Press Releases
FOR IMMEDIATE RELEASE
Unique Asset Allocation Approach That Improves Investment Results Made Available To Independent Investment Advisors And Their Clients.
iSectors® ETF-based asset allocation models employ practical applications of Post-Modern Portfolio Theory and Behavioral Finance. For the first time independent investment advisors may access these models to improve client returns, lower portfolio risk and reduce costs.
Appleton, WI June 25, 2008
Sumnicht & Associates, LLC, a leading independent wealth management firm with a 20-year legacy of financial innovation, announced today the availability of iSectors Post-Modern Portfolio Theory (Post-MPT) asset allocation models. These models will be made available to investors only through independent registered investment advisors. iSectors’ flagship model, the Post-MPT Growth Allocation provides the return and low correlation of hedge funds without the drawbacks that investing in those instruments typically entail.
iSectors offers two Post-MPT Allocation models that provide: low correlation to stock and bond markets, low fees, full transparency, daily liquidity, and reduced downside risk. The allocations are offered in separately-managed account format with various custody options.
“During the current market environment, investment advisors are looking for new, innovative solutions to help their clients’ core portfolios by improving returns without taking on excessive risk,” noted President and CEO of Sumnicht & Associates, Vern Sumnicht. “We’ve seen great success using iSectors in our clients’ accounts and are excited to now offer these allocation strategies to other advisors and their clients.”
The iSectors allocation models are built into a turnkey asset management platform that also provides performance, allocation, holdings, billing, tax and other reports. By integrating iSectors’ investments with management support systems, the program assists independent advisors in managing their complicated financial services businesses. Outsourcing investment, reporting, and management services allows advisors to spend more time cultivating client relationships. Without having to worry about the problems associated with managing portfolios and reporting, an advisor receives a leg-up in these challenging markets and this competitive financial services industry.
The Post-MPT allocations improve upon the traditional modern portfolio theory (MPT) approach used by most financial planners today. The models employ a more robust and complex allocation algorithm that replaces the need to speculate on the expected returns. They also utilize possible negative returns to quantify risk, which is a more realistic risk measurement metric than standard deviation. In addition, iSectors allocates among asset classes that are much less correlated than traditional capitalization-weighted methodologies. Each of these solutions solves weaknesses of MPT that have historically plagued advisors in the planning process.
About Sumnicht & Associates, LLC
Sumnicht & Associates, LLC, with over $350 million under management, has been providing high net worth individuals, corporations, endowments and family trusts with wealth management and other financial planning services since 1988. For more information about Sumnicht & Associates, visit www.sumnicht.com.
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Before investing, investors should always consider their investment objectives, risks, fees, and expenses of any investment. Diversification does not ensure a profit or guarantee against a loss. For more information, including a more complete disclaimer about the risks of investing and iSectors, visit www.iSectors.com.
iSectors® advisory services provided through Sumnicht & Associates, LLC, W6240 Communication Court, Suite 1, Appleton, WI 54914-8549.
Contact: Tim Landolt
Tel: 920-731-4455
Email: tim.landolt@isectors.com
