Sendero Wealth Management is a fee-only financial advisor firm that provides investment advisory and private wealth management services to mostly high-net-worth individuals. It has around $1.22 billion in assets under management (AUM), and a 30-person advisory staff to handle its nearly 250 client accounts. The firm is located in San Antonio, Texas.
Sendero Wealth Management Background
Sendero Wealth Management can trace its roots back to 2000, when it was a financial advisor division of Redstone Consulting, LLC, a subsidiary of Redstone Federal Credit Union. However, it only became a sovereign firm in 2008. The parent company and owner of Sendero Wealth Management is Sendero Partners, which is under the principal ownership of chairmen Fred Middleton and Scott McMillian.
The upper management team at Sendero boasts some impressive qualifications. Chairman emeritus Fred Middleton was once the chairman of the District Business Conduct Committee of the National Association of Securities Dealers, the predecessor to FINRA. As a whole, the firm’s team includes three certified public accountants (CPA), two chartered financial analysts (CFA), one certified financial planner (CFP) and one certified investment management analyst (CIMA).
What Types of Clients Does Sendero Wealth Management Accept?
Over 70% of Sendero Wealth Management’s client base is made up of high-net-worth individuals, as this type of client is the firm’s specialty. However, it also works with families, charitable organizations and endowments.
Sendero Wealth Management Minimum Account Sizes
If you’re looking for traditional advisory services from Sendero, you will need a minimum of $5 million in investable assets. On the other hand, anyone who uses firm’s robo-advisor service, ewealth by Sendero, must invest just $1 million, though the firm does reserve the right to waive this requirement.
Services Offered By Sendero Wealth Management
Wealthy individuals and families tend to have more complex financial needs. As the vast majority of Sendero Wealth Management’s clients are high-net-worth investors, it should come as no surprise that the firms offers a wide range of services:
- Traditional advisory services
- Comprehensive, family-centric approach
- Utilization of both traditional and alternative investment managers
- Organization of wealth
- Simplification of wealth management
- Open architecture portfolio manager selection
- Locate and hire third-party investment managers
- Expert oversight
- Tax minimization
- Liquidity considerations
- Investment management
- Idea generation
- Investment research
- General investment advice and education
- Strategic asset allocation
- Family governance
- Consistent performance reporting
- ewealth by Sendero
- Robo-advisor services
- Dedicated ewealth advisor
- Personalized investment advice
- Choice between passive and active strategies
- Consolidation of all internal and external financial accounts
- Online money transfers
- Analytics and performance reporting
Sendero Wealth Management Investment Philosophy
Sendero Wealth Management is focused on managing client assets not for short-term returns but rather for long-term success. The firm’s ideology is centered around being “conservative” and taking a “stay wealthy” approach.
The investments that Sendero chooses for its client portfolios vary, but it does have a few that it favors on a consistent basis. These include traditional equity securities, fixed-income securities, alternative investments, real estate, private equity and non-correlated asset class investments.
Fees Under Sendero Wealth Management
Sendero Wealth Management has two separate fee schedules: one for its holistic wealth management services and another for its robo-advisor service, ewealth by Sendero. For both services, the firm charges clients on the last day of each quarter, and fees are based on the market value of the invested assets for the preceding calendar quarter.
|Wealth Management Fees|
|Portfolio Size||Annual Fee|
|ewealth by Sendero Fees|
|Portfolio Size||Annual Fee|
Wealth management and ewealth by Sendero clients may encounter additional fees that are not included in the above tables. For example, clients may also have to pay accomodation costs, portfolio manager fees, transaction fees, transfer fees and other additional costs.
The table below shows how Sendero’s fees for its wealth management services compare. Note that these fees are only estimates and actual costs may vary.
|*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.|
|Estimated Fee Comparison*|
|Your Assets||Sendero Wealth Management Services||National Median Advisory Fees**|
|$500K||n/a (below required minimum)||$5,000|
|$1MM||n/a (below required minimum)||$8,500 - $10,000|
|$5MM||$30,000||$25,000 - $32,500|
What to Watch Out For
Sendero Wealth Management primarily serves high-net-worth individuals and families, as made apparent by its relatively steep $5 million account minimum for its traditional advisory services. Potential clients should be aware of this threshold and the fact that the firm specializes in serving the wealthy.
There are no disclosures to report for Sendero Wealth Management.
Opening an Account With Sendero Wealth Management
If you’re in the San Antonio, Texas area, stop by Sendero Wealth Management to meet with an advisor. You can also call the firm at (210) 805-0171 to set up an appointment.
As ewealth by Sendero is an online-only service, you must visit ewealthbysendero.com or call (210) 930-9494 to open an account.
Where Is Sendero Wealth Management Located?
Sendero Wealth Management is located San Antonio, Texas. Its office is at 250 West Nottingham in Suite 300.
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