SagePoint Financial, Inc.
SagePoint Financial is a registered broker-dealer and investment advisory firm that's headquartered in Phoenix. It provides operational, investment and clearing support for affiliated financial advisors, who, in turn, serve both non-high-net-worth and high-net-worth individuals, as well as pooled investment vehicles, pension and profit-sharing plans, charitable organizations, government entities and corporations. Through these affiliates, SagePoint Financial manages billions in combined assets. The firm's services are mostly wrapped up in its main offering, which is called the VISION2020 Wealth Management Platform.
SagePoint Financial Background
SagePoint Financial started in 1970 as a broker-dealer, registering with the Financial Industry Regulatory Authority (FINRA) and engaged in the sale of securities. In 2005, the firm also registered with the U.S. Securities and Exchange Commission (SEC) as an investment advisor, so it could offer investment advisory products and services.
The firm is a subsidiary of the Advisor Group, Inc., one of the largest networks of independent broker-dealers in the U.S. This company is a wholly owned subsidiary of the Advisor Group Holdings, Inc., which is owned by a consortium of investors.
SagePoint Financial Client Types and Minimum Account Sizes
As mentioned earlier, SagePoint Financial directly serves financial advisors. According to its SEC filings, the firm has over 100 affiliate financial advisories, which, in turn, employ over 1,300 financial advisors. These firms are located all across the country, though some can only operate in certain states. Through the firms, SagePoint indirectly works with high-net-worth and non-high-net-worth individuals, retirement plans, charities, government entities, businesses and pooled investment vehicles.
Minimum account sizes for Sagepoint Financial's programs vary. Advisors may waive them at their discretion, but they generally go as follows:
- VISION2020 Wealth Management Program - Advisor Managed Portfolios: $10,000
- VISION2020 Wealth Management Program - UMA Program: $5,500
- Third-Party Advisory Services: Minimums are set by the affiliated third-party
- Financial planning services: No minimum
- Consulting services: No minimum
- Non-discretionary investment services: No minimum
- Retirement plan consulting: No minimum
Services Offered by SagePoint Financial
SagePoint Financial offers several wrap fee programs to its client advisors, who, in turn, offer them to their retail clients. They include:
- VISION2020 Wealth Management Platform - Advisor Managed Portfolios: This program provides comprehensive investment management via asset-allocation planning software and the provision of execution, clearing and custodial services through Pershing, LLC or, on a limited basis, National Financial Services, Inc.
- VISION2020 Wealth Management Program - UMA Program: This program provides a customized asset allocation model invested either with third-party money managers, no-load mutual funds, ETFs or any combination of the foregoing. As you might expect, assets are held in a unified managed account (UMA).
- Retirement plan consulting: This involves the holistic creation of a retirement plan, including the recommendation of investments, performance reviews, compliance reviews, participant education and more.
In addition to investment advisory services, SagePoint Financial provides its advisors with an advanced sales and an internal sales desk and team and tool support for retirement planning services, insurance consulting services, financial planning services and specialized services (including lending, trust services and donor advised services).
SagePoint Financial Investment Philosophy
SagePoint Financial’s affiliated financial advisors may use different strategies and methods to design and implement investments within client portfolios. Generally speaking, they will apply fundamental and technical methods of analysis, though. They’ll also usually stick to a long-term investing strategy, though they may use short-term tactical investing strategies in certain situations.
With the third-party advisory services program, third-party asset managers will entirely have their own methods of analysis and investment strategies.
Fees Under SagePoint Financial
With SagePoint Financial’s wrap fee programs, brokerage, management and other costs are bundled into one, all-inclusive fee. These fees are based on a percentage of each client's assets under management, and they are paid quarterly. Affiliated financial advisors determine what that percentage or fee is. For reference, a recent study by RIA in a Box found that the average annual advisory fee is 0.95% of AUM.
With third-party advisory services, the third-party money manager will have his or her own fees, on top of the SagePoint affiliated advisor’s fees, which are set or negotiated by each advisor individually.
What to Watch Out For
In its current SEC filings, SagePoint Financial reported a total of 21 disclosures, all of which are regulatory in nature. The most recent disclosure relates to a situation from June 2020. According to SagePoint's Form ADV, that disclosure states that FINRA alleged the firm "failed to establish and maintain a supervisory system and WSPs reasonably designed to supervise the suitability of representatives' recommendations to customers for early rollover UITs or otherwise provide guidance to firm supervisors about how to monitor for potentially unsuitable patterns of early rollovers or series-to-series early rollovers." As a result, the firm submitted to censure, paid a $300,000 fine and paid $1,315,373.01, plus interest, as restitution to customers.
As a fee-based firm, certain advisors that are affiliated with SagePoint Financial can earn commissions from the sale of specific insurance products or securities. While this creates a potential conflict of interest, the firm's inherent fiduciary duty legally requires it to act in clients' best interests at all times.
Opening an Account With SagePoint Financial
Individuals cannot open accounts directly with SagePoint Financial. To find an affiliated advisor near you, check out the list of affiliated firms on SagePoint's website. You can also call the firm's customer service line at (800) 552-3319.
SagePoint Financial is headquartered in the midtown area of Phoenix. The exact address is 20 East Thomas Road, Suite 2000.
All information was accurate as of the writing of this article.
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