Century Management Financial Advisors
Originally starting out as Van Den Berg Management I, Century Management Financial Advisors (CM Financial Advisors) has been in business since 1974. It's led by Arnold Van Den Berg, who is highly regarded in the investing world, appearing on several lists of top investors and in 2013 book, "The World's 99 Greatest Investors: The Secret of Success" by Magnus Angenfelt.
Van Den Berg is still at the helm of the firm, having been joined by his son Scott in 1993. Today, the Austin-based firm manages millions in assets, landing it a spot on SmartAsset's list of top Austin financial advisor firms. CM Financial Advisors also does business under the name CM Fund Advisors; its mutual funds are known as CM Advisors Family of Funds.
Century Management Financial Advisors Background
As mentioned, the firm has been around since 1974, providing investment management and financial planning services for nearly half a century. The two Van Den Bergs and James Brilliant own the firm, while two other employees have small stakes. The senior Van Den Berg serves as CEO, co-chief investment officer and a portfolio manager, while the younger Van Den Berg is president and a portfolio manager. Brilliant is CFO, co-chief investment officer and a portfolio manager.
The firm’s team has an array of certifications. There are four chartered financial analysts (CFAs), three certified financial planners (CFPs), one chartered financial consultant (ChFC), two accredited investment fiduciaries (AIFs), one accredited wealth management advisor (AWMA) and one chartered mutual fund counselor (CMFC). The team also has a chartered retirement plans specialist (CRPS). (Scott Van Den Berg is the holder of six of these designations.)
Century Management Financial Advisors Client Types and Minimum Account Sizes
CM Financial Advisors primarily serves individuals. Non-high-net-worth individuals make up the majority of the firm’s client base, while high-net-worth individuals account for a smaller portion of the firm’s individuals clients.
Instead of a minimum account size, CM Financial Advisors has a minimum annual fee of $2,500 for its portfolio management services. As a result, clients with less than $250,000 pay fees at a higher rate than those with $250,000 or more.
Services Offered by Century Management Financial Advisors
The practice offers discretionary portfolio management services through separate accounts and wrap fee portfolios. It also provides a comprehensive wealth plan or a focused wealth plan. The latter covers personalized cash flow-based planning, risk management palnning and Social Security analysis and optimization - plus provides access to a personal financial management website and a digital vault that uses 256-bit encryption to protect your data. There's also a financial planning offering that just optimizes your Social Security strategy to maximize your benefits.
Additionally, CM Fund Advisors serves as investment advisor and portfolio manager to the CM Advisors Family of Funds. These two funds correspond to Century Management Financial Advisors separate accounts, Small Cap Value Strategy and Fixed Income Strategy.
Century Management Financial Advisors Investment Philosophy
Since its founding in 1974, the firm has adhered to the strategy of value investing. Value investing is an active investing strategy that focuses on a stock's intrinsic value. Value investors search for companies that are undervalued and whose stocks are currently trading at a price lower than their intrinsic worth. Century Management says that it embraces volatility because this is when market inefficiencies become apparent.
As is the case with many financial advisor firms, Century Management believes in investing for the long term. The firm also uses a margin of safety and it takes a business approach to investing.
Century Management offers four broad categories of investing strategies: value-based equity focused portfolios, balanced focused portfolios, fixed-income focused portfolios and other strategies.
The firm's value-based equity programs are geared toward younger investors. For investors who are nearing retirement, the firm recommends balanced focused income management. The firm’s fixed-income portfolios primarily consist of U.S. corporate bonds and/or U.S. Treasury securities, while the “other strategies” category includes variations of the aforementioned categories.
There are multiple portfolio types available within each category, each of which uses a specific investing strategy.
Fees Under Century Management Financial Advisors
CM Financial Advisors charges asset-based fees for its general investment management services. Rates are based on total assets under management and may be negotiable. However, the firm usually bases its rates on the figures listed in table below. The firm has a minimum annual fee of $2,500.
|CM Financial Advisors Investment Management Fees|
|Account Value||Annual Fee|
|First $5 million||1.00%|
|Over $5 million||0.85%|
|Fixed income-only accounts||0.50%|
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees (for Non-Fixed Income Accounts) at CM Financial Advisors*|
|Yours Assets||CM Financial Advisors Annual Fee Amount|
These portfolio management fees are comparable to the industry average of 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. Learn more about advisors' typical costs here.
Century Management charges different rates for its wealth plans. For its Comprehensive Wealth Plan, the firm charges $1,000 for each $1 million of total assets. The fee can range from a minimum of $2,500 to a maximum of $5,000. Century Management also offers the Focused Wealth Plan, which is designed for clients who don't need a Comprehensive Wealth Plan. The fee for this plan is $1,500. For its Social Security Optimization Plan, the firm charges a $500 fee.
In addition to the above services, Century Management's parent company manages a mutual fund. The firm charges the following management fees for this funds:
- CM Advisors Fixed-Income Fund: 0.50% management fee on all assets
Century Management will not charge clients a separate account management fee if the client holds a mutual fund from the CM Advisors family of funds that is managed by one of the firm's advisors.
Awards and Recognition
Financial Times named Century Management to its 2017 list of the top 300 registered investment advisors in the U.S. In 2013, Chairman and CEO Arnold Van Den Berg was featured in the book, “The World's 99 Greatest Investors.”
What to Watch Out For
CM Financial Advisors does not have any disclosures of legal or disciplinary issues in its latest SEC filings.
One thing to be aware of, though, is that it may recommend its mutual funds to clients, which can create a potential conflict of interest. However, clients are under no obligation to invest in any of the firm's funds. Furthermore, the firm is bound by its fiduciary duty, which means it’s required to act in clients’ best interests at all times.
Opening an Account With Century Management
You can call the firm at (512) 329-0050 or submit your contact information and a message on the firm's website. CM Financial Advisors accepts clients from all states.
All information is accurate as of the writing of this article.
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