New York asset manager a family firm in more ways than one

At 83, Robert B. Deans Jr. still comes into the office every day.
DEC 06, 2009
At 83, Robert B. Deans Jr. still comes into the office every day. The Inverness Counsel Inc. founder and chairman even travels to visit clients. “He has had some of these relationships for 41 years,” said his son, Robert B. Deans III, the firm's executive vice president, chief compliance officer and treasurer. Inverness, which manages $1.7 billion in discretionary assets, is a family-oriented shop. Not only does the younger Mr. Deans work there, but his older sister, Mary Flood, runs a branch office in Salt Lake City. Mr. Deans III joined his dad in 1989 after working for a specialist on the New York Stock Exchange. “It was quite a shift,” he said. “I miss that whole world, but the New York Stock Exchange isn't what it used to be.” Inverness' clients are largely high-net-worth investors and pension funds. “I would say 15 of our client relationships represent 60% to 70% of our assets under management,” the younger Mr. Deans said. The firm has relationships with families that span four decades and several generations, he said. “In some cases we are working with accounts belonging to 2- or 3-year-olds, representing the fourth or fifth generation,” he said. “I hate taking orders from 3-year-olds.” Account balances with the firm range from $8,000 to $280 million for the largest institutional account, Mr. Deans said. “We have a minimum account balance, but once you do a high level of estate and trust planning for people, part of the job is divesting people with large assets and spreading it out so that, by definition, you have small accounts that get bigger.”
Inverness is different from other firms in its field because it is registered as an investment counsel firm, not as a registered investment adviser. This means that the company cannot pool clients' assets but rather has to treat each account separately. “A lot of people would say this is a disadvantage because it's very cost-intensive,” Mr. Deans said. “It really does mean you need to pay a lot of attention to clients and their situations, but by nature, that's what we are supposed to be doing when we do high-net-worth trust and estate work. This is what people really want.” Inverness' biggest challenge is keeping continuity among its employees. The firm's 13 portfolio managers span various generations, and Mr. Deans wants to make sure that remains the case. “Trying to make sure we get good people in here is a constant challenge,” Mr. Deans said. “Some people want to be portfolio managers, but they don't want to deal with clients, and here, they have to do both.”

Latest News

LPL adds $600M UBS team in Tennessee
LPL adds $600M UBS team in Tennessee

The firm's latest additions, led by a second-generation financial advisor, are striking out via its Linsco employee advisor channel.

eMoney supports focused financial planning with enhanced needs analysis
eMoney supports focused financial planning with enhanced needs analysis

The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.

Trump SEC pick Paul Atkins grilled by Democrats in early political test
Trump SEC pick Paul Atkins grilled by Democrats in early political test

The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."

Finra moves to boot Alpine Securities, same firm that claims the regulator can’t
Finra moves to boot Alpine Securities, same firm that claims the regulator can’t

'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.

CFP Board floats new procedural rules around bankruptcy, misdemeanors
CFP Board floats new procedural rules around bankruptcy, misdemeanors

If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve