The American West has historically been populated by many who see a land of endless possibilities, fueled by big dreams with equally big risks. That includes financial advisors.
Some of the advisors who ranked highest in 2018 assets under management in Financial Advisor's latest RIA survey had a long and winding road to the top.
Joe Duran, who founded United Capital, grew up in war-torn Zimbabwe, living in a violent home with no financial security, according to the company website. Although reportedly a mediocre student, Duran worked hard, selling hot dogs on weekends at age 11, and later overseeing night production at a clothing factory while attending high school.
At age 18, Duran left Africa to travel the world, eventually enrolling in St. Louis University. While studying abroad in Madrid, he met and married his wife, Jennifer. The two returned to live in her home town of Los Angeles, where Duran began his career in finance at Centurion Capital.
By his late twenties, Duran became president of the firm, eventually selling it to General Electric in December 2001. He did not want for money, but at leisure pondered its significance to others.
One day, his mother-in-law told him she had inherited money and asked him what he thought she should do with it. From that one discussion, inspiration struck and United Capital was born, according to the company website. Instead of offering people financial advice that prioritized investment counsel over personal growth, Duran decided to create a business model that was just the reverse, and the rest is history. In May, Goldman Sachs announced it was buying the company.
Joe Ferguson and Norb Wellman also struggled to find success helping others.
Ferguson recounts on the Ferguson Wellman Capital Management website how his firm got its start in an abandoned penthouse apartment in Portland, Ore., in December 1975.
In the initial year of operation, there were no paid secretaries working 9-5; instead, the partners’ wives worked free, supporting their husbands’ work out of love and devotion. Within this nurturing cradle of family and friends, a business was born, despite hard times in the world around them.
“Public confidence was the lowest since the Great Depression,” Ferguson said on the company website. “We were at the tail-end of Watergate. We had recently devalued the dollar. We were at the end of the Arab oil embargo and at the height of the Soviet (threat). So Norb thought that might be a good time to start a company.”
Wellman also discussed the company’s first year on its website.
“We had a lot of confidence to start a company,” he said. “Starting something new was also about control, at least in my mind; I didn’t want someone from New York telling me what to pay my staff.”
A fiercely independent spirit and an intuitive grasp of what prospective clients want in a financial advisor are the continued hallmarks of success for this year’s top Western money managers.
Here, in ascending order, are Financial Advisor’s top 10 registered investment advisory firms based on AUM at the end of 2018.
10. Brighton Jones
In 1999, Charles Brighton and Jon Jones launched their fee-only wealth management firm in Seattle, and the following year it became an RIA. The firm advises clients on estate planning, retirement savings and investment management at its Seattle headquarters and in offices in Portland, Ore.; San Francisco; Scottsdale, Ariz.; and Washington, D.C. Brighton Jones managed $5,299,273,672 in client assets.
9. Ferguson Wellman Capital Management Inc.
Founded in 1975, Ferguson Wellman Capital Management, Inc. is an employee-owned firm that provides its clients with investment account and wealth management services, including estate planning, tax guidance and charitable giving. In 2018, Ferguson managed $5,456,656,783 in client assets.
8. Beacon Pointe Advisors LLC
Headquartered in Newport Beach, Calif., Beacon Pointe Advisors, LLC, is a fee-based firm co-founded in 2002 by CEO Shannon Eusey. Eusey has worked in the financial services industry for more than two decades. In 2018, Beacon Pointe managed $5,505,870,582 in client assets.
7. Signature Estate & Investment Advisors (SEIA)
Founded in 1997 by CEO Brian Holmes and three partners, Signature Estate & Investment Advisors, known as SEIA, is a full-service wealth management firm headquartered in Los Angeles, with additional offices in Pasadena, Newport Beach, Redondo Beach and San Mateo, Calif.; Houston, Texas; and Tysons Corner, Va. In 2018, SEIA managed $8,410,516,448 in client assets.
6. Advanced Research Investment Solutions (ARIS)
Founded in 2013, Advanced Research Investment Solutions (ARIS) is a Beverly Hills, Calif.-based advisory firm serving clients nationwide with retirement planning, investment strategies and risk management solutions. In 2018, ARIS managed $10,827,939,000 in client assets.
5. Aspiriant
Founded in 2008, Aspiriant is a national fee-only financial advisory firm headquartered in Los Angeles, with offices in San Francisco, Irvine, Solana Beach and Mountain View, Calif. Aspiriant offers wealth planning, investing and family services, including goal-based financing strategies for buying a house and putting children through college. In 2018, Aspiriant managed $11,669,979,000 in client assets.
4. United Capital Financial Advisers, LLC
Founded by CEO Joe Duran in 2005 and acquired earlier this year by Goldman Sachs for $750 million, United Capital Financial Advisers, LLC, is a national financial management firm headquartered in Newport Beach, Calif., with 74 offices nationwide. In 2018, United Capital Financial Advisers managed $22,056,499,644 in client assets.
3. First Republic Investment Management, Inc.
Headquartered in San Francisco, First Republic Investment Management, Inc., is a subsidiary of First Republic Bank, which was founded as a small thrift company in 1985. In 2018, First Republic Investment Management managed $78,291,033,820 in client assets.
2. Fisher Investments
Founded by Ken Fisher in 1979, Fisher Investments is a privately-held, fee-only global money management firm headquartered in Camas, Wash. Fisher currently serves as the company’s executive chairman and co-chief investment officer. In 2018, Fisher Investments managed $94,107,835,606 in client assets.
1. Edelman Financial Engines
On November 1, 2018, Edelman Financial Engines was born through the merger of Edelman Financial Services LLC, established in 1986 by Ric and Jean Edelman, and Financial Engines Advisors, L.L.C., founded in 1997. Headquartered in Sunnyvale, Calif., Edelman Financial Engines offers investment and money management, and retirement planning services. In 2018, Edelman Financial Engines managed $181,300,000,000 in client assets.
