What does Badgley Phelps Wealth Managers do?
Badgley Phelps Wealth Managers provides advisor-led wealth management that combines ongoing financial planning with primarily discretionary investment management.
The firm customizes each client’s asset allocation and manages equity-only, fixed-income-only, or balanced portfolios using stocks, bonds, mutual funds, ETFs, ETNs, and cash.
Firm overview:
Firm background | Badgley Phelps traces its advisory business to 1966 |
|---|---|
Ownership | A wholly owned indirect subsidiary of Focus Financial Partners, LLC |
Assets under management | About $7.28 billion |
Main clients | High net worth individuals, families, corporations and foundations |
Service model | Advisor-led wealth management |
Tiered asset-based fee | 0.90% on the first $5 million, 0.70% on the next $5 million, and 0.50% above $10 million |
Minimum | $1 million |
Main trade-off | High standard minimum, active-manager risk, and possible additional investment or third-party costs |
Key services:
- Financial planning
- Investment management
- Retirement and cash-flow planning
- Estate and wealth-transfer planning
- Tax and risk planning
- Asset protection
- Philanthropic planning
- Foundation management
- Specialized planning for women
- Education and end-of-life needs
How it works:
- Assess: The advisor reviews the client’s goals, risk tolerance, tax situation, and income needs.
- Build the plan: A financial plan and target asset allocation are developed for the client.
- Implement the portfolio: The firm normally manages the account on a discretionary basis using its equity, fixed-income, alternative, and balanced strategies.
- Review: Accounts are monitored and generally reviewed and rebalanced quarterly.
Portfolio approach:
- Equities: Growth, value, small/mid-cap, and international strategies
- Fixed income: Mainly high-quality government, corporate, and municipal bonds
- Alternatives: Mutual funds, ETFs, and ETNs may be used for diversification
- Balanced portfolios: Combine equities, bonds, alternatives, and cash
Investment philosophy:
Badgley Phelps combines strategic asset allocation with active security selection. Its equity process focuses on established growth companies and attractively valued businesses, while fixed-income portfolios emphasize high-quality, intermediate-term bonds.
Balanced portfolios may also include liquid alternatives and cash for additional diversification and to reduce volatility. Equity strategies typically use a three- to five-year investment horizon, while portfolios are regularly monitored and rebalanced to remain aligned with each client’s objectives.
What are the pros and cons of Badgley Phelps Wealth Managers?
Here is a look at the pros and cons of Badgley Phelps Wealth Managers.
Pros of Badgley Phelps Wealth Managers:
- Broad planning scope: Planning can cover retirement, estate, tax, risk, college, philanthropy, and cash flow.
- Direct stock and bond management: Individual securities can improve transparency and accommodate account-specific tax or income requirements.
- Regular oversight: Most accounts receive formal quarterly reviews, routine rebalancing, and scheduled performance reports.
- Customized portfolios: Accounts are designed around tax circumstances, income needs, risk profile, and objectives
Cons of Badgley Phelps Wealth Managers:
- High threshold: The suggested $1 million minimum limits accessibility.
- Active-management risk: Security selection and concentrated model portfolios can underperform benchmarks.
- Extra costs may apply: Custodian, trust accounting, account maintenance, fund, and transaction fees may be separate.
Badgley Phelps Wealth Managers fees: How much does Badgley Phelps Wealth Managers cost?
New accounts generally use a declining asset-based schedule. Fees are charged every three months, partial quarters are prorated, and the client agreement sets the final rate. Pricing may vary with account size, services, other household accounts, minimum annual fees, or negotiation.
Portfolio tier | Annual advisory fee |
|---|---|
First $5 million | 0.90% |
Next $5 million | 0.70% |
Above $10 million | 0.50% |
- Financial planning: $4,000 for the first 10 hours, then $350 per hour.
- Additional costs: Advisory fees exclude brokerage, custody, transaction, fund or ETN expenses, taxes, legal and accounting fees, and private-fund or subadvisory charges.
What is Badgley Phelps Wealth Managers’s minimum account size?
The firm requires $1 million per client household, while also allowing waivers and negotiation.
Who should choose Badgley Phelps Wealth Managers?
Badgley Phelps Wealth Managers works well for:
- High-net-worth households: The suggested minimum and service model are built around larger relationships.
- Planning-focused families: It connects retirement, estate, tax, cash-flow, and philanthropic planning to portfolio decisions.
- Active-management users: Investors who value individual securities and in-house research may fit the model.
- Organizations: The firm describes investment strategy and policy support for foundations and corporations.
Who might not benefit as much:
- Small-balance investors: The $1 million suggested minimum can be a barrier.
- Cost-sensitive investors: Clients seeking low-cost passive management may find the advisory fee and additional fund, custody, transaction, or subadvisor expenses less suitable.
- Investors with relatively simple needs: Those seeking a straightforward, low-maintenance portfolio may find Badgley Phelps’ combination of individual stocks, bonds, alternatives, active security selection, and ongoing planning more complex than necessary.
Badgley Phelps Wealth Managers: Is it secure?
Badgley Phelps is SEC-registered.
Assets are held with an independent qualified custodian; the firm commonly recommends Schwab or Fidelity, and custodians send statements directly to clients.
It uses industry-standard measures, including computer safeguards and secure offices, to protect personal information.
It also says the firm does not share client information for its own marketing, joint marketing, affiliate marketing, or marketing by non-affiliated companies.
Badgley Phelps Wealth Managers: Customer service
Support is relationship-based.
Clients can contact the firm through their wealth manager, phone, email, office contact, online contact form, and client portals.
Most investment accounts are formally reviewed quarterly. Reports may be provided monthly, quarterly, or annually depending on client needs, while guaranteed response times and specific service hours are not disclosed.
Badgley Phelps Wealth Managers: Mobile App
Badgley Phelps offers a dedicated app called Badgley Phelps Wealth Mgr. It gives clients access to:
- A financial dashboard
- Current investment reports
- A secure document vault for files shared by their wealth advisor
Is Badgley Phelps Wealth Managers worth it?
Badgley Phelps may be worth considering for affluent households that want ongoing financial planning combined with discretionary management of individual stocks, bonds, funds, alternatives, and cash.
Its advisor-led model, customized allocation, quarterly reviews, and coordination with outside professionals support a relatively comprehensive relationship.
The main trade-offs are the $1 million standard minimum, asset-based fees starting at 0.90%, and possible additional investment and third-party costs.
Its value therefore depends on whether a client will make meaningful use of the planning, customization, and ongoing advisor involvement included in the service.
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