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Headquartered in El Segundo, Calif., Cetera Advisor Networks LLC is a full-service, dually registered investment advisor and broker-dealer that operates through regional networks of financial advisors throughout the country. Through these regional advisory teams it supports, the firm offers financial planning and a number of different investment management programs. It services both individual investors as well as institutions and retirement plans.
The bottom line: Cetera Advisor Networks supports a network of hundreds of independent financial advisors throughout the U.S. that provide a range of advisory programs and services.
| Assets under management (AUM): $25,816,595,542 | |
| Minimum investment: Varies by account, ranging from $25,000 to $250,000 | |
| Individual investor to advisor ratio: 43:1 | |
| Fee structure: A percentage of AUM, hourly charges, fixed fees, commissions | |
| Headquarters: 200 N. Pacific Coast Highway, Suite 1300 El Segundo, CA 90245 Website: www.cetera.com/cetera-advisor-networks/clients Phone: (310) 326-3100 |
All information included in this profile is accurate as of September 16, 2021. For more information, please consult Cetera Advisor Networks’ website.
Cetera Advisor Networks is an investment advisor and broker-dealer that supports a network of regional investment advisory teams. Founded in 1983, the firm is part of Cetera Financial Group, Inc., which is comprised of a number of other financial firms, including Cetera Advisors, Cetera Investment Services, Cetera Financial Specialists and First Allied Securities.
Cetera Advisor Networks has nearly 900 offices located throughout the country. In total, the firm has over 2,100 employees, including nearly 1,900 who serve in investment advisory or research roles. Additionally, almost all of the firm’s employees are registered representatives of a broker-dealer, and over 1,600 are licensed as insurance agents.
Most of the firm’s clients are individual investors, with more than twice as many individuals without a high net worth as those with a high net worth. For reference, the SEC defines high net worth individuals as those with at least $750,000 under an advisor’s management or a net worth believed to be at least $1.5 million. Though the majority of its clients are individuals, Cetera Advisor Networks also serves a number of retirement plans and institutions, such as charitable organizations, government entities and businesses.
All of the firm’s investment management programs require a minimum investment, though the amount required varies from program to program. Some call for a minimum investment of just $25,000, while others require a minimum as high as $250,000.
Cetera Advisor Networks provides investment management services to its clients through a number of different advisory programs, including those offered by the firm and those provided through third parties. Cetera Advisors offers five different wrap programs, in which all costs are bundled into a single fee.
In addition to investment advisory services and programs, Cetera Advisor Networks can provide financial planning and consulting services to its clients on a wide range of topics, from education planning to estate planning to retirement planning. The firm can also offer advice and consulting to retirement plans.
Here is a list of the services that Cetera Advisor Networks offers its clients:
Cetera Advisor Networks’ individual advisors may use their own investment strategies to build portfolios for clients, using a mix of technical and fundamental analysis to determine asset allocation. Technical analysis looks at statistics to try to determine trends in asset prices, whereas fundamental analysis examines various factors like earnings and management to deduce a company’s financial strength. Some advisors at the firm may also try to purchase investments in a strategy aimed at timing the market.
Cetera Advisor Networks has a range of strategies. It offers six different firm-sponsored programs as well as a co-sponsored program and third-party money manager programs.
| Cetera Advisor Networks Advisory Programs | |
|---|---|
| Strategy | Investment approach |
| Firm-sponsored programs | |
| Prime Portfolio Services and Preferred Asset Management | Advisors create a custom portfolio mix based on your investment goals; the Prime Program is a wrap fee program, while the Preferred Asset Management is not. |
| Premier Portfolio Management | This program offers a customized investment mix, with annual reviews and individualized account management. |
| Managed Wealth ADVANTAGE | Using asset allocation models developed by a third-party, this strategy creates portfolios with mutual funds and ETFs. |
| Mutual Fund/Exchange-Traded Funds Advisory Program | Investors can choose from an asset allocation strategy that rebalances based on a pre-selected target allocation or one that rebalances based on perceived market opportunities. |
| xMA Advisory Wrap Program | The Next Generation Managed Account (xMA) offers access to models based on different investment styles. |
| Other programs | |
| My Advice Architect Program | Cetera Advisor Networks is a co-sponsor of this platform along with Cetera Advisory Services, which offers four different strategies for investors. |
| Third-Party Money Manager Programs | In this program, Cetera facilitates investments with third-party managers who invest based on their own models. |
Cetera Advisor Networks gets paid via a percentage of assets under management, hourly charges and fixed fees. Many advisors also receive commissions for selling certain securities or insurance programs. Given the wide variation in financial planning services, the firm does not publish a standard rate for that service, although it typically charges clients based on either a flat fee or an hourly rate.
