Kestra Advisory Services is a San-Diego-based investment advisory firm with more than $21.74 billion in assets under management (AUM). It’s powered by more than 1,000 independent advisor representatives (IARs) who are registered with the firm. Many of these advisors are also affiliated with third-party accounting, legal and tax-planning businesses.
Kestra Advisory Services Background
Kestra Advisory Services formed in 1997. It's owned by the Kingfisher Holding, LP.
As mentioned earlier, the firm has headquarters in San Diego. It also has a large office in Austin, Texas. Its IARs have offices across the country.
Kestra Advisory Services Client Types and Minimum Account Sizes
Kestra Advisory Services works with advisors. This is why its website doesn't address retail clients. Its IARs, in turn, work with various client types including:
- Banking and thrift institutions
- Pension and profit-sharing plans
- Charitable organizations
- Insurance companies
- Corporations and other business organizations
Account minimums depend on the advisor, external advisor or platform. Generally, the minimum requirement ranges from $10,000 to $1,000,000.
Services Offered by Kestra Advisory Services
Kestra generally provides investment advice through its IARs, who utilize a variety of technological tools to help their clients reach their financial goals. IARs also offer the following services:
- Advisor-managed investment accounts
- Third-party recommendations
- Financial planning services
- Individual retirement planning services
- Qualified and non-qualified retirement plan services
Kestra Advisory Services Investment Philosophy
Kestra Advisory Services doesn't adhere to one single philosophy. Instead, it seeks to provide every kind of strategy that may be appropriate to a client's profile and needs. If an IAR doesn't have the needed specialization, they will refer the client to a third-party advisor or model portfolio. Generally, IARs may recommend investing in mutual funds, exchange-traded funds (ETFs), individual stocks and bonds. IARs also may turn to alternative investments and cash alternatives.
IARs evaluate these securities by reviewing publicly available research sources. They may utiilize such analytical strategies as charting, fundamental analysis, technical analysis and cyclical analysis.
Fees Under Kestra Advisory Services
Advisors charge an asset-based fee that depends on several factors such as the size of your account and the types of services provided. Typically, this asset-based fee ranges up to a maximum 2.5% of client assets under management (AUM).
The advisory or management fee is exclusive of other expenses associated with your account such as brokerage and custodian fees.
What to Watch Out For
Kestra's IARs may be affiliated with other companies independent of Kestra. These affiliations may present conflicts of interest that don't exist for advisors who have no additional affiliations. Also, most Kestra IARs have multiple roles. As advisors, they are held to a fiduciary duty to work in the best interest of their clients. But as brokers or insurance agents, they have only a "suitability" standard to uphold. When receiving a recommendation, be sure you know which hat the IAR is wearing when making it.
In the past 10 years, the firm has faced two disciplinary events. According to its Form ADV, one involved a fine of $100,000 and the other a disgorgement of $5,628,383, plus interest of $567,895.
Tips for Finding the Right Financial Advisor
- Want an advisor who isn't also a broker or insurance agent? That kind of advisor is what's called in the industry "fee-only." To find one near you, use our SmartAsset advisor matching tool. It recommends up to three advisors based on your needs and location.
- Ask potential advisors about their certifications. They’re not required to have any, but those that do are held to higher standards. Certified financial planners (CFPs), for example, must provide advice solely in the best interests of their clients.
All information was accurate as of the writing of this article.