Horter Investment Management Review 2021

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Reviewed By

Updated on Tuesday, June 22, 2021

Horter Investment Management provides portfolio management and retirement-focused financial planning, generally to individuals age 50 and older. The firm’s team of more than 60 financial advisors are located in 10 different states, and the firm’s headquarters is located in Cincinnati, Ohio; services are also offered nationwide through virtual means. Horter Investment Management currently oversees over $379 million in assets under management (AUM).

The bottom line: Horter Investment Management is focused on serving retirement-age clients and offers accounts with no minimum investment requirement.

  • No minimum fees or minimum account sizes
  • Annual fee is higher than the industry average
  • Two relatively recent disclosures
Assets under management: $379,773,623
Minimum investment: No minimum
Individual investor to advisor ratio: 58:1
Fee structure:

  • A percentage of AUM
  • Hourly charges
  • Fixed fees
Headquarters: 11726 Seven Gables Road Symmes Township Cincinnati, OH 45249
Website:www.horterinvestment.com
Phone: 513-984-9933

All information included in this profile is accurate as of June 15, 2021. For more information, please consult Horter Investment Management’s website.

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Overview of Horter Investment Management

Horter Investment Management was founded in 1991 in Cincinnati, Ohio, under the name Horter Asset Management; in 2006, the firm modified its name to Horter Investment Management. This independent advisory firm is majority-owned by Drew Horter, the founder, president and CEO.

Horter Investment Management has over 80 employees who work out of more than 60 offices throughout the U.S. Of the firm’s employees, 64 serve as investment advisors, with a similar number also serving as licensed insurance agents.

A look at the firm’s founder, Drew Horter

Drew Horter is Horter Investment Management’s founder, as well as its president and CEO, and began working as an independent financial planner nearly 40 years ago. Featured in publications such as The Wall Street Journal and the Chicago Tribune and on Fox News, Horter’s firm biography notes that he has shared his investment advice and mentored hundreds of advisors.

Of note, Horter’s certified financial planner (CFP) status was revoked in 2019 after he failed to file an answer to the CFB Board’s complaint regarding an SEC finding about his firm.

Horter Investment Managements’ pros

  • No minimum account size or minimum fee: Horter Investment Management is accessible to a wide range of clients, as the firm doesn’t impose a minimum account size or a minimum fee.
  • Focused on retirement-aged clients: The firm prefers to work with individuals age 50 and older and offers services tailored toward retirement needs.

Horter Investment Management’s cons

  • High fees: The firm’s fees — at a rate of 1.99% of assets under management — are higher than the 1.17% industry average, per a study by RIA in a Box. In addition, the firm’s fees are not tiered. While many firms will decrease a client’s rate as their AUM increases, Horter Investment Management keeps a flat rate.
  • Recent disclosures: Founder Drew Horter had his CFP affiliation permanently revoked in 2019, while the firm has also had two disclosures in the past 10 years (see more on these below).
  • Potential conflicts of interest: Advisors at the firm are incentivized to recommend Tactical Fund Advisors proprietary funds, which directly benefit Horter Investment Management. Another potential source of a conflict of interest is Horter Investment Management’s insurance agency, Horter Financial Strategies, LLC. Advisors at the firm may also be affiliated insurance agents and therefore have an incentive to recommend products from Horter Financial Strategies to clients.

What types of clients does Horter Investment Management serve?

Almost the entirety of Horter Investment Management’s clients are individuals who do not have a high net worth — the SEC defines high net worth investors as those with either $750,000 under management or a net worth of at least $1.5 million. Horter Investment Management states that it primarily works with clients ages 50 and over, and the firm doesn’t impose a minimum account size for new clients.

In addition to serving individual investors, Horter Investment Management also serves trusts and estates, business entities and pension and profit-sharing plans.

Services offered by Horter Investment Management

Horter Investment Management offers two primary services to individual clients, portfolio management and financial planning services. Portfolio management can be done on a discretionary or non-discretionary basis (the former allows the advisor to execute trading on the client’s behalf, while the latter requires client permission for every trade). Clients who opt for financial planning services will receive a written report that details a financial plan designed with their goals and objectives.

Below is a comprehensive list of the firm’s offerings:

  • Portfolio management and investment advisory services
  • Financial planning
    • Personal financial goals and liabilities
    • Tax and cash flow analysis
    • Investment analysis
    • Insurance
    • Retirement strategies
    • Death and disability
    • Estate planning

How Horter Investment Management invests your money

When you begin working with Horter Investment Management advisors, you’ll discuss your goals, objectives, time horizon, risk tolerance, liquidity needs, net worth, total income and more. All of these financial elements will help inform what investment portfolio your advisor recommends for you. Typical portfolio objectives include growth, income and maximum capital appreciation.

