Tuesday, 26 January 2021
The private wealth arm of financial services giant Goldman Sachs focuses on high net worth individuals, as well as certain endowments and foundations. Goldman Sachs Private Wealth Management is headquartered in New York, though it serves clients throughout the United States and around the world.
All information included in this profile is accurate as of March 9, 2020. For more information, please consult Goldman Sachs Private Wealth Management’s website.
| Assets under management: $902,461,604,978 | |
| Minimum investment: $100,000 | |
| Fee structure: A percentage of assets under management | |
| Headquarters location: | 200 West Street New York, NY 10282 Website 212-902-1000 |
Financial services stalwart Goldman Sachs was originally founded in 1869, and today has grown to become a publicly traded corporation (ticker symbol: GS). Its investment advising business, Goldman Sachs Private Wealth Management, has accumulated assets under management of $900 billion. Goldman Sachs Private Wealth Management has 1,366 employees, 896 of whom provide wealth advisory functions.
Goldman Sachs has won numerous awards, including for its private banking and wealth management services. The company has also won awards related to diversity, including for its policies for working mothers and LGBT+ inclusivity.
Most of the clients served by Goldman Sachs Private Wealth Management are high net worth individuals, though the firm also serves individuals, including trusts, estates and retirement plans. On top of that, the company also works with charitable organizations, banks and pooled investment vehicles, and even provides advice to government entities, sovereign wealth funds and international bodies.
While there is no true minimum threshold to open or maintain an account with Goldman Sachs Private Wealth Management, to obtain certain services you might need to have at least $100,000 in your account. For separately managed accounts and access to private investment accounts, you generally need to be an accredited investor. According to the Securities and Exchange Commission (SEC), this means you need to have an income of at least $200,000 a year if single ($300,000 combined if married) or a net worth of at least $1 million.
Goldman Sachs Private Wealth Management offers an extensive menu of services for its clients. Not only can you choose from a variety of preexisting investment vehicles, but the firm can also create customized portfolio options. A version of this process was actually dramatized in the movie The Big Short, when Dr. Michael Burry (played by Christian Bale) requested a highly tailored investment to short the U.S. housing market, just for him.
Basically, whatever assistance you need to manage your wealth, Goldman Sachs Private Wealth Management can make it happen. Services offered include:
Goldman Sachs Private Wealth Management uses several distinct teams to develop strategies tailored to each client’s needs and goals. These teams and their strategies include:
There are a range of other teams that focus on more specialized strategies, including hedging, private credit, relative value and event-driven analysis. Basically, analysts and advisors can use just about any type of strategy and analysis technique available to figure out how to help you meet your goals.
Clients with separately managed accounts usually pay fees based on a percentage of assets under management, though there may be other fees that need to be paid. Fees are generally negotiable, and are usually billed monthly or quarterly.
Some of the fees that you might be charged as part of your participation include:
Goldman Sachs Private Wealth Management offers a wrap fee program, which means that these fees might all be bundled into a single fee to cover everything. Additionally, there might be expense ratios and other fees associated with fund investments which will also impact your overall returns.
While fees are largely negotiable and there isn’t a standard fee schedule for some of the portfolios, Goldman Sachs does have fee schedules for certain asset classes. The fees, however, represent the maximum charged based on assets under management, and they might actually be lower.
| Index Oriented – Tax Advantaged Core | |
|---|---|
| Up to $10 million | 1.650% |
| $10 to $25 million | 1.050% |
| $25 to $50 million | 0.950% |
| $50 to $100 million | 0.850% |
| $100 to $250 million | 0.800% |
| $250 to $500 million | 0.750% |
| More than $500 million | 0.700% |
| Active Core Equity, MLP | |
|---|---|
| Up to $10 million | 1.750% |
| $10 to $25 million | 1.150% |
| $25 to $50 million | 1.050% |
| $50 to $100 million | 0.950% |
| $100 to $250 million | 0.900% |
| $250 to $500 million | 0.850% |
| More than $500 million | 0.800% |
| Active Satellite, Real Estate | |
|---|---|
| Up to $10 million | 1.900% |
| $10 to $25 million | 1.300% |
| $25 to $50 million | 1.200% |
| $50 to $100 million | 1.100% |
| $100 to $250 million | 1.050% |
| $250 to $500 million | 1.000% |
| More than $500 million | 0.950% |
There are no disciplinary disclosures from Goldman Sachs. This is fairly impressive, considering the long history of the company.
A Goldman Sachs representative will talk with you to get a feel for your goals and your situation in an attempt to help you develop a plan. It’s a high-touch process that involves personal attention in the analysis of your finances and ongoing counsel. You also receive access to your accounts and information online and through a mobile app, once you’re a client.
For the most part, Goldman Sachs Private Wealth Management is aimed at high net worth individuals who want help managing various aspects of their finances. If you have a complex financial situation and a lot of assets, and you want access to premier services like private banking and a truly tailored management plan, this might be the right move for you. Additionally, if you want help with trust administration and know you’ll need other similar services, Goldman Sachs Private Wealth Management can be a good choice.
However, if you are looking for a little help with managing your investments and you aren’t quite to the point where you’re an accredited investor or a high net worth individual, you might be better off looking elsewhere.
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Source: https://www.magnifymoney.com/blog/investing/goldman-sachs-private-wealth-management-review-ria/
