This section of the brochure tells you about our business, including ownership, and a
description of the services we offer.
Compak Asset Management, Inc. is referred to in this document as “Compak Asset
Management,” “Compak,” “the Company,” “us,” “we,” or “our.” In this document we refer to
current and prospective clients of Compak Asset Management as “you,” “client,” or “your.”
Compak Asset Management is a California corporation formed in 1999 and is owned by its
principals, Moeez Ansari and Feroz Ansari. Compak Asset Management is headquartered in
Newport Beach, CA and has an office located in Scottsdale, AZ.
Arizona Office:
8865 E. Bell Road, Suite 201
Scottsdale, AZ 85260
Phone: 800-388-9700
Types of Advisory Services
Investment Supervisory Services
Compak Asset Management, through its investment committee, provides asset
management services on a continuous and ongoing basis guided by the individual needs of
the client. Clients receiving this service will enter into a written Investment Advisory
Agreement describing the service and detailing the applicable fees. Using the information
provided by you, our investment advice is tailored to your individual situation. We
regularly inquire about, and you are responsible for providing, information about your
investment goals, time horizon, and risk tolerance. These investment supervisory services
are generally not provided to all your holdings or net worth but rather only to assets
specifically designated by you and agreed to by us as managed assets. Investment
Advisory clients are offered Financial Planning services with no additional fees.
We generally offer our investment supervisory services to clients who place assets with a
value of at least $150,000 under our management. In a managed account, we select from
different asset allocation models to manage your assets in accordance with your goals,
objectives, and instructions. We may accept accounts smaller than $150,000 at our sole
discretion.
Retirement Investors
When Compak recommends that you rollover retirement assets or transfer existing
retirement assets (such as a 401(k) or an IRA) to our management, Compak has a conflict of
interest. This is because Compak will generally earn additional revenue when Compak
manages more assets. In making the recommendation, however, Compak does so only after
determining that the recommendation is in your best interest. As a registered investment
adviser, we have a fiduciary obligation to all of our clients. If you are a “Retirement
Investor,” this section also applies. “Retirement Investor” is defined as (1) a participant or
beneficiary of a Plan with authority to direct the investment of assets in his or her account
or to take a distribution, (2) the beneficial owner of an IRA acting on behalf of the IRA, or
(3) a fiduciary of a Plan or an IRA. A “Plan” is defined as any employee benefit plan
described in ERISA section 3(3) and any plan described in Internal Revenue Code section
4975(e)(1)(A). An IRA is defined as any plan that is an account or annuity described in the
other parts of section 4975(e)(1): Paragraphs 4975(e)(1)(B) through (F). Compak
acknowledges we are a "fiduciary" under ERISA or the Internal Revenue Code, or both, with
respect to our investment advisory recommendations and discretionary asset management
services provided to Retirement Investors under the investment management agreement.
Satisfaction Guarantee
New clients entering into a managed account agreement with us will be provided a
satisfaction guarantee for the first twelve (12) months from the date of signing a
management agreement with us. Our satisfaction guarantee provides that during the first
twelve (12) months from the date of opening your account, you will be permitted to obtain
a refund of all management and maintenance fees paid to us for any reason, including but
not limited to, dissatisfaction with our: (i) financial planning, (ii) investment performance,
(iii) LIVE360 life satisfaction program, (iv) back office operations or (v) frequency of
communications concerning your account. You need not give any reason or justification for
a refund request. Simply put, if you are not satisfied during the first twelve (12) months of
our business relationship, Compak will refund all management and maintenance fees you
have paid to us within thirty (30) days of any such request. The refund can be provided as
a credit to your account, or a check paid directly to you. In the case of qualified accounts, a
refund will be provided through a check paid directly to you. Additional details on refunds
that will be made under the Satisfaction Guarantee appear in item 5, below.
This satisfaction guarantee does not and cannot provide any assurances about account
performance, as all investing involves some degree of risk and we are unable to guarantee
any level of success. For those clients who do request a refund of management and
maintenance fees we anticipate it will be their preference to move their account to another
investment adviser of his or her choice. If the request for a refund of management and
maintenance fees relates to other than investment performance, Compak reserves the right
in some instances to discuss the possibility of remaining a client under our fee structure set
forth herein. Under all circumstances there will be no termination fees paid by a client due
to the exercise of a satisfaction guarantee. Compak also reserves the right to terminate its
satisfaction guarantee program on thirty (30) days’ written notice. All clients eligible for
the satisfaction guarantee at the time of termination of the satisfaction guarantee program
will be provided the full twelve (12) month decision period for electing a refund of
management fees.
For purposes of the satisfaction guarantee we consider a new client to be any person or
entity that has never maintained an account with us and who places assets with us to
manage, the source of which originates from other than a current Compak account. We do
not consider group retirement plan participants as having a direct relationship with us and
thus any such plan participants who open a new account with us will be eligible for our
satisfaction guarantee.
