Summary: New accounts for Brinker Capital Destinations and Destinations ETFh have been suspended for new clients– effective February 1, 2024. This applies to accounts both on ESI Illuminations and Brinker Capital directly. Existing clients may remain in their Brinker accounts, but IARs should bring the concerns discussed below to their clients’ attention, evaluate whether Brinker continues to be appropriate for their clients, and continue to monitor Brinker’s management.
ESI subscribes to due diligence services provided by Envestnet PMC for its third-party managers. Envestnet PMC and their due diligence team have introduced a “Hold” rating for Brinker Capital’s Destinations and Destinations ETFh portfolios. The Hold rating discusses Envestnet’s concern regarding recent turnover of the Destinations portfolio management team. Envestnet’s report cites the departure of a Co-Head of Discretionary Portfolios, Jeff Raupp, in 2021; Leigh Lowman (Senior Portfolio Manager) and Amy Magnotta (Head of Discretionary Portfolios) in 2022; and, more recently, Senior Portfolio Managers Grandt Engelbardt, Michael Hadden and Case Eichenberger in 2023. These departures all follow the merger between Brinker and Orion in September of 2020.
Until further notice, ESI will suspend new Destinations and Destinations ETFh accounts. ESI will continue to monitor Brinker and will update you of any changes it makes. If you have new Destinations accounts in process, please contact ESI Business Development to discuss. The Brinker Core Asset Management Program, (separately managed accounts), will remain open to new accounts.
ESI Advisors with Destinations accounts are encouraged to share this rating downgrade with their Brinker clients to determine if alternative third-party strategist would better serve clients’ needs. Advisors are also encouraged to continue monitoring Brinker’s management and performance. If you have questions about the Hold rating, please contact ESI Business Development, 800-344-7437.
TC139320(0124)1