portfolio models for CFS clients. The model uses mutual funds and ETFs including proprietary funds from AssetMark. The managers would monitor and periodically rebalance these portfolios, generally on a quarterly basis.
IARs with CFS can provide access to Morningstar Investment Services, an unaffiliated investment advisor that can provide advice around no-load mutual funds and ETFs. The IAR would utilize Morningtsr services to customize, monitor and rebalance an appropriate portfolio that may meet your long-term investment goals.
IARs with CFS may design a comprehensive financial plan to help clients meet their long-term goals. Depending on the needs of the client, this plan may cover the following financial objectives:
- Budgeting and cash flow management
- Corporate 401(k) analysis and retirement planning
- Estate planning
- Trust management
- Business succession planning
- Education funding through 529 plans and more
- Life insurance analysis and risk management
- Retirement income planning
- Investment and asset allocation analysis
IARs may utilize firm-approved software to assist in delivering advice around these topics.
Employer-Sponsored Retirement Plans
Some CFS partners can also provide investment advisory and fiduciary services to employer-sponsored retirement plans. These individuals can perform various tasks such as helping plan sponsors remain compliant with government regulations and ramp up enrollment efforts. IARs may provide advice on the following types of plans:
First Mercantile Trust Company works with CFS to provide employer-sponsored retirement plan clients with access to First Mercantile’s custodian and investment agent services. The firm may assist in the following:
- Selecting and monitoring plan investment options
- Completing account documents
- Reviewing investment performance reports
- Educating plan participants
CUSO Financial Services Investment Philosophy
IARs working with CFS clients may adopt a variety of investment strategies and methodologies. Common methods of analysis include fundamental and technical analysis.
Fundamental analysis involves taking an in-depth look at the financial state of a company. This could entail a thorough review of the firm’s financial records, earnings, debts and other money-related factors that may help the advisor make educated assumptions about its future performance. By employing technical analysis, the advisor can forecast price movements by looking at past trends. But because past performance never guarantees future results, both methods carry their own risks.
In addition, IARs take individual factors into account such as the client’s risk tolerance and tax situation when making investment decisions.
Fees Under CUSO Financial Services
Fee schedules depend on the advisory program and types of securities that the client is invested in. If applicable, CFS would retain a portion of its advisory fee to pay IARs. Asset-based fees tend to span from 0.55% to 1.95%.
What to Watch Out For
In delivering its services to clients, CUSO Financial Services works with a variety of affiliated and unaffiliated third-party firms. This framework may raise conflicts of interest as some representatives may be incentivised to recommend or sell specific products. Unaffiliated firms may also charge different kinds of fees for their services. And while these payments won’t go to CFS, they would affect your account size. However, CFS has a fiduciary duty to work in your best interests at all times, and it has certain protocols in place in order to reduce the potential for conflicts of interest.
But because fees can come from several sources due to the open-architecture nature of CFS, you should closely examine the fee documentation provided to you.
In the past several years, the SEC filed actions against CFS noting that RIAs associated with the firm failed to disclose selling share classes of mutual funds that pay 12b-1 fees, when lower-cost share classes of the same funds were available to clients. In 2018, CFS entered into settlement terms to refund clients. CFS corrected all share class selection deficiencies as of March 2018.
Opening an Account With CUSO Financial Services
To contact CFS, call (800) 686-4724, email firstname.lastname@example.org or send a message on https://cusonet.com/investment-clients/.
Where Is CUSO Financial Services Located?
CFS is headquartered at:
10150 Meanley Drive
San Diego, California 92131
It also has regional program management offices located in Northern and Southern California, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Ohio, Pennsylvania and Texas.
Tips for Finding a Financial Advisor
- Before signing on with any financial advisor, make sure he or she is a fiduciary, who is ethically bound to put your best interests first. In the financial services industry, these professionals are generally held to higher standards than other types of advisors.
- Narrow your search by using our SmartAsset financial advisor matching tool. After you answer some questions about your goals, it links you with up to three local advisors. You can review their profiles and compare their expertise before making a decision.
All information was accurate as of the writing of this article.