CAPITAL RESOURCE MANAGEMENT INC

Part 2A of Form ADV: Firm Brochure Capital Resource Management, Inc. 770 Lake Cook Road, Suite 370 Deerfield, Illinois 60015 Sherwin Korey, President www.crminvest.com March 4, 2025 This brochure provides information about the qualifications and business practices of Capital Resource Management, Inc. ("CRM" or the "Firm"). If you have any questions about the contents of this brochure, please contact us at (847) 948-1700. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about CRM also is available on the SEC's website at www.advisorinfo.sec.gov. CRM is a registered investment advisor. Registration does not imply a certain level of skill or training.  Item 2 Material Changes In this Item, advisors are required to summarize the material changes to this Brochure since its last annual update, which was filed on March 19, 2024. The material changes are: Item 4 has been revised to describe CRM’s services more clearly; Item 5 has been revised to include description of its flat-fee option and to provide additional information about fees; Item 8 has been revised to describe more accurately its methods of analysis, and to add information to its risk disclosure; Item 10 has been revised to reflect that CRM has no other financial industry affiliations or activities; and Item 12 has been revised to reflect that CRM does not select broker-dealers for its clients’ transactions and requires clients to direct brokerage in certain circumstances. In addition, language throughout this Brochure has been edited. CRM recommends that all clients review this Brochure in its entirety. 2  Item 3 Table of Contents Item No. Description Page Item 1 Cover Page 1 Item 2 Material Changes 2 Item 3 Table of Contents 3 Item 4 Advisory Business 4 Item 5 Fees and Compensation 5 6 Item 6 Performance-Based Fees and Side-by-Side Management Item 7 Types of Clients 6 7 Item 8 Methods of Analysis, Investment Strategies and Risk of Loss Item 9 Disciplinary Information 8 Item 10 Other Financial Industry Activities and Affiliations 8 Item 11 Code of Ethics, Participation or Interest in Client Transactions and Personal Trading 9 Item 12 Brokerage Practices 10 Item 13 Review of Accounts 10 Item 14 Client Referrals and Compensation 11 Item 15 Custody 11 Item 16 Investment Discretion 11 Item 17 Voting Client Securities 11 Item 18 Financial Information 12 3  Item 4 Advisory Business CRM, formed in 1991, provides portfolio management services as described below. The Firm is wholly owned by Sherwin Korey. Recommendations CRM provides its clients with bespoke portfolio management services tailored to clients’ financial situations and needs. Based on the risk profile, time horizon, liquidity needs, investment objectives, and other pertinent information provided by the client, CRM develops an appropriate investment asset allocation and recommends the appropriate mutual funds (including ETFs), Treasuries, private investments, and/or independent, third-party money managers to manage each asset type in the allocation. Developing an appropriate asset allocation is a function of establishing realistic expected investment returns, understanding risk and correlation. for investments and managers are derived, where appropriate, from independent parties unaffiliated with CRM, so as to maintain independence and eliminate activities that conflict with the best interests of each client CRM has no discretionary authority over any client assets. - The money managers are responsible for day-to-day investment decisions regarding those client assets entrusted to them. - The money managers generally require that clients grant them discretionary authority over the assets under their management; money managers other than mutual fund advisers allow clients to impose reasonable restrictions on investing in certain securities or types of securities. Once clients approve CRM’s recommendations, CRM implements them. CRM regularly and continuously monitors and evaluates existing and prospective managers and portfolio performance. - CRM also reviews client multi-asset portfolios for rebalancing. - CRM reports clients’ investment results quarterly by providing performance evaluation reports. CRM encourages clients to maintain regular contact with the Firm. CRM provides reports regularly and CRM attempts to meet with clients quarterly to discuss historical performance, future strategy and on-going research. Each client’s strategy is unique. - Should a manager/investment fail to achieve the predetermined performance expectation/risk mandates, or their philosophy, process or key investment personnel change, CRM will contact the client to discuss appropriate options. CRM will, subject to client approval, reallocate client assets to an appropriate manager/investment. Clients commence their relationship with CRM by executing a written agreement, which may be a “Consulting Agreement,” or an engagement letter. The relationship may be terminated by the client or CRM in accordance with the agreement. Termination will take effect at the close of the day the termination notice is received. Clients will be responsible for payment of fees incurred prior to termination. Any transactional or custodial fees levied by any broker-dealer or the custodian after the termination of the advisory relationship will remain the client’s responsibility. As of December 31, 2024, the Firm managed $537,406,698 of client assets on a non- discretionary basis. 