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Scout Investments Review

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Scout Investments, Inc.

Kansas City-based Scout Investments, Inc. is a large financial advisor firm with a group of advisors who manage a collective pool of billions of dollars in investable assets. The majority of the firm's client base is made up of institutional investors, including retirement plans, government entities and charities. However, it does still have a few individual clients.

Scout's sole form of compensation is the advisory fees paid by clients, making it a fee-only firm. That's a bit different from a fee-based firm, which can also earn third-party forms of compensation like insurance commissions.

Scout Investments Background

Scout Investments opened in 2001. Most recently, in 2017, Scout became a wholly owned subsidiary of Carillon Tower Advisers, Inc., which is in turn a wholly owned subsidiary of Raymond James Financial, Inc. Raymond James Financial is one of the largest financial services companies in the U.S.

Scout Investments Client Types and Minimum Account Sizes

Scout Investments works with clients all across the institutional and individual spectrum, even maintaining relationships with a handful of investment companies. More specifically, clients of the firm include individuals both with and without a high net worth, pooled investment vehicles, pension and profit-sharing plans, charitable organizations, government entities, insurance companies and corporations.

Minimum investment requirements at this firm vary significantly by program:

  • Institutional clients
    • Equity strategies: $10,000,000
    • Fixed-income strategies: $25,000,000 - $150,000,000
  • Separately managed account (SMA) clients: $100,000 - $3,000,000
  • Private funds: $1,000,000 - $10,000,000
  • General investment advice: $10,000,000

Services Offered by Scout Investments

Services available through Scout Investments are entirely investment-focused, as the firm does not offer financial planning services. The firm's management services are offered through SMAs and consist of a variety of strategies. These include both equity and fixed-inome strategies:

  • International Equity
  • International Equity ADR
  • Mid-Cap Equity
  • Small-Cap Equity
  • Small-/Mid-Cap Equity
  • Core Fixed-Income
  • Core Plus Fixed-Income
  • Intermediate Fixed-Income
  • Long Duration Fixed-Income
  • Low Duration Fixed-Income
  • Ultra-Low Duration Fixed-Income
  • Unconstrained Fixed-Income

Scout Investments Investment Philosophy

On an individual basis, Scout Investments works to determine the objectives, risk tolerance and time horizon of each client so that advisors can formulate the best possible strategy for them. The firm offers several fixed-income and equity portfolios, as listed above. However, the firm also supplies customized strategies along with socially responsible portfolios. Methods of analysis and specific securities vary significantly between different strategies and client types. Advisors always look to diversify assets to manage risk at an acceptable level.

Fees Under Scout Investments

Advisory fees at Scout Investments are charged based on an annual percentage of each client's total AUM. Institutional clients are subject to a specific fee schedule, while there is also a distinct SMA schedule. Fees are typically billed quarterly, unless otherwise stated.

Scout Investments Fee Schedule
Program/Strategy Fee Range
International Equity, International Equity ADR 0.55% - 0.75%
Mid-Cap Equity 0.60% - 0.80%
Small-Cap Equity 0.65% - 0.85%
Small-/Mid-Cap Equity 0.65% - 0.85%
Core Plus Fixed-Income & Core Fixed-Income Up to 0.30%
Intermediate Fixed-Income Up to 0.25%
Long Duration Fixed-Income Up to 0.25%
Low Duration Fixed-Income Up to 0.20%
Ultra-Low Duration Fixed-Income Up to 0.15%
Unconstrained Fixed-Income 0.30% - 0.40%

What to Watch Out For

Scout Investments has a single disclosure listed on its Form ADV. This is in relation to one of the firm's advisory affiliates, though.

Scout Investments charges performance-based fees to some of its accounts. This creates a potential conflict of interest, in that advisors may have an incentive to recommend riskier or more speculative investments than they would if this arrangement didn't exist. Regardless, the firm is still bound by fiduciary duty, legally binding it to act in clients' best interests no matter what.

Opening an Account With Scout Investments

If you're interested in investing with Scout Investments, you can visit the contact page on the website of Scout Investments or Carillon Towers Advisers. You can also call the firm directly at (800) 521-1195.

All information is accurate as of the writing of this article.

Tips for a Long-Term Financial Plan

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research