Wealth Management

 Our Wealth Management Process 

 HOW WILL WE BEGIN?
The process starts by clearly defining your objectives and the constraints applicable to your situation. Generally, the objective for the portfolio is to earn a superior long-term return consistent with your tolerance for risk. Thus, the first step is to assess the proper risk level, likely to be a critical determinant of future returns. We provide information to help in this process and listen to your answers carefully.  The "correct" level of risk should be related to factual data about investment returns and volatility, but you must also feel comfortable with the result.

Having identified your goals and determined your level of risk tolerance, we assess the constraints, time horizon, needs for income, and liquidity, as well as other special circumstances that influence investment policy.

HOW IS THE INVESTMENT STRATEGY DETERMINED?
Our primary focus will be on establishing what portion of your assets should be invested in each of the major investment markets from which one can choose: the appropriate asset allocation. The success of your investment plan will be determined in part by selecting the "right" securities and in part by market selection *(bonds, large company stocks, small company stocks, foreign stocks, etc.). Asset allocation itself is a critical factor in producing superior long term results.

Stocks as measured by the Dow Jones Industrial Average have historically produced high long-term returns, but not all the time as witnessed from March of 2000 to November of 2002. A dollar invested in the Dow Jones Industrial average in 1968 was still worth only a dollar in 1982 (not counting reinvested dividends). During 1973 and 1974, stocks declined by about 40%. But there have subsequently been five two-year periods when stocks rose by approximately 50%. So a crucial step is to understand the risk and return characteristics of the global financial markets. By understanding the correlations between markets (they don't all go up and down simultaneously), short-term volatility can be potentially reduced.

In a nutshell, our investment strategy combines different asset classes in a diversified portfolio. Although there can be no guarantees, and history is but an imperfect guide, analysis and our experience persuades us that this approach may be able to produce higher long-term rates of return with lower levels of risk.
 

HOW WILL SUMMIT FINANCIAL GROUP CHOOSE INVESTMENTS FOR YOU?
Once the investment policy is determined, our next step is deciding how the investments will be made. Our methodology for building your portfolio will combine strategies designed to provide:

• Efficient asset allocation  

• Highly expert selection of stocks, bonds and other securities  

• Low investment expenses 
  

• Tax efficiency

The choices for each client depend on their own circumstances and preferences. 
 

HOW DOES THE PROCESS WORK?
The preceding steps lead us to a portfolio strategy and the specific investment actions to be taken. Our goal is for you to feel confident that:

• The issues have been presented and discussed clearly; 

• The logic underlying the investment strategy is sound; 
  

• And most important, you are comfortable with the conclusions.

We monitor portfolios and provide reports to you quarterly. Your needs and interests will determine the frequency of more informal contacts as well as personal meetings and presentations.

All assets will be held only in your name. You authorize us to take investment actions for your portfolio, but we will not have any other access to your funds. We do not take custody of any cash or securities and will arrange for you to have suitable accounts for these purposes with nationally recognized institutions.

STRATEGIC ASSET ALLOCATION
This term encompasses all we have been describing. It means structuring a diversified investment portfolio that meets your own personal risk/reward profile. Our approach employs multiple managers utilizing different investment strategies, designed to optimize the return of the total portfolio.

In summary, the steps in the portfolio management process are:

1. Set investment goals and objectives  

2. Formulate the appropriate asset allocation 

3. Select securities and investment managers 
   

4.  Monitor, analyze and report on investment results 
   

5. Consider changes in objectives and strategy as circumstances change