Monday, 28 September 2020
With 83 employees in its Dallas office, Tolleson Private Wealth Management works with extremely wealthy families — the minimum investment to work with the firm is generally $10 million. Tolleson Private Wealth Management currently manages nearly $5.6 billion for about 180 clients in the Dallas area, providing them with not only wealth management but also holistic financial planning services, such as philanthropic, tax and estate planning. Each client has a primary advisor who works with other advisory staff to create and execute the agreed upon plan.
All information included in this profile is accurate as of December 13th, 2019. For more information, please consult Tolleson Private Wealth Management’s website.
| Assets under management: $5,563,283,533 | |
| Minimum investment: $10 million | |
| Fee structure: Percentage of AUM; hourly charges; fixed fees | |
| Headquarters: | 5500 Preston Road Suite 250 Dallas, Texas 75205 www.tollesonwealth.com (214) 252-3250 |
John Tolleson founded Tolleson Private Wealth Management in 1997 as a single-family office to serve his own family’s needs. In the more than 20 years since, the firm has grown to serve other families, launching Tolleson Private Bank in 2003. Tolleson Private Wealth Management activated its trust charter in 2006 to serve as a corporate trustee for families, and in 2014, it added philanthropy and foundation management services.
In 2017, John Tolleson became the firm’s executive chairman, passing the CEO title to his son, J. Carter Tolleson. Longtime employee J. Richard Joyner took over as president. The privately owned firm has 83 employees, including 58 who provide advisory services. The advisory team collectively holds a range of designations, including several certified public accountants (CPA), certified financial planners (CFP) and certified personal wealth advisors (CPWA).
The largest wealth management firm in Dallas, Tolleson Private Wealth Management currently has about $5.6 million in assets under management. It is a wholly owned subsidiary of Tolleson Wealth Management, of which John Tolleson is the majority owner.
With a minimum account balance generally set at $10 million, Tolleson Private Wealth Management primarily provides investment advisory services to ultrahigh net worth individuals and families. Though high net worth individuals and families comprise the vast majority of the firm’s clients, the firm also provides portfolio management services to estates, trusts, foundations, private investment funds and trust accounts at Tolleson Private Bank and National Philanthropic Trust.
All of the firm’s clients are located in the Dallas area, though Tolleson is registered to work with investors in other states.
Tolleson Private Wealth Management takes a comprehensive approach to helping its family clients manage their wealth. The firm’s primary focus is on investment advisory services, but 40% of the firm’s business comes from other services, including tax, bookkeeping, bill pay, cash management, estate planning, philanthropy and risk management.
Additionally, clients of Tolleson Private Wealth Management also have access to trust services and other private banking services provided through its affiliate, Tolleson Private Bank.
Here is a full list of services provided by Tolleson:
Tolleson Private Wealth Management crafts individual investment policy statements and fixed-income investment (if desired) policy statements for each of its individual and family clients. It uses those statements to find investment alternatives consistent with that policy.
Rather than selecting securities, Tolleson serves as an investment manager, helping clients form their asset allocation strategy and advising on whether it makes sense to use derivative investments, such as collars, swaps or options. The firm then implements the policy and reports at least once per quarter on the portfolio results.
Among the funds Tolleson Private Wealth Management recommends are its own 17 private investment funds, for which it provides advisory services. The funds focus on equity income, international equity, private equity, domestic equity, fixed income, energy, private equity and high-yield. Each fund invests in other pooled investment vehicles run by third-party managers.
Depending on the services offered, Tolleson Private Wealth Management can earn money through hourly fees, a percentage of assets under management and fixed fees. Below is a breakdown of its rates, but the firm’s policy is that all fees are negotiable, depending on several factors, including a client’s net worth and the complexity of the services provided.
| Type of Services | Basic Fees |
|---|---|
| Financial advisory services | 0.35%-1% of assets under management, payable quarterly
OR annual fixed fees, payable quarterly |
| Discretionary fixed income portfolio management | 0.15% to 0.20% of client assets under management, payable quarterly |
The firm typically bills for its services each quarter, but clients can also request that their fees come directly from their accounts. Typically, clients who receive both financial advisory services and fixed income portfolio management pay a comprehensive advisory fee, plus a fee for the portfolio management. Additional services, such as bookkeeping and philanthropic planning, also carry a separate charge.
Depending on which funds clients invest in, they may also owe additional fees and expenses to outside firms such as custodians, brokers, mutual funds companies, money managers or private investments funds. Additional fees may cover fund overhead, such as legal and auditing expenses, and the cost of preparing financial statements and tax returns.
Tolleson Private Wealth Management currently has zero disciplinary disclosures. The SEC requires RIAs to report disciplinary disclosures on its Form ADV, paperwork that registered firms must file with the SEC. These include any regulatory actions, criminal charges or legal developments like liens or civil judgments that have been taken against the firm.
Prospective clients can reach out to the firm via the contact form provided on the firm’s website, which requests your name, email address, phone number, a brief note and an indication of which services you’re interested in. You can also set up an appointment by calling the office at (214) 252-3250.
When working with a new client, Tolleson Private Wealth Management meets with them to learn more about their goals for their portfolio. Based on these meetings, the firm works with clients to create an “investment policy statement” and a “fixed income investment policy statement,” which it uses to evaluate and recommend investments. The firm creates an individualized team, led by a primary advisor and support staff, to provide other financial planning services, such as tax and bookkeeping, philanthropy and estate planning.
Most clients meet quarterly with their Tolleson Private Wealth Management team and receive at least quarterly statements about their accounts. As part of its estate planning service, the firm offers coaching and mentorship to future heirs.
Tolleson Private Wealth Management is focused on Dallas-area, ultrahigh net worth individuals and families at all points of their financial lives. It provides holistic financial planning advice and wealth management. While the firm may be a good fit for potential clients who fit that description, individuals and families with less than the $10 million to invest will likely need to look elsewhere.
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Source: https://www.magnifymoney.com/blog/investing/tolleson-wealth-management-review/
