Century Management Financial Advisors
Century Management Financial Advisors has been in business since 1974. It's led by founder Arnold Van Den Berg, who is highly regarded in the investing world, appearing on several lists of top investors and in the 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. The firm, who's legal name is Van Den Berg Management I, also does business under the name CM Fund Advisors. Its mutual funds, meanwhile, 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
Century Management 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 individual clients. Century Management also works with retirement plans, charitable organizations, investment companies, corporations and other businesses.
Instead of a minimum account size, Century Management has a minimum annual fee of $2,500 for its portfolio management services, though it may be negotiable on a case-by-case basis. With the fee as-is, 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 Focused Wealth Plan or a Comprehensive Wealth Plan. The former covers personalized cash flow-based planning, risk management planning and Social Security analysis and optimization – plus provides access to a personal financial management website. There's also a financial planning offering that just optimizes your Social Security strategy to maximize your benefits. The Comprehensive Wealth Plan includes everything the focused wealth plan offers, plus a detailed analysis of your insurance, investment, tax and estate planning.
Additionally, the firm serves as an investment advisor and portfolio manager to the CM Advisors Family of Funds.
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 five broad categories of investing strategies: aggressive growth, growth, balanced, income and growth, as well as income.
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
Century Management 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 |
| $250K | $2,500 |
| $500K | $5,000 |
| $1 MM | $10,000 |
| $5 MM | $50,000 |
| $10 MM | $85,000 |
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 $10,000. Meanwhile, the fee for the Focus Wealth Plan is $1,500. For its Social Security Optimization Plan, the firm charges a $500 fee.
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.
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. Century Management Financial Advisors accepts clients from all states.
All information is accurate as of the writing of this article.
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