Sendero Wealth is a fee-based financial advisor firm that provides investment advisory and private wealth management services. The firm is located in San Antonio, Texas, and appears on SmartAsset's list of the top financial advisors in the city. The firm has hundreds of clients and over $6 billion in assets under management (AUM).
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 became an independent firm only in 2008. The parent company and owner of Sendero Wealth Management is Sendero Partners.
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 Sendero team holds a range of certifications including the certified public accountant (CPA), chartered financial analyst (CFA) and Certified Financial Planner™ (CFP®) designations, among others.
Sendero Wealth Management Client Types and Minimum Account Sizes
Sendero Wealth Management’s client base is made up of both high-net-worth and non-high-net-worth individuals, as well as pension and profit-sharing plans, charities and businesses.
While Sendero doesn't have a stated account minimum, the firm typically charges a minimum annual fee of $30,000, which it can waive at its discretion.
Services Offered by Sendero Wealth Management
Services are tailored to each client's financial situation, goals, risk tolerance, time horizon and liquidity needs and may include:
- Investment advisory services: Sendero develops and implements investment strategies using both traditional and alternative investments, including equities, fixed income, mutual funds, ETFs, cash equivalents, private equity, hedge funds and other non-traditional strategies.
- Strategic asset allocation: The firm takes a holistic view of each client’s wealth and uses an investment policy directive to determine an appropriate asset allocation. Portfolios may include traditional equity and fixed-income investments, as well as real estate, private equity and other alternative assets.
- Manager selection and oversight: Sendero uses an open-architecture platform and may recommend third-party managers or sub-advisors. The firm conducts ongoing due diligence on approved managers and periodically reviews whether those strategies remain aligned with client objectives.
- Organization of wealth: Sendero helps clients organize and understand their overall financial picture by considering assets in the aggregate and providing clear reporting on total wealth.
- Ongoing advisory support: The firm's advisory services may include goal assessment, comprehensive aggregate reporting, spending policy development, market commentary, public and private securities expertise, new investment opportunities and comprehensive wealth management recommendations.
Sendero Wealth Management Investment Philosophy
Sendero Wealth Management constructs portfolios based on each client’s investment goals, risk tolerance, time horizon, and liquidity needs. The firm uses an open-architecture approach, selecting from a broad range of investment managers and strategies that may include mutual funds, ETFs, individual securities, private funds and alternative investments.
Investment strategies are implemented on either a discretionary or non-discretionary basis, depending on the client’s preference. Sendero conducts due diligence and ongoing monitoring of selected managers and investments, with a focus on aligning portfolios with long-term client objectives. Asset allocation decisions are customized and reviewed periodically to reflect any changes in a client’s circumstances or market conditions.
Fees Under Sendero Wealth Management
Sendero Wealth Management generally charges advisory fees quarterly in advance, based on the market value of deployed and committed capital in a client’s designated portfolio as of the last business day of the previous quarter. Each client’s Advisory Agreement outlines which household assets are included for billing.
Clients with less than $1 million in managed assets are billed at 1.50% annually.
Clients with $1 million to $3 million are billed at 1.25% annually.
Clients with more than $3 million are billed using a tiered schedule, with a maximum rate of 1% on the first $4 million and lower rates above that amount.
The firm applies exceptions in certain cases, such as complex portfolios or those heavily invested in fixed income or cash. A $30,000 minimum annual fee applies unless waived, but it does not apply to clients with under $3 million in assets. Some clients may follow alternate billing schedules, exclude certain asset types from billing, or pay a fixed fee not based on assets under management.
What to Watch Out For
There are no disclosures to report for Sendero Wealth Management. However, potential clients should be aware of the fact that the firm specializes in serving the wealthy.
Opening an Account With Sendero Wealth Management
If you're in the San Antonio area, stop by Sendero Wealth Management to meet with an advisor. You can also call the firm to set up an appointment.
All information is accurate as of the writing of this article.
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