Asset Allocation

Summit Place Financial Advisors, LLC, firmly believes that asset allocation is one of the key decisions in a successful wealth enhancement strategy, and it should be actively managed through economic and market cycles as well as changes in your life. Based on all we heard in establishing your goals, we create your investment policy statement including a recommended asset allocation across multiple classes using a tax-efficient core portfolio with satellite strategies built to diversify risk and enhance potential returns.

Core Equity Portfolio

Our internally managed core equity portfolio emphasizes economic trends and sector allocations. In both our active and passive portfolios, we identify industries and sectors that we believe will benefit from global macro trends and themes over the next three to five years; we avoid those that won’t. In our passive portfolio, we determine a weighting and index fund for each sector and industry, providing the benefits of our economic allocation over a pure market index approach. For those clients that can benefit, we offer our active portfolio in which we believe we are able to offer greater tax management and tax efficiency. Here we select several companies within each promising industry whose financial strength and business model are best positioned for long-term capital appreciation. Our objective is to build a portfolio of 30-40 stocks with exposure to our selected sectors. For all our clients, we strive to offer a diversified portfolio that can be held for as long as our investment thesis holds true. Our low turn-over approach can provide all clients with lower volatility and higher tax efficiency than can generally be achieved with a fully indexed core.

Your core may also include fixed income investments if you are seeking additional capital preservation. Our fixed income investments are selected specifically for you and your personal circumstances.

Satellite Investment Strategies

While the core equity portfolio forms the foundation for all your holdings, we will add satellite investments depending on your time horizon and comfort with risk. If you are seeking greater growth over a long time horizon, we may add more aggressive U.S. stocks, international equities, commodities or alternative investments. If you wish to more closely align your investments with your core values and societal impact, we may add an ESG or impact investment allocation. If you already have a significant risk exposure to your own business, executive compensation plans or large illiquid holdings, we may use satellite strategies to balance the risk exposures in your overall portfolio.

For some satellite strategies, we select the appropriate securities ourselves but often we choose outside investment vehicles – or other professional managers – to provide the highest quality management of your international, commodity or alternative investments.

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