Frequently Asked Questions
Is Capital Cities Investments independent?
Yes. We are an independently owned Registered Investment Advisor, which means we are free to recommend any investments that are appropriate for our clients. For our advisory clients, we take no payments of any kind from third parties, receiving our income solely from client fees.
What is the scope of services provided by Capital Cities?
There are two general categories of services: 1) fee-based, and 2) commission-based. Fee-based advisory includes :
- Assessment of a client’s goals and risk tolerances
- Development of an Investment Policy Statement
- Implementation of the portfolio
- Ongoing monitoring, rebalancing, tax harvesting and risk management
- Commission-based accounts include client-directed transactions of:
- Stock and bonds
- Private placements
- Annuities and other insurance contracts
Who is your typical client?
We service two distinct markets. Given our institutional expertise, we have found natural client relationships with small to medium sized endowments and pension funds as well as high net worth individuals. We determined early in our business that those same principles and resources could be made available to a retail client. Our individual clients are typically conservative savers that have been successful in the accumulation of assets. We have been able to add significant value to these clients not found at most firms that service the individual market.
What sets your firm apart from other financial advisory firms?
Institutional quality advisory and our ability to communicate investment concepts clearly and simply. Our sister company, Capital Cities, LLC, has more than $26 billion* in assets under advisement. We share the same investment committee and our advisors have access to any of our consultants.
How Much is Your Fee for Portfolio Management?
Our advisors set their own rates according to the quantity of services that they provide clients. Typically, fees are in the 1 to 1.5% range.
When I invest with you, who is actually holding my money?
Charles Schwab Institutional is the custodian for our fee-based portfolio advisory clients. For commission-based brokerage accounts, National Financial Services (a Fidelity company) is the custodian. Capital Cities Investments never takes custody of any client assets.
Do you have a minimum account size?
The minimum account size is set individually by our independent offices. The typical minimum is $250,000 for fee-based portfolio advisory.
Do you offer a free consultation?
Yes. It is important to have the opportunity to have a deep discussion with an advisor prior to becoming a client. In this free, no obligation meeting we will determine if your goals and objectives can be met on our investment platform.
If I decide to go with your firm, what is the next step?
If there is a good fit and you wish to proceed, we will gather the relevant information and prepare a second meeting in which we will discuss the details of a customized Investment Policy Statement that states your goals, risk tolerances and any specific directives you may have. This document details the portfolio allocations that are recommended for you.
Is there a long-term contractual obligation for services or funds I invest in?
No. As a client, you are always in control of your account and may take any action you wish. Our goal is to provide excellent service that leads our clients to remain clients.
How often will I receive statements regarding my portfolio?
You will receive statements each month from the account custodian, as well as a quarterly report from Capital Cities Investments.
Will my account be available online?
Yes. Anywhere and anytime you have access to a web browser, you have access to your account.
How do you measure Performance?
We measure performance in terms of risk-adjusted returns. Capital Cities’ Investment Committee conducts extensive analysis of each selected manager’s performance relative to the manager’s benchmark. Further, the Committee monitors and ensures that each manager’s is performing its role properly in the context of the client’s complete portfolio. Clients are encouraged to focus primarily on meeting goals and objectives over the full market cycle and to put less emphasis on monitoring benchmarks quarter-to-quarter as short-term performance can be irregular and/or not indicative of long-term performance.
*Data is as of June 30, 2018