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ON Investment Management Review

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ON Investment Management Co

ON Investment Management Co

The ON in ON Investment Management Co (ONIMCO) comes from Ohio National Mutual Holdings, Inc. The holding company owns Ohio National Financial Services, Inc., which in turn owns The Ohio National Life Insurance Company, which in turn owns broker-dealer O.N. Equity Sales Company (ONESCO). ONIMCO is a subsidiary of ONESCO.

With nearly $1.8 billion in assets under management (AUM), the firm has headquarters in Cincinnati and branch offices across the country. Surprisingly, it doesn’t have its own website. (Ohio National Financial Services does have a site, though.)

ON Investment Management Background

ONIMCO was founded in 1969. Through the Ohio National group, the investment management firm has affiliations with Suffolk Capital Management; Ohio National Insurance Agency, Inc.; Ohio National Equities, Inc. and Ohio National Investments Inc - as well as ONESCO. 

ONIMCO refers to its advisors as investment advisor representatives (IARs). It requires all of them to maintain broker licenses (Series 6 or Series 7) and to be registered as investment advisors with their state securities regulatory agencies (which in turn generally require Series 65, Series 66 or a professional designation). As a result, all advisors are also brokers. Most are also licensed insurance agents. These dual or multiple roles can present potential conflicts of interest that advisors must disclose.

ON Investment Management Client Types and Minimum Account Sizes

Of its individual clients, those who have a high net worth are in the minority at ONIMCO. According to its most recent filings with the Securities and Exchange Commission (SEC), the firm has 287 high-net-worth clients and 8,913 who aren’t as affluent. The firm also works with trusts, estates, charitable organizations, businesses and other organizations.

Each IAR, third-party program and product has their own minimum requirements. Generally, they range from $0 to $2 million. 

Services Offered by ON Investment Management

IARs at ONIMCO offer financial planning and investment management services. To receive the latter, you can open an account through the Envestnet Portfolio Solutions where your IAR is your asset manager. Alternately, you can opt for a third-party investment program that has an agreement to serve ONIMCO clients on a discretionary basis. They are: 

  • AssetMark, Inc.  
  • Brinker Capital  
  • City National Rochdale  
  • CLS Investments, LLC 
  • Envestnet, Inc  
  • Lockwood Advisors, Inc.  
  • Morningstar Investment Services, LLC  
  • SEI Investment Management Corp  
  • Symmetry Partners, LLC  
  • Unified Trust Company

Additionally, ONIMCO offers retirement plan advisory services to Employee Retirement Income Security Act (ERISA) plan fiduciaries and plan participants. 

ON Investment Management Investing Philosophy

Investing strategies depend on the IAR or third-party program money manager. Generally, they rely on asset allocation, believing that investing in a mix of different sectors is key to long-term, risk-adjusted gains. Some managers may also use tactical strategies that try to take advantage of price anomalies or strong market sectors. Typically, they will invest in domestic and foreign equities and fixed income securities.

Fees Under ON Investment Management

The fee for what the firm calls comprehensive financial planning or modular financial planning is an agreed upon amount that generally does not exceed $5,000. The fee for specialized financial planning is based on an hourly rate that cannot exceed $350 per hour or $5,000 per year or is a flat fixed amount that cannot exceed $5,000 per year - unless the home office authorizes the IAR to charge more.   

As an investment management client, you’ll be charged fees to compensate the program sponsor, professional money managers (if applicable), the account custodian, ONIMCO and your IAR. The IAR’s fee is between an annual 0.30% to 1.50% of AUM and may be negotiable. There may be other fees, including those charged by mutual funds and exchange-traded funds (ETFs). 

For comparison's sake, the industry average fee for investment management is 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. Learn more about advisors' typical costs here

What to Watch Out For

In its most recent SEC filings, ONIMCO reported two legal or disciplinary actions that occurred in the last 10 years. One involved an individual advisory affiliate and one involved affiliate firm ONESCO. The latter was brought by the Virginia State Corporation Commission, which alleged that ONESCO failed to supervise an IAR (specifically his communicating with clients through his personal email account) who misappropriated more than $500,000 from clients. The IAR no longer works for ONESCO and the company paid restitution to harmed clients.  

A couple other things to note: as part of a large corporation, ONIMCO may be affiliated with the companies selling the financial and insurance products that IARs recommend. These connections present potential conflicts of interest, just as an IAR having dual or multiple roles does. When receiving recommendations from your IAR, be sure to ask what they are based on and whether and how the advisor and firm may benefit from your following them. As a fiduciary, your advisor is obligated to tell you.

Opening an Account With ON Investment Management

You can contact the firm by emailing it at ONIMCO@ohionational.com or calling (855) 262-0913.

All information was accurate as of the writing of this article. 

Tips for Finding the Right Financial Advisor 

  • Want an advisor who will always put your interests first? Then what you want is a fiduciary, who is often an advisor with no other roles (like insurance agent or broker). Also, people who are certified financial planners (CFPs) are held to a fiduciary standard. To find one near you, use SmartAsset’s free matching tool. It will connect you with up to three advisors in your area. 
  • Ask prospective advisors how many times in a year they will go over your finances with you. The correct answer depends on your needs and expectations. But once or twice a year should be the minimum. Be sure you know which questions to ask your financial advisor

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research