An introduction to Cambridge Investment Research Advisors
Cambridge Investment Research Advisors (CIRA) is headquartered in Fairfield, Iowa, and oversees over $80 billion in client assets.
The firm primarily serves a clientele of over 300,000, comprising non-high-net-worth individuals, affluent clients, government entities, pension plans, and charitable organizations.
Its parent company, Cambridge, was founded in 1981 by Executive Chairman Eric Schwartz, and its investment advisory arm, Cambridge Investment Research Advisors, was formed in 2005.
CIRA operates with more than 3,000 advisors nationwide who function as independent contractors under CIRA, many of whom are also registered with CIRA's affiliated broker-dealer, Cambridge Investment Research Inc.
What services do Cambridge Investment Research Advisors offer?
Cambridge Investment Research Advisors offers a comprehensive range of financial services, including financial planning and consulting, serving both individual and institutional investors.
Whether it's investment management on a discretionary or non-discretionary basis, CIRA provides tailored solutions to help clients achieve their financial goals. Its advisor representatives may also recommend third-party money managers, offering clients access to a broader spectrum of investment opportunities.
In addition to these core services, CIRA offers a suite of ancillary services designed to support financial advisors in their practice. These include investment products, practice management, marketing services, succession and acquisition assistance, outsourcing solutions, simplified transitions, and compliance support.
What is Cambridge Investment Research Advisors’ investment philosophy?
Cambridge Investment Research Advisors' investment philosophy centers on providing tailored guidance to clients while leveraging the expertise and specializations of their advisor representatives.
While each advisor may employ unique strategies and analysis methods, they typically offer guidance on a wide range of investments, excluding futures and commodity contracts.
CIRA also maintains stringent criteria for recommending outside money managers. It mandates that advisor representatives only suggest managers approved by CIRA and its parent company.
This approach ensures clients receive recommendations aligned with the firm's standards and objectives, reinforcing trust in their investment advisors' expertise and recommendations.
What is Cambridge Investment Research Advisor’s pricing and fee structure?
Cambridge Investment Research Advisors offers a range of investment services with varying fee structures.
The minimum investment required for the WealthPort Program is $5,000, though higher minimums may apply for specific strategies within the program.
Other accounts typically have a minimum investment of $25,000, which can vary depending on the advisor representative.
Fees for financial planning and consulting services can be fixed, with fees generally not exceeding $25,000 for individuals or charged hourly up to $500. Alternatively, fees may be based on a percentage of the client's assets under management.
For investment management services, CIRA offers various platforms with different fee schedules, such as the Cambridge Managed Account Platform (CMAP), Flexible Managed Account Platform (FlexMAP), WealthPort Wrap, and others. Fees can be flat-rate or based on a tiered or breakpoint fee structure.
Tiered fees typically start at 1.50% of client assets under management for the first $100,000, decreasing to 1.25% for the next $150,000 and 1% for amounts over $250,000. Breakpoint fees start at 1.50% for accounts up to $100,000, 1.25% for accounts between $100,000 and $250,000, and 1% for accounts over $250,000.
Is Cambridge Investment Research Advisors trustworthy?
Cambridge Investment Research Advisors has faced regulatory scrutiny, as reported in recent filings with the SEC.
A significant issue is highlighted by the fact that the SEC brought charges against the firm in 2022 for its failure to disclose material conflicts of interest related to the selection of mutual funds and wrap accounts for clients.
These regulatory actions may raise concerns about transparency and potential conflicts of interest, impacting the perception of Cambridge Investment Research Advisors' ratings and trustworthiness.
What are the pros and cons of Cambridge Investment Research Advisors?
Assessing the strengths and weaknesses of Cambridge Investment Research Advisors offers valuable insight into its performance and reputation in the financial services industry.
Pros
Some of the pros of using CIRA’s service could include:
- Advisors located nationwide
- A comprehensive range of financial services
- Ancillary support services
- Diverse client base
Cons
Some of the cons of using CIRA’s service could include:
- Regulatory scrutiny
- Conflicts of interest
- Complex fee structure
- Lack of transparency
How to open an account with Cambridge Investment Research Advisors?
To open an account with Cambridge Investment Research Advisors, you need to work with an advisor who is affiliated with the company. One way to get started? You can contact the firm directly at 800-777-6080.
The firm’s website also allows you to input your location and annual revenue to be put in touch with a Business Development Director.
Seek expert financial advice
Cambridge Investment Research Advisors offers a comprehensive suite of financial services designed to meet the diverse needs of its clients.
With a nationwide network of over 3,000 advisors and a comprehensive range of offerings, the firm demonstrates its commitment to providing tailored solutions to help clients achieve their financial goals. While facing regulatory scrutiny and challenges regarding fee structures and transparency, clients can benefit from the firm's expertise and broad service offerings.
Let Unbiased connect you with a trusted financial advisor for expert financial advice tailored to your investment goals.