Commonwealth Financial Network

CRD#8032
Investment Advisor Firm

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Overview

Commonwealth Financial Network is a financial advisory firm headquartered in Waltham, Massachusetts. The firm handles $85.2 billion in assets throughout 388,288 accounts, making it one of the biggest financial advisory firms in the United States by assets under management (AUM). Commonwealth Financial Network has a very large team of 3,350 employees, of which 2,400 are financial advisors. Commonwealth Financial Network is not a registered broker-dealer, meaning the company is not able to buy and sell securities for its own accounts as well as its clients' and instead must go through a broker-dealer company to do so. Securities are defined as exchangable fiscal assets such as bonds, options and equities.

Commonwealth Financial Network oversees most of the company's client assets in a discretionary manner. Discretionary management signifies that a portfolio manager makes transaction decisions for the client's account without needing the client's permission. The company also administers 8,783 non-discretionary accounts with a total of $2.0 billion in assets under management. The company's typical account size is $219,462. The typical financial advisor at Commonwealth Financial Network manages about 162 client accounts.

The firm's main office is at 29 Sawyer Road, Waltham, Massachusetts 02453-3483. The company is legally registered to serve clients across 52 U.S. states and territories.

Number of Advisors

2,400

Disclosures

No

Office Location

29 Sawyer Road
Waltham, MA 02453-3483

Commonwealth Financial Network by the Numbers

Total Number of Employees

3,350

National Average: 4,943
Total Number of Accounts

388,288

National Average: 2,522
Average Account Size

$219.5 thousand

National Average: $1.3 million

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Products and Services

Commonwealth Financial Network provides a number of services, which can consist of financial planning services, portfolio management for individuals and small businesses, portfolio management for institutional clients, pension consulting services, selection of other advisers, publication of newsletters and educational seminars. In the prior fiscal year, Commonwealth Financial Network provided 11,000 of its clients with financial planning services. The company does sell products or offer services different than investment advice to its clients. It is affiliated with one or more other service providers in the financial services industry, including with a broker-dealer or securities dealer and insurance company or agency.

Core Advisor Services

  • Offered by 45% of firms

    Financial Planning Services

    This is the process of planning for your financial future, including for events such as retirement, your child's college education or estate succession.

  • Offered by 63% of firms

    Portfolio Management

    This is the selection and management of an investment mix and portfolio strategy for individuals and small businesses.

  • Find a firm that offers this service

    Market Timing Services

    This is the practice of attempting to make short-term profits on investments by buying low and selling high.

Other Services

  • Offered by 23% of firms

    Selection of Other Advisors

    This is the firm's assistance with choosing other advisors to work with who may have different specialties.

  • Offered by 4% of firms

    Publication of Periodicals

    This is the publication of various financial education materials.

  • Offered by 10% of firms

    Educational Seminars/Workshops

    This is the hosting of seminars or workshops to educate investors on financial concepts.

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Fee Structure

Fees for financial advice vary depending on which service is offered. Fee types billed by the firm most likely include the following fee structures: asset-based, hourly, fixed or commission-based. The firm does participate in a wrap fee program, in which the firm offers a service bundle for a comprehensive fee.

Available

  • Offered by 75% of firms

    Percentage of Assets

    Show Explanation

    This fee, which is the most common fee type charged by advisors for portfolio management, is based on the amount of assets you have under management. Also referred to as an asset-based fee, this fee typically ranges from 0.50%-2.00% of AUM annually. You'll typically pay a lower rate the more assets you have under management.

  • Offered by 37% of firms

    Hourly

    Show Explanation

    Like a lawyer, a financial advisor may charge you by the hour. This can be helpful if you are only looking for short-term or one-time advice. Rates typically range from $100-$300 per hour, depending on the complexity and level of services needed.

  • Offered by 3% of firms

    Commissions

    Show Explanation

    Occasionally, advisors earn commissions from selling financial products, such as securities or insurance policies, or making certain referrals or transactions. Advisors who earn commissions may be incentivized to make certain recommendations to clients in order to make a commission. Fee-only advisors do not earn commissions, while fee-based advisors may.

  • Offered by 40% of firms

    Fixed

    Show Explanation

    Fixed fees are a one-time, lump sum charged for a specific service, like the creation of a financial plan without subsequent implementation. This can be useful if you only need advice for one specific purpose, rather than a long-term advisor. Fixed fees usually range from $1,000 to $3,000.

Unavailable

  • Find one of the 17% of firms that offer this fee type

    Performance-based

    Show Explanation

    Advisors only earn performance-based fees if a portfolio outperforms a defined benchmark. This fee may be calculated in a number of ways but most commonly is charged as a percentage of investment profits. Performance-based fees may incentivize advisors to make riskier decisions in order to generate higher returns.

  • Find one of the 1% of firms that offer this fee type

    Subscription

    Show Explanation

    Firms generally charge this fee for educational materials provided, such as a monthly magazine. This can be useful if you want to learn about investing or financial management on your own.

  • Find one of the 12% of firms that offer this fee type

    Other

    Show Explanation

    Firms can sometimes charge customers using non-traditional fee structures. See this firm's Form ADV for more details.

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Types of Clients

The company manages money for a number of different customers. The company caters to retail investors, high net worth investors, pension plans, charitable organizations, state or municipal government entities and corporations. Out of its 388,288 customers, Commonwealth Financial Network's biggest client is retail investors, although it also serves 11,670 high-net-worth individuals. A high-net-worth individual is defined by the SEC as an individual who has at least $750,000 in AUM or a net worth of more than $1.50 million or who is deemed a "qualified purchaser" (a standard met by having at least $5 million in investments). Just 1% of its accounts are from outside of the U.S.

  • High-Net-Worth Individuals* - 3.01%
  • Other Individuals - 95.65%
  • Corporations - 1.28%
  • Charitable Organizations - 0.07%

* The U.S. Securities and Exchange Commission (SEC) defines a high-net-worth individual as someone who has at least $750,000 under management.

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Disclosures

Commonwealth Financial Network does not have any disclosures.

Please visit its Form ADV for more details.

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Financial Advisors at Commonwealth Financial Network

Michael Ball
Overland Park, KS
Alisha Butterfield
Rapid City, SD
Brandon Luke
Kahului, HI
Kyle Hagan-Collins
Warwick, RI
Alexander Bartholomew
Worcester, MA
Thomas Muscato
Pittsford, NY
Brooke Fleming
Westborough, MA
Brent Caswell
Overland Park, KS
Edward Caballero
San Ramon, CA

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This content was compiled from the SEC and FINRA