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Busey Capital Management Review

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Busey Capital Management

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.

There are seven financial advisors working at Busey Capital Management who handle $263 million in assets under management (AUM). 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 five chartered financial analysts (CFAs), four certified financial planners (CFPs), one certified public accountant (CPA), one accredited estate planner (AEP) and one certified trust and financial advisor (CTFA) working at the offices of Busey Capital Management.

What Types of Clients Does Busey Capital Management Accept?

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 Minimum Account Size

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
  • Actively-managed to the Barclay’s Government/Credit Index and the Barclay’s Aggregate Bond Index
Large-Cap Core Equity Large-cap U.S. value and growth stocks
  • Actively-managed to the S&P 500 Index and an investment mandate of Large Capitalization Core
International Equity Mutual funds that represent the international stock market
  • Actively-managed to the MSCI EAFE Index
Balanced Large-cap capitalization U.S. value and growth stocks, international stocks and investment grade fixed-income securities with maturities less than 10 years
  • Actively-managed combination of Busey’s Core Fixed-Income, Large-Cap Core Equity and International Equity models
  • Portfolio benchmark: 65% Barclays Government/Corporate Index; 30% S&P 500 Index; 5% MSCI EAFE Index
  • Annual rebalances

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
  • 100% equity mutual funds that represent the global stock market
  • Portfolio benchmark: 100% MSCI All Country World Index
  • Annual rebalances
  • Clients looking for portfolio growth with little to no income
  • Time horizon of 10-plus years
Signature Solutions 70% Equity
  • 70% equity mutual funds that represent the global stock market
  • 30% mutual funds that represent core fixed-income
  • Portfolio benchmark: 70% MSCI All Country World Index / 30% Barclays Aggregate Bond Index
  • Annual rebalances
  • Clients who need moderate income and continued growth
  • Time horizon of 10-plus years
Signature Solutions 60% Equity
  • 60% equity mutual funds that represent the global stock market
  • 40% mutual funds that represent core fixed-income
  • Portfolio benchmark: 60% MSCI All Country World Index / 40% Barclays Aggregate Bond Index
  • Annual rebalances
  • Clients who need moderate income and continued growth
  • Time horizon of 10-plus years
Signature Solutions 50% Equity
  • 50% equity mutual funds that represent the global stock market
  • 50% mutual funds that represent core fixed-income
  • Portfolio benchmark: 50% MSCI All Country World Index / 50% Barclays Aggregate Bond Index
  • Annual rebalances
  • Risk-averse clients who have moderate income needs
  • Medium to long time horizon

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
Service/Program Fee Schedule
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.

Disclosures

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.

Where Is Busey Capital Management Located?

Busey Capital Management has two branches: one in Urbana, Illinois, at 201 West Main Street and one in Creve Coeur, Missouri at 12300 Olive Boulevard.

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How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about cost of living in retirement there.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research