Capital Management Services, Inc. (CMS) is a fee-based advisor headquartered in Manchester, Missouri. It manages more than $100 million for clients, all of whom are non-high-net-worth individuals. The firm currently has no institutional clients.
Financial planning services and asset management are the primary services offered at CMS.
Capital Management Services Background
James M. Gissy founded CMS in 1986 and currently serves as the president. His son, Joseph Gissy, is the chief operating officer. Capital Management Services is affiliated with investment advisor representatives (IARs) in Missouri, Georgia, Florida, Illinois, Texas, California and Washington.
Capital Management Services Client Types and Minimum Account Sizes
The vast majority of CMS clients are non-high-net-worth individuals. The firm also offers its services to trusts, estates, businesses and employee benefit plans.
The minimum account size for managed accounts is $25,000. The firm may also accept certain IRA accounts with a minimum initial balance of at least $2,000. The firm may, in its sole discretion, accept amounts with a lower initial account value if it determines that the timing strategy is suitable for such an account.
Services Offered by Capital Management Services
A variety of services are available at CMS:
- Portfolio management
- Tactical asset allocation
- Model portfolios
- Retirement income strategies
- Life insurance
- IRA legacy planning
Capital Management Services Investment Philosophy
According to CMS’s filings with the U.S. Securities and Exchange Commission (SEC), tactical asset allocation is the primary investment strategy the firm employs. This active management strategy involves rebalancing the percentage of assets held in various categories within a portfolio to take advantage of market pricing opportunities and strong market sectors.
Fees Under Capital Management Services
The following fee schedule, with a maximum of 2% of assets under management, applies to asset management services offered by CMS:
|Account Balance||Annual Fee|
|$5MM and up||1.25%|
Note that these fees are not graduated. If your account is worth more than $500,000, the entire account is charged 1.75% per year.
These fees are higher than the industry average, which is 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. Here is the estimated dollar amount you'd pay in advisory fees based on the size of your account:
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Capital Management Services*|
|Your Assets||Capital Management Services Fee Amounts|
Learn more about advisors' typical costs here.
What to Watch Out For
CMS has one disclosure of regulatory action on its latest Form ADV filed with the SEC. In 2011, CMS was fined $5,000 after the state of Missouri alleged the firm associated with an IAR that was not properly registered.
Also worth noting: some advisors at CMS earn commissions for selling insurance products. This is a conflict of interest, as there may be a financial incentive for these advisors to recommend some products over others. That said, when acting as an advisor, they are required by law to work in the client's best interest.
Opening an Account With Capital Management Services
To open an account, visit this page or call (636) 207-5829.
All information is accurate as of the writing of this article.
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