Busey Capital Management, Inc. is a fee-only financial advisor based in in Urbana, Illinois, with a second location in Creve Coeur, Missouri. The firm is the investment advisory arm of Busey Bank, which has bank branches throughout Illinois, Missouri, Indiana and Florida.
Along with traditional investment advisory, Busey Capital has a investment management service titled “Busey’s Signature Solutions.”
Busey Capital Management Background
Busey Capital Management is directly owned by Busey Bank, which is subsequently owned by First Busey Corporation. Busey Bank was founded in 1868, but Busey Capital Management has been in business since just 2003. Every employee at Busey Capital Management is an employee of Busey Bank.
You’ll find certifications including chartered financial analyst (CFA), certified financial planners (CFP), certified public accountant (CPA), accredited estate planner (AEP) and certified trust and financial advisor (CTFA) working at the offices of Busey Capital Management.
Busey Capital Management Client Types and Account Minimums
Almost 60% of Busey Capital Management’s AUM comes from individuals and high-net-worth individuals. The firm also commonly deals with trusts, estates, charitable organizations, corporations and other business entities.
Busey Capital Management abides by the following account minimums:
- Traditional investment advisory services: $500,000
- Busey’s Signature Solution services: $125,000
Services Offered by Busey Capital Management
Busey Capital Management does not offer financial planning, which makes it a bit of an anomaly in the financial advisor sphere. However, Busey has plenty of investment advisory services to offer, including:
- Investment advisory
- Implementation of a model-based investment program
- Strategies chosen based on your:
- Risk tolerance
- Personal investment objectives
- Discretionary trading decisions
- Continuous and ongoing account supervision
- Updates to your investor profile made at least once a year
Clients may be referred to Busey Capital Management through the Busey’s Signature Solutions program, which is the result of a partnership with Raymond James & Associates. These referrals may come from Busey Investment Services, another division of Busey Bank. Employees of Busey Investment Services are also registered representatives of Raymond James & Associates, a massive financial services company specializing in wealth management and related services for individuals, corporations and institutions. Here is a breakdown of what’s available through this program:
- Busey’s Signature Solutions
- Wrap fee program
- Partnership with Raymond James & Associates’ “Outside Money Manager Program”
- Clients must open account through Raymond James
- Custodian services provided by Raymond James, but Busey serves as the discretionary asset manager of your account
- Requires a referral from a third-party investment advisor, such as Busey Investment Services
Busey Capital Management Investment Philosophy
Rather than manage a separate investment strategy for each of its clients, Busey Capital Management has formulated eight investment ideologies. These diversified portfolio models are constantly monitored by the firm in an effort to keep them performing at an optimal level. Which strategy you’re paired with is entirely dependent on your risk tolerance, time horizon and financial goals.
|Busey Capital Management Investment Advisory Models|
|Model||Types of Investments||Other Details|
|Core Fixed-Income||Investment grade fixed-income securities|| |
|Large-Cap Core Equity||Large-cap U.S. value and growth stocks|| |
|International Equity||Mutual funds that represent the international stock market|| |
|Balanced||Large-cap capitalization U.S. value and growth stocks, international stocks and investment grade fixed-income securities with maturities less than 10 years|| |
If you’re referred to Busey Capital Management through the Signature Solutions program, you’ll use one of the following investment portfolio strategies:
|Busey Capital Management “Signature Solutions” Models|
|Model||Types of Investments||Designed For|
|Signature Solutions 100% Equity|| || |
|Signature Solutions 70% Equity|| || |
|Signature Solutions 60% Equity|| || |
|Signature Solutions 50% Equity|| || |
Fees Under Busey Capital Management
Those who subscribe to Busey Capital Management’s standard investment advisory services will abide by an annual fee schedule. These charges generally range anywhere up to 1.00%, as they are negotiable based on each client’s unique situation. All fees are payable, in arrears, on a quarterly basis during the 15-day window that follows the conclusion of every quarter.
When it comes to the Signature Solutions program, fees are capped at a 1.30% annual rate. This is a wrap fee program, meaning all charges and trading costs are bundled into that rate. According to the firm, about 0.85% of that fee goes to Busey Bank to cover all investment advisory and consulting services. Clients will pay the program’s sponsor, Raymond James & Associates, directly on a quarterly basis.
|Busey Capital Management Fees|
|Traditional Investment Advisory Services||Negotiable annual advisory fee of up to 1.00%|
|Busey’s Signature Solutions Program||Annual advisory fee of up to 1.30%|
Some of Busey’s traditional investment advisory clients will have up to two performance-based fees worked into their fee arrangement. The first is described as an annual fee that’s billed quarterly. On the other hand, the second performance-based fee is only charged if your portfolio generates a net excess return beyond the agreed benchmark for a corresponding three-year time frame. The annual rates for these fees start at 0.10% and 0.20%, respectively.
What to Watch Out For
Busey Capital Management’s inclusion of performance-based fees in its fee schedule creates a possible conflict of interest. This is because the firm’s advisors may tend to favor accounts that include performance-based fees rather than those with only asset-based fees. In an effort to combat this conflict, Busey states that it devotes equal time to all clients. Furthermore, the firm is bound by fiduciary duty, legally forcing it to act in clients’ best interests.
There are no legal or regulatory disclosures listed on Busey Capital Management’s SEC-filed Form ADV.
Opening an Account With Busey Capital Management
If you want to become a client of Busey Capital Management, call the firm’s home location in Urbana, Illinois, at (217) 365-4800. The firm operates a sister office in Creve Coeur, Missouri, which you can reach via (314) 317-5026.
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