RiverFront Investment Group, LLC is a financial advisor firm located in Richmond, Virginia. The firm works with a wide range of clients, including individuals, investment companies, charities, corporations and retirement plans. RiverFront provides two main services: asset allocation model portfolios for sponsor firms, and sub-advisory services for exchange-traded funds (ETFs) and mutual funds.
This is a fee-only firm, so all of its earnings come from advisory fees that clients pay. This differs from a fee-based operation, in which a firm's advisors may earn compensation from other sources like insurance or securities commissions.
RiverFront Investment Group Background
RiverFront Investment Group was founded in 2007, though it became registered with the U.S. Securities and Exchange Commissions (SEC) in 2008. The firm is owned by a holding company, RiverFront Investment Holding Group, LLC. That company, in turn, is principally owned by various employees of the firm, and minority owned by Robert W. Baird & Co. Incorporated, an investment advisory firm.
The firm's advisory staff holds multiple certifications, including chartered financial analyst (CFA), certificate in investment performance measurement (CIPM), certified financial planner (CFP) designations.
RiverFront Investment Group Client Types and Minimum Account Sizes
RiverFront Investment Group has a client base of non-high-net-worth individuals, corporations, pensions and other retirement plans, investment companies, charitable organizations, trusts and foundations. RiverFront currently doesn’t manage assets for any high-net-worth individuals.
RiverFront Investment Group requires either a $100,000 or $200,000 investment minimum, depending upon the type of account you open. The lower minimum listed above typically applies to the firm’s ETF programs.
Services Offered by RiverFront Investment Group
RiverFront Investment Group’s offerings can be split into two main areas. First, the firm provides a host of different asset allocation model portfolios that investors can access through wrap fee programs sponsored by third-party firms. These model portfolios mostly focus on one specific asset class, like equities or fixed-income securities. In some cases, there will be a balance of multiple classes within a portfolio.
Wrap fee programs here have three main categories: “Advantage,” “ETF Advantage” and “RiverShares.” The main difference between Advantage and Advantage ETF is that the former’s portfolios invest in individual stocks and bonds while the latter invests exclusively in ETFs. RiverShares portfolios only invest in ETFs that the firm provides sub-advisory services for.
Additionally, RiverFront provides sub-advisory services to several mutual funds and ETFs. Some of the firm’s model portfolios may contain the ETFs for which RiverFront acts as a sub-advisor.
RiverFront Investment Group Investment Philosophy
RiverFront Investment Group maintains seven different investment strategies that it makes available via its three wrap fee programs. Here’s a quick breakdown of them:
- Fixed-Income Strategies
- Dynamic Fixed-Income: Invests in fixed-income securities for the purpose of generating regular income.
- Equity Strategies
- Global Growth: Invests in equity securities around the globe, seeking long-term growth potential.
- International Opportunities: Similar to “Global Growth,” but focuses solely on equities outside the U.S. market.
- Balanced Strategies
- Conservative Income Builder: Invests in a combination of equity and fixed-income securities with a low risk tolerance.
- Moderate Growth & Income: Invests in multiple securities with an equal emphasis on growing both capital and income.
- Dynamic Equity Income: Invests with an eye toward growth and income, with an especially deep focus on dividend-paying stocks.
- Global Allocation: Investing with a long-term view, seeking to maximize total return.
Fees Under RiverFront Investment Group
As most of RiverFront’s investment management offerings come in the form of externally sponsored wrap fee programs, there’s no single schedule for the advisory fees you can expect to pay. This is because different sponsor firms may decide to charge different fees. For these programs, RiverFront generally charges the sponsor firm a negotiable fee that won’t exceed 0.5%.
What to Watch Out For
RiverFront Investment Group has one disclosure listed on its Form ADV. According to this paperwork, the SEC found that the RiverFront, “did not promptly update its Form ADVs when it began to significantly increase its trading away activity during the 2009 to 2011 timeframe, causing certain information in the March 31, 2010, August 31, 2010, and March 31, 2011 Form ADVs to become materially inaccurate and misleading.”
Opening an Account With RiverFront Investment Group
Interested in working with RiverFront Investment Group? According to the firm's website, you can contact them by sending an email to email@example.com or calling (804) 549-4800.
All information was accurate as of the writing of this article.
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