Oppenheimer Asset Management is a nationwide network of financial advisors headquartered in New York City. It employs a large team of advisors who work with thousands of individual and institutional clients.
This is technically a fee-only firm, so it only receives standard advisory fees from clients. A fee-based firm, on the other hand, receives both advisory fees from clients and third-party forms of compensation (such as insurance commissions), which can introduce conflicts of interest.
Oppenheimer Asset Management Background
Oppenheimer Asset Management has been in business since 1986 and is owned by Viner Finance, Inc., an indirect subsidiary of Oppenheimer Holdings Inc.
Today, the firm is led by CEO and chairman Albert Lowenthal and a 12-person management committee. The firm's advisors are located at different branches throughout the country, of which there are about 50.
Oppenheimer Asset Management Client Types and Minimum Account Sizes
Oppenheimer Asset Management works with a variety of client types. Of its tens of thousands of clients, most are individuals without a high net worth. However, the firm also works with high-net-worth individuals, pension and profit-sharing plans, charitable organizations, state and municipal governments and businesses.
The minimum account size required to become a client of this firm varies based on the type of account you're looking to open:
- Investment Grade Tax-Exempt Accounts: $150,000
- High-Yield Tax-Exempt Accounts: $250,000
- Core, Core Plus, Corporate Core Plus, High-Yield and Intermediate Taxable Accounts and Insurance Accounts: $150,000 - $250,000
- Cash Management Accounts: $150,000
Services Offered by Oppenheimer Asset Management
Oppenheimer Asset Management offers both investment management and consulting services. While the firm has a number of model portfolios and strategies, it can tailor its investment advice to the various needs of clients, like their time horizon, liquidity needs and risk tolerance. The firm offers the following discretionary fixed-income accounts:
- Core Fixed-Income
- Core Plus Fixed-Income
- Corporate Core Plus Fixed-Income
- Intermediate Fixed-Income
- High-Yield Fixed-Income
- Insurance Fixed-Income
- Investment Grade Tax-Exempt Fixed-Income
- High-Yield Tax-Exempt Fixed-Income
- Cash Management
Oppenheimer investment consulting services include the following:
- Development of an investment policy statement (IPS)
- Development of an asset allocation strategy
- Monitoring of portfolio managers
- Client reporting
Oppenheimer Investment Advisers (OIA), a division of Oppenheimer Asset Management, also provides wrap fee services to other advisors.
Oppenheimer Asset Management Investment Philosophy
Since Oppenheimer Asset Management invests using a series of model portfolios, there isn't one broad investment philosophy that advisors tend to follow. Rather, all investment plans are centered around clients' ultimate financial goals, tolerance for risk, income needs, time horizon and any other applicable factors.
That said, advisors usually focus on bottom-up portfolio construction, optimal bond investments and balanced asset allocations. They also tend to look for undervalued securities, while taking into account risk/reward profiles, alternative investments, potential deterioration of credit fundamentals.
Advisors use industry analysis, company analysis, capital structure and security analysis and indenture covenant analysis to help inform their investment decisions. The firms uses a variety of third-party data and information sources, many of which are public.
Fees Under Oppenheimer Asset Management
Oppenheimer Asset Management charges its advisory fees based on the services you subscribe to. These fees are based on a percentage of your total assets invested in that program.
|Oppenheimer Asset Management Program Fees|
|Program||Maximum Annual Fees|
|OIA Wrap Fee||0.80%|
|Tax Exempt Bond Laddered||0.50%|
|Tax Exempt Short Duration Cash||0.50%|
|OIA Retirement Plan||0.80%|
|Equity and Balanced UMA||3.00%|
|Mutual Fund UMA||1.75%|
|Retirement Plan UMA||2.70%|
|Strategic Asset Review (STAR) Equity and Balanced||2.25%|
|STAR Retirement Plan||2.25%|
|Portfolio Advisory Services (PAS) Flex||1.50%|
|PAS Managed Allocation Series (MAS)||1.75%|
|PAS Flex Retirement||1.50%|
|PAS MAS Retirement||1.75%|
|Portfolio Enhancement Program and Hedged Portfolio Enhancement Program||$12,000 - $74,400|
Certain fees are subject to negotiation between the client and their advisor. Fees are billed quarterly, in advance.
What to Watch Out For
Oppenheimer Asset Management does have seven regulatory disclosures listed on its SEC-filed Form ADV. While some of these disclosures relate to advisory affiliates of the firm, a few apply to Oppenheimer itself. These are related to various issues, such as the firm allegedly misrepresenting the asset value of a fund to investors and buying mutual fund shares that paid commissions without disclosing these commissions to clients.
In one of those cases in 2013, Oppenheimer Asset Management paid a $617,579 penalty, consented to a censure and paid over $2.2 million in disgorgement to certain investors.
Opening an Account With Oppenheimer Asset Management
To open an account with Oppenheimer Asset Management, you'll need to use its website to find a branch or advisor in your area. From there, you can call or email the firm directly. You can also request an appointment through an online form.
Retirement Planning Tips
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