Beacon Pointe Advisors, LLC is an independently owned, fee-only financial advisor firm offering financial planning and wealth management services to both individuals and high net worth individuals, with a focus on women and clients going through life milestones. The firm employs 113 investment advisors across 20 offices, most of which are located in California, including its headquarters in Newport Beach. It currently oversees about $9.9 billion in assets under management (AUM).
All information included in this profile is accurate as of May 20, 2020. For more information, please consult Beacon Pointe Advisorsâ€™ website.
|Assets under management: $9,949,699,273|
|Minimum investment: $1 million|
|Fee structure: Percentage of AUM for portfolio management; fixed fees; hourly fees|
|Headquarters:||24 Corporate Plaza Drive
Newport Beach, CA 92660
Beacon Pointe Advisors is an independent firm primarily owned by its CEO and founder, Shannon Eusey. In March 2020, Beacon Pointe merged with sister firm Beacon Pointe Wealth Advisors to form a single registered investment firm, Beacon Pointe Advisors. As part of the transaction, private equity firm Abry Partners took a minority stake in the merged firm. Other employees hold a minority interest in the firm.
Eusey founded Beacon Pointe in 2002 based on a business school project, and it has since grown to 20 offices nationwide. Beacon Pointe Advisors has a total of 167 employees who collectively hold more than 100 designations and degrees, such as the highly respected certified financial planner (CFP) and chartered financial analyst (CFA) designations and JD and masterâ€™s degrees. Beacon Pointe Advisors currently has $9.9 billion in assets under management, with plans to keep growing.
Beacon Pointe Advisors serves mostly individuals and high net worth individuals. (For reference, the SEC defines a high net worth individual as someone with at least $750,000 in assets under management or a net worth of over $1.5 million.) While the minimum account balance required for clients is technically $1 million, the firm may waive or reduce that minimum at its discretion, as evidenced by the fact that it serves more individuals than high net worth individuals.
Beacon Pointe Advisors has a particular focus on women investors. In 2011, it founded the Womenâ€™s Advisory Institute, aimed at helping female clients. Additionally, half of the firmâ€™s leadership team are women. The firm also specializes in helping multi-generational families; entrepreneurs and business owners; and clients going through financial life changes, such as divorce or the death of a spouse.
In addition to individual investors, Beacon Pointe Advisors works with some charitable organizations, businesses, insurance companies, pension and profit-sharing plans and pooled investment vehicles.
Beacon Pointe Advisors offers both consulting services and a managed account program. Financial planning services fall under the consulting part of the business. Clients interested in financial planning have the option of getting a holistic plan that looks at their entire financial picture and results in the creation of a written financial plan with specific recommendations. Clients can also request limited-scope financial planning focused on a specific goal, such as saving for retirement or paying for a college education.
Other consulting services offered by Beacon Pointe Advisors include assistance with creating an investment policy or asset allocation strategy; recommendations of managers, mutual funds, or custodians; and the monitoring of managers and portfolios on a non-discretionary basis.
Clients in the managed account program have access to the above services as well as investment management on a discretionary basis. That means that the firm invests the money on their behalf and has the authorization to make changes to keep the clientâ€™s portfolio in line with their investment policy.
Here is a complete list of services currently offered by Beacon Pointe Advisors:
Beacon Pointe Advisors works with each client to learn about their financial situation to create an individual investment policy based on their goals and risk tolerance and the firmâ€™s models. Typically, the firm will include a mix of stocks (domestic and international), bonds, real estate, private equity, hedge funds and real assets.
When possible, the firm recommends investments with active managers who have undergone a rigorous screening process that includes quantitative and qualitative analysis, portfolio analysis and product evaluation. The firm prefers independent managers who invest alongside their clients.
Asset management: Clients in the managed account program pay negotiated asset-based fees, typically ranging from 0.50% to 1.15% of assets under supervision. The maximum rate the firm will charge is 1.65% of assets under management. These fees are in addition to any manager or transaction fees that clients may owe custodians.
Consulting services: For consulting services provided on a one-time or project basis, Beacon Pointe Advisors charges either a fixed, project-based fee, with a typical minimum of $25,000, or an hourly fee that typically runs from $350 to $500 an hour. If the consulting services are provided on an ongoing basis, the firm will charge an asset-based fee. The annual retainer fee for discretionary portfolios generally ranges from 0.20% to 0.50%, while the rate ranges from 0.08% to 0.50% for non-discretionary portfolios. Clients with a portfolio worth more than $500 million typically pay a negotiated fixed fee.
Beacon Pointe Advisors does not have any disciplinary disclosures on its record. Registered investment advisors (RIAs) who face disciplinary action, including criminal charges, regulatory infractions or civil actions, must report those incidents on the Form ADV that they file with the Securities and Exchange Commission (SEC).
Interested clients can get in touch with the firm by calling the nearest office. The firm provides each officeâ€™s contact information on its website.
Once in contact, advisors work with the client to create either a limited-scope or holistic financial plan and an investment policy based on that plan. The firm then recommends custodians to implement the plan, and clients can either implement the strategy on their own or allow Beacon Pointe Advisors to manage their portfolio on their behalf.
Advisors review client accounts quarterly and aim to meet with clients once a year to discuss portfolio performance and any necessary changes to their portfolio. Clients in the managed account program receive monthly reports from their custodian showing their portfolio and quarterly written reports from their Beacon Pointe Advisors. The firm reviews financial plans as needed, on request form the client.
Beacon Pointe Advisors may be a good choice for you if youâ€™re located near one of the firmâ€™s 20 offices (or donâ€™t care about face-to-face service), have at least $1 million to invest and are interested in active management for your portfolio. Women investors, in particular, may be well served by the firm, which has a corporate leadership team thatâ€™s 50% women. The Beacon Pointe Womenâ€™s Advisory Institute also claims to specialize in many of the financial issues and monumental life events facing women investors.
However, Beacon Pointe Advisors also has a relatively high minimum balance, $1 million. Another firm may be a better choice if you donâ€™t have the funds, though itâ€™s worth noting that the firm may waive this minimum at its discretion. Additionally, the firmâ€™s preference for active management may mean that you end up paying higher fees than you would if you went with a firm that prefers passive management.
As is the case when choosing any financial product, itâ€™s important to do your research and ask questions of your advisor to make sure you find the best fit for you.