For investment management programs, the firm generally charges clients based on a percentage of assets under management. The charts below show the maximum fees for various account levels for the firm’s programs, though advisors do have the discretion to charge individual clients less than the maximum rate.
The firm’s programs — with the exception of the Preferred Asset Management Program — are generally wrap fee programs, which means that costs, including transaction costs, are bundled into a single fee. However, clients will also owe annual maintenance fees.
| Prime Portfolio Services & Premier Portfolio Services Fee Schedule | |
|---|---|
| Account size | Maximum annual fee |
| First $0-$250,000 | 2.75% |
| Next $250,001-$500,000 | 2.50% |
| Next $500,001-$1,000,000 | 2.00% |
| Next $1,000,001-$2,500,000 | 1.75% |
| Next $2,500,001-$5,000,000 | 1.50% |
| Next $5,000,001 and over | 1.25% |
| Managed Wealth ADVANTAGE Fee Schedule | |
|---|---|
| Account size | Maximum annual fee |
| First $0-$250,000 | 2.75% |
| Next $250,001-$500,000 | 2.50% |
| Next $500,001-$750,000 | 2.00% |
| Next $750,001-$1,000,000 | 1.75% |
| Next $1,000,001-$2,000,000 | 1.50% |
| Next $2,000,001 and over | 1.25% |
| Mutual Fund/Exchange-Traded Fund Portfolio Service | |
|---|---|
| Account size | Maximum annual fee |
| First $0-$250,000 | 2.75% |
| Next $250,001-$500,000 | 2.50% |
| Next $500,001-$750,000 | 2.00% |
| Next $750,001-$1,000,000 | 1.75% |
| Next $1,000,001 and over | 1.50% |
| xMA Portfolio Service Fee Schedule | |
|---|---|
| Account size | Maximum annual fee |
| First $0-$250,000 | 2.90% |
| Next $250,001-$500,000 | 2.90% |
| Next $500,001-$1,000,000 | 2.70% |
| Next $1,000,001-$2,000,000 | 2.00% |
| Next $2,000,001 and over | 1.50% |
The Preferred Asset Management Program is the only one of the firm-sponsored programs that is not a wrap fee program, which means investors pay individual transaction costs for trades in addition to the advisory fees. The table below outlines the maximum fees for this program:
| Preferred Asset Management Program Fee Schedule | |
|---|---|
| Account size | Maximum annual fee |
| First $0-$250,000 | 2.50% |
| Next $250,001-$500,000 | 2.25% |
| Next $500,001-$1,000,000 | 1.75% |
| Next $1,000,001-$2,500,000 | 1.50% |
| Next $2,500,001-$5,00,000 | 1.25% |
| Next $5,000,000 and over | 1.00% |
Cetera Advisor Networks does report disciplinary disclosures on its Form ADV paperwork filed with the SEC. The firm is required by the SEC as a registered investment advisor to report such events, including any civil, criminal or regulatory issues involving the firm, its employees or its affiliates, from within the last 10 years.
Below are the disclosures that Cetera Advisor Networks reports, listed in chronological order. In each case, the firm settled the allegation with authorities without admitting wrongdoing:
For additional information on Cetera Advisor Networks and its disciplinary history, visit the firm’s IAPD page.
You can find an advisor near you by using the locator tool on the Cetera Advisor Networks’ website.
The onboarding process at Cetera Advisor Networks varies depending on the advisor, since many advisors run their businesses independently. That said, you’ll generally start the process with a meeting (via phone, video or email) to discuss your financial situation and goals.
Once you’ve started working with Cetera Advisor Networks, you’ll receive quarterly performance reports that update you on how your account is doing.
Cetera Advisor Networks has nearly 900 office locations throughout the United States. In its Form ADV, it lists locations in the following states:
Additionally, the firm is registered to serve investors in all 50 states, as well as in the District of Columbia, the Virgin Islands and Puerto Rico.
Cetera Advisor Networks comprises hundreds of individual advisors throughout the country, so it could be a good fit for anyone looking for an advisor that’s geographically close to them. The firm is also accessible to many investors with a relatively low minimum account balance requirement, starting at just $25,000 for some of its programs.
However, the firm’s maximum annual fees far exceed median rates in comparison to other financial advisory firms, particularly for those with less funds to invest, though most of its programs are wrap fee programs that include transaction costs. Interested investors will also want to be aware of the firm’s potential conflicts of interest, as a number of employees are also licensed to sell brokerage and insurance products.
Before choosing a financial advisor, it’s important to consider what you’re looking for in the relationship and ask questions of the advisor to assess whether they align with your needs. This will ensure you find a financial advisor to work with who is right for you.
Beth BravermanBeth Braverman is a freelance writer covering personal finance, careers and parenting. Her work has appeared in dozens of publications, including CNN Business, CNBC.com and USNews.
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