Separately Managed Accounts Program 

Identifying, constructing and monitoring complex investment portfolios requires a significant amount of time, insight and resources. Sumnicht & Associates’ Separately Managed Accounts Program through Envestnet offers a dedicated investment team to facilitate creation of customized portfolio solutions for our high-net-worth clients.

Our investment officers follow a detailed Four Step process in creating portfolios:

Step 1: Identifying Investor Needs and Objectives

Working with Envestnet, Sumnicht & Associates profiles investors based on their investment time horizon, liquidity needs, desired rate of return and tolerance for risk. The result is a complete understanding of objectives and investment horizon, an understanding of tax status, an analysis of liquidity and portfolio concentration, determination of any asset class or security preferences, and an analysis of investment attitude and aversion to risk.

Step 2: Determine Asset Allocation Policy

We execute a two-step asset allocation strategy for every portfolio. First, we create a Strategic Asset Allocation to establish parameters among asset classes. Next, a Tactical Asset Allocation is created which aims to optimize the long-term return of the portfolio while keeping the risk level constant. This tactical allocation is achieved by fully evaluating the chosen asset classes and appropriating the portfolio among select sub-asset classes. Combined, this process delivers a detailed blueprint for the investment plan.

Step 3: Recommend Premier Asset Managers and Implement Portfolio Strategy

Selecting asset managers wisely is critical, but it is the blending of these managers into a portfolio that maximizes return and minimizes risk that is the essence of portfolio management. This is accomplished through a thorough understanding of the unique attributes of each manager. Without this insight, the philosophy of active management is only partly achieved.

The available asset managers represent portfolio management strategies across all asset classes and styles, and have been selected following a rigorous and ongoing due diligence process. Our team works to develop a portfolio that creates the appropriate solution as an integrated whole rather than in parts. Managers are selected for the portfolio that blend well together and fit into the determined asset allocation strategy. After we have selected the asset managers for the portfolio, we create a fully customized, comprehensive portfolio proposal.

Step 4: Ongoing Portfolio Management and Monitoring

Once the portfolio strategy has been implemented, we begin a multi-tiered review process to ensure the portfolio continues to meet its objectives. We continually monitor the chosen managers to ensure they adhere to the philosophy and investment style for which they were selected. Ongoing due diligence of the managers in our program ensures consistency and relevance. Our team will also monitor portfolios for imbalances that arise as the market shifts to favor a style or asset class. We will rebalance portfolios as necessary to conform to the established asset allocation plan.