Dear valued clients and partners of Capstone Investment Financial Group,

We are pleased to present to you the state of the company as we are well into the New Year.

Over the past year, Capstone has experienced substantial growth and success, largely thanks to our clients' and partners' support and trust. We have made significant investments in both our people and our process, allowing us to serve our clients better and provide them with the highest quality financial services.

We are pleased to announce several updates and developments within our team. Ryan Turbyfill remains our lead advisor as well as Managing Direct and has made a significant impact with his extensive experience. Ryan is known for his attention to detail and organization, as demonstrated by his creation of detailed calendars for the company. In his previous company, Ryan was known for his tireless work ethic, with the running joke being that he slept at the office. Ryan is also a member of our investment committee, which comprises Jamie Cornehlsen, Lindsey Simek, and Ryan. 

Running the investment committee has been a difficult task this past year and half. Despite all the headaches, what has stayed true is our commitment to diversifying investments, so we are not stuck with a dud. Think cryptocurrencies. It would have been nice to have them when they were up, and now that they have lost significant value, the excitement has come from the interest to invest in alternative securities.

Our commitment to buying at lower valuations has also helped, especially with individual stocks. The combination of diversification and buying value results in "Snowballing, "compounding returns. The snowball melted more this year than we would like, but it keeps rolling.

Lindsey Simek, a key advisor also been busy organizing several events for the team, including the annual holiday party and a "Women and Wine" networking event to support and empower the women in the community and our organization. We are grateful for Lindsey's dedication to building a solid company culture. In addition to her event planning, Lindsey had performed exceptionally well carrying on investments in Environmental, Social, and Governance (ESG) that Ted Schwartz started when he founded Capstone.

We are also pleased to welcome Candice Hyslop as Office Manager in our Denver Tech Center office. Her organizational ability and striver to improve the process are already noted, and we are confident that she will help further elevate the Capstone experience.

Bill Sigrist is known for his attention to customer requests and his ability to find solutions that meet clients needs.  He continues his role as Operations Manager out of our Colorado Springs office. We hope he is skiing with his family if you don't see him in the office. 

Jamie Cornehlsen, the CEO of Capstone, has been running the firm as a visionary, constantly seeking new ways to innovate and stay ahead of industry trends. He is a member of the investment committee as well.  Thanks to Candice, Lindsey, Bill, and Ryan for covering the offices in Colorado while Jamie is in Rochester, New York.

We announced that we have opened a new office in the Denver Tech Center in early 2022 in addition to our existing office in Colorado Springs. This expansion will allow us to serve our clients in the Denver area better and further solidify our presence in the region.

As we look ahead to the future, we are confident in our ability to continue delivering value to our clients and to maintain our position as a leader in the financial industry. We are grateful for your partnership and look forward to continuing to work with you in the coming years.

Last, many of you have seen our approach to financial planning, the Financial Fingerprint™ — to focus on retirement decisions for our clients. Your Financial Fingerprint™ is a personal plan that is quick to assemble, easy to understand, and simple to modify as circumstances change. At its core, your Financial Fingerprint™ analyzes interactions between the three critical components of a successful retirement: income, spending, and savings — together, defining the rate of return your savings need to generate. 

Your Required Rate of Return is the amount of earnings you need your invested savings to return to meet your income gap and leave your principal intact. Your Financial Fingerprint™ considers an array of important decisions, such as the impact various spending levels will have on your plan, when to take your Social Security benefits, how to address long-term care needs, and estate planning. As we implement your plan and manage your investments, we update and review your Financial Fingerprint™ frequently. Through this ongoing process, you'll find that your Financial Fingerprint™ becomes a lifelong, trusted resource.

Thank you again for your trust and relationship with Capstone through a trying year of 2022 and looking forward to a continually prosperous year in 2023.

Sincerely,

Jamie Cornehlsen, CFA