Sendero Wealth is a fee-based financial advisor firm that provides investment advisory and private wealth management services. The firm is located in San Antonio, Texas, and appears on SmartAsset's list of the top financial advisors in the city. The firm has hundreds of clients and nearly $6 billion in assets under management (AUM).
Sendero Wealth Management Background
Sendero Wealth Management can trace its roots back to 2000, when it was a financial advisor division of Redstone Consulting, LLC, a subsidiary of Redstone Federal Credit Union. However, it became an independent firm only in 2008. The parent company and owner of Sendero Wealth Management is Sendero Partners.
The upper management team at Sendero boasts some impressive qualifications. Chairman emeritus Fred Middleton was once the chairman of the District Business Conduct Committee of the National Association of Securities Dealers, the predecessor to FINRA. As a whole, the firm’s team includes some certifications that include certified public accountants (CPAs), chartered financial analysts (CFAs) and Certified Financial Planners™ (CFPs®).
Sendero Wealth Management Client Types and Minimum Account Sizes
Sendero Wealth Management’s client base is made up of both high-net-worth and non-high-net-worth individuals, as well as pension and profit-sharing plans and charities.
While Sendero doesn't have a stated account minimum, the firm typically charges a minimum annual fee of $30,000, which it can waive at its discretion.
Services Offered By Sendero Wealth Management
Sendero Wealth Management provides discretionary and non-discretionary investment advisory services to individuals, families, and institutions. Services are tailored to client needs and typically include:
Portfolio management: Investment management services guided by each client’s objectives, time horizon, risk tolerance and liquidity needs. Portfolios may include mutual funds, ETFs, equities, fixed income, private funds and other securities.
Family office services: Broader support for high-net-worth families, such as organizing and simplifying financial affairs, coordinating with outside advisors (attorneys, CPAs) and addressing intergenerational planning needs.
Manager selection and oversight: Open-architecture platform allowing clients to access third-party managers, with Sendero responsible for due diligence, selection and monitoring.
Financial consulting: Includes strategic asset allocation, investment education, performance reporting and advice on tax and liquidity considerations.
Sendero Wealth Management Investment Philosophy
Sendero Wealth Management constructs portfolios based on each client’s investment goals, risk tolerance, time horizon, and liquidity needs. The firm uses an open-architecture approach, selecting from a broad range of investment managers and strategies that may include mutual funds, ETFs, individual securities, private funds and alternative investments.
Investment strategies are implemented on either a discretionary or non-discretionary basis, depending on the client’s preference. Sendero conducts due diligence and ongoing monitoring of selected managers and investments, with a focus on aligning portfolios with long-term client objectives. Asset allocation decisions are customized and reviewed periodically to reflect any changes in a client’s circumstances or market conditions.
Fees Under Sendero Wealth Management
Sendero Wealth Management generally charges advisory fees quarterly in advance, based on the market value of deployed and committed capital in a client’s designated portfolio as of the last business day of the previous quarter. Each client’s Advisory Agreement outlines which household assets are included for billing.
Clients with less than $1 million in managed assets are billed at 1.50% annually.
Clients with $1 million to $3 million are billed at 1.25% annually.
Clients with more than $3 million are billed using a tiered schedule, with a maximum rate of 1% on the first $4 million and lower rates above that amount.
The firm applies exceptions in certain cases, such as complex portfolios or those heavily invested in fixed income or cash. A $30,000 minimum annual fee applies unless waived, but it does not apply to clients with under $3 million in assets. Some clients may follow alternate billing schedules, exclude certain asset types from billing, or pay a fixed fee not based on assets under management.
What to Watch Out For
There are no disclosures to report for Sendero Wealth Management. However, potential clients should be aware of the fact that the firm specializes in serving the wealthy.
Opening an Account With Sendero Wealth Management
If you’re in the San Antonio, Texas area, stop by Sendero Wealth Management to meet with an advisor. You can also call the firm to set up an appointment.
All information is accurate as of the writing of this article.
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