Firm Description
Compass Capital Corporation was founded in 1984.
Compass Capital Corporation provides personalized financial planning and
investment management to individuals, pension and profit sharing plans, trusts,
estates, charitable organizations and small businesses. Advice is provided
through consultation with the client and may include: determination of financial
objectives, identification of financial problems, cash flow management, tax
planning, insurance review, investment management, education funding,
retirement planning, and estate planning.
Compass Capital Corporation is strictly a fee-only financial planning and
investment management firm. The firm does not receive commissions for
purchasing or selling annuities, insurance, stocks, bonds, mutual funds, limited
partnerships, or other commissioned products.
The firm is affiliated with Compass Holding Group, Incorporated (CHGI), a
financial services holding company, Compass Securities Corporation, an
institutional-only FINRA Broker/Dealer that sells financial products or securities
to qualified institutions and Compass Securities Insurance Agency Inc an
insurance agency owned by CHGI.
Investment advice is an integral part of financial planning provided based on
client consultations and financial plans. In addition, Compass Capital
Corporation advises clients regarding cash flow, college planning, retirement
planning, tax planning, divorce, and estate planning.
Compass Capital Corporation does not act as a custodian of client assets. The
client always maintains asset control. Compass Capital Corporation places
trades for clients under a limited power of attorney.
Periodic reviews are communicated to provide reminders of the specific
courses of action that need to be taken. More frequent reviews by professional
staff occur but are not necessarily communicated to the client unless immediate
material changes are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are
engaged directly by the client on an as-needed basis. Conflicts of interest will
be disclosed to the client in the unlikely event they should occur.
The initial meeting, which may be by telephone or in person, is free of charge
and is considered an exploratory interview to determine the extent to which
financial planning and investment management may be beneficial to the client.
Principal Owners
Compass Holding Group, Incorporated is the 100% owner of Compass
Capital Corporation. The table below details the beneficial ownership
percentage in CCC owned by shareholders of CHGI.
CHGI Shareholder Name
Beneficial
Ownership
Percentage
in CCC
Scott S. Chaisson 78.56%
Timothy F. Shanahan 3.23%
John R. Ahern 3.23%
Thomas Licciardello 3.23%
Walter K. Joly 3.23%
Omar J. Mian 3.23%
Sandra Powers 3.23%
Bruce Winans 2.03%
Types of Advisory Services
Compass Capital Corporation provides investment supervisory services, also
known as asset management services; furnishes investment advice through
consultation, and personal financial planning
On more than an occasional basis, Compass Capital Corporation furnishes
advice to clients on matters not involving securities, such as financial planning
matters, taxation issues, and trust services that often include estate planning.
As of June 30, 2023, Compass Capital Corporation manages approximately
$475,503,136 in assets for approximately 1339 accounts. Approximately
$424,894,713 is managed on a discretionary basis, and $50,608,423 is
managed on a non-discretionary basis.
Tailored Relationships
The goals and objectives for each client are documented in our client records.
Investment policy statements are created that reflect the stated goals and
objective. Clients may impose restrictions on investing in certain securities or
types of securities. Agreements may not be assigned without client consent.
Types of Agreements
The following agreements define the typical client relationships.
Financial Planning Agreement
A financial plan is designed to help the client with all aspects of their financial
objectives.
The financial plan may include, but is not limited to: a net worth statement; a
cash flow statement; a review of investment accounts, including reviewing
asset allocation and providing repositioning recommendations; strategic tax
planning; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for
changes, if necessary; one or more retirement scenarios; estate planning
review and recommendations; and education planning with funding
recommendations.
Investment advice and asset allocation recommendations are provided as part
of a financial plan. Implementation of the recommendations is at the discretion
of the client.
The fee for a financial plan is predicated upon the facts known at the start of
the engagement and professional hours spent at $175/hour. The fee range is
typically $500 to $2,500
and is negotiable. Since financial planning is a
discovery process, situations occur wherein the client is unaware of certain
financial exposures or predicaments.
