Segall Bryant & Hamill Review 2022 - MagnifyMoney
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Segall Bryant & Hamill Review 2022

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Segall Bryant & Hamill, LLC is an independent investment advisory firm headquartered in Chicago. The firm primarily serves individual investors, and its typical account minimum for individuals of $1 million indicates a focus on those who are high net worth. The firm also serves institutional investors and advises funds. Additionally, Segall Bryant & Hamill has its own funds across a variety of asset classes.

The bottom line: Segall Bryant & Hamill is a Chicago-based wealth management and financial planning firm with a focus on proprietary research for investment recommendations.

  • Has a keen focus on impact investing
  • Offers its own funds
  • May charge performance-based fees

All information included in this profile is accurate as of August 25, 2021. For more information, please consult Segall Bryant & Hamill’s website.

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Overview of Segall Bryant & Hamill

Chicago-based firm Segall Bryant & Hamill was founded in 1994 and offers portfolio management for individuals and businesses, as well as financial planning services. As of 2021, the firm is principally owned by CI U.S. Holdings, whose parent company is CI Financial Corp., a Toronto-based global asset and wealth management company. Segall Bryant & Hamill’s co-founder Ralph Segall is still with the firm as chief investment officer and senior portfolio manager.

Segal Bryant & Hamill currently has close to 120 employees, approximately 60 of whom perform investment advisory functions.

Segall Bryant & Hamill pros

  • Competitive fees: Segall Bryant & Hamill’s top rate for portfolio management is 1.00% of AUM. As account sizes grow, rates drop lower. For comparison, industry average rates in the industry generally range from 0.50% to 1.25% of assets under management. Additionally, the firm doesn’t add a separate fee for financial planning services.
  • Award-winning firm: Segall Bryant & Hamill was named a top 100 financial advisory firm by CNBC in 2019, and in 2020, the firm was named to Financial Times Top 300 RIAs list. In 2021 the firm’s fund arm received awards from Investor’s Business Daily for Best Mutual Funds.
  • ESG offerings: For investors who care about impact investing, the firm has a keen focus on environmental, social and governance (ESG) strategies.
  • No disclosures: The firm has not incurred a reportable disciplinary, legal or criminal action in the last 10 years. See more on that below.

Segall Bryant & Hamill cons

  • High account minimum: With a stated $1 million minimum account size for individuals, the firm targets high net worth individuals at the exclusion of investors with less money. That said, the firm currently reports having more clients who do not qualify as high net worth individuals, so its minimum account size might be flexible.
  • May charge performance-based fees: While not applicable to every account, Segall Bryant & Hamill does note that some clients have agreed to performance-based fee arrangements. Performance-based fees can create an incentive for advisors to recommend riskier or more speculative investments, as well as to favor these potentially higher-paying accounts when allocating investment opportunities. However, the firm states that it has procedures in place to mitigate these potential issues.
  • Potential conflict of interest related to product recommendations: Some of the firm’s employees may earn compensation for recommending Segall Bryant & Hamill products, as they may be dually registered as a broker-dealer. This could create a conflict of interest, although the firm says this kind of arrangement will always be disclosed to a client through the brochure.

What types of clients does Segall Bryant & Hamill serve?

The minimum individual account size at Segall Bryant & Hamill is $1 million, although the firm mentions that it may modify the minimum on a case-by-case basis. And in fact, the firm currently has more clients who are non-high net worth than high net worth. For reference, the SEC defines high net worth individuals as those who have at least $750,000 under management or a net worth of at least $1.5 million.

Services offered by Segall Bryant & Hamill

Segall Bryant & Hamill offers the standard fare of financial planning and portfolio management to its individual clients.

For clients interested in financial planning, Segall Bryant & Hamill uses goals-based planning, which may include stress testing of possible scenarios in order to assess client financial objectives. Financial planning also may include retirement planning, philanthropic gift planning and tax efficiency planning.

The following is a menu of services offered by Segall Bryant & Hamill:

  • Portfolio management
  • Financial planning/wealth management services
    • Tax considerations
    • Estate planning
    • Trust planning
    • Insurance planning
    • Social Security options
    • Retirement planning
    • Education planning
    • Family and philanthropic gift planning
  • Selection of other advisors
  • Investment advice for mutual funds and collective investment trusts

How Segall Bryant & Hamill invests your money

Advisors at Segall Bryant & Hamill construct client portfolios security by security; the company calls themselves “bottom-up investors.” New clients will work with a portfolio manager to determine their portfolio’s asset allocation, which will be based on their financial objectives and goals, as well as factors like their time horizon, risk profile and income needs. The firm also stresses its proprietary research when it comes to making investment decisions about specific companies.

