As a fee-only firm, Everett Harris & Co. makes money solely from the advisory fees that clients pay, not third-party commissions for recommending certain products and services. This fee structure eliminates an potential conflict of interest that commission-based compensation can create.
Everett Harris & Co. Background
Everett Harris & Co. was founded in 1937 by Everett L. Harris, who became one of the earliest members and the first West Coast representative of the Investment Adviser Association (IAA) the following year. According to the firm's website, since acquiring the firm in 1990 from its second owner, senior partners Oliver Crary and James Ward increased AUM to more than $6 billion.
Everett Harris & Co. Client Types and Minimum Account Sizes
Everett Harris offers portfolio management services to the following types of clients:
- High-net-worth individuals
- Pension and profit-sharing plans
- Charitable organizations
- Other corporations or businesses
The firm serves more than 1,500 individuals, families and institutions. The firm requires new clients to maintain billable AUM of at least $2 million.
Services Offered by Everett Harris & Co.
Everett Harris offers clients investment management services on both a discretionary and non-discretionary basis. This means some clients grant the firm full discretion or authority when it comes to individual transactions. Clients with non-discretionary accounts have the final say on individual trades.
Investment management services include the following:
- Determining investment needs, risk tolerance and financial objectives.
- Structuring investment portfolios that are aligned with a client's objectives and full financial circumstances.
- Implementing porfolio strategy as delegated by the client.
- Keeping records of portfolio details for the benefit of the client.
Additionally, the firm acts as a fiduciary for pension and other employee benefit plans governed by ERISA (Employee Retirement Income Security Act).
Everett Harris & Co. Investment Philosophy
When it comes to investing methodologies, the firm applies fundamental analysis when selecting and monitoring securities, with the research process including the review of financial statements and the development of internal financial models and forecasts. The firm also applies qualitative strategies by taking a look at the larger competitive landscape and macroeconomic environment, as well as discussing these factors with analysts. Everett Harris supplements its own internal research with independent third-party research.
However, the primary investment strategy at Everett Harris is to buy and hold, with fixed-income securities generally held until maturity or until called.
Once a security passes the screening and research process, the firm's investment team discusses it during its weekly meeting. The team maintains a reguarly updated model portfolio with recommendations for equities to purchase and their target percentages. Of course, because client objectives and tax situations may vary, it is important to remember that the firm makes adjustments to the model portfolio for each client when it comes time to implement specific strategies. Accordingly, it's likely that no two portfolios will look the same.
Fees Under Everett Harris & Co.
The maximum annual fee at Everett Harris & Co will not exceed 0.75%. All fees will be outlined in the firm's written agreement with the client. Clients will be billed these annualized fees on a pro-rata basis quarterly in advance, based on the value of the account on the final day of the previous quarter. Fees are negotiable and clients may choose to either have advisory fees deducted from their accounts or be directly invoiced.
Here's how much you may pay in advisory fees, assuming the maximum rate of 0.75%:
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Everett Harris & Co.*|
|Your Assets||Everett Harris & Co. Fee Amounts|
Clients may also pay fees imposed by the account custodian for the reasons listed below. Everett Harris does not receive any of these fees:
- Certain investments
- Charges imposed directly by a mutual fund, index fund or ETF
- Mark-ups and mark-downs
- Spreads paid to market makers
- Fees for trades executed away from custodian
- Wire transfer fees
- Other fees and taxes on brokerage accounts and securities transactions
Furthermore, it is important to note that Everett Harris does not charge any performance-based fees (i.e. fees based on a share of capital gains).
Learn more about advisors' typical costs here.
What to Watch Out For
Within the past 10 years, Everett Harris & Co has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC). As an SEC-registered investment advisor, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times.
Opening an Account With Everett Harris & Co.
To open an account with Everett Harris & Co, you can visit the firm's website or call (213) 625-2677.
All information is accurate as of the writing of this article.
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