Because we provide a twelve month “Satisfaction Guarantee” to new clients where we will
refund our fees if a new client is dissatisfied for any reason with our services, we have a
financial incentive to assure clients are satisfied with our services for the first twelve
months. This satisfaction guarantee
relating only to new clients in the first twelve months
creates an incentive to favor a new client over an existing client should a situation arise
where a product, service, or opportunity cannot be provided to all of our clients
simultaneously. We recognize this conflict and strive to treat all of our clients equally.
Financial Planning
Clients who enter into an Investment Advisory agreement are offered financial planning
services and financial plans at no additional cost. Some clients (who are not Investment
Advisory clients) are provided with a written financial plan, subject to a separate
agreement or engagement letter and the payment of financial planning fees. If you receive a
written plan, it makes an attempt to provide you with an estimate of future growth in your
net-worth and income. All tax sensitive reports are provided to you as estimates of future
income and estate tax liabilities. These tax sensitive reports are based on current federal
and applicable state laws regarding taxation. Federal and State Tax Laws are subject to
change and interpretation. All reports, financial statement projections, tax liability
estimates, and analysis are intended exclusively for your use in developing and
implementing your financial plan. In view of this limited purpose, un-audited data is
collected and used to produce your financial plan, therefore, any report, financial statement
or analysis is to be considered un-audited as well. Accordingly, you should understand that
such financial statements cannot be used as a representation of wealth, to obtain credit, or
for any other purpose, other than developing a financial plan. The assumptions used in the
financial plan are based on information provided and/or reviewed by the client. Any
inaccurate information provided by the client of any facts or assumptions used in the
financial plan will make the results and our recommendations inaccurate. Compak Asset
Management will not audit (examine), review or compile such statements and accordingly,
Compak Asset Management will not express an opinion or other form of assurance on these
financial statements, including the reasonableness of assumptions and other data on which
any financial statements or projections are based.
There will be differences between projected estimates and the actual results of a financial
plan, because events and circumstances frequently do not occur as expected. Investment
returns in particular are most volatile and the probability of estimates coming close to
actual results decline with a reduction in the investment-holding period. Compak Asset
Management does not in any way represent or infer that the investment returns will be
similar to estimates projected in your financial plan. The estimates are based on historical
returns and Compak’s analysis of the various asset classes, and the past performance of
these asset classes does not guarantee that future results of these asset classes or your
investments will be similar. Compak Asset Management uses a proactive investment
strategy; therefore, the actual returns of your portfolio will differ from the financial plan
projections. The financial plan is highly dependent on certain economic assumptions about
the future. Therefore, the client should establish familiarity with historical data regarding
key assumptions such as inflation and investment rates of return, as well as, an
understanding of how significantly these assumptions affect the results of our analyses.
We will not express any assurance as to the accuracy or reasonableness of your specific
data and your assumptions. As your fiduciary, we will attempt to use reasonable
assumptions if we prepare a financial plan for you. The financial plan assumptions and
reports are primarily a tool to alert clients to certain possibilities. The reports are not
intended to, nor do they provide any guaranty about future events including an individual’s
investment returns. The implementation of the plan is solely your responsibility.
The financial plans provided for some of our clients do not address all potential aspects of
financial planning. Typically, our plans address retirement planning, college funding, and
estate planning. Risk management issues such as life, health, disability, and long-term care
insurance are not always addressed in every financial plan, and you are encouraged to ask
specifically about these issues. Our financial plans are not intended to, nor should they be
considered to be advice about law or your legal rights and responsibilities, accounting or
tax planning, the avoidance of tax penalties or interest or preparation of your tax return.
You are encouraged to seek competent legal and tax advice before implementing any
recommendation made in a written financial plan prepared by us.
Types of Investments Used
We consider many different types of securities when formulating the investment advice we
give to you. If you come to us with existing investments, we evaluate them with respect to
your financial goals, risk tolerance, and investment time horizon. Depending upon your
situation, your account(s) managed by us might contain mutual funds, individual stocks,
corporate and/or government bonds, or exchange traded funds (“ETFs”), and structured
notes. Recommendations of structured notes will be on a Non-Discretionary basis and will
require client approval before any transaction (purchase or sale) will be made. In some
situations, we might recommend that insurance and/or limited options strategies, be part
of your investment portfolio. Depending on the clients’ overall portfolio and financial goals,
we might recommend alternative investments through 3rd party managers for clients who
meet suitability guidelines (e.g. “accredited investor” or “qualified purchaser”) which
include factors such as risk tolerance, goals, objectives, net worth, and available investable
assets.
Tailored Services and Investment Restrictions
We attempt to tailor your investment portfolio to your situation as you have described it to
us. This is why it is so important that you let us know about changes to your financial
situation, goals, or investment time horizon. You may impose restrictions on investing in
certain securities or types of securities. You must clearly identify these restrictions in
writing to us.
Assets Under Management
As of December 31, 2023, Compak Asset Management manages approximately
$1,044,435,468 of client assets, on a discretionary basis, and approximately $34,296,164
on a non-discretionary basis.