Capstone Financial Advisors, Inc. (hereinafter “Capstone Financial”) is an SEC-registered investment adviser with its principal place of business located in Downers Grove, Illinois. Capstone Financial began conducting business in 1999. Capstone Financial’s principal shareholder (i.e., those individuals and/or entities controlling 25% or more of this company) is Troy Bute, President and Director.
Capstone Financial offers the following advisory services to our clients: Portfolio Management Services Capstone Financial provides Portfolio Management Services to clients regarding the investment of client assets based on the individual needs of the client. Portfolio Management Services generally include an evaluation of the client’s current investment strategy, including the allocation of assets among asset classes, recommended changes in the allocation of assets, and the selection of appropriate investments or sub-advisers to implement an agreed allocation.
Through the use of detailed discussions and interviews, we establish the client’s investment goals and objectives and we create and manage a portfolio based on the client’s particular circumstances.
Among other things, we generally determine the client’s individual financial objectives, time horizons, risk tolerance, and liquidity needs during the information-gathering process. As appropriate, we also review and discuss a client's prior investment history, as well as family composition and background.
We manage client advisory accounts on both a discretionary basis and nondiscretionary basis, according to client preference. Account supervision is guided by the client's stated objectives as well as tax considerations.
Portfolios most typically will consist of no load or load-waived mutual funds, exchange-traded funds (ETFs), individual equities, and individual bonds (including corporate debt securities, commercial paper, certificates of deposit, municipal securities, private investment funds and United States governmental securities). Depending on the client’s particular circumstances, we provide advice with respect to variable life insurance, variable annuities, options contracts on securities, and interests in partnerships investing in real estate or oil and gas interests, which could also be included in a client’s portfolio. Mutual funds, ETFs and other securities are selected on the basis of any or all of the following criteria as they relate to the security or its underlying index: performance history; industry sector; track record; investment objectives; composition and focus and fee structure and expenses.
Sub-advisers.To provide clients with additional diversification or specific expertise in a particular asset class, Capstone Financial has conducted due diligence on one or more independent registered investment advisers and in some instances, has entered into a written sub-advisory agreement with such sub-advisers, as appropriate, to directly manage a portion of our clients’ portfolios. In other circumstances, we have recommended that clients directly engage these independent registered investment advisers to manage a portion of the client’s account subject to our supervision. Under these circumstances, we generally request that the client grant us the written authority to engage, monitor and terminate the adviser as we deem appropriate for the client’s financial circumstances. Sub-advisers are selected primarily based on expertise in one or more asset classes, investment style, and performance.
We will allocate the client's assets among various investments taking into consideration the overall management style preferred by the client. Portfolio weightings between funds, other securities and/or sub-advisers, as well as market sectors, will be determined by each client's individual needs and circumstances.
Clients often hold significant legacy assets which we will consider in determining the overall allocation and diversification of the client’s portfolio, but which the client does not intend for us to liquidate.
These clients should note that such assets are normally included in the total value of the account upon which we will calculate our Portfolio Management Fee.
In order to ensure that our initial allocation and management of the client’s portfolio continues to be suitable for the client's financial circumstances, we will seek to consistently maintain client suitability information.. To assist us in these efforts, we ask that clients notify us promptly of any change in their financial circumstances. Clients may place reasonable restrictions on the types of investments which will be made on their behalf. Clients retain individual ownership of all portfolio securities.
Amount of Managed Assets.As of 12/31/2023, we were actively managing $2,110,182,732 of clients' assets on a discretionary basis and $ 6,515,232 on a non-discretionary basis. Total assets under management are $2,116,697,964.
Financial Planning Services Investment advice is most commonly provided as part of an overall financial planning service. In fact, depending on the client’s particular circumstances, we typically recommend that the client begin an engagement of Capstone Financial through a financial planning process to establish clear objectives, prioritize goals related to wealth management, and to establish risk tolerance.

Our approach to financial planning is based on the six-step process laid out by the CFP® Board of Standards: 1) Establishing and defining the client-planner relationship, 2) Gathering client data, including goals, 3) Analyzing and evaluating financial status, 4) Developing and presenting financial planning recommendations and/or alternatives, 5) Implementing financial planning recommendations, and 6) Monitoring financial planning recommendations. We take a modular approach to financial planning whereby we prioritize necessary action items and address the highest priority items first.
In general, our planning will address any or all of the following areas of concern: Personal:Family records management and financial objective determination and prioritization.
Education:Education savings tools, financial aid review, and general assistance in preparing to meet dependents continuing educational needs through development of an education plan.
Tax & Cash Flow: Income tax and spending analysis and planning for past, current and future years. Various clients may require us to provide tax preparation services. Depending on the type of client Capstone may charge a fee for these services.
Insurance:Assessment of needs for life, long term care, property and casualty, and liability protection Death & Disability:Cash needs at death, income needs of surviving dependents, disability income analysis, and general estate planning and wealth transfer planning.
Retirement:Analysis of current accumulation strategies and investment plans to help the client achieve stated retirement goals.
Investments:Analysis of investment alternatives and their effect on a client's portfolio.
We gather required information through in-depth personal interviews, addressing the client's current financial status, future goals and attitudes towards risk. Related documents supplied by the client are carefully reviewed. Discussions are often coordinated with other advisors, including attorneys, accountants, investment managers, lenders, insurance agents, etc.
Should a client choose to implement our recommendations, Capstone Financial suggests the client allow us to work closely with his/her other professional advisors to help guide the implementation process. Implementation of financial planning recommendations is entirely at the client's discretion.
Financial planning recommendations are not limited to any specific product or service offered by a broker dealer or insurance company.
Tax Preparation Services Capstone offers tax preparation services to its advisory clients for a fee, which depends upon the scope and complexity of the services required. These services are offered as part of our goal to provide comprehensive wealth management, but clients are not obligated to use them.
Pension Consulting Services Capstone Financial also provides Pension Consulting Services to clients. While the primary clients for these services will be pension, profit sharing and 401(k) plans, we may also offer these services, where appropriate, to individuals and trusts, estates and charitable organizations. Pension Consulting Services generally consists of the following distinct yet bundled advisory services. These services may also be provided separately.
Investment Policy Statement Preparation (hereinafter referred to as ''IPS'').Capstone Financial will meet with the client (in person or over the telephone) to determine the client's investment needs and goals. Capstone Financial will then help the client prepare a written IPS stating those needs and goals and encompassing a policy under which these goals are to be achieved. The IPS will also list the criteria for selection of investment vehicles and the procedures and timing interval for monitoring of investment performance.
Selection of Investment Vehicles.Capstone Financial will review various investments, consisting primarily of mutual funds (both index and managed) to determine which of these investments are appropriate to implement the client's IPS. The number of investments to be recommended will be determined by the client, based on the Investment Policy Statement.
Monitoring of Investment Performance.Client investments will be monitored continuously based on the procedures and timing intervals delineated in the Investment Policy Statement.
Although Capstone Financial will not be involved in any way in the purchase or sale of these investments, Capstone Financial will supervise the client's portfolio and will make recommendations to the client as market factors and the client's needs dictate.
Employee Communications.For pension, profit sharing and 401(k) plan clients wherein there are individual accounts with participants exercising control over assets in their own account (''self-directed plans''), Capstone Financial also provides educational support and investment workshops as necessary as designed for the Plan participants. The nature of the topics to be covered will be determined by Capstone Financial and the client under the guidelines established in ERISA Section 404(c). The educational support and investment workshops will NOT provide Plan participants with individualized, tailored investment advice or individualized, tailored asset allocation recommendations.