Packerland Brokerage is a financial advisor firm with more than $496 million assets under management (AUM) in about 3,500 accounts. Packerland Brokerage's home office is Green Bay, Wisconsin. The privately held firm, which has 151 advisors, offers services such as financial planning, portfolio managment and pension consulting services.
Packerland Brokerage Background
Packerland Brokerage Services, Inc. is registered with the SEC as both a broker-dealer and as a registered investment advisor (RIA). It has been registered as a broker-dealer since 1994. Packerland became an RIA in 1997 and became an SEC-registered investment advisor in 2017. No shareholders control 25% or more of the company. Zachary P. Kelly serves as a shareholder, director and CEO.
Packerland Brokerage Client Types and Minimum Account Sizes
Packerland advises many types of clients:
- High-net-worth individuals
- Corporations or other businesses
- Charitable organizations
- Sponsors or other fiduciaries to retirement plans
Packerland may impose account balance minimums depending on which investment program the client selects. Asset Advisory Accounts generally have an initial account minimum requirement of $25,000. Investors in this American Funds F-2 Program have a smaller minimum investment level of $250. Co-Advisory Programs and Solicitors Programs have account minimums that vary according to each third-party money manager.
Services Offered by Packerland Brokerage
In Packerland's Individual Portfolio Management program creates and manages a portfolio, usually on a non-discretionary basis.
Asset Advisory Account is a wrap fee program is like a simple brokerage account (mutual funds and securities held through Packerland's clearing firm, Hilltop). Clients pay a single fee for advisory, brokerage and custodial services. These accounts may be managed on either a discretionary or non-discretionary basis.
American Funds F-2 Program is a program that the firm has via an agreement with the American Funds. It lets Packerland offer clients funds within the American Fund Family, a share class for investors who are charged on total assets in their portfolio rather than commissions or sales charges. Investors have a minimum investment level of $250.
Financial planning services generally will not provide tax advice. Since the firm's IARs are also registered representatives of Packerland's broker-dealer and may also be insurance agents or brokers, recommendations made in financial plans may be limited to only those products offered through companies with which they are associated.
Co-Advisor and Sub-Advisor Programs are provided with third-party money managers, usually on a non-discretionary basis. Clients retain individual ownership of all securities that the portfolios contain.
Retirement plan programs can be non-discretionary or administrative services that are designed to assist plan sponsors of employee benefit plans. The firm acts as a fiduciary under ERISA.
In its Solicitors Program the firm acts as a solicitor for various third-party SEC-registered money managers The firm and its IARs may recommend that certain clients engage a third-party money manager.
Packerland Brokerage Investing Philosophy
IARs at Packerland may use many different methods of analysis when they create investment advice or manage assets of clients, including but not limited to the following:
- Charting - review of market activity charts in order to identify when and how the market is moving
- Fundamental analysis - attempt to measure the intrinsic value of a security by looking at economic and financial factors
- Technical analysis - analysis of how the market has performed historically
- Cyclical analysis - measurement of the movements of a particular stock against the overall market
- Qualitative analysis - subjective evaluation of non-quantifiable factors (such as quality of management, labor relations or strength of research) in order to predict change to share price
- Asset allocation - identification of an appropriate ratio of securities
- Mutual fund and/or ETF analysis - review of experience and track record of the mutual fund or ETF manager in order to determine demonstrated ability to invest over time
- Third-party money manager analysis - evaluation of the experience, expertise and past performance of sub-advisors and third-party asset managers in order to determine demonstrated ability to invest over time
Furthermore, they may use one or more of the following strategies for managing assets:
- Long-term purchases of securities
- Short-term purchases of securities
- Trading securities
- Short sales - securities transactions in which the investor sells in anticipation of a price decline
- Option purchases and option writing
Fees Under Packerland Brokerage
For Individual Portfolio Management, clients pay a percentage of assets under management. The firm usually bills in advance and on a quarterly basis. Specific fees are negotiated. The maximum annual rate is 2.50%.
For Asset Advisory Account program fees, clients pay a percentage of AUM and billing is done in advance and on a quarterly basis. Fees for this wrap fee program top out at 2.50% per year.
For the American Fund F-2 program, the firm charges 1% of AUM.
Packerland's financial planning fees are negotiated and, generally, these fees can be fixed, ranging from $500 to $10,000, and hourly, ranging from $50 to $250 per hour or as a percentage of AUM. Any commissions would be on top of these fees.
Clients in the Co-Advisory programs pay various program fees and Packerland's advisory fees, which don't exceed 2.50% of client assets.
For retirement plan services, fees may be based on a percentage of plan assets, an hourly rate or a specified flat fee.
For the Solicitors Program, clients are charged a separate management fee by the third-party money manager and not assessed a fee by Packerland.
Learn more about advisors' typical costs here.
What to Watch Out For
Packerland Brokerage has some disclosures listed on its latest SEC-filed Form ADV, including one from 2017, when the firm paid disgorgement of $432,949.80, prejudgement interest of $23,937 as well as a civil penalty of $80,000 in response to proceedings brought to it by the Securities & Exchange Commission (SEC).
Advisors at Packerland Brokerage may also be broker-dealers. Employees acting in these non-advisor roles generally receive transaction-based fees, which can be a potential conflict of interest. That said, as an SEC-registered investment advisor, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times.
Opening an Account With Packerland Brokerage
To open an account with Packerland Brokerage, you can visit the firm's website or call (920) 662-9500.
All information is accurate as of the writing of this article.
Tips for Finding a Financial Advisor
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- Ask candidates whether they adhere to the fiduciary standard of putting clients’ interests first. Yes is the ideal answer, of course. But they may follow a lower standard of providing only suitable recommendations.