Capital Investment Advisors, LLC (hereinafter referred to as “CIA”) was created in 1996. The
principal owners of CIA (i.e., own 25% or more) are trusts owned or controlled by Mitchell
Reiner, Matthew Reiner, and Wesley Moss.
As of December 31, 2022, CIA had $4,341,134,970 of discretionary assets under management
and $12,288,903 of non-discretionary assets under management.
Services
CIA tailors the advisory services it offers to the individual needs of clients. A relationship with
CIA is initiated by a meeting between you and a CIA Advisory Representative. The purpose of
the first meeting is a for us to get to know each other and to mutually determine whether CIA’s
services may be suitable for you. We will ask you a series of fact-finding questions and gather
general information. The information gathered will assist us with providing the requested
services and customizing those services to your financial situation. You will be asked questions
about your financial history, goals, objectives and concerns. Additionally, you may be asked
about your retirement goals, cash flow needs, standard of living, special needs such as education
or elder care, etc.
Portfolio Management Services
Upon completion of our analysis of your situation, we will determine an asset allocation
customized to your financial goals, objectives (including income needs) and risk tolerance, taking
into consideration any expressed limitations or restrictions. We will review the asset allocation
plan with you and then implement it on your behalf.
We will provide continuous and ongoing management of your account. Unless otherwise
expressly requested by you, we will manage your portfolio on a discretionary basis, based on
your individual goals, objectives, and expressed concerns and/or preferences. Therefore, we will
make changes to the allocation and holdings as we deem appropriate. We will determine the
securities to be purchased and sold in the account and will buy and sell the securities holdings
from time to time, without prior consultation with you,
Should you elect not to grant discretionary trading authorization to us, you are advised that your
portfolio will be more difficult to manage and the overall performance may suffer. This is due to
the risk of missing market opportunities or the risk that we may not be able to re-allocate,
purchase or sell securities in a timely manner since we must obtain your expressed authorization
prior to any transaction.
In either case, you may impose restrictions and/or limitations on investments in certain securities
or types of securities.
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We like to meet with clients annually to review the portfolio management plan. We are of
course available to you any time to address any concerns you may have, answer questions and
provide changes to the allocation plan should your financial circumstances change.
Capital Family Office Services
Some clients may need additional, family office style services, and we are available to provide
those enhanced services upon request. The goal of Capital Family Office, a division of Capital
Investment Advisors, is to deliver highly personalized services to high net worth individuals and
families seeking simplification of a complex wealth picture.
Pension Consulting Services
CIA provides pension consulting services to companies. Available services include:
• Consultation on investments to include in the plan
• Educational materials for plan participants
• Consulting to the trustees of the plan
• Assistance with finding and engaging a third-party administrator and account
custodian
• Enrollment meetings
• Assist with completion of enrollment forms for plan participants
• Model portfolios
Establishing a sound fiduciary governance process is vital to good decision-making and to
ensuring that prudent procedural steps are followed in making investment decisions. CIA will
provide Retirement Plan consulting services to Plans and Plan Fiduciaries as described below.
The particular services provided will be detailed in the consulting agreement. The appropriate
Plan Fiduciary(ies) designated in the Plan documents (e.g., the Plan sponsor or named fiduciary)
will (i) make the decision to retain our firm; (ii) agree to the scope of the services that we will
provide; and (iii) make the ultimate decision as to accepting any of the recommendations that we
may provide. The Plan Fiduciaries are free to seek independent advice about the
appropriateness of any recommended services for the Plan. Retirement Plan consulting services
may be offered individually or as part of a comprehensive suite of services.
The Employee Retirement Income Security Act of 1974 (“ERISA”) sets forth rules under which
Plan Fiduciaries may retain investment advisers for various types of services with respect to Plan
assets. For certain services, CIA will be considered a fiduciary under ERISA. For example, CIA
will act as an ERISA § 3(21) fiduciary when providing non-discretionary investment advice to the
Plan Fiduciaries by recommending a suite of investments as choices among which Plan
Participants may select. Also, to the extent that the Plan Fiduciaries retain CIA to act as an
investment manager within the meaning of ERISA § 3(38), CIA will provide discretionary
investment management services to the Plan.
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When we provide investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement
Income Security Act of 1974 (“ERISA”) and/or the Internal Revenue Code, as applicable, which
are laws governing retirement investors. The way we make money creates some conflicts with
your interests, so we operate under a special rule that requires us to act in your best interest
and not put our interests ahead of yours. Additional disclosure may be found elsewhere in this
Brochure or in the written agreement between CIA and Client.
Fiduciary Consulting Services
• Investment Selection Services
CIA will provide Plan Fiduciaries with recommendations of investment options consistent
with ERISA section 404(c). Plan Fiduciaries retain responsibility for the final
determination of investment options and for compliance with ERISA section 404(c).
• Non-Discretionary Investment Advice
CIA provides Plan Fiduciaries and Plan Participants general, non-discretionary investment
advice regarding asset classes and investments.
Fiduciary Management Services
• Discretionary Management Services
When retained as an investment manager within the meaning of ERISA § 3(38), CIA
provides continuous and ongoing supervision over the designated retirement plan assets.
CIA will actively monitor the designated retirement plan assets and provide ongoing
management of the assets. When applicable, CIA will have discretionary authority to
make all decisions to buy, sell or hold securities, cash or other investments for the
designated retirement plan assets in our sole discretion without first consulting with the
Plan
Fiduciaries. We also have the power and authority to carry out these decisions by
giving instructions, on your behalf, to brokers and dealers and the qualified custodian(s) of
the Plan for our management of the designated retirement plan assets.
