March 22, 2023
Compass Capital Management, Inc. is an SEC-registered investment adviser. Brokerage and investment advisory services and fees differ and it is important for you to understand these differences. Free and simple tools are available to research firms and financial professionals at www.Investor.gov/CRS, which also provides educational materials about broker-dealers, investment adviser, and investing.
What investment services and advice can you provide me?
The investment advisory services we offer to retail investors include equity, fixed income, and balanced investment portfolios, asset allocation and planning. As part of our standard services, we monitor your account(s) on an ongoing basis. We provide investment advisory services on a discretionary basis, meaning we make all investment decisions for your account(s), and, when appropriate and without obtaining your approval in advance, we can buy and sell securities, determine the amount of securities to be bought and sold, determine which broker or dealer to use, and negotiate commission rates. On occasion, we provide our investment advisory services on a non-discretionary basis, meaning that you will make the ultimate decision regarding the purchase and/or sale of investments. As a general matter, we will not monitor, advise or act for you in legal proceedings, including, without limitation, class actions and bankruptcies, involving securities purchased or held in your account. We prefer account relationships greater than $1,000,000.
For additional information, see Items 4, 7, 8 and 13 in our Form ADV, Part 2A brochure (“Brochure”), available at:
https://adviserinfo.sec.gov/firm/summary/107823.
Conversation Starters:
- “Given my financial situation, should I choose an investment advisory service? Why or why not?”
- “How will you choose investments to recommend for me?”
- “What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?”
What fees will I pay?
We charge you a fee for our investment advisory services based on the assets held in your account(s) at the end of each calendar quarter in accordance with our fee schedule. The more assets in your account, the more you will pay in fees, and we may therefore have an incentive to encourage you to increase the assets in your account(s). We also offer our investment advisory services on a fixed fee basis if you have special portfolio requirements or circumstances. We prorate our fees for any quarter in which you are not our client for the entire quarter. Fixed fees are also billed quarterly. We may charge a minimum fee on accounts less than $1,000,000. If we invest your assets in mutual funds, you will pay those customary fees charged directly by such fund to their investors. Additionally, because we do not maintain custody of your assets, you will use a third-party custodian and may pay fees charged by that custodian. You will also pay brokerage and other transaction costs resulting from our decision to buy or sell securities for your investment account. We do not receive compensation for the sale of securities or other investment products.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
For additional information, see Items 5.A., B., C., and D in our Brochure, available at:
https://adviserinfo.sec.gov/firm/summary/107823.
Conversation Starter:
- “Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?”
What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here is an example to help you understand what this means. We receive benefits from Charles Schwab & Co. in the form of research services. The availability of these research services gives us an incentive to recommend that you maintain your account with Charles Schwab & Co. based on our interest in receiving research services rather than based on your interest in receiving the best value in custody services and the most favorable execution of your transactions.
Conversation Starter:
- “How might your conflicts of interest affect me, and how will you address them?”
For additional information, see Item 12 in our Brochure, available at:
https://adviserinfo.sec.gov/firm/summary/107823.
How do your financial professionals make money?
Our financial professionals are compensated based on the revenue generated from the advisory fees we charge and on the amount of client assets we service. Because our financial professionals are compensated based on the revenue generated from the advisory fees we charge and the amount of client assets we service, this creates an incentive for our financial professionals to increase assets under management in order to increase the revenue we generate from advisory fees.
Do you or your financial professionals have legal or disciplinary history?
No. Visit www.Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
Conversation Starter:
- “As a financial professional, do you have any disciplinary history? For what type of conduct?”
Additional Information. For additional information about our services, please see our Brochure, available at:
https://adviserinfo.sec.gov/firm/summary/107823. If you would like additional, up-to-date information or a copy of this relationship summary, please call 612.338.4051.
Conversation Starter:
- “Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?”