KCM Investment Advisors (KCM) is an entirely privately owned company that only provides advisory services to high-net-worth individuals and other institutional investors. In fact, the firm serves nearly 3,000 individual clients and their families. The firm has four main tiers of expertise: common stocks, fixed-income, balanced accounts and preferred stocks.
As a fee-only firm, KCM only receives client-paid fees as income. Fee-based firms, conversely, earn both client-paid fees and third-party forms of compensation, such as insurance or securities commissions.
KCM Investment Advisors Background
KCM Investment Advisors was established in 1996. The independent registered investment advisor (RIA) specializes in fixed-income and equity portfolio management. Jay A. Kellet is the firm’s principal owner, CEO and chief investment officer (CIO).
KCM Investment Advisors Client Types and Minimum Account Sizes
This firm serves mostly high-net-worth individuals, in addition to foundations, charitable institutions, endowments, trusts, investment advisors, businesses and pooled investment vehicles (affiliated hedge funds.)
Prospective clients will need at least $1 million to set up an account with KCM.
Services Offered by KCM Investment Advisors
KCM mainly provides investment advisory services, which also include the following:
- Construction and management of customized, structured portfolios based on each client’s specific individual objectives
- Periodic re-balancing of accounts
- Implementation of the investment strategies by executing portfolio transactions as needed
- Furnishing client reports regarding separate account activity, strategy, and performance
KCM Investment Advisors Investment Philosophy
KCM says it uses fundamental and quantitative valuation factors to establish positions in securities and monitor their progress. The firm takes advantage of several sources when analyzing stocks, bonds and exchange-traded funds (ETFs). These include data from research providers and other online and subscription resources.
When it comes to investment strategies, KCM employs long-term purchases, short-term purchases and trading. The firm primarily invests in stocks, bonds and ETFs.
Fees Under KCM Investment Advisors
KCM’s portfolio management fee is based on the market value of the portfolio at the end of each quarter, according to the firm’s brochure. These fees are payable quarterly in arrears. However, different investments have different management fees. KCM’s fees are listed below:
- Cash management: 0.50%
- Investment-grade fixed-income: 0.50%
- Equities, ADRs, ETFs, ETNs: 0.90%
- Open- and closed-end mutual funds: 0.90%
- Preferred stock and hybrid securities: 0.90%
What to Watch Out For
KCM Investment Advisors doesn’t list any disclosures on its SEC documents, giving it a clean legal and regulatory record.
Opening an Account With KCM Investment Advisors
You can either set up an account in person at KCM’s San Rafael office, or you can contact the firm at (415) 461-7788.
All information is accurate as of the writing of this article.
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