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 11 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.
|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
Cincinnati, OH 45249
All information included in this profile is accurate as of February 3, 2022. For more information, please consult Horter Investment Management’s website.
The firm 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.
The firm now 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.
Drew Horter is the firm’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Of note, Horter’s certified financial planner (CFP) status was revoked in 2019 after he failed to file an answer to the CFB Board’s complaint regarding an Securities and Exchange Commission (SEC) finding about his firm.
Almost all of Horter’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 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, the firm also serves trusts and estates, business entities and pension and profit-sharing plans.
Horter 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:
When you begin working with an advisor at this firm, 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:
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.
At Horter you’ll pay a fee based on your assets under management, currently 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 Program||1.99%|
|Tactical Institutional Mutual Funds||1.99%|
|National Advisory Solutions||1.99%|
|Non-Discretionary Accounts||0.10% ($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 has two relatively recent disclosures in the past 10 years:
For additional information, visit the firm’s Investment Adviser Public Disclosure (IAPD) page.
This conversation will help inform the investment plan that your advisors will create. Other considerations include your time horizon, risk tolerance and financial objectives.
The firm is based in Ohio, but also has advisors located in nine other states:
Horter 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.