FORM CRS Customer Relationship Summary
March 28, 2023
Callan Capital, LLC (referred to as ‘us’ or ‘we’) is registered with the Securities and Exchange Commission as an Investment Adviser. Brokerage and Investment advisory services and fees differ, and it is important for retail investors to (referred to as ‘you’) understand the differences. Please note free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
What Investment Services and advice can you provide me?
We provide financial planning, consulting, insurance, trustee and investment advisory services to individuals and entities. Investment advisory services include the assessment of risk tolerance and investment into one of our investment models that suits your timeline, risk tolerance and objectives. We permit reasonable restrictions in writing. We review client portfolios on an ongoing basis and periodically rebalance accounts managed by our firm consistent with investment objectives and restrictions; implement investment strategies and furnish client reports.
Investment services are provided on a discretionary or non-discretionary basis. Discretionary advisory services mean that your financial advisor will have the ability to purchase or sell your investments without first acquiring your permission. Non-Discretionary services mean that you make the ultimate decision regarding the purchase or sale of investments. We generally have a minimum account size of $2,000,000 but we reserve the right to waive this minimum and accept or decline a potential client for any reason.
Financial Planning services include the process of us gathering information from you through in-depth personal interviews and collection of relevant documents from you and your advisers such as your CPA or attorney. After we carefully review the information supplied, a written report providing a detailed financial plan designed to assist you in achieving your financial goals and objectives will be presented.
Consulting is offered for certain services that are outside of our traditional stated services such as reviewing mortgage or other loan options. We also offer insurance services where needed and receive compensation for those services.
From time to time clients request that Callan serve as trustee or successor trustee on their trusts. These are not typical requests and are evaluated on a case by case basis. Compensation for trustee or successor trustee services vary.
For further information about our services and advice please read Items 4, 7, and 8 of our Form ADV Part 2A disclosure brochure. For a copy, please contact us at (858) 551-3800, or go to www.adviserinfo.sec.gov.
Ask your financial professional:
- Given my financial Situation, should I choose an investment advisory service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education and other qualifications?
- What do these qualifications mean?
What Fees will I pay?
We generally charge a fee for asset management services based upon a percentage of the market value of the assets being managed. The annual fee shall be prorated and charged quarterly, in arrears, based upon the average daily balance of your assets as valued by the custodian for the prior quarter. Asset Management fees are based on a tiered schedule and generally range from 1% to 0.20% but are negotiable and may vary. Other services offered will typically be charged a fixed fee ranging from $500 to $15,000 depending on the service. You may also be charged fees by third parties such as custodial fees, mutual fund or exchange traded fund fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees and transactional fees. There are situations in which fees are waived or reduced.
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. Please note that more assets under management means more fees, and thus incentive for us to encourage you to increase assets in your accounts.
More detailed information about our fees and other costs associated with investing, along with applicable conflicts can be found in Items 5, 10, and 14 of our Form ADV Part 2A disclosure brochure. For a copy, please contact us at (858) 551-3800 or go to www.adviserinfo.sec.gov.
Ask your financial professional:
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 are some examples to help you understand what
Conflicts of Interest: Callan faces inherent conflicts of interest which are described in the Callan Capital ADV Part 2A. Generally, Callan mitigates these conflicts through its Code of Ethics which provides that the client’s interest is always held above that of the Firm and its associated persons. Some of our conflicts of interests include:
Partners of Callan Capital own non-voting shares of Versus Capital. A substantial conflict of interest arises if Callan Capital recommends a mutual fund managed by Versus Capital as part of a client’s portfolio because Callan Capital would receive both Investment Advisory fees for managing the client’s portfolio and a portion of the fund’s management fees due to the Partners’ equity in Versus Capital. Clients who invest in a Versus Mutual Fund are reimbursed the proportion of income the Partners receive from Versus Funds related to the client investments.
Schwab provides us with various support services which are available at no charge to us as long as we keep a total of at least $10 million of our clients’ assets in accounts at Schwab. This creates a conflict of interest in that it may entice us to recommend you custody your assets as Schwab so we may receive their support services.
Callan Capital Insurance Services, LLC serves as a registered insurance broker and may provide life, accident and long-term care insurance products. A conflict of interest exists since we may also receive commission or other additional compensation from selling you an insurance product.
More detailed information about our conflicts of interest can be found in Items 4, 5, 8, 10, 11, 12, and 14 of our Form ADV Part 2A disclosure brochure. For a copy, please contact us at (858) 551-3800 or go to www.adviserinfo.sec.gov
How do your financial professionals make money?
Our financial professionals make money by salary or through investment advisory fees based on our assets under management, consulting fees, financial planning fees or commissions based off insurance services.
Ask your financial professional
How might your conflicts of interest affect me, and how will you address them?
Do you or your financial professionals have legal or disciplinary history?
No. For more information you can find a free and simple search tool to research financial professionals at Investor.gov/CRS. Additional information can be found on our website at www.callancapital.com or by accessing our Form Adv 2A which may be found at www.adviserinfo.sec.gov.
Ask your financial professional
As a financial professional, do you have any disciplinary history? For what type of conduct?
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?