Janney Montgomery Scott, LLC
Janney Montgomery Scott, LLC has an unusually long history, as the firm has been around since the 1830s. Its advisors have also received numerous industry awards and titles, including Barron's Top 1,200 Advisors by State, the Financial Times' Top 400 Advisors, Forbes America's Top Women Advisors and more.
Janney Montgomery Scott is a fee-based firm with billions in assets under management (AUM). The Philadelphia-based financial advisor has thousands of advisors managing the assets of more than 200,000 clients. The firm specializes in individual portfolio management and financial planning, though it also works with businesses and retirement plans.
Janney Montgomery Scott Background
Janney Montgomery Scott has a long history in the financial services industry. In fact, the firm can trace its history all the way back to 1832. The firm functions as a subsidiary of The Penn Mutual Life Insurance Company, and the firm also has membership with the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC). Timothy C. Scheve is the firm’s president and CEO.
The team of advisors at Janney holds a wide range of advisory certifications. These include chartered retirement planning counselor (CRPC), certified financial planner (CFP), accredited investment fiduciary (AIF) and more.
Janney Montgomery Scott Client Types and Minimum Account Sizes
Janney Montgomery Scott accepts a range of clients, including non-high-net-worth and high-net-worth individuals, pension and profit-sharing plans, charitable organizations, government entities and corporations.
The firm requires different minimum initial investment amounts for its various advisory programs. These amounts range from $5,000 to $150,000, depending on the program and services rendered.
Services Offered by Janney Montgomery Scott
Janney Montgomery Scott offers an array of services, including:
- Portfolio management
- Asset allocation planning
- Investment policy development
- Portfolio analysis
- Portfolio rebalances
- Performance monitoring
- Financial planning
- Investment planning
- Estate planning
- Retirement planning
- College fund planning
- Wealth management
- Asset protection
- Charitable gift planning
- Business planning
- Pension consulting
- Investment advice
- Periodic plan statements
- Selection of outside advisors or managers
Janney Montgomery Scott Investment Philosophy
Janney Montgomery Scott touts on its website that, as part of its wealth management approach, it implements strategic financial plans that utilize various financial products and services. The firm also says its mission is to be the highest standard of success in financial relationships.
When it comes to specific investment decisions, the firm's advisors generally employ long-term investment strategies. This is done as opposed to short-term investing, which tends to focus on taking advantage of riskier market movements. The firm invests in mutual funds, exchange-traded funds (ETFs), annuities, managed account programs and individual stock and bonds. The composition of your portfolio will depend on your risk tolerance, time horizon, financial goals and more.
Fees Under Janney Montgomery Scott
In Janney Montgomery Scott’s Form ADV, the firm specifies a maximum flat fee of 2.00% for all of its advisory programs. The firm also offers 11 fee-based wrap fee programs. These differ from standard fee schedules in that they combine all advisory, transactional and custodial fees into a single rate.
The firm’s advisory fees are typically billed quarterly in advance. Here's a breakdown of about how much you can expect to pay at this firm if you were charged the maximum 2.00% fee rate:
|*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 Janney Montgomery Scott*|
|Your Assets||Janney Montgomery Scott Fee Amount|
What to Watch Out For
Janney Montgomery Scott has more than 35 total disclosures to its name. One of its more recent disclosures was in March 2019 when the firm voluntarily self-reported to the SEC that certain customers who were eligible to purchase mutual fund shares without 12b-1 fees did not receive the less expensive fund share class. In response to this, the firm agreed to a cease-and-desist order, a censure and a disgorgement of $215,761.17, plus $25,465.87 in interest.
Janney Montgomery Scott can earn additional compensation from certain mutual funds and investment programs. This can create a potential conflict of interest if advisors become incentivized to recommend products that don’t serve each client’s best interest. However, the firm’s fiduciary duty legally requires it to act in your best interest.
Opening an Account With Janney Montgomery Scott
There are a number of options for opening an account with Janney Montgomery Scott. You can either find an advisor through the firm's online tool or you can set up an appointment with an advisor by contacting them at (215) 665-6000.
All information is accurate as of the writing of this article.
Tips for Investing
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