The portfolio manager will then create a diversified portfolio based on the collected information. The firm divides wealth management client portfolios into fixed-income and equity and balanced strategies, based on the investment objectives gathered from the clients.

Portfolios will consist primarily of individual stock and bond securities, as well as mutual funds and some alternative investments. Fundamental factors — such as qualitative measures like management and competitive advantage or quantitative measures like a company’s assets, equity and liabilities — are the primary focus when analyzing and investing in securities. The firm also focuses on tax-friendly strategies when it comes to managing client portfolios.

Additionally, Segall Bryant & Hamill has integrated environmental, social, and governance (ESG) factors into its research process. For example, its Workplace Equality Strategy focuses on companies that meet the firm’s Workplace Equality screen. The company signed the United Nations’ Principles of Responsible Investment in 2017.

Fees Segall Bryant & Hamill charges for its services

Segall Bryant & Hamill’s fees are all subject to negotiation; however, the annual minimum fee for all individual account investment styles (equity, balanced and fixed income) is listed at $10,000.

The firm calculates fees based on a percentage of assets under management, with the minimum account size generally set at $1 million. Total fees will depend on factors such as the size of the account, relationships to other accounts, any competitive pricing agreements or conditions at the inception of the relationship, the historical or projected nature of trading for the account and the extent of supplemental client services provided to the account. Clients will not incur an additional fee for financial planning services.

Segall Bryant & Hamill Investment Management Fee Schedule
Investment style Management fee
Equity and balanced First $3 million: 1.00%
Next $7 million: 0.75%
Over $10 million: 0.50%
Fixed income All balances: 0.50%

Note that the rates listed in the table above do not include brokerage commissions, transaction fees and other related costs and expenses that may be incurred through portfolio management services.

Segall Bryant & Hamill notes that with some qualified clients, it has performance-based fee arrangements, which are subject to individualized negotiation with each client. Some of the firm’s funds may charge this fee as well.

Segall Bryant & Hamill disciplinary disclosures

Segall Bryant & Hamill does not have any disclosures, meaning it has a clean disciplinary record. Financial advisory firms that are registered with the SEC are required to disclose all events on their Form ADV paperwork that would influence a potential client’s decision to work with the firm. These disclosures include civil, regulatory and criminal actions against the firm, its employees and its affiliates over the last decade.

For more information on Segall Bryant & Hamill, go to the firm’s IAPD page.

Segall Bryant & Hamill onboarding process

  1. Contact the firm: Potential clients can call the main company number or fill out the contact form found on the firm’s website to get in touch with an advisor. The form requests information such as your name, contact information, what type of investor you are and any additional comments you may have.
  2. Get a financial road map: At the beginning of your relationship with Segall Bryant & Hamill, you will discuss your financial objectives and goals in order to create what the firm calls your financial road map. This road map includes a personalized investment policy and asset allocation approach. Your concerns — including tax, estate, trust, insurance and planning — will be taken into account while creating your plan.
  3. Meet regularly with your portfolio manager: Segan Bryant & Hamill considers itself a high-touch firm, which means you’ll likely have ready access to your advisor or advisor team. The company states that clients do meet regularly with a dedicated portfolio manager to review investments.

Where Segall Bryant & Hamill is located

Segall Bryant & Hamill has offices in the following cities:

  • Chicago
  • Chesterfield, Missouri
  • Naples, Florida
  • Ardmore, Pennsylvania
  • Denver

Is Segall Bryant & Hamill right for you?

As an investment advisory firm aimed at high net worth individuals as well as institutional investors, Segall Bryant & Hamill provides ready access and “high-touch” service for investors located within the range of its offices. The company offers competitive fees for investment management and an individualized approach, rather than a model portfolio-only style.

However, high net worth investors who wish to keep most financial services with one firm might be better served by a firm that offers accountant services and a wider range of family office services. While Segall Bryant & Hamill does offer financial planning and associated services at no additional fee, it’s not as tailored to managing a full spectrum of family wealth planning services as some other firms may be. Before you make your decision, take the time to research multiple firms to ensure you find the right advisor for you.

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