CAPTRUST Advisor Review

Pros and Cons of CAPTRUST

Types of Clients

CAPTRUST serves a diverse range of clients, including institutional investors and individuals of average and high net worth. It’s worth noting, however, that the lion’s share of its clients are individuals and pension and profit-sharing plans. The company also offers advisory services to banks, corporations, and charitable organizations.

As per its Form ADV, CAPTRUST requires a minimum of $50,000 before you can open an account for portfolio management, or $100,000 for its separately managed account (SMA) program. However, after enrolling, clients may have less than this amount in their account.

Financial Advisor Services

CAPTRUST offers an extensive catalog of advisory services, ranging from discretionary and non-discretionary portfolio management to retirement planning. It also offers a wrap fee investment management program.

Below is a list of the services the company offers individual clients, according to the firm’s Form ADV Part 2A:

• Investment advice, including goal setting, asset allocation, and quarterly performance reviews
• Financial planning
• Estate planning
• Tax reviews with a specialist or legal professional
• Tax planning
• Accounting
• Insurance reviews
• Charitable donation strategies
• Exit planning for business owners
• Discretionary and non-discretionary portfolio management (SMA, wrap fee, or non-wrap fee)

Fee Structure

CAPTRUST charges clients a percentage of the quarterly value of their assets under management (AUM). It uses a tiered structure, where your rate decreases as your assets grow. This means that as the dollar amount of your assets either appreciates or decreases over time, you may pay varying amounts each quarter. The company notes that its fees are negotiable and sometimes may be subject to waiver.

For wealthier clients, the firm also offers a wrap fee program. Under this arrangement, you would pay a similar AUM fee; however, it would also account for additional expenses such as brokerage fees, transaction costs, and fund management costs.

Below are the fees to expect from the company for its services, as per its Form ADV:

Non-Wrap Fee Services

AUM Value	Maximum Annual Fee Percentage
Less than $500,000	2.25%
$500,001 to $1,000,000	2.00%
$1,000,001 to $2,000,000	1.75%
$2,000,001 to $5,000,000	1.25%
Greater than $5,000,001	1.00%

Wrap Fee Program

AUM Value	Maximum Fee Percentage
First $1 million	Up to 2.25%
Next $4 million	Up to 1.75%
Beyond $5 million	Up to 1.25%

Investment Philosophy

Before working with an advisory firm, especially one that manages portfolios, it’s good to understand its investment approach. This can help you decide whether the company is right for you and the goals you want to achieve.

CAPTRUST defines investment strategies in its client brochure (Form ADV Part 2A). Specifically, it says it takes a client-centric approach where it will utilize the information you’ve provided along with its advisors’ expertise to determine which securities and tactics best fit your needs. The company also notes that it may use various short- and long-term securities when building portfolios, including domestic and global equities, fixed-income assets, and alternatives.

The firm highlights that it uses fundamental, qualitative, and quantitative research methods while determining asset allocations for clients. It also calls attention to each of the risks that may occur in the investment vehicles and securities it recommends. This is a positive aspect to find in a company’s Form ADV, as it shows a heightened level of transparency with existing and prospective clients.

Disclosures

CAPTRUST is an RIA with the U.S. Securities and Exchange Commission (SEC). Therefore, it must disclose all its disciplinary and regulatory actions to the public in its filing documents. This enables the company to maintain a clear and open relationship with its clients, affiliates, and partners. According to its most recent Form ADV, CAPTRUST has no disclosures.

Customer Service and Becoming a Client

To contact a member of CAPTRUST’s customer service or become a client of the firm, you must visit the “Contact Us” page on the company’s website. Then, you’ll need to fill out a form that describes your needs and who you are. To complete it, however, you’ll need to provide identifying information such as your name, email address, phone number, and city.

Before you open an account, CAPTRUST provides a free financial review. According to the firm’s website, this will let you learn more about the company on a first-hand basis. You may also be able to begin building a relationship with your potential advisor and have the chance to ask them questions, both about the company and how they can help you.

To contact a specific branch near you, you can navigate to the firm’s page for individual investors and scroll down. Then, you can use the locator tool to find a list of all the firms operating in your state.

Tips for Choosing a Financial Advisor Firm

Picking the right financial advisor firm out of the crop isn’t always easy, especially when many have unique attributes. However, because it’s such an important decision, it’s essential to prioritize the highest quality ones. These will often be those that carry a fiduciary duty and employ professionals with certifications such as Certified Financial Planner (CFP) and Chartered Financial Analyst (CFA).

Another detail to remember in your search is to look for firms with accessible account minimums. They should be able to serve clients in your general net worth. It’s not uncommon, however, for advisors to offer services to all types of individuals. CAPTRUST, for instance, serves both wealthy and average-net-worth clients.

One way to quickly narrow your search is by comparing multiple financial advisors. After answering a short list of questions, this matching tool will provide up to three reputable fiduciary experts near you.

Methodology

This review is based on publicly available information directly from CAPTRUST’s website and the SEC. Neither the firm nor its representatives have any say on what we’ve included on this page.

Frequently Asked Questions

Is CAPTRUST a fiduciary?

As a result of its registration with the SEC as an investment advisor, CAPTRUST is a fiduciary. In this way, its employees who carry out advisory duties are investment advisor representatives (IARs), mandating them to prioritize your best interest.

Is CAPTRUST a reputable company?

CAPTRUST is a large financial advice and investment management corporation boasting over $700 billion AUM. This can be a good sign, as it means that the company serves and holds the trust of a substantial number of clients. Consider, also, that this is the case despite it being less than 30 years old, which is young in an industry full of old, well-established businesses.

How much money do you need for CAPTRUST?

To open an account with CAPTRUST, you’ll need at least $50,000 in investable assets. This makes it a more accessible firm for clients of middle-to-high net worth or those just starting to put together an investment portfolio.