4  Item 5 Fees and Compensation Clients compensate CRM for its advisory services by paying either an asset-based fee or a flat fee. Asset-based fee: The amount of the fee is based on a percentage of the assets under the Firm’s management, and the size and type of account. The general fee schedule is as follows: FEES ACCOUNT SIZE STYLE Equity 50 basis points $5.0 million to $10.0 million Equity 30 basis points Greater than $10.0 million Fixed Income 35 basis points $5.0 million to $10.0 million Greater than $10.0 million Fixed Income 25 basis points 50 basis points $5.0 million to $10.0 million Balanced – Equity/Fixed Income Greater than $10.0 million 30 basis points Balanced – Equity/Fixed Income Asset-based fees are calculated based on the fair market value of assets under management at month end, averaged based on each month end in the quarter, and are distributed quarterly in arrears by the custodian, to CRM. The methodology for calculating the value of assets under management for purposes of the fee calculation may be different than the methodology used to calculate Regulatory Assets Under Management. For portfolios invested only in mutual funds (“mutual fund-only clients”), CRM generally does not charge its advisory fees on client assets allocated to cash or cash equivalent investments; clients should be aware, however, that assets allocated to a manager, and then re allocated by the manager to cash or cash equivalent investments, generally will remain subject to CRM’s advisory fee. Securities in clients’ accounts generally will be valued by the custodian, broker-dealer or mutual fund holding the assets. Any other security or asset will be valued in a manner determined in good faith by CRM to reflect its fair market value. Securities not otherwise valued and for which there is no readily available market will generally be valued at cost, unless CRM has obtained reliable information regarding recent transactions in such securities or other reliable data affecting valuation. In the event that the amount of CRM’s standard fees do not exceed $24,000 per year, CRM’s annual fee will be the greater of $24,000 or the amount agreed to by the client. Flat fee: The amount of the fee is negotiable, subject to CRM's minimum fee of $24,000 per year. The flat fee is billed quarterly, in arrears. 5  General: All fees are negotiable at CRM’s sole discretion, based on type of account and services provided, whether asset-based or flat-fee arrangement. As a result, any client could pay fees that are higher or lower than the fees charged to other clients based upon the market value of their assets, the complexity of the engagement, and the level and scope of the overall services to be rendered. CRM prefers to accept accounts with at least $5.0 million of investable assets (see Item 7). However, CRM may agree to accept accounts with less than this amount, in which case CRM’s fee is generally greater than 50 basis points. In addition to CRM’s fee, clients will also incur custodial fees, brokerage commissions, money manager fees, transaction fees, mutual fund fees and other third-party fees. In some instances, a manager causes client assets to be invested in a mutual fund. While CRM attempts to ensure, through its reviews of managers’ performance, that client assets are invested in "no-load" mutual funds and in the lowest price share classes available, CRM does not control the third-party money managers and is not responsible for their share class selections. Item 12 and Item 15 below discuss brokerage, and custody, respectively. Mutual funds pay management fees to their investment advisers, which reduces the net asset value of the funds’ shares. Because of the layering of fees, clients could pay more in fees by allocating assets to mutual funds through CRM, as compared to investing directly with the funds. Clients also may pay more or less in fees where client assets are invested in a separate account managed by a manager, compared to a mutual fund to which the manager is an adviser or sub-adviser. US Bank, which serves as custodian for most CRM clients’ accounts, charges an asset- based fee of 0.05% (with a minimum of $500 per account) per year, plus $150 per account per year for performance calculations, plus $250 per tax identification number per year for tax reporting. All of these fees are charged to the clients. US Bank does not charge CRM clients for transactions, wires, or other services. CRM does not receive any portion of these third-party fees and CRM does not reduce its advisory fees to offset any third-party charges. Item 6 Performance-Based Fees and Side-By-Side Management CRM does not accept performance-based fees. Item 7 Types of Clients The Firm provides investment advice to individuals, qualified retirement plans, corporations, partnerships, not-for-profit entities, trusts and estates. CRM prefers to accept accounts with at least $5 million of investable assets. An exception to this minimum account size may be allowed, as described further in Item 5. 6  Item 8 Methods of Analysis, Investment Strategies and Risk of Loss CRM’s primary objective is to address the investment objectives of each client while monitoring and controlling risk. CRM does not generally select individual securities other than private investments nor evaluate specific industries. - CRM focuses on asset allocation, historic and expected arithmetic and geometric returns, correlations between asset classes and appropriate measures of risk and risk-return relationships. CRM's investment analysis includes performance evaluation of institutional money managers' track record and of clients' accounts. - CRM is not employed as a money manager or responsible for individual security selection other than private investments. CRM recommends that clients view allocations and managers’ performance on a long- term basis. Investing in securities involves risk of loss that clients should be prepared to bear. Investment risk may arise from the market performance of an individual stock, as well as from the performance of the overall stock market. An investment's actual return may be different than expected; past performance is not a guarantee of future results. Risk includes the possibility of losing some or all of the client’s investment. Investing in fixed income securities, including commercial paper, necessarily entails risk, including market fluctuations, interest rate risk, credit risk, liquidity risk, prepayment and early redemption risks, and issuer events. Investment risk may arise from the performance of an individual bond, as well as from the performance of the overall financial markets. