Stifel, Nicolaus & Company, Incorporated calls St. Louis, Missouri home, but it has a total of 390 offices across 45 states. The firm employs more than 3,600 financial advisors throughout these branches and has around $71.5 billion in assets under management (AUM). This qualifies it as one of the largest firms in America, in terms of both the size of its advisory team and AUM.
The fee-based firm has continued to grow due its purchases of existing firms, including Barclays Wealth and Investment Management. Stifel currently manages 122,000 client accounts, the vast majority of which are held by individuals and high-net-worth individuals. The firm’s advisors each work with an average of 34 clients.
Stifel, Nicolaus & Company Background
Stifel, Nicolaus & Company, Incorporated can trace its roots all the way back to 1890, when it was called Altheimer and Rawlings Investment Co. But after Herman Stifel and Henry Nicolaus joined the firm around the turn of the 20th century, it was rebranded as Stifel Investment Company, and eventually became Stifel, Nicolaus Investment Company. Since that time, it has merged with numerous companies, and it is now traded on the New York Stock Exchange.
With such a large group of advisors at its disposal, this firm’s team boasts a number of certifications and specialties. The team includes accredited investment fiduciaries (AIF), certified financial planners (CFP), chartered financial analysts (CFA), accredited portfolio management advisors (APMA), certified divorce financial analysts (CDFA), accredited asset management specialists (AAMS), chartered retirement plans specialists (CRPS), certified investment management analysts (CIMA), chartered financial consultants (ChFC), chartered life underwriters (CLU) and more.
What Types of Clients Does Stifel, Nicolaus & Company Accept?
Likely because of the sheer size of its advisory team, Stifel, Nicolaus & Company works with a number of different client types. It serves individuals, corporations and other businesses, pension and profit-sharing plans, institutions, estates, trusts, employee benefit plans, charitable organizations, educational institutions and banks.
Stifel, Nicolaus & Company Minimum Account Sizes
Stifel, Nicolaus & Company offers a number of different services, portfolio strategies and investment programs that you can take advantage of as a client. Note that the firm has different minimum investment requirements for its various programs and services though:
- Advisory consulting services
- Vantage Program: $50,000
- Morningstar® Managed Portfolios Program: $40,000 - $1,000,000
- Summit Program: $1,000,000
- Advisory select programs
- Select managers: $15,000 - $50,000
- Select advisors: $25,000
- Select APM Program: $25,000
- Select institutional consulting: no set amount
- Wrap fee advisory programs
- Score program: $25,000 - $200,000
- Opportunity and IMC Programs: $100,000
- Spectrum and Custom Advisory Portfolio Programs: $50,000
- Solutions and Horizon Programs: $25,000
- Fundamentals Program: $5,000 - $100,000
- Connect Program: $100,000
Services Offered By Stifel, Nicolaus & Company
Stifel, Nicolaus & Company provides an impressive number of advisory and management services to its clients. Just be sure to select an advisor within the firm’s network who can provide the service you need. The firm’s offerings include:
- Financial planning
- Wealth planning
- Estate planning
- Retirement planning
- Disability, life and long-term care insurance analysis
- Annuity review
- Social Security planning
- Tax management and mitigation
- Cash management
- Investment banking
- Financial consulting services
- Corporate executive services
- ETF recommendations
- Education cost planning
- 529 college savings plan assistance
- Education savings accounts
- Bond underwriting for public entities
- Proprietary stock-picking research
Stifel, Nicolaus & Company Investment Philosophy
Because Stifel, Nicolaus & Company has such a wide range of services and programs, it adheres to a very general long-term investment ideology. This includes the widespread use of exchange-traded funds (ETFs), mutual funds and fixed-income securities in its client portfolios.
In an attempt to standardize its client experience, Stifel uses a similar process when interacting with new and existing account holders. This process begins with a face-to-face meeting to determine your ultimate financial goals and when you want to reach them by. You will also need to present a full picture of your current financial situation so your advisor has something on which to base your plan. Once all applicable information has been communicated, your risk tolerance, liquidity needs and an investment plan will be ironed out.
After that, your plan will be enacted and your money invested in specific areas of the market. From there on out, the firm will regularly monitor your account and rebalance as necessary.
Fees Under Stifel, Nicolaus & Company
Stifel, Nicolaus & Company’s fee schedule varies across the many different services and programs it offers, as show in the below table. For the Select Managers Program and Select Funds Program, the firm charges both a wrap fee and a product fee, which covers certain portfolio or model management services and/or internal firm units to the portfolio.
|Program Name||Associated Fees|
|Summit Program||1.35% annual fee|
|Select Managers Program||Up to 2.50% wrap fee, plus 0.05% - 0.85% product fee|
|Select Funds Program||Up to 2.50% wrap fee, plus up to 0.50% product fee|
|Select Advisors Program||Up to 2.50% wrap fee|
|Select APM Program||Up to 2.50% wrap fee|
In most instances, fees are charged to your account on a quarterly basis. That means that if you’re given an annual percentage rate, it will be split into four even charges over the year. The firm does not charge performance-based fees.
What to Watch Out For
Current and prospective clients should note that Stifel, Nicolaus & Company is a fee-based firm, meaning it earns compensation outside of the fees its clients pay. Some of Stifel’s advisors may earn commissions from the sale of specific securities and insurance policies, along with non-cash compensation. This can create potential conflicts of interest, as these advisors may be incentivized to sell these products.
However, Stifel, Nicolaus & Company is a fiduciary, meaning it is legally bound to act in your best interest at all times.
Stifel, Nicolaus & Company has some disclosures and legal issues to note. Most notably, in 2012, a few states filed a combined cease and desist order related to the firm’s mishandling of the sale of auction-rate securities (ARS) to clients. The order states that these investments were marketed under false pretenses from 2006 to 2008. The firm faced a fine of about $30,000 per state. It was also required to repurchase all of the securities that were sold under misleading circumstances.
Opening an Account With Stifel, Nicolaus & Company
There is an advisor directory on Stifel’s website that provides the contact information for advisors in its network. It provides both the advisor’s phone number and the address associated with the firm at which the advisor works. The firm also has a general line you can call for information at (314) 342-2000.
Where Is Stifel, Nicolaus & Company Located?
Stifel, Nicolaus & Company’s principal location is in St. Louis at 501 North Broadway. In total, the firm has branches in 45 states, including in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Washington D.C., Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, Wisconsin and Wyoming.
Tips to Boost Your Retirement Income
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