Assetmark is a fee-based financial advisor firm headquartered in Concord, California. The firm doesn't work directly with clients, but its services are available to them through Assetmark-affiliated advisors at independent firms. Therefore, the firm has a unique opportunity to work with clients, financial advisors and broker-dealers all at once.
The firm offers a variety of advisory services, with affiliated advisors around the country managing almost over $45 billion in client assets.
Assetmark Background
Functioning as an indirect subsidiary of Huatai Securities, Co., Ltd, Assetmark has been in business since 1996. The firm primarily offers wealth management services and technology solutions, and it also provides an array of tools and solutions to help advisors serve their clients. The firm's parent company is listed on the Shanghai and Hong Kong stock exchanges.
Natalie Wolfsen is Assetmark's chief executive officer, while Michael Kim serves as the company's president and chief client officer.
Assetmark has earned multiple awards in recent years. In 2019, it won in the Turnkey Asset Management Platform Category of the WealthManagement.com Industry Awards. In 2018, WealthManagement.com’s 2018 Industry Awards recognized the firm as a winner in its Corporate Social Responsibility/Diversity Initiatives category -- an award that goes to technology providers with the most devotion to community and diversity-oriented service.
Assetmark Client Types and Minimum Account Sizes
Assetmark serves several different types of clients. These include both non-high-net-worth and high-net-worth individuals, pension and profit-sharing plans, investment companies, partnerships, corporations, trusts, insurance companies and charitable organizations.
The firm’s minimum account sizes vary based on account type. Generally speaking, these requirements can be anywhere from $10,000 to $1 million.
Services Offered by Assetmark
Assetmark provides a selection of individual and institutional investment management services. These offerings include a number of different programs, investing strategies and preferred securities recommendations, all of which carry their own minimums. The firm will pair clients with the program that best fits their needs, which include risk tolerance, time horizon, income needs and more.
When it comes to services available for Assetmark's affiliated advisors, the firm offers business consulting services, technology solutions and continuity services. Advisors are free to choose which of Assetmark's services they want to take advantage of.
Assetmark Investment Philosophy
Assetmark touts on its website that its investment solutions are built to anticipate market fluctuations. The firm says it focuses on long-term investments, and it offers investors and advisors pre-built and third-party investment solutions.
Assetmark also provides an array of risk profiles for its investment products. In turn, it uses risk management and diversification tools, such as fixed-income instruments, mutual funds, derivatives and asset allocation strategies.
Fees Under Assetmark
All of Assetmark’s fees are subject to negotiation. However, the firm lists advisory fees for its no-load mutual funds. Advisory rates for the GuideMark Funds range from 0.45% to 0.57%, while the rates for GuidePath Funds range from 0.25% to 1.05%. For the firm’s Savos Dynamic Hedging Fund, it charges 1.20%. Assetmark only retains a portion of these fees, though.
What to Watch Out For
Assetmark has a regulatory action disclosure listed on its Form ADV. In 2016, the U.S. U.S. Securities and Exchange Commission (SEC) alleged that the firm distributed misleading performance advertisements created by F-Squared Investments, Inc. The advertisements were allegedly circulated to prospective clients interested in separately managed accounts provided by Assetmark and sub-advised by F-Squared Investments, Inc. To resolve the case, Assetmark consented to a cease-and-desist order and a $500,000 fine.
Assetmark has advisors who are representatives of broker-dealers, resulting in earned commissions from transactions that involve brokerage firms’ sub-advising of its mutual funds. However, the firm and its advisors have a fiduciary duty to always act in clients' best interests.
Opening an Account With Assetmark
If you’d like to set up an account with Assetmark, you can either fill out the firm’s contact form on its website or you can speak with an advisor by calling (800) 664-5345.
All information is accurate as of the writing of this article.
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