• Discretionary Investment Selection Services
CIA will monitor the investment options of the Plan and add or remove investment
options for the Plan without prior consultation with the Plan Fiduciaries. CIA will have
discretionary authority to make and implement all decisions regarding the investment
options that are available to Plan Participants.
• Investment Management via Model Portfolios.
CIA will provide discretionary management of Model Portfolios among which the
participants may choose to invest as Plan options. Plan Participants will also have the
option of investing only in options that do not include Model Portfolios (i.e., the Plan
Participants may elect to invest in one or more of the mutual fund options made available
in the Plan, and choose not to invest in the Model Portfolios at all).
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Non-Fiduciary Services
• Participant Education
CIA will provide education services to Plan Participants about general investment
principles and the investment alternatives available under the Plan. Education
presentations will not take into account the individual circumstances of each Plan
Participant and individual recommendations will not be provided unless a Plan Participant
separately engages CIA for such services. Plan Participants are responsible for
implementing transactions in their own accounts.
• Participant Enrollment
CIA will assist with group enrollment meetings designed to increase retirement Plan
participation among employees and investment and financial understanding by the
employees.
Third Party (Unaffiliated) Outside Managers
From time to time, clients may need specialized asset management services. For example, if a
client portfolio needs a managed corporate, government or municipal bond portfolio, we may
recommend the use of a third-party Outside Manager to provide the specific expertise needed.
Clients will have the opportunity to consider our recommendation, review materials regarding
the Outside Manager, and then consent to the service if they choose. Under the same
conditions, CIA has selected a third-party Outside Manager to provide active tax loss harvesting
services in appropriate circumstances. Once any Outside Manager is selected and engaged,
such Outside Manager will manage the specialized portfolio on a discretionary basis. The client
will execute a consent form or other written agreement with the third-party Outside Manager to
this effect.
CIA and the selected Outside Managers have entered into a Memorandum of Understanding,
which sets forth the mutual understandings of both parties with respect to services to be
rendered by each, fees to be assessed to the client, and certain operational details. The Outside
Managers will work with CIA to manage the specified account(s) in a manner that is designed to
fulfill the needs of that portion of the client’s total portfolio. CIA and the Outside Managers will
be in regular communication regarding the management of the account, and while the Outside
Managers are available to consult with any engaged client, it is expected that CIA will remain the
primary point of contact for clients in these matters.
Investments with Altera Entities
As described in more detail in Item 10 – Other Financial Industry Activities and Affiliations, we
have an affiliate, Altera Private Access, LLC, a registered investment adviser engaged to manage
private investment funds.
Altera Private Access, LLC provides CIA clients with access to alternative investments sourced
and/or created and managed by people that CIA trusts. Key members and employees of CIA are
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actively involved in the operations of Altera Private Access, LLC and other related entities, and
some also have an equity interest in Altera Private Access, LLC.
Because of this equity interest in Altera Private Access, LLC, as well as the fact that CIA, Altera
and other entities are under common control/ownership, there is a conflict of interest for us to
recommend that clients invest with Altera Private Access, LLC due to the revenue flow. Part of
any fees earned by the Altera entities will eventually flow through to the common owners of
CIA. Therefore, the common owners of CIA, as well as all owners of Altera Private Access, LLC,
benefit from making the recommendation to invest with these affiliates.
General Information
Investment recommendations and advice offered by CIA do not represent legal or accounting
advice. CIA has an accounting division called Capital Accounting & Tax, LLC (a subsidiary of
Capital Investment Advisors, LLC), which does provide accounting advice if you decide to
engage CAT for that service under a separate engagement.
You should coordinate and discuss the impact of financial advice with your attorney and/or
accountant, as applicable. For CIA to effectively manage your portfolio, please notify us
promptly with respect to any changes in your financial situation and investment goals and
objectives. Failure to notify CIA of any such changes could result in investment
recommendations not meeting your needs.
Transactions in the account, account reallocations and rebalancing may trigger a taxable event,
with the exception of IRA accounts, 403(b) accounts and other qualified retirement accounts.
CIA will deliver required disclosures, CIA client reports, newsletters, and other communications
electronically via the client’s Portal and/or by email, unless the client opts out and requests CIA
to deliver all communications, reports, and required disclosures in hard copy. Delivery will then
be executed by the U.S. postal system. The Capital Investment Advisors Investment Advisory
Agreement or other notification obtains the client’s authorization and agreement for electronic
delivery. The client may revoke electronic delivery authorization at any time upon request to
CIA.
IRA Rollover Considerations
As part of our consulting and advisory services, we may provide you with recommendations and
advice concerning your employer retirement plan or other retirement accounts. Our
recommendations may include that you consider withdrawing the assets from your employer's
retirement plan or other qualified retirement account and roll the assets over to an individual
retirement account ("IRA") that we manage for you. If applicable, we may advise you to transfer
existing IRA accounts to our management. Both of these scenarios represent “rollover advice.”
If you accept our rollover advice, we will charge you an asset-based fee as described below
under Item 5. In providing this advice, we have a conflict of interest because our fee will be
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applied to a larger portfolio of accounts, generally resulting in greater compensation to us. You
are under no obligation, contractually or otherwise, to accept our advice in such matters.