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Investing in alternative investments, such as hedge funds, private equity or similar investment opportunities, entails various risks, including the use of leverage and other speculative practices that may increase the risk of loss. Alternative investments are illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures, and are not subject to the same regulatory requirements as mutual funds. Alternative investments often bear high fees, and their underlying investments often are not transparent and are known only to their investment managers. Investing in securities issued by foreign issuers involves risks different from domestic investments such as currency rate fluctuations and differences in financial reporting. An investor may experience losses due to the political, economic and social structures of other countries. There also are risks in foreign investments due to political unrest, foreign ownership limitations and tax increases in the foreign country involved, all of which are difficult to predict. Related brokerage commissions and other fees may be higher in foreign securities. Government supervision and regulation of foreign stock exchanges, currency markets, trading systems and brokers may be less than those in the United States. 7  Investing with separate account managers or mutual funds involves risk, including the risk of loss of principal. Investors are necessarily subject to the risks stemming from the individual issuers of the underlying portfolio securities. Mutual fund shareholders are also liable for taxes on any fund-level capital gains, as mutual funds are required by law to distribute capital gains if they sell securities for a profit that cannot be offset by a corresponding loss. Shares of mutual funds are generally distributed and redeemed on an ongoing basis by the fund itself or a broker acting on its behalf. For open-end mutual funds, the trading price at which a share is transacted is equal to a fund’s stated daily per share NAV, plus any shareholders fees (e.g., sales loads, purchase fees, redemption fees). The per share NAV of a mutual fund is calculated at the end of each business day, although the actual NAV fluctuates with intraday changes to the market value of the fund’s holdings. The trading prices of a mutual fund’s shares may differ significantly from the NAV during periods of market volatility, which may, among other factors, lead to the mutual fund’s shares trading at a premium or discount to actual NAV. Closed-end mutual funds trade in the market similarly to ETFs. The firm has occasionally recommended a closed end fund arbitrage strategy. Shares of ETFs are listed on securities exchanges and transacted at negotiated prices in the secondary market. Generally, ETF shares trade at or near their most recent NAV, which is generally calculated at least once daily for indexed based ETFs and potentially more frequently for actively managed ETFs. However, certain inefficiencies may cause the shares to trade at a premium or discount to their pro rata NAV. There is also no guarantee that an active secondary market for such shares will develop or continue to exist. Therefore, if a liquid secondary market ceases to exist for shares of a particular ETF, a shareholder may have no way to dispose of such shares. Since CRM recommends asset allocation based on each client’s particular investment profile, a client’s assets may be invested with a manager whose strategy is the same as, or different from, another manager who may be managing client assets. Client assets may be aggregated where, in CRM’s discretion, the amount of assets allocated to a manager may result in more favorable fee treatment for the invested assets. In such instances, however, there is no assurance that all clients will benefit from favorable fee treatment to the same extent. In recommending managers or investments CRM takes into account the level of fees charged by a particular manager or investment. Although CRM will attempt to notify clients in the event of a material change affecting a manager or investment, there is no assurance that all clients will receive a notice at the same time or in the same manner. Item 9 Disciplinary Information None. Item 10 Other Financial Industry Activities and Affiliations None. 8  Item 11 Code of Ethics, Participation or Interest in Client Transactions and Personal Trading CRM has adopted a written Code of Ethics (“Code”) including standards of business conduct required of the Firm’s supervised persons. The Code contains general standards and prohibitions consistent with the Firm’s fiduciary duties and regulatory responsibilities. The Code is designed to reinforce fiduciary principles, including the goal of placing the Firm’s clients’ interests first. In this connection, the Code requires that supervised persons’ personal securities transactions must avoid any actual or potential conflict of interest, or any abuse of a supervised person’s position of trust and responsibility. Additional Code principles include not taking advantage of clients’ positions, observing appropriate levels of confidentiality with respect to clients’ holdings and financial circumstances, and maintaining independence in making investment decisions affecting clients. The Firm will furnish a copy of the Code to a client or prospective client upon request, whether written or oral. The Code requires that the Firm’s "Access Persons’" personal securities transactions be conducted through brokerage accounts identified to the Firm’s Chief Compliance Officer (“CCO”). "Access Persons" are those supervised persons who have access to confidential information concerning clients’ securities activities, or who are involved in, or have access to, the Firm’s securities recommendations. Access Persons are required to report personal securities holdings to the CCO on a periodic basis, and execute an annual certification they have disclosed all of their accounts and reportable transactions to the Firm. Supervised persons are required to report any Code violations to the CCO. The Firm provides each supervised person with a copy of the Code and any amendments, and supervised persons acknowledge their receipt in writing. With the CCO’s approval, Access Persons may acquire securities in an initial public offering, or in a “limited offering”, an offering exempt from registration and commonly known as a private offering. Managers, independent of CRM, choose the individual securities for clients’ portfolios. 9  Item 12 Brokerage Practices US Bank serves as custodian for most CRM clients. The firm uses US Bank’s trading desk to execute some securities transactions, but US Bank does not generally serve as a broker or dealer; it does not generally execute, clear or settle securities transactions. Custodian fees paid by clients to US Bank may be greater than fees for those services charged elsewhere, although CRM believes that US Bank's fees are reasonable and generally less expensive than fees for comparable services charged by other custodians. Clients should also consider that, through certain services offered by other broker/dealers, customers may receive brokerage execution, custodial and other services at a rate which may be less than the costs associated with custody through US Bank and brokerage through third parties. As discussed in Items 4 and 8 above, CRM recommends asset allocations and money managers; it does not recommend transactions in securities. CRM does not select or recommend broker-dealers for client transactions. When clients' assets are managed by third party money managers, or are invested in mutual funds, the money manager or fund manager is responsible for selecting the broker(s) to execute securities transactions. Clients who wish to buy or sell individual securities are required to direct CRM to execute transactions through a broker-dealer specified by the client. Not all advisers require their clients to direct brokerage. Clients may pay higher brokerage commission costs because their orders cannot be aggregated with other clients' orders to reduce transaction costs and potentially receive more favorable prices. CRM does not aggregate the purchase or sale of securities for multiple clients' accounts. Item 13 Review of Accounts Firm President and Portfolio Manager Sherwin Korey reviews and supervises all client accounts regularly and continuously. In addition, CRM offers all clients a portfolio review (which may be in-person, by telephone or via videoconference) quarterly. Additional reviews may be triggered by client request, or by material market, economic or political events, or by changes in the client’s financial circumstances. CRM provides written quarterly performance reports to clients. CRM will provide reports more often when needed. In addition, clients receive account statements at least quarterly directly from their custodians. CRM’s performance reports utilize various statistical measures of risk-return and historical performance of money managers relative to their peers. Performance data is obtained from independent third parties using time weighted calculations geometrically linking monthly returns. 10  Item 14 Client Referrals and Other Compensation None. Item 15 Custody CRM is deemed to have custody of client assets when the client authorizes CRM to instruct the client's custodian to deduct CRM's advisory fees directly from the client's account or if the client grants CRM authority to move the client's money to another person's account. Each client's qualified custodian maintains actual custody of the client's assets. Clients will receive account statements from the custodian at least quarterly. Clients should carefully review those statements promptly upon receipt. The custodian statements are the official record of the client's account, transactions and holdings. In addition, most clients have online access to their account information. As described in Item 13, CRM provides written quarterly performance reports to clients. Clients are urged to compare the account statements received from the client’s custodian with the reports furnished by CRM. Item 16 Investment Discretion The Firm does not accept discretionary authority to manage accounts on behalf of clients. Item 17 Voting Client Securities With respect to client assets managed by third party managers, proxy voting duties will be the responsibility of the managers. With respect to client assets invested by CRM in investment company securities (mutual funds), CRM will accept authority to vote those proxies. Clients may direct CRM’s vote in a particular solicitation relating to the client’s securities. Clients may elect to retain authority to vote mutual fund proxies. CRM does not believe there is any conflict of interest between the Firm and clients with respect to voting their mutual fund securities. A client may obtain information from CRM with respect to how CRM voted proxies for such client’s securities, by making request of CRM in writing, by telephone or by e-mail. A copy of CRM’s proxy voting policies and procedures is available to clients upon written request. 11  Item 18 Financial Information In this Item, advisers who require or solicit prepayment of more than $500 in fees per client, six months or more in advance, or which have discretionary authority or custody of client funds or securities, must make certain disclosures. CRM has no disclosures in response to this item. 12