Santa Barbara Asset Management, LLC is a fee-based firm located in Los Angeles, California. It manages billions in assets for clients including individuals - a small number of which are high-net-worth - investment companies, pooled investment vehicles, pension and profit sharing plans, charitable organizations and corporations.
The main service offered is portfolio management, and financial planning is not a service offered at SBAM.
Santa Barbara Asset Management Background
SBAM was founded in 1987. It was acquired by Nuveen investments and became a subsidiary of that firm, which was founded in 1898.
It is an indirect subsidiary, meaning it retains full autonomy regarding personnel, investment philosophy and client relationships.
Santa Barbara Asset Management Client Types and Minimum Account Sizes
SBAM works mainly with individuals, the majority of whom are not high-net-worth. It also works with institutional clients including investment companies, pooled investment vehicles, pension and profit sharing plans, charitable organizations and corporations.
For institutional separate accounts, the minimum account size is between $1 million and $5 million. For managed accounts, the minimum account size is generally $100,000.
Services Offered by Santa Barbara Asset Management
Portfolio management is the main service offered at SBAM. There are a variety of investment philosophies you can choose from, described in detail below.
Santa Barbara Asset Management Investment Philosophy
SBAM offers the following investment philosophy to clients:
- Dividend Growth. This strategy invests in common and preferred stocks that pay dividends. U.S. stocks are emphasized, though international stocks may also be purchased.
- Global Dividend Growth. Similar to dividend growth, but investing in both U.S. and non-U.S. equities.
- International Dividend Growth. Also investing primarily in dividend-paying equities, but with a focus on non-U.S. companies
- Select Dividend Growth. Companies are selected from the previous three strategies.
Non-U.S. investments may use American Depositary Receipts (ADRs).
Fees Under Santa Barbara Asset Management
For institutional separate accounts fees are generally based on a percentage of assets under management. The fee schedule depends on the investing strategy used:
Dividend Growth Strategy
| Assets Under Management | Annual Fee Schedule |
| First $25 million | 0.50% |
| Next $25 million | 0.45% |
| Over $50 million | 0.40% |
Global Dividend Growth (ADR) Strategy
| Assets Under Management | Annual Fee Schedule |
| First $25 million | 0.60% |
| Next $25 million | 0.55% |
| Over $50 million | 0.50% |
Global Dividend Growth Strategy
| Assets Under Management | Annual Fee Schedule |
| First $25 million | 0.65% |
| Next $25 million | 0.60% |
| Over $50 million | 0.55% |
International Dividend Growth (ADR) Strategy
| Assets Under Management | Annual Fee Schedule |
| First $25 million | 0.60% |
| Next $25 million | 0.55% |
| Over $50 million | 0.50% |
International Dividend Growth Strategy
| Assets Under Management | Annual Fee Schedule |
| First $25 million | 0.65% |
| Next $25 million | 0.60% |
| Over $50 million | 0.55% |
Select Dividend Growth
| Assets Under Management | Annual Fee Schedule |
| First $25 million | 0.60% |
| Next $25 million | 0.55% |
| Over $50 million | 0.50% |
Advisory fees for managed accounts are determined by the agreement between the program sponsor and SBAM, and generally goes up to 0.60%.
Some advisors at the firm may also earn commissions for selling securities. This is a conflict of interest, explained in detail below.
Learn more about advisors' typical costs here.
What to Watch Out For
As noted above, some advisors at this firm earn commissions for selling securities. This is a conflict of interest, as advisors may have incentive to sell securities based on a higher commission rather than what is best for the client. Still, all advisors are bound by fiduciary duty to act in the best interest of the client.
Also, note that this firm does not do financial planning activities like retirement and estate planning. If you want a firm that performs those services in addition to wealth management, this firm is likely not for you.
Additionally, there are disclosures on the record at SBAM, though not for employees directly supervised by the firm. Affiliate advisors, though, have run afoul of state regulators.
Opening an Account with Santa Barbara Asset Management, LLC
To inquire about opening an account with SBAM you can call (310) 552-5100 or visit their website contact page.
All information is accurate as of the writing of this article.
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