Capital Asset Advisory Services (CAAS) is a Haslett, Michigan-based firm that has been around since 2004. Over the years, this financial advisor firm has grown to indirectly serve more than 8,000 clients and manage $1.9 billion in client assets through its advisory affiliates. The firm offers its investment management and financial planning services to outside firms, which then use these services and resources to serve their own clients.
CAAS is a fee-only firm, as it does not receive any compensation other than client-paid fees. The firm does note in its Form ADV, though, that some of the advisors that use its services may be fee-based, which means they can earn outside forms of income, such as insurance commissions. This represents a potential conflict of interest. Under these circumstances, the firm states that you may be able to negotiate a reduction of its fees.
Capital Asset Advisory Services Background
Capital Asset Advisory Services first opened for business in Michigan in 2004. Its principal shareholder is Anthony Joseph Mazzali, managing member. Although the firm is headquartered in Haslett, its advisors are spread out across the country. These advisors may market themselves under different names or work for different firms.
Capital Asset Advisory Services Client Types and Minimum Account Sizes
Through the advisors and institutions that use its services, Capital Asset Advisory Services works with just over 8,100 clients. The overwhelming majority of these clients are individuals with less than a high net worth. The firm also counts some high-net-worth individuals, pension plans, corporations, charitable organizations, trusts and estates as clients.
Minimum account requirements at CAAS vary depending on the type of portfolio you have. For WealthMark and WealthMark II portfolios, the firm requires $25,000. For WealthBuilder portfolios, it requires $15,000. Finally, the minimum for a UMA Program account is $1 million.
Services Offered by Capital Asset Advisory Services
Investment management at Capital Asset Advisory Services encompasses a variety of programs. Clients can participate in the firm’s WealthMark program, which involves investing in one or more of the firm’s many model portfolios. These models fall into three broad categories: WealthMark, WealthMark II and WealthBuilder.
The primary difference between the WealthMark and WealthMark II programs is that the former may invest in Dimensional Fund Advisor Products and alternative investments, whereas the latter does not. WealthBuilder portfolios include mutual funds with lower minimum investments.
Clients can instead opt for a CAAS Unified Managed Account (UMA). This portfolio is split between mutual funds, exchange-traded funds (ETFs) and separately managed account (SMA) managers.
For a fully customized portfolio, you’ll want to choose the firm's Advisor as Portfolio Manager Accounts program. This offering is the closest to conventional investment management, in which the advisor builds a portfolio and manages it according to the client’s ultimate investment goals, risk tolerance and cash flow needs.
Finally, CAAS also offers advisory services to sponsors of pension plans, 401(k) plans and other qualifying retirement plans.
Capital Asset Advisory Services Investment Philosophy
When allocating client assets, Capital Asset Advisory Services selects a range of independent portfolio managers and model portfolios. The firm evaluates portfolio managers by examining their financial experience, past performance and industry knowledge. These managers work with the firm's investment committee to construct and maintain the model portfolios that support the WealthMark and CAAS accounts.
Rather than stick to either long- or short-term investing, CAAS utilizes both. This is done to ensure that all clients have their needs taken care of, regardless of their goals or risk tolerance.
Fees Under Capital Asset Advisory Services
For all five of the firm’s core investment management offerings (WealthMark, WealthMark II, WealthBuilding, CAAS UMA portfolios and Advisor as Portfolio Manager Accounts), the firm charges an annual wrap fee of up to 2.25% of the client's assets under management (AUM). Additionally, the firm will charge an administrative fee of between 0.40% and 0.80% to help cover the expenses associated with managing the portfolio.
Fees are generally payable on a quarterly basis, in advance. Your account's value on the last day of the quarter dictates what you'll be on the hook for. You can either have these fees deducted from your account or choose to receive an invoice.
Capital Advisory Asset Services has one disclosure listed on its Form ADV. However, this is in relation to the firm's principal shareholder, Anthony Joseph Mazzali. Mazzali failed to disclose a misdemeanor for driving under the influence when applying for a non-resident insurance license in Florida, which led to action from the Florida Insurance Commission. Later, Mazzali failed to disclose this action in an application for an insurance license in the state of Virginia, which he explained was due to a clerical error by a staff member.
Despite the presence of a disclosure on this firm's legal and regulatory record, it still abides by fiduciary duty, legally binding it to act in clients' best interests.
Opening an Account With Capital Asset Advisory Services
The best way to get in touch with Capital Asset Advisory Services is by phone. You can call (517) 339-7662 to connect with someone at the firm. If you don’t live near Haslett, Michigan, you can still call and inquire if the firm has any advisors near you.
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