Recently named to Barron's 2020 list of the Top 100 RIA Firms, Kovitz Investment Group (KIG), or Kovitz Investment Group Partners, LLC, is an investment advisor that has been managing its own investment strategies for years. Headquartered in Chicago, Kovitz is a fee-based firm serving thousands of individual clients. The registered investment advisor (RIA) offers a vast selection of advisory services surrounding financial planning, investment management and family office.
Kovitz also appears on SmartAsset's ranking of the top financial advisors in Chicago, Illinois.
Kovitz Investment Group Background
Kovitz Investment Group is an independently managed firm offering advice for separately managed accounts, mutual funds and private funds. It's a wholly owned subsidiary of Focus Operating, LLC, which in turn is a subsidiary of Focus LLC, which in turn is a subsidiary of Focus Financial Partners, Inc. Focs Financial is one of the largest financial services networks in the U.S.
The advisors who work at Kovitz's four office locations in Chicago; Aliso Viejo, California; Madison, Wisconsin; and Northbrook, Illinois hold a number of certifications. These include certified financial planner (CFP), chartered financial analyst (CFA) certified public accountant (CPA) and more.
Kovitz Investment Group Client Types and Minimum Account Sizes
Kovitz Investment Group works with non-high-net-worth and high-net-worth individuals, family offices, endowments, retirement plans, businesses, charitable foundations, insurance companies, estates, not-for-profits and affiliated hedge funds.
The firm generally requires a $1 million minimum initial account balance, but it may also accept an investment minimum of $500,000 under certain circumstances.
Services Offered by Kovitz Investment Group
Kovitz Investment Group provides the following advisory services:
- Portfolio management
- Financial planning
- Publication of periodicals or newsletters
It should be noted that financial planning is included as part of investment services, but is not available to everyone. KIG will determine who's eligible on a case-by-case basis.
Kovitz Investment Group Investing Philosophy
Kovitz Investment Group creates investment solutions using an independent research process that has a longer-than-average time horizon. In making equity selections, KIG strives to preserve capital by investing in businesses it believes to be undervalued. Its investing philosophy centers on discipline, patience and perspective, aiming to maximize returns while minimizing permanent loss of capital. KIG primarily invests in individual equities, exchange-traded funds (ETFs) and fixed-income securities.
Kovitz Investment Group Fees
Kovitz Investment Group firm charges its clients an annual fee based on the fair market value of their assets under management (AUM) on the last day of the previous calendar quarter. Below, we’ve listed the firm’s standard fee schedule for clients within its separate accounts:
|Kovitz Investment Group Fee Schedule|
|Amount of Assets||Annual Management Fee|
|All equity assets up to $5,000,000||1.25%|
|All equity assets $5,000,000 - $10,000,000||1%|
|All equity assets $10,000,000 - $25,000,000||0.75%|
|All equity assets over $25,000,000||0.5%|
|All assets in open-end mutual funds and ETFs||0.25%|
|All fixed-income and cash assets up to $5,000,000||0.5%|
|All fixed-income and cash assets over $5,000,000||0.75%|
Here's a breakdown of what your fees could look like with an equity-focused account at Kovitz:
|*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 Kovitz Investment Group*|
|Your Assets||Kovitz Investment Group Equity Fee Amount|
This financial advisor firm also charges performance-based fees to its affiliated hedge funds.
What to Watch Out For
According to its latest filings with the Securities and Exchange Commission (SEC), Kovitz Investment Group has no legal or disciplinary disclosures to report.
Something worth noting, though, is that financial advisors at Kovitz may be able to sell insurance products and securities on a commission basis. This dual role may present potential conflicts of interest. Advisors have a fiduciary duty to provide recommendations in their clients' best interests, though.
Opening an Account with Kovitz Investment group
You can set up an account with Kovitz by either visiting one of its offices or contacting the firm's Chicago headquarteres at (312) 334-7300.
All information is accurate as of the writing of this article.
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