Park Avenue Securities is a dually registered broker-dealer and investment advisory firm with more than $4 billion in assets under management (AUM). It offers its services through investment advisor representatives (IARs).
Park Avenue Securities Background
Park Avenue Securities can trace its roots back to the year 2000, when it registered with the Securities and Exchange Commission (SEC) as an investment advisor. Today, it exists as a wholly owned subsidiary of The Guardian Insurance & Annuity Company, Inc.
What Types of Clients Does Park Avenue Securities Accept?
Park Avenue Securities offers investment advisory services to individuals, high-net-worth individuals, pension and profit-sharing plans, charitable organizations and corporations.
Park Avenue Securities Minimum Account Size
Park Avenue Securities imposes different initial investment requirements that depend on the types of securities your portfolio invests in. We break down these minimums below:
- Mutual funds and/or exchange-traded funds (ETFs): $25,000
- Individual securities: $50,000
Clients who invest in mutual funds, ETFs or portfolios with both must maintain a minimum account balance of $15,000. Those with portfolios of individual securities must maintain a minimum of $25,000. Accounts that dip below these balances may be subject to closure.
Services Offered by Park Avenue Securities
Park Avenue Securities offers both its own proprietary investment program and third-party investment programs. IARs of the firm manage these programs on behalf of clients. Depending on the IAR you work with, you may also have access to financial planning and consulting services. These may include guidance around retirement plans such as individual retirement accounts and education funding through 529 plans and other investments.
The firm also offers access to VestWise, an automated investment advisory program.
Park Avenue Securities Investment Philosophy
Park Avenue Securities and its IARs don’t put restrictions on the type of securities it considers. Generally, your account may invest in mutual funds, ETFs, closed-end funds, separately managed accounts, individual stocks and individual bonds.
Your IAR will analyze your personal situation while taking into account factors such as your risk tolerance and financial goals before making recommendations.
Fees Under Park Avenue Securities
Fees vary, depending on the IAR you work with. Generally, the firm states that they’re “comparable to compensation charged by other full-service firms for the same services.”
Below we provide national median fee rates as they apply to different account balances.
Check out the table below to see how Merriman’s fees for its management services compare to those at similar financial advisor firms. Note that these fees are only estimates and actual costs may vary.
|Estimated Fee Comparison*|
|Your Assets||National Median Advisory Fees**|
|$1MM||$8,500 - $10,000|
|$5MM||$25,000 - $32,500|
|*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.|
What to Watch Out For
IARs may be affiliated with other firms in the financial services industry. As a result, they may be incentivised to recommend products from these affiliates. However, registered advisors must uphold their fiduciary duty to always prioritize your best interests when making recommendations.
According to SEC documents, Park Avenue Securities has undergone a few disciplinary events within the past 10 years.
Most recently, in March 2019, the SEC issued an order claiming that representatives of the firm failed to disclose conflicts of interest when it invested client assets in share classes of mutual funds that paid the advisors 12b-1 fees, when less expensive shares of the same fund that did not compensate the advisors with such fees were available.
Park Avenue Securities consented to the entry of the order and agreed to cease and desist from committing or causing these violations. According to documents it filed with the SEC, it “agreed to pay disgorgement of $508,083 and prejudgment interest of $56,184 to affected clients.”
Opening an Account Park Avenue Securities
You can contact Park Avenue Securities by calling 888-600-4667. Alternately, you can send a message via its contact-us page: https://www.parkavenuesecurities.com/contact-us#contact-us-form.
Where Is Park Avenue Securities Located?
Despite its name, Park Avenue Securities is located at 10 Hudson Yards, New York, NY 10001
Tips for Rookie Investors
- If you’re not sure how to diversify your portfolio, use our asset allocation calculator. It gives you a glimpse into what an appropriate asset mix may look like based on your risk tolerance.
- Don’t go it alone. A financial sdvisor can help you determine the right asset allocation and help you then implement it. To find the right one for you, use SmartAsset’s financial advisor matching tool. It connects you with up to three local advisors, based on your answers to our quick questions. The tool also gives you access to the advisors’ profiles, so you can evaluate their qualifications before arriving at a decision.