Comerica Wealth Management is a financial services firm with several affiliates and divisions. One of them is Comerica Securities, an SEC-registered financial advisor headquartered in Detroit that has more than 100 advisors. The firm is a member of the Financial Industry Regulatory Authority, Inc. (FINRA) and the Securities Investor Protection Corporation (SIPC). Comerica Securities offers portfolio management and third-party advisor selection services.
Comerica Wealth Management Background
Comerica Securities was founded in 1985 and became an SEC-registered investment advisor in 2005. While the firm is based in Detroit, its parent entity, Comerica Inc., has been based in Dallas for more than 100 years and runs affiliates that focus on several facets of the financial services space. These include banking, investment management and financial planning.
Comerica Wealth Management Client Types and Minimum Account Sizes
Comerica generally works mostly with individuals, including high-net-worth clients. The firm also provides its services to businesses and corporations, trusts, estates, charitable organizations, pension and profit-sharing plans.
The minimum initial investment required to open an account with Comerica depends on which type of investment option you choose. This minimum currently stretches from $25,000 to $1.8 million.
Services Offered by Comerica Wealth Management
Comerica’s advisory services primarily focus on investment management. It offers various investment choices through its Managed Portfolio Solutions program. These are offered on a wrap-fee basis. Through this program, Comerica offers discretionary and non-discretionary investment advisory services. You can choose from the following options:
- Personal Portfolio Advisory
- Fund Strategist Portfolios
- Separately Managed Account
- Unified Managed Account
- Fixed Income Models
- Envestnet Impact and Tax Overlay Services
When you choose one of these options, an advisor can guide you through portfolio construction and asset-allocation strategies based on your individual investment objectives and financial goals. The advisor would also engage in ongoing portfolio monitoring.
Based on your determined risk tolerance and financial objectives, your portfolio may invest in the following securities:
- Mutual funds
- Exchange-traded funds (ETFs)
- Preferred equities
- Fixed-income securities
An advisor will periodically evaluate your portfolio and may recommend rebalancing strategies based on factors like changing market and economic conditions, as well as your financial situation.
When managing certain options within this program, Comerica utilizes proprietary models developed by Comerica Asset Management, as well as those from third-party model providers. In addition, Comerica may recommend that you invest in one or more funds from a pre-approved list. The firm says these funds have gone through its due diligence process. A financial consultant may also recommend investing in a Comerica Managed Portfolio run by Comerica Asset Management.
Before enrolling in any of the available investment programs, Comerica will gather information about your current financial situation and goals to determine which could be most appropriate.
For the Managed Portfolio Solutions program, Comerica utilizes the services of Envestnet Asset Management. This SEC-registered investment advisor provides a technology platform and investment consultant services to the program. In addition, Envestnet Impact Overlay Services allows clients to place socially responsible investment restrictions on their portfolios in case they would like to limit their exposure to companies that engage in providing products or services against their social values.
But beyond the services it provides to the program, Envestnet is not directly affiliated with Comerica, according to recent SEC filings.
Comerica Wealth Management Investment Philosophy
Comerica Securities, its financial consultants, sub-advisors and separate asset managers may use one or more of the following strategies when driving overall investment decisions:
- Fundamental Analysis: Evaluating securities based on a variety of quantitative factors, including economic conditions, industry outlooks and performance history.
- Technical Analysis: Using charts and other tools that detail market data as well as price and volume movements to project future performance.
- Qualitative Analysis: Examines non-quantifiable information like industry cycles, management expertise and more to evaluate “quality” of the security.
Comerica Securities use investment strategies that revolve around building an asset allocation model suited to the client’s objectives, risk tolerance and investment horizon. These strategies are typically long-term in nature, although the firm may rely on short-term trading in certain circumstances.
Fees Under Comerica Wealth Management
If you’re receiving investment advisory services, a client fee would be deducted from your program account. This fee consists of an advisory fee paid to Comerica and an overlay fee paid to your financial consultant.
Depending on the type of investment option you choose, you may also be charged a manager fee. In addition, you may also be charged fees paid to third parties such as Envestnet and Pershing.
Advisor fees are charged as a percentage of assets under management (AUM). The tables below reflect the advisor fees for the different types of portfolio options offered by Comerica:
Personal Portfolio Advisory (PPA) accounts
| Assets Managed | Advisor Fee |
| First $2 million | 1.35% |
| Next $3 million | 0.90% |
| Next $5 million | 0.60% |
| Balances greater than $10 million | 0.40% |
Strategist Portfolios (FSP), Separately Managed Account (SMA) and Unified Managed Account (UMA)
| Assets Managed | Advisor Fee |
| First $2 million | 1.35% |
| Next $3 million | 0.90% |
| Next $5 million | 0.60% |
| Balances greater than $10 million | 0.40% |
Fixed Income Models (PPA, SMA and UMA programs only)
| Assets Managed | Advisor Fee |
| First $2 million | 0.50% |
| Next $3 million | 0.35% |
| Next $5 million | 0.25% |
| Next $10 million | 0.20% |
| Balances greater than $20 million | 0.15% |
Envestnet Impact and Tax Overlay Services
| Assets Managed | Overlay Fee |
| First $10 million | 0.16% |
| Next $15 million | 0.13% |
| Balances greater than $25 million | 0.09% |
What to Watch Out For
Comerica Securities has six disclosures of regulatory actions on the Form ADV it filed most recently with the U.S. Securities and Exchange Commission (SEC). The most recent discipline came in March 2019 when the SEC censured Comerica and ordered it to pay $175,891.40 in disgorgement, plus more than $10,000 in prejudgement interest. The penalties came after the firm allegedly invested advisory clients' assets in mutual fund share classes with 12b-1 fees instead of available lower-cost share classes of the same fund.
Moreover, Comerica Securities is affiliated with several entities that comprise the greater Comerica Inc. Comerica Securities is a subsidiary of Comerica Bank. Employees of both entities provide investment strategies and model services. However, they don’t undergo the same review process other third-party managers would experience under evaluation. This arrangement may create a conflict of interest.
Comerica Securities states in a brochure it filed with the SEC that it does not endorse one advisory program over another with its financial consultants. In addition, its financial consultants do not get any additional compensation for recommending a model or investment strategy from Comerica Bank. Comerica Securities says it will only recommend a service after determining it is right for the client based on extensive research.
Finally, some Comerica advisors may also be insurance agents and/or representatives of a securities broker-dealer. As a result, they may earn commissions on certain transactions, creating a potential conflict of interest. Then again, the firm must abide by fiduciary duty to always act in its clients' best interests.
Opening an Account With Comerica Wealth Management
You can open an account with Comerica by visiting its Investment Advisory Services based in Detroit. You can also reach this office by dialing (800) 232-6983.
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