Why work with Candent Capital?
We believe that a good fit between you and your advisor is very important. Candent provides financial planning and investment management services using a personalized approach characterized by patience and care. Through listening, diligent research and objectivity, Candent always tries to do its best to bring light to issues so they can be understood more clearly so people can make well-informed decisions that help them reach their financial goals. We welcome the opportunity to speak with you to discuss how founder Bill Kan’s 20+ years experience in investment research and advice may help address your needs.
How is working with Candent different from working with other financial advisors?
There are several things that differentiates Candent. It is registered with the State of California as a Registered Investment Advisor (RIA) and can work with clients across the United States. Candent adheres to the fiduciary standard under the regulations that govern RIAs. This means that Candent must hold first the interests of our clients. It must try its best to minimize conflicts and disclose any that remain. Candent has duties of loyalty and care to our clients and is compensated on a fee-based basis. In contrast, many advisors follow the broker’s suitability standard. For them, their investment recommendations only need to be suitable for a client and the advisor may be paid a commission to recommend a certain product.
Second, Candent’s approach to investment management balances liquidity management for near-term needs and return-risk for long-term needs. Proper liquidity management is critical for clients to have access to resources they can use to maintain a sustainable standard of living. Depending on their need to draw resources from their portfolio, near-term needs will be invested accordingly in assets that offer liquidity and safety. The aim for long-term goals is to recommend and implement strategies that Candent believes will offer risk-adjusted rates of return, after-tax and after-fees that will best address client needs.
Third, the guidelines that spell out how client portfolios will be invested are spelled out in their Investment Policy Statement (IPS). In order to ensure that expectations are consistent, clients must review and sign the IPS before Candent start to invest on their behalf. The statement establishes upfront expectations, accountability and investment discipline. More specifically, the IPS details things such as asset allocation, time horizon and investment restrictions. The document will be reviewed annually.
How is Candent paid?
This is a favorite question. The answer to this question explains a lot of situations and why unexpected events happen. Candent is a fee-based practice and does not accept referral fees. Founder Bill Kan maintains an insurance license in the State of California, but neither Bill nor Candent is planning offer insurance products for commission.
Financial planning clients have the option of be charged on an hourly basis or a fixed fee. Financial planning clients that also engage Candent for investment management will have fees paid planning credited toward charges to Candent for investment management services.
The fee for investment management is based on a rate of 1% per annum per for the first $1 million of assets under management. The rate declines for balances over $1 million. The minimum fee is $1,800 per year.
How often will Candent meet with clients?
Candent will meet with clients as much as reasonably necessary to serve in the best interest of its clients. At the beginning, Candent will typically speak with clients more frequently to get to know one another, define goals and help them simplify their financial matters. Once an action plan is in place and ready for implementation, Candent will have informal quarterly meetings to discuss the progress toward client goals. A formal review will be conducted annually. Client should contact Candent when there are changes to their financial situation or objectives so Candent can pro-actively update the financial plan or IPS. Candent also provides customized quarterly reports and send communicate with you by phone and technology regarding upcoming events and publications on our thoughts on financial matters. One of Candent’s goals is to help you make informed decisions.
Where does Candent meet clients?
Candent works with people across the country from its base in San Francisco. While face-to-face are preferred, it is not always feasible even for people in the Bay Area. Candent is always available by phone and email. Easy-to-use video conferencing technology is also used to allow Candent to serve people anywhere there is an effective web connection. This means that the physical location of clients can be wherever they feel most comfortable talking about their financial matters.
Where are client assets held?
Clients choose the custodian to hold their account that Candent manages for them. The accounts are held in the Client’s name. What Candent asks clients do is to grant Limited Power of Attorney (LPOA) that allows Candent to execute transactions on behalf of its clients. Candent usually recommends that clients consider TD Ameritrade as their custodian. The package of their technology, capabilities and pricing helps Candent give clients the service that they expect. Clients will have access to your accounts 24 hours a day, seven days a week at TD. TD will also send Clients independent monthly reports of their holdings.
How are Client assets managed?
Candent’s mission is to help Clients protect investments and grow savings in order to help them reach their goals toward financial wellness. The asset allocation and investment strategies used seek high risk-adjusted returns actually available to Clients, i.e. returns after-tax and after-fees. Clients will invest in assets that its believes are priced reasonably and are attractive in terms of expected returns and risk.
To help keep costs down, Candent uses a core-satellite approach for asset allocation. For core holdings, assets used to participate in broad market moves, Candent will use low cost passive index funds that represent the market or specific segments of the market. Studies show that over the long-term, the odds favor low cost passive index funds over actively managed funds.
In situations where we believe there are opportunities to improve risk-adjusted portfolio returns, Candent will deploy the satellite portion of the portfolio. It generally consists of actively managed securities, investment funds or use select baskets of passive index funds. Guidelines for core and satellite holdings are spelled out in the IPS discussed above.
What Candent does to protect Client savings are diversification through the asset allocation process, regular rebalancing and ongoing monitoring of holdings and investment conditions. Portfolio adjustments will be implemented to minimize the impact of situations that are believed to impair the value of the portfolio over an extended period of time.