At Horter Investment Management, there are three types of portfolio management programs:

  • Multi-manager portfolio (model portfolio): Multiple investment methodologies and strategies are used with multiple managers. This program includes tactical portfolios, which are actively traded, as well as passive portfolios, where your money is primarily invested in institutional mutual funds and ETFs and stays invested. Tactical portfolios are also invested in institutional mutual funds and ETFs, but may use third-party money managers.
  • Single manager portfolio: One investment methodology or strategy is followed for this program.
  • Custom portfolio: This account can include multiple investment strategies, determined based on a client’s financial or investment objectives.

The firm is affiliated with Tactical Fund Advisors (TFA) and will likely recommend a number of its funds for investment. These funds are primarily invested in ETFs and mutual funds and have different goals, such as capital appreciation (long-term growth) or capital growth. However, this does present a potential conflict of interest: Because the firm benefits from recommending TFA funds and can keep fund expenses lower with larger investments, advisors may be incentivized to recommend TFA funds.

Fees Horter Investment Management charges for its services

At Horter Investment Management, you’ll pay a fee based on your assets under management. Horter Investment Management charges a 1.99% annual fee. Notably, there’s no tiered fee schedule at this firm, which means that even if you invest a large amount of money, you’ll pay the same flat rate.

Horter Investment Management annual portfolio management fee schedule
Third-Party Money Manager Program1.99%
Tactical Institutional Mutual Funds1.99%
National Advisory Solutions1.99%
Alternative Investments1.25%
Non-Discretionary Accounts0.10% ($50 minimum quarterly)

Clients with non-discretionary accounts or alternative investments may be subject to different fees, as noted in the table above. In addition to annual fees, your account may be subject to custodian and account maintenance fees, as well as trading and transaction fees.

For financial planning services, clients may be charged based on either an hourly rate or a fixed fee. The firm’s hourly rate ranges from $150 to $175 per hour, while fixed fees will be no more than $3,500 per engagement.

Horter Investment Management disciplinary disclosures

Horter Investment Management has two relatively recent disclosures. As a registered investment advisor, the firm is required by the SEC to report any disciplinary, legal, civil judicial and criminal infractions within the last 10 years on their Form ADV, client-facing paperwork.

Horter Investment Management reports the following:

  • In 2019, the firm settled with the state of Connecticut over allegations that the firm had engaged an unregistered adviser, a violation of state statutes. Horter Investment Management paid an administrative fee of $12,500 and consented to a cease-and-desist order.
  • In 2017, F-Squared Investments, a former, unaffiliated signal provider, admitted to violating federal securities laws previously in a period from 2001 to 2008. Horter Investment Management was found as one of the advisers that relied on F-Squared’s performance information during that period. The firm settled with the SEC and paid more than $700,000 in penalties.

For additional information, visit the firm’s IAPD page.

Horter Investment Management onboarding process

Step No. 1: New or prospective clients can contact the firm by calling 513-984-9933 or filling out the contact form on the company’s website.

Step No. 2: Advisors will initiate a conversation with you, where you’ll discuss items such as:

  • What your ideal life currently looks like
  • What it will look like five years from now
  • What it will look like when you retire
  • What will happen when you can no longer live on your own

This conversation will help inform the investment plan that your advisors will create. Other considerations include your time horizon, risk tolerance and financial objectives.

Step No. 3: Once you’ve approved your investment plan, your advisors will invest your money and monitor its performance. The firm attempts to create portfolios with consistent, long-term results.

At a minimum, you’ll meet with your advisor once a year, and you can choose how to meet with your advisor. Horter Investment Management offers meetings face-to-face, over the phone or virtually, during which you can discuss and review your portfolio.

Where Horter Investment Management is located

Horter Investment Management is based in Ohio, but also has advisors located in nine other states:

  • California
  • Indiana
  • Kansas
  • Michigan
  • Nebraska
  • North Carolina
  • Pennsylvania
  • Virginia
  • Texas

Is Horter Investment Management right for you?

Horter Investment Management might be the right financial investment firm for you if you’re nearing retirement age and are not a high net worth individual. High net worth individuals, on the other hand, may be better served by firms that offer tiered fee schedules that will decrease their rates given their higher levels of assets under management.

Horter Investment Management’s lack of an account minimum or minimum fee allows a wide range of clients to access their portfolio management and retirement planning services. The firm also has over 60 office locations, making it geographically accessible as well.

Still, potential clients should take note of any potential conflicts of interest and the firm’s recent disciplinary history. Before starting a relationship with any firm, it’s a smart idea to speak to several different financial advisors to find the best advisor for you.

 

The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.