Capstone Financial Advisors'' portfolio management services generally include an evaluation of the client’s current investment strategy, including the allocation of assets among asset classes, recommended changes in the allocation of assets, and the selection of appropriate investments or sub-advisors to implement an agreed upon allocation that is based the client’s individual financial objectives, time horizons, risk tolerance, and liquidity needs. Portfolios typically consist of no-load or load-waived mutual funds, ETFs, individual equities, and individual bonds (including corporate debt securities, commercial paper, certificates of deposit, municipal securities and US governmental securities). Capstone may also provide advice with respect to variable life insurance, variable annuities, options contracts on securities, and interests in partnerships investing in real estate or oil and gas interests. Mutual funds, ETFs and other securities are selected on the basis of the following criteria: performance history; industry sector; track record; investment objectives; composition and focus and fee structure and expenses. To provide clients with additional diversification or specific expertise in a particular asset class, Capstone may enter an agreement with a sub-advisor to directly manage a portion of their clients’ portfolios. In other circumstances, the firm may recommend that clients directly engage independent registered investment advisors to manage a portion of their account under the firm''s supervision. Sub-advisors are selected primarily based on expertise in one or more asset classes, investment style, and performance. Capstone allocates the client''s assets among various investments taking into consideration the overall management style preferred by the client. Portfolio weighting between funds, other securities and/or sub-advisors, as well as market sectors, is determined by each client''s individual needs and circumstances.