Established as a small, single-family office, Tolleson Wealth Management now offers an array of wealth solutions through an integrated team, trusted advisors and advisory experience, according to its website. The firm is a financial advisor firm based in Dallas with billions in assets under management in its investment advisory division. The firm primarily serves ultra-high-net-worth individuals and their families, though its client base also includes banking or thrift institutions, pooled investment vehicles and charitable organizations. The firm generally requires its advisory clients to have a minimum account size of $20 million, but it is subject to waiver by the firm.
Tolleson provides wealth management, philanthropy services and family education. Additionally, it offers private banking and trust services through Tolleson Private Bank. The firm also appears on our top financial advisors lists for both Dallas and the state of Texas.
Tolleson Private Wealth Management Background
The single-family office from which the firm was developed was founded in 1997. It was formed because the Tolleson family couldn’t find an organization to manage their wealth that provided all of the services they needed. What started as a private office that managed the Tolleson family’s assets has since grown to serve numerous affluent individuals and families like the Tolleson’s. The firm, officially established as an SEC-registered investment advisory firm in 2000, says that it now serves as the “customized resource for other families with values like ours who want to enjoy all the benefits of their wealth without the complexity and time constraints that managing wealth can bring.”
The firm is currently privately owned by founder and chairman John Tolleson. With his family, he remains a client of Tolleson Wealth Management.
Tolleson Private Wealth Management Client Types and Minimum Account Sizes
The majority of Tolleson’s clients are ultra-high-net-worth individuals and their families. The firm says it can also provide portfolio management services to estates, trusts, foundations, private investment funds and trust accounts at Tolleson Private Bank and National Philanthropic Trust, a public charity.
Tolleson generally requires its advisory clients to have a minimum account size of $20 million. Because of this comparatively high account minimum, Tolleson’s client base is exclusively comprised of high-net-worth and ultra-high-net-worth individuals and families. However, Tolleson notes that it may waive this minimum at its discretion.
Services Offered by Tolleson Private Wealth Management
Tolleson Wealth Management offers a notably wide range of services, many of which cater to the needs of affluent individuals and families. The firm can offer the following services to its clients:
- Financial planning
- Estate, trust and gift planning
- Cash flow and income planning
- Debt planning
- Large purchase negotiations and financing
- Investment management
- Asset allocation and investment strategy
- Analysis of the current portfolio
- Money manager due diligence and selection
- Performance reporting and manager monitoring
- Private equity evaluation
- Specialty hedging and diversification strategies
- Philanthropy services
- Private foundation operations
- Donor-advised fund
- Charitable grant administration
- Family meetings and foundation governance
- Charitable tax planning and strategy
- Risk management
- Life insurance planning
- Property and casualty insurance planning
- Liability insurance planning
- Asset protection planning (trust and offshore planning)
- Family education
- Family meetings
- Family governance
- Family dynamics
- Transition and succession planning
- Tax planning
- Quarterly tax projections and planning
- Tax reduction and deferral strategies
- Tax-efficient investment strategies
- Income and gift tax preparation
- Asset ownership and entity planning
- Private banking services
- Checking and money market accounts
- Customized mortgage loans, investment loans, aircraft and yacht loans, and lines of credit
- Debit and ATM cards, online banking and bill payment, wire services, and mobile banking services
- Private trust services
- Trust Administration
- Estate administration and settlement
- Specialty asset management including real estate, oil and gas properties, closely held business
- Ability to serve as trustee, co-trustee or agent for fiduciary
- Special services
- Balance sheet preparation
- Cash management
- Aircraft management
Each of the firm’s investment management clients is served by a team, which is led by a wealth management expert. Clients can call any of their team members at any time.
Tolleson Private Wealth Management Investment Philosophy
Rather than pursue any one investment strategy, Tolleson bases its strategies on its clients' goals, objectives and risk tolerance. The firm prioritizes wealth preservation and strives to achieve steady growth in all market conditions. It claims to give clients access to financial resources that aren't "often available to individuals in the general market."
Tolleson's investment team, overseen by its investment committee, is responsible for asset allocation and investment manager selection. The firm generally tries to avoid risky or unattractive asset classes as it strives to create diversified portfolios that will produce returns with minimal risk and volatility. Rather than choosing stocks internally, Tolleson relies on money managers. However, Tolleson does continue to monitor clients' asset allocations, as well as money managers.
Fees Under Tolleson Private Wealth Management
Tolleson Wealth Management, a fee-only firm, generally charges clients for its financial advisory services either based on a fixed fee or a percentage of assets under management. These yearly percentages range from 0.40% to 1.00%. For discretionary fixed-income portfolio management, clients are annually charged a percentage of their assets under management that ranges from 0.15% to 0.20%. Fees are billed quarterly in advance for both service types.
However, Tolleson notes that these fees are negotiable, depending on a client's net worth and financial situation, the services requested and the complexity of the client’s needs. Additionally, clients who receive both financial advisory services and discretionary fixed income portfolio management are typically charged a comprehensive advisory fee as well as a separate supplemental fee for the discretionary fixed-income portfolio management program.
In addition to these fees, clients will be responsible for other fees and expenses charged by custodians, brokers, mutual funds companies, outside money managers, private investment funds and other investment vehicles. Clients' fees are outlined in their investment advisory agreements.
Learn more about advisors' typical costs here.
Tolleson Private Wealth Management Awards and Recognition
D Magazine named Tolleson one of the top wealth managers in Dallas.
Tolleson president Richard Joyner has also been recognized with some prestigious awards. He ranked No. 2 in Texas on Barron's list of the top advisors and No. 17 on Barron's list of the top 100 independent wealth advisors.
What to Watch Out For
According to its latest SEC filing, Tolleson does not have any disclosures or legal disciplinary actions listed on its Form ADV. One thing to consider, however, is that Tolleson is a more exclusive firm than many, as it requires a $20 million account minimum. Moreover, its service offerings are designed to cater to affluent individuals and their families.
Another thing to note is that Tolleson may advise clients on whether to invest in private funds for which it provides advisory services. Clients should be aware that Tolleson has a financial incentive to recommend investments in these funds because it earns a fee from the funds for providing investment advisory services. However, the firm is bound by fiduciary duty, meaning it must act in clients' best interests.
Opening an Account With Tolleson Private Wealth Management
You can get in touch with Tolleson by filling out the contact form provided on its website. The form requests your first and last name, email address, phone number and a brief message. You can also indicate which services you're interested in by checking the applicable boxes (wealth management, trust services, family education, private banking, philanthropy services or other). The firm also provides phone numbers for Tolleson Wealth Management and Tolleson Private Bank if you'd prefer to call directly.
When clients open an account, they must sign a financial management agreement defining the scope of the firm’s advisory services, as well as the investment objectives, guidelines and relevant restrictions.
All information is accurate as of the writing of this article.
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