One unique thing about Johnson Financial Group (JFG) is that it only accepts fixed fees for its investment management services until a client reaches a certain asset level. This fee-only investment firm is headquartered in Denver, Colorado. The firm offers investment management, financial planning and family office services to individual and institutional clients.
Johnson Financial Group Background
JFG was founded in 2002 by Brandon C. Johnson, who serves as firm president and CEO. The firm functions as a single family office, and it’s affiliated with Johnson Financial Wealth Management, LLC. The firm also provides expense management and bookkeeping services to advisory and non-advisory clients.
Johnson Financial Group Client Types and Minimum Account Sizes
The firm provides advisory services to individuals, trusts, private foundations, businesses and institutional clients. JFG generally requires a minimum account size of $30 million, but it may waive this value.
Services Offered by Johnson Financial Group
The firm provides a range of services, including:
- Investment management
- Portfolio construction
- Financial planning
- Report of financial situation
- Recommended investment plan
- Family office services
- Expense management
- Private foundation administration and advisor coordination
Johnson Financial Group Investment Philosophy
JFG employs a range of investment strategies when dealing with client portfolios. The firm bases its portfolio construction off a number of factors the client specifies in the Investment Policy Statement. These may include risk, asset class, tax and return characteristics. JFG says it uses a range of qualitative and research-based approaches, including return distributions, analysis of performance, standard deviation, risk exposures, tax efficiency and modern portfolio theory methods.
Its investment strategy primarily consists of a total return approach, which incorporates a client’s financial situation, risk tolerance and needs for income and liquidity. In addition, the firm strives to construct globally diversified portfolios that are cost efficient.
Johnson Financial Group Fees
JFG’s investment management fee is based on AUM, and the fee is debited from the client’s account at the beginning of each quarter. For clients who choose to use both mutual fund and separate accounts, they may pay two management fees -- one for the mutual fund and one for the separate account. The firm’s minimum annual fee is $250,000, which is in addition to its minimum account size requirement of $30 million. But these fees may be negotiated at the firm’s sole discretion.
The minimum fee for family office services is generally $250,000 per client per year, but this fee is also negotiable. Existing clients may pay management fees based off older, or historical, fee schedules that were in place when they opened an account.
Clients may also incur other charges, such as brokerage and transaction trading fees, wrap fees or private placement expenses.
See the fee schedule for investment advisory services below:
|Total market value of AUM||Annual percentage fee/fixed amount||Quarterly percentage fee/fixed amount|
|Assets up to $30,000,00||$250,000||$62,500|
|Assets over $30,000,000||0.35%||0.0875%|
According to a 2018 study of 1,500 firms by RIA in a Box, the average financial advisor's investment advisory fee is 0.95% of AUM.
|*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 Johnson Financial Group*|
|Your Assets||Johnson Financial Group Fee Amount|
What to Watch Out For
The firm’s Form ADV does not list any disclosures. Because the firm is affiliated with Johnson Financial Wealth Management, LLC, it may refer prospective clients whose needs don’t align with JFG’s services. This could create a conflict of interest, as the firm may be incentivized to refer clients to its affiliates for financial gain.
Opening an Account With Johnson Financial Group
If you’d like to open an account with JFG, you can visit the firm in person, or you can set up an appointment with an advisor by calling (720) 475-1195.
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All information was accurate as of the writing of this article.