In the event that the client’s situation is substantially different than disclosed at
the initial meeting, a revised fee will be provided for mutual agreement. The
client must approve the change of scope in advance of the additional work
being performed when a fee increase is necessary.
After delivery of a financial plan, future face-to-face meetings may be
scheduled as necessary. Follow-on implementation work is billed separately
at the rate of $175 per hour.
Advisory Service Investment Management Agreement
Most clients choose to have Compass Capital Corporation manage their assets
in order to obtain ongoing in-depth advice. All aspects of the client’s financial
affairs are reviewed. Realistic and measurable goals are set and objectives to
reach those goals are defined. As goals and objectives change over time,
suggestions are made and implemented on an ongoing basis.
The scope of work and fee for an Advisory Service Agreement is provided to
the client in writing prior to the start of the relationship. An Advisory Service
Agreement may include: cash flow management; insurance review; investment
selection and management (including performance reporting); education
planning; retirement planning; divorce; estate planning; and tax preparation, as
well as the implementation of recommendations within each area.
The annual Advisory Service Agreement fee is based on a percentage of the
investable assets according to the following schedule:
Minimum account size: $150,000
Pricing:
Breakpoint investment management fee are as follows:
Assets In Account Annual Fee
$0- $150,000 1.25%
$150,000-$250,000 1.00%
$250,000-$500,000 0.95%
$500,000-$1,000,000 0.80%
Greater than $1,000,000 0.75%
Example:
Compass Capital Investment Management Fee Calculation
Account size at quarter end $1,000,000
Days invested (90 or less) 90
Annual fee – blended from schedule times .9250% $9,250.00
times 90/365 = .25
Quarterly fee – blended/prorated $2,312.50
Note that in certain cases, subject to negotiation between the Compass
investment advisor agent and the Client, the actual fee charged may be greater
than or less than the blended fee that would otherwise be calculated or be a
flat rate fee on all assets.
Although the Advisory Service Agreement is an ongoing agreement and
constant adjustments are required, the length of service to the client is at the
client’s discretion. The client or the investment manager may terminate an
Agreement by written notice to the other party. At termination, fees will be billed
on a pro rata basis for the portion of the quarter completed. The portfolio value
at date of termination is used as the basis for the fee computation, adjusted for
the number of days during the billing quarter prior to termination.
Hourly Planning Engagements
Compass Capital Corporation provides hourly planning services for clients who
need advice on a limited scope of work. The hourly rate for limited scope
engagements depends on the investment adviser representative, but is
generally $175.
Asset Management
Assets are invested primarily in no-load or low-load mutual funds and
exchange-traded funds, usually through discount brokers or fund companies.
Fund companies charge each fund shareholder an investment management
fee that is disclosed in the fund prospectus. Discount brokerages may charge
a transaction fee for the purchase of some funds.
Stocks and bonds may be purchased or sold through a brokerage account
when appropriate. The brokerage firm charges a fee for stock and bond trades.
Compass Capital Corporation does not receive any compensation, in any form,
from fund companies.
Investments may also include: equities (stocks), warrants, corporate debt
securities, commercial paper, certificates of deposit, commodities, digital
assets/crypto assets, municipal securities, investment company securities
(variable life insurance, variable annuities, exchange traded funds (ETFs),
exchange traded notes (ETNs) and mutual funds shares), U. S. government
securities, interests in partnerships, and master limited partnerships.
Initial public offerings (IPOs) are generally not available through Compass
Capital Corporation.
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by
notifying Compass Capital Corporation in writing and paying the rate for the
time spent on the investment advisory engagement prior to notification of
termination. If the client made an advance payment, Compass Capital
Corporation will refund any unearned portion of the advance payment.
Compass Capital Corporation may terminate any of the aforementioned
agreements at any time by notifying the client in writing. If the client made an
advance payment, Compass Capital Corporation will refund any unearned
portion of the advance payment.