Ladenburg Thalmann Asset Management (LTAM) is a financial advisor firm headquartered in New York City that manages around $2.3 billion in assets from more than 7,500 clients. This client base is comprised of mostly non-high-net-worth individuals, but it also works with a number of institutional clients, like retirement plans and businesses. Ladenburg Thalmann has been providing wealth and investment management services for almost 40 years.
A fee-based firm, most members of LTAM's advisory staff can earn commissions from the sale of specfic securities, in addition to standard advisory fees. That's different from a fee-only firm, which avoids conflicts of interest by only earning compensation from client fees.
Ladenburg Thalmann Asset Management Background
Ladenburg Thalmann Asset Management was founded in 1982. It’s owned by Ladenburg Thalmann Financial Services Inc. (LTFS), a publicly traded company that provides investment banking, equity research and asset management services through various subsidiaries. LTFS and LTAM fall under the umbrella of the Ladenburg Thalmann & Co. Inc. group of companies, which has been in business since 1876.
Ladenburg Thalmann's 21 financial advisors claim a number of advisory certifications. To name a few, this staff includes chartered financial analysts (CFAs), certified financial planners (CFPs) and certified public accountants (CPAs).
Ladenburg Thalmann Asset Management Client Types and Minimum Account Sizes
Ladenburg Thalmann Asset Management has built up a client base that’s more than 7,500 strong. The overwhelming majority of this client base is comprised of individuals below the high-net-worth threshold. In addition, the firm serves high-net-worth individuals, families, investment companies, investment funds, retirement plan sponsors and participants, charitable organizations, corporations and other investment advisors.
The minimum account size requirements at LTAM vary depending on which program you're subscribed to. Each of the stated minimums below are subject to change under certain circumstances.
- Ladenburg Asset Management Program (LAMP)
- Managed Mutual Fund Strategies: $10,000
- Ladenburg American Funds Core Strategies: $10,000
- Managed ETF Strategies: $75,000
- Ladenburg Franklin Templeton Strategies: $10,000
- Tax Sensitive Strategies: $75,000
- Specialty Strategies: $100,000
- Managed Annuity Program: No set minimum
- Private Investment Management Services (PIM): $50,000
- Architect Wrap Fee Program: $50,000
- Investment Consultant Services (ICS)
- For equity managers: $100,000
- For fixed-income managers: $250,000
- Retirement plan sponsor and participant services: No set minimum
Services Offered by Ladenburg Thalmann Asset Management
Ladenburg Thalmann Asset Management provides its clients with consulting services, as well as investment management via several different wrap fee programs. These include:
- Ladenburg Asset Management Program (LAMP)
- Consists of five strategic portfolio allocation models that use exchange-traded funds (ETFs) and mutual funds
- Tax implications are taken into account
- For clients with more assets under management (AUM), specialty models are available
- Can be customized for higher income levels, more incorporation of international securities and more
- Private Investment Management Services (PIM)
- Professional discretionary asset management for individuals and institutions
- Variety of investments available, like equities, bonds, government securities, ETFs, mutual funds and options
- Architect program
- Offers personalized investment recommendations based on risk tolerance, time horizon, financial goals and more
- Non-discretionary service, so clients must implement trades individually
- Investment Consultant Services (ICS)
- Provides customized investment management services to high-net-worth individuals and institutions
- Clients work with investment managers that are partnered with LTAM
- Retirement plan sponsor and participant services
- Provides investment management services to 401(k) plans, profit-sharing plans, defined benefit plans, 403(b) plans, 457 SEP-IRA plans and SIMPLE IRA plans
LTAM also serves as the investment manager to a fund called The Alternative Strategies Fund and a group of five funds called the Ladenburg Funds.
Ladenburg Thalmann Asset Management Investment Philosophy
When advising client accounts, advisors at Ladenburg Thalmann Asset Management will rely on one of several investment strategies that vary in terms of risk tolerance. Within each strategy are model portfolios that boast asset allocations designed to maximize expected returns for a given level of risk and volatility. These models may include many different types of securities, including the likes of mutual funds, ETFs, exchange-traded notes (ETNs) and equities.
The methodology behind LTAM's investment philosophy is based on a desire to see reliable returns over the long term. Firmly rooted in this style of investing is widespread portfolio diversification and disciplined risk management principles. Once an appropriate investment plan is implemented, the firm will begin overseeing the portfolio's performance. Based on these insights, the firm may decide to rebalance the portfolio's asset allocation.
Fees Under Ladenburg Thalmann Asset Management
Ladenburg Thalmann Asset Management’s fees vary on a program to program basis. The firm typically provides maximum fee rates for each program, meaning your specific fee will be negotiated individually. In some cases, LTAM may decide to charge one-time fixed or hourly fees instead of abiding by the usual AUM-based system.
|Ladenburg Thalmann Asset Management Fee Schedules|
|Ladenburg Asset Management Program (LAMP)||1.85% - 2.25% maximum annual fee, depending on AUM|
|Private Investment Management Services (PIM)||2% - 3% maximum annual fee, depending on AUM|
|Architect program||2% - 3% maximum annual fee, depending on AUM|
|Investment Consultant Services (ICS)||2% - 3% maximum annual fee, depending on AUM|
|Retirement plan sponsor and participant services||1.15% maximum annual fee, depending on AUM|
|General consulting services||0.75% maximum annual fee, depending on AUM|
For the most part, LTAM charges its advisory fees on a quarterly basis, in advance. The firm reserves the right to charge fees on a different schedule, however.
What to Watch Out For
Certain financial advisors at Ladenburg Thalmann Asset Management are registered representatives of Ladenburg Thalmann & Co. Inc., a broker-dealer firm. Because of this affiliation, these advisors have the ability to receive additional compensation from the sale of particular securities to clients of LTAM. Although this presents a potential conflict of interest, the firm and its advisors are bound by fiduciary duty to act in clients' best interests at all times.
Ladenburg Thalmann Asset Management has two disclosures listed on its Form ADV. One is directly attributed to the firm, and it involves an incident in 2016. During this time, the U.S. Securities & Exchange Commission (SEC) issued a cease-and-desist order to LTAM for incorporating inaccurate performance data from a third-party provider into certain advertisements for one of the firm's wrap fee programs. It also states that the firm failed to keep records that could substantiate this performance data. In addition to the cease and desist order, the firm was fined $200,000 by the SEC.
The second disclosure is from three years prior, and it resulted in an affiliate of LTAM paying a $5,000 fine without admitting or denying any findings. The report details that this advisor engaged in investment advisory business in the state of Florida from 2008 to 2012 without lawful registration allowing them to do so.
Opening an Account With Ladenburg Thalmann Asset Management
If you’d like to get in touch with someone at LTAM to find out more about its services, you can either call (800) 995-5267 or send an email to Lamp@ladenburg.com.
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