Description of Services and Fees
Capital Cities, LLC is an independent provider of investment consulting services to public funds,
retirement plans, foundations, endowments, operating funds and trusts. Capital Cities, LLC is a
registered investment adviser with the U.S. Securities and Exchange Commission and is
headquartered in Indianapolis, Indiana. We are organized as a limited liability company under the laws
of the State of Indiana. We have been providing investment advisory services since 1998. William
Mauger and Joe Bill Wiley are principal owners owning 25% or more of Capital Cities, LLC.
The following paragraphs describe our services and fees. Refer to the description of each investment
advisory service listed below for information on how we tailor our advisory services to our
clients' needs. As used in this brochure, the words "we," "our," and "us" refer to Capital Cities LLC, and
the words "you," "your," "plan," and "client" refer to you as either a client or prospective client of our
firm. Additionally, you may see the term Associated Person throughout this brochure. As used in this
brochure, our Associated Persons are our firm's officers, employees, and all individuals providing
investment advice on behalf of our firm.
Consulting and Management Services
Our advice is specific to your investment objectives, time horizon, risk tolerance, asset class
preferences and expected returns. The range of investment consulting services we offer is depicted
below in our five-step process. While each client has unique needs and nuances, we encourage
following the institutional process:
1. Review of Current Program - We will complete a study analyzing the portfolio's/plan's current
position. The analysis will include recommendations of actions to be taken and a timeline for
these actions to be completed.
2. Asset Allocation Modeling/Investment Structure Evaluation - We will assist in the
preparation of asset allocation modeling. This includes; (i) development of investment policy
guidelines, (ii) evaluation and development of asset allocation strategy and spending
policy/liability coordination, (iii) suggestions of alternative investment manager structures, if
appropriate, and (iv) identification of appropriate performance benchmarks. In the case of
participant-directed plans, we will assist in the determination of an appropriate investment menu
by evaluating whether there are gaps or overlaps in the investment structure.
3. Initial Investment Policies and Procedures - We will assist in the preparation of a written
Investment Policy Statement (hereafter IPS) that typically includes; (i) duties of the investment
committee, board, staff, custodian/recordkeeper, and consultants, (ii) investment objectives, (iii)
investment guidelines, (iv) procedures for selection of investment managers and other vendors,
and (v) benchmarks and procedures for monitoring investment performance.
4. Investment Manager and Custodian/Recordkeeper/Program Manager Search - We will
assist in selecting investment managers and, if necessary, a custodian/recordkeeper/program
manager. We will present the board and/or investment committee with recommendations for
investment managers and/or custodian/recordkeeper/program manager that fit the fund/plan
specifications and needs.
5. Retainer Services - We can be retained to provide ongoing services including periodic review
of the IPS, periodic review of fees, searches for additional or replacement investment managers
if needed, preparation of quarterly investment performance measurement reports, and
presentation of reports at quarterly board and/or investment committee meetings.
To enhance our investment consulting services, we are a member of the Independent Adviser Group
(IAG), a division of Callan Associates Inc. ("Callan"). Callan is one of the largest institutional
investment consulting firms in the country. The IAG is a group of independent investment advisory
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firms with access to various services of Callan. Through our membership in the IAG, we have access
to research and analytical software tools. Such services include capital markets and investment
manager research. The analytical tools are used to assist in determining an appropriate asset
allocation strategy, establishing investment manager structure, and monitoring portfolio and investment
manager results relative to benchmarks and peer groups.
Other Services
In limited circumstances, we may be engaged to monitor the account on a regular, but periodic basis.
Subject to any written guidelines provided by you we will be granted discretion and
authority to perform
various functions without further approval from you. Such functions include determining the securities
and amount of securities to be purchased/sold for the purposes of periodically re-balancing the
portfolio as changes in market conditions and your circumstances may require. In some cases, we may
be granted discretionary authority to hire and fire managers and reallocate your assets to other funds,
where such action is deemed to be in your best interest. Additionally, we may enter into non-
discretionary arrangements, where we will obtain your approval prior to the execution of any trade.
In some cases, you may wish to engage us on a per-project basis. For example, we might conduct a
fiduciary review, fee analysis, manager evaluation, etc.
Advisory Services to Retirement Plans
As disclosed above, we offer various levels of advisory and consulting services to retirement plans
("Plan"). The services are designed to assist plan sponsors in meeting their management and fiduciary
obligations to plan participants under the Employee Retirement Income Securities Act ("ERISA") to the
extent the Plan is subject to ERISA. Pursuant to adopted regulations of the U.S. Department of Labor,
we are required to provide the Plan's responsible plan fiduciary (the person who has the authority to
engage us as an investment adviser to the Plan) with a written statement of the services we provide to
the Plan, the compensation we receive for providing those services, and our status (which is described
below).
The services we provide to your Plan are described above, and in the service agreement that you have
previously signed. Our compensation for these services is described herein at Item 4 and Item 5, and
also in the service agreement. We do not reasonably expect to receive any other compensation, direct
or indirect, for the services we provide to the Plan, unless the plan sponsor directs us to deduct our fee
from the plan or directs the plan record-keeper to issue payment for our fee out of the Plan. If we
receive any other compensation for such services, we will (i) offset the compensation against our
stated fees, and (ii) we will promptly disclose the amount of such compensation, the services rendered
for such compensation and the payer of such compensation to you.
In providing services to the Plan, our status is that of an investment adviser registered under the
Investment Advisers Act of 1940, and we are not subject to any disqualifications under Section 411 of
ERISA. In performing fiduciary services, we are acting as a fiduciary of the Plan as defined in Section
3(21) under ERISA, and, to the extent applicable, as a discretionary fiduciary of the Plan as defined in
Section 3(38) under ERISA.
Types of Investments
We do not typically provide advice on individual securities such as individual company stocks or
bonds. We may advise you on either a discretionary or non-discretionary basis to implement asset
allocation strategies with investment managers via separately-managed accounts, mutual funds,
exchange-traded funds, limited partnerships, and other commingled vehicles that may invest in some
or all of these types of securities. You may request that we refrain from investing in particular
securities or certain types of securities.
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Assets Under Management**
We provide investment consulting services to approximately 52 clients with assets totaling just over
$35 billion as of December 31, 2023. The vast majority of these assets are advised to on a non-
discretionary basis. In a few cases, clients delegate authority to us to take specific investment-related
actions on their behalf. See "Item 16 – Investment Discretion" in this brochure.
As of December 31, 2023, we manage $175,532,425 in client assets on a discretionary basis. We do
not provide continuous supervision of these assets; however, we periodically re-balance the
accounts. We also advise on $35,059,046,014 in client assets on a non-discretionary basis. This figure
reflects the amount of assets for which we provide advice. We do not provide continuous supervision
of these assets; however, we make periodic recommendations to the client or other plan fiduciaries.
**These assets do not meet the SEC's definition of "regulatory" assets under management and are not reported as such on Form ADV Part 1.
We are registered with the SEC, rather than state securities authorities, because we provide investment advice to employee benefit,
governmental plans, or church plans with respect to assets having an aggregate value in excess of $200,000,000.