Capital Bank and Trust Company (CB&T) is a financial services company that provides directed trustee services and custodial services to employer-sponsored retirement plans, as well as individual retirement accounts that are invested in registered investment companies. However, the firm does not offer discretionary investment management or financial planning to these clients. If you're in search of a firm that does, our free financial advisor matching tool can help.
CB&T currently has billions in assets under management (AUM) for a fairly large client base. Pooled investment vehicles, high-net-worth individuals, pensions and profit-sharing plans comprise the vast majority of client assets the firm manages.
Capital Bank and Trust Company Background
CB&T was established in 2000 as a wholly owned subsidiary of The Capital Group Companies, Inc. The firm, which is based in Irvine, California, was formed as a federal savings bank, but it mainly operates as a registered investment advisor (RIA).
CB&T specializes in an array of advisory services for institutional investors and retail investors.
Capital Bank and Trust Company Client Types and Minimum Account Sizes
CB&T advises employer-sponsored retirement plans and individual retirement accounts invested in registered investment companies.
While the firm does not impose a minimum account size, clients invested in CB&T’s Commingled Funds may be subject to account minimums if they don’t have an account with Capital Group Private Client Services, an SEC-registered investment advisor that's affiliated with CB&T.
Services Offered by Capital Bank and Trust Company
CB&T offers investment management through collective investment trusts and common trust funds, which are tailored for retirement plans, foundations and endowments. These "commingled funds" are managed with the assistance of affiliated service providers and are overseen by Capital International, Inc. and Capital Research and Management Company, who act as investment advisers for CB&T’s managed funds.
Capital Bank and Trust Company Investment Philosophy
CB&T states in its Form ADV brochure that its investment philosophy is built on four key principles: in-depth research, value-driven decisions, a long-term outlook and a collaborative management system. The team conducts thorough global research to assess market opportunities, striving to identify differences between a company’s market price and intrinsic value.
Their strategies prioritize long-term growth, reflected in low portfolio turnover and incentivizing managers based on sustained investment results. CB&T uses a unique multi-manager approach, where portfolios are divided among managers, each independently deciding investments for their segments, promoting stability and consistent outcomes.
Additionally, environmental, social, and governance (ESG) factors are considered as part of their holistic approach to value analysis, ensuring investments align with the portfolio's objectives and guidelines.
Capital Bank and Trust Company Fees
CB&T does not disclose its fee structure in its firm brochure.
What to Watch Out For
CB&T has one regulatory disclosure listed on its Form ADV. It should also be noted that sales and marketing officials may earn direct or indirect compensation from the services the firm provides, which presents a conflict of interest. Another caveat is that, in some instances, CB&T and its affiliates may receive performance-based fees.
Both of these fee arrangements can create a conflict of interest if advisors favor products that neglect a client’s best interest. But CB&T says it abides by a fiduciary duty.
Opening an Account with Capital Bank and Trust Company
You can set up an appointment with a CB&T advisor by visiting any of the firm’s offices or by contacting the firm at (949) 975-5000.
All information was accurate as of the writing of this article.
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