Wetherby Asset Management Review

Wetherby Asset Management is a San Francisco-based registered investment advisor. The firm generally caters to high net worth clients with at least $10 million to invest. Along with traditional investment management, Wetherby also advises clients on impact investments across nearly every asset class. The firm also offers a full range of financial planning services.

Assets under management (AUM): $7,272,831,284

Minimum investment: $10 million

Individual investor to advisor ratio: 9:1

Fee structure: A percentage of AUM, hourly charges, fixed fees, other fees (negotiated or contingent fees and/or reporting fees)

Headquarters: 580 California Street, Eighth Floor San Francisco, CA 94104 Phone: 212-292-4809 Wetherby Asset Management website and SEC Form ADV

All information included in this profile is accurate as of April 25, 2022. For more information, please consult Wetherby Asset Management’s website.

Overview of Wetherby Asset Management

Wetherby Asset Management was founded in 1990. Today, Wetherby Asset Management is wholly owned by Laird Norton Trust Company, LLC, a wealth management and trust company.

This fee-based firm has close to 80 employees, nearly 60 of whom perform investment advisory functions. Wetherby generally requires its wealth managers to hold an advanced degree or professional license. Its current team includes a number of chartered financial analysts (CFA), certified financial planners (CFP) and certified private wealth advisors (CPWA), among others.

A look at the founder of Wetherby Asset Management

Wetherby Asset Management was founded by Debra Wetherby, who previously worked in the auditing and consulting department of the accounting firm Price Waterhouse, and at Morgan Stanley. In founding her RIA, Wetherby’s goal was to marry the investing know-how of Wall Street with the personalized service and objectivity of accounting. She is known for specializing in environmental, social and governance (ESG) investing.

Wetherby has been named as one of the top women in wealth management and interviewed by publications such as Forbes and Investment News.

Types of clients

The vast majority of Wetherby’s clients are high net worth individuals, though the firm works with a limited number of individual investors who are not high net worth. For reference, the SEC defines high net worth individuals as those with at least $750,000 under management or a net worth of at least $1.5 million.

With a $10 million minimum, however, Wetherby caters almost exclusively to high net worth and ultra high net worth clients. In some instances, Wetherby will lower its minimum requirements, which explains why a small number of clients fall below the high net worth category. Still, clients at the top end of the asset level enjoy low fees and a high level of customization.

Services offered

Wetherby Asset Management provides investment management services to all of its client types. Clients typically work with Wetherby under one or more of the following arrangements:

• Discretionary: Wetherby has the discretion and authority to invest and place trades in client accounts according to a client’s established objectives and guidelines.
• Non-discretionary: Wetherby provides investment guidance but does not have the authority to place trade in client accounts without prior approval.
• Consulting: Wetherby provides investment advice as needed based upon a mutual agreement, but clients execute trades on their own.

Wetherby’s services include an impact investing capability, which is the practice of investing in companies, organizations and funds with the intention of generating positive social and environmental change along with financial return.

In addition to investment management, Wetherby also offers its clients a wide range of financial planning services. These services are provided as needed, and clients may or may not incur additional fees for financial planning.

Here is a complete list of services currently offered by Wetherby Asset Management:

• Investment management
  • Impact investing
• Financial planning
  • Financial statement preparation and analysis
  • Income tax planning guidance
  • Risk management/insurance analysis
  • Retirement planning
  • Estate planning
  • Education planning
  • Philanthropic planning
  • Intergenerational wealth transfer
  • Equity ownership and stock option advice

Investment strategy

Wetherby Asset Management invests client money with the dual goals of growth and downside protection. The firm also looks to lower volatility in clients’ portfolios and increase tax efficiency.

Wetherby develops an investment policy for each client that takes into account the client’s needs and goals, as well as the current economic and market conditions. The key steps in the firm’s portfolio construction process are asset allocation, manager selection and implementation.

Wetherby’s investment approach is long term, with advisors looking out at least a year, though changing market conditions could cause Wetherby to sell securities more quickly. The firm diversifies its investments across asset classes and among multiple money managers. To execute its investment strategy, Wetherby typically uses actively managed funds, though it includes passively managed funds in client portfolios to reduce fees and taxes.

Clients have the ability to customize their portfolios with Wetherby. That being said, Wetherby may recommend the following types of investments:

• Mutual funds
• Exchange-traded funds (ETFs)
• Stocks
• Bonds
• Separate account vehicles or strategies managed by outside advisors

Some clients may have assets invested in private investment funds. Wetherby clients have access to private fund offerings through LRHF II Holding Company, which is owned and managed by Wetherby Asset Management.

Additionally, Wetherby offers an impacting investing capability for clients who want it. With this service, the firm reviews the social and environmental challenges that clients want to address and then finds appropriate investments to meet those goals.

Wetherby Asset Management’s fees

Wetherby Asset Management generally charges clients based on a percentage of assets under management for its discretionary investment management services. The firm has a tiered fee schedule, with rates decreasing the more assets a client has under management. Rates start at 1% and can drop down to as low as 0.25%.

For the firm’s non-discretionary asset management and consulting services, clients may also agree to a retainer fee or other negotiated fee. Ultimately, the way fees are charged will depend on a client’s historical relationship with the firm, their number of accounts and entities, the complexity of their portfolio and financial situation, the scope and variety of services requested and the client’s unique circumstances.

In addition to the investment advisory fees charged by Wetherby, clients may be responsible for some investment fees, such as when investing in private placements. Clients will also incur expenses for investing in mutual funds and other pooled accounts.

Financial planning services will generally also include additional fees, unless otherwise negotiated. Additionally, Wetherby may charge an additional fee when asked to provide research or reporting on investments that it does not directly supervise.

Disciplinary disclosures

None reported in the past 10 years.

Becoming a client

1. Reach out to the firm: Prospective clients can contact Wetherby Asset Management by:
   • Filling out a form on its website
   • Emailing the firm at info@wetherby.com
   • Calling the firm at any of the three office numbers listed on its website
2. Attend an official kickoff meeting: If clients choose to work with Wetherby, the first step will be attending an official kickoff meeting during which advisors will get to understand their goals and risk tolerance to create a suitable portfolio.
3. Decide whether to follow through with the firm: Clients have five business days after signing on with Wetherby to rescind the contract (though they will be required to settle transactions that Wetherby began on their behalf).
4. Receive regular reviews and adjustments: The firm continually monitors clients’ investments and makes adjustments as necessary as a client’s goals and objectives change over time. Wealth managers review every account in detail on at least a quarterly basis. The firm recommends a yearly review with each client, either in person or over the phone, though clients can request more frequent reviews.

Locations

Wetherby Asset Management has three offices in total in the following locations:

• San Francisco
• Los Angeles
• New York

Is Wetherby Asset Management right for you?

For affluent investors, Wetherby Asset Management offers a customizable investment management experience. Additionally, the firm’s requirement that wealth managers hold professional licenses and its clean disciplinary record can provide assurances to investors. What’s more, Wetherby’s emphasis on impact investing gives investors an option to participate in an increasingly popular investment style.

However, the firm’s high account minimums leave out all but the very wealthy, although there are some exceptions.

If for any reason Wetherby isn’t your ideal advisor match, MagnifyMoney can help. We’ll match you with a fiduciary advisor so you can get started on tomorrow’s goals today.