Mesirow Financial Investment Management Review

Pros and Cons of Mesirow Financial Investment Management

Types of Clients

Mesirow Financial Investment Management provides wealth management solutions for both institutional (such as pension funds, universities, charitable organizations, etc.) and retail clients. Unlike most other firms, it doesn’t list an account minimum to enroll. Because of this, its services are accessible to a wide variety of clients, from beginners to high-net-worth individuals.

Keep in mind, however, that while there is no account minimum, you will have to pay an annual advisory fee. This is typically a minimum of $4,000 per year. Unfortunately, this may price those with fewer assets out of Mesirow’s services.

Financial Advisor Services

Mesirow, through its wealth management program, offers both financial planning and investment management. This can be either discretionary or non-discretionary, depending on each client’s preferences. According to the firm’s Form ADV Brochure 2A, the service primarily centers around assisting you build an effective portfolio that aligns with your goals and risk tolerance.

Once you sign up, you’ll provide information about your investment goals, risk tolerance, and time horizon to your financial advisor. Then, they’ll recommend a portfolio with a target asset allocation that aligns with your preferences. In a discretionary arrangement, your investment manager will have the authority to trade securities on your behalf. Conversely, a non-discretionary model requires you to put any recommendations into action on your own.

Fee Structure and Cost

Mesirow charges its wealth management clients an annual advisory fee. This is based on a percentage of assets under management (AUM) or assets under advisement (AUA), which sits at 1% for most clients. In some cases, the firm may raise or lower the percentage, depending on the services required and one’s asset level.

It’s also possible for clients to simply pay a flat rate for Mesirow’s wealth management services. This equates to a minimum of $4,000 annually. Like the AUM/AUA fee structure, this rate can be lowered or removed entirely at the firm’s discretion.

In some cases, Mesirow Financial Investment Management’s advisory fees can be negotiable. However, this is largely on a client-by-client basis and depends on each person’s circumstances. For this reason, it’s best to expect to pay full price, but understand that negotiation may be possible, albeit unlikely.

You should also be aware that, because the firm’s investment management services aren’t a wrap-fee program, you’ll be responsible for any additional fees. This includes those for transactions, administration, and custody of assets.

Investment Philosophy

Mesirow Financial Investment Management implements a few different investment strategies depending on each client’s preferences. In general, these approaches use both a qualitative and quantitative methodology to manage both buying assets and rebalancing, as necessary. Keep in mind, though, that your advisor invests your funds based on information you provide, such as your:

• Goals
• Risk tolerance
• Time horizon
• Resources

Typically, the firm invests in equities, low-cost ETFs, mutual funds, bonds, and alternatives. For each security, Mesirow Financial Investment Management conducts qualitative and quantitative analysis. This includes assessing a security’s historical performance, liquidity, market position, and growth potential.

Disclosures

Mesirow Financial Investment Management, Inc. is an RIA with the SEC. This requires the firm to report any conflicts of interest or disciplinary actions as disclosures on its annual Form ADV filing, including any event that involves both the company and its investment advisor representatives (IARs).

As of its most recent Form ADV, Mesirow Financial Investment Management has three disclosures to report. An example of one is, in 2022, the firm was ordered to pay $170,000 for violating sections 206(2) and 206(4) of the Advisers Act, as well as rule 206(4)-7.

Customer Service and Becoming a Client

You can contact Mesirow Financial Investment Management or enroll for an account by either calling (800) 621-4421 or visiting the firm’s wealth management contact page. From the website, you can leave your name, contact information, and what you need help with. Then, an advisor will reach out to you to create an account and schedule a consultation.

Tips for Choosing a Financial Advisor Firm

It can be a difficult task to find the right financial advisor for your needs. Of utmost importance is that you find a firm (or individual) that offers the right services, whether it be wealth and investment management or financial planning. It’s also crucial to find a fiduciary who acts in your best interest at all times.

Other important aspects to pay attention to are a firm’s account minimums and fee structure. For the former, you’ll want to know how much a company requires you to have or contribute before opening an account. The latter is also key, as it tells you how your advisor makes money and can highlight potential conflicts of interest. Most fiduciaries charge a flat fee or a percentage of AUM, rather than a commission.

If you need help to start your search for a high-quality financial advisor, we recommend you use a free matching tool, such as this one. Once you fill out a brief questionnaire about your financial objectives and current situation, it’ll present you with up to three vetted fiduciary options in your area. We also recommend using the SEC’s Investment Adviser Public Disclosure (IAPD) tool to verify a professional’s or firm’s credentials before working with them.

Methodology

This review is based on publicly available information directly from Mesirow Financial’s website and the SEC. Neither the firm nor its representatives have any say on what we’ve included on this page.

Frequently Asked Questions

Is Mesirow Financial Investment Management a fiduciary?

Because it’s registered as an investment advisor with the SEC, Mesirow Financial Investment Management must adhere to a fiduciary duty at all times. This means that it and any of its investment advisor representatives must only act in your best interest.

Is Mesirow Financial a good financial advisor?

Mesirow Financial Investment Management offers both wealth management and financial planning services. Additionally, the firm is a fiduciary and is listed in Barron’s 2023 list of top RIA firms. It serves as a good option for those who have a higher net worth to pay the steep minimum annual fee of $4,000.

For beginners or those with a modest net worth, it may not be worth signing up just yet. The fees can be fairly high, and the services are primarily directed toward wealth management clients. You’ll also be responsible for any trading fees due to the firm not offering a wrap fee program.

What is Mesirow Financial Investment Management’s fee structure?

Mesirow Financial Investment Management uses a fee-only structure that charges a percentage of AUM annually. Typically, this amounts to about 1% but may change depending on the scope of the services you require or your asset level. As a minimum, the firm requires clients to pay $4,000 per year.