Located in Phoenix, Arizona, Vision2020 Wealth Management Corp. has more than $5.63 billion in assets under management (AUM). All of these assets are in wrap fee programs that the firm sponsors and manages. The staff includes 574 broker-dealer representatives and 120 investment advisor representatives (IARs) registered with state authorities. According to its filings with the Securities and Exchange Commission (SEC), the firm does not employ any investment advisors.
Vision2020 Wealth Management Background
The firm does not have a website, so information about it is limited. The practice registered with the SEC and a number of states in 2010. It is primarily owned by the Advisor Group, Inc, which is in turn owned by Advisor Group Holdings, Inc, which is owned by AG Parent Corporation, which is owned by AG Intermediate Corporation, which is owned by AG Artemis Holdings, L.P., which is owned by RCP Artemis Co-Invest, L.P. Chairman James Dale, VP Robert Guldner, EVP Cynthia Hamel, EVP Nina McKenna and EVP Matthew Schlueter have small stakes in the firm.
Vision2020 Wealth Management Client Types and Minimum Account Sizes
The minimum to open an account is a relatively low $50,000. It’s no surprise then that the vast majority of clients do not have a high net worth. Specifically, there are 35,346 of them versus 5,378 who do have a high net worth.
In addition to individuals, the firm works with pension and profit-sharing plans, trusts, estates, charitable organizations, corporations, banks and other business entities.
Services Offered by Vision2020 Wealth Management
It’s possible to have an account with Vision2020 that is not in its wrap fee program. Similarly, you can have an account that is not on a discretionary basis. But for the most part, Vision2020 clients have discretionary investment accounts in wrap fee programs. These wrap fee programs can involve model portfolios that primarily use mutual funds and exchange-traded funds (ETFs) or customized asset allocations that use stocks, bonds and other securities types.
The firm also provides unified managed account (UMAs) and separately managed accounts (SMAs). The minimum for an SMA is $100,000. With both kinds of accounts, you would sign an agreement with Vision2020, who has an agreement with Envestnet Asset Management. Envestment’s investment managers would then provide portfolio management services. Alternately, Vision2020 has agreements with other investment managers it might recommend to you, depending on your financial profile and goals.
Vision2020 Wealth Management Investing Philosophy
Vision2020 doesn’t follow one specific strategy. Instead, it seeks to provide any strategy appropriate to a client’s needs and preferences. It does this by outsourcing portfolio management to third parties. For example, through its Genesis Model Portfolios program, clients have access to advisors at:
- Astor Investment Management
- Beacon Capital
- BlackRock Investment Management, LLC
- Capital Group/American Funds
- Caprin Asset Management, LLC
- Clark Capital Management Group, Inc.
- Envestnet Asset Management, Inc.
- Frontier Asset Management, LLC
- Horizon Investments, LLC
- J.P. Morgan Asset Management
- LWI Financial Inc.
- New Frontier Advisors, LLC
- Russell Investment Management Company, LLC
- S & P Investment Advisory Services, LLC
- Vanguard Advisers, Inc.
Fees Under Vision2020 Wealth Management
All fees are negotiable. But generally speaking, accounts in the Genesis Model Portfolios program and in the UMA and SMA programs pay an advisory fee and a program fee. The maximum for the advisory fee is an annual 1.75% of assets under management (AUM). The program fee includes the investment manager’s fee, which is up to an annual 1.4%, and the custodian’s fee, which ranges up to 0.39% for SMAs and 0.44% for UMAs. The total fee will not exceed 2.39% of AUM, though there is an additional 0.10% charge for tax management services and 0.10% for a socially responsible investing screen.
For the advisor-managed portfolios program, the fees follow a tiered schedule. In the wrap fee program, fees run from an annual 2.5% of AUM (for assets up to $249,999) to 1.0% (for assets more than $25 million). Outside of a wrap fee program, fees runs from an annual 2.3% of AUM (for assets up to $249,999) to 0.80% (for assets more than $25 million).
What to Watch Out For
As noted earlier, your Vision2020 IAR may also be a broker-dealer representative who receives commissions on transactions. This means he or she may have more conflicts of interest than an advisor who only provides investment advice and management. That said, as an SEC-registered investment advisor, Vision2020 is legally obligated to work in clients’ best interests. (As brokers, they must only make suitable recommendations.)
Additionally, the firm does not offer financial planning. If you are seeking guidance on financial matters that do not involve investing per se (such as estate planning) or want a one-time financial plan, use SmartAsset’s financial advisor tool to find someone who better fits your needs.
Vision2020 reported no disclosures in its most recent SEC filings.
All information was accurate as of the writing of this article.
Tips for Finding the Right Financial Advisor
- Ask candidates about their formal training. Believe it or not, you don’t actually have to have any to be a financial advisor. So if someone does have a professional designation, such as certified financial planner (CFP) or accredited investment fiduciary (AIF), you know they have had some related preparation - and probably a speciality.
- Also ask about the advisor’s client base. Someone who primarily works with affluent families may not give you the attention you want if you are not so wealthy. Conversely, someone who works mostly with people who are not affluent may lack the know-how or experience to handle assets at your level.
- Use SmartAsset’s five-minute financial advisor matching tool. After answering questions about yourself, you’ll be matched with up to three advisors vetted by us.