Broker Check

Portfolio Construction and Management

One of the key topics that we discuss in the presentation of a financial plan is the construction and management of the client’s portfolio.   Of utmost importance, the financial plan must be in line with the long-term goals of the client.  Managing the assets of the client requires an objective and sophisticated view of financial markets and the growing array of vehicles that exist to help a client manage their wealth.  Without the assistance of a wealth manager, building a productive portfolio with a limited amount of risk can be a daunting task.  Fortunately, you do not have to go on this journey alone.

Research

At Sullivan and Schlieman Wealth Management, LLC, our team is dedicated to using time tested strategies in the construction of comprehensive investment allocations and strategic portfolios that seek to meet the financial objectives of our clients.   We go through a rigorous process to review our current managers and their competitors in the market place.  In addition to our own research, our process includes research from our broker dealer, LPL Financial, and other strategic partners in the industry.  After consultation with our research department and strategic partners, we select the managers whose philosophy and outlook on the markets and economy, coupled with their performance and standing in the marketplace, will best address our clients’ needs.  Because we operate with no allegiance to any outside product or vendor, our portfolio selections are made independently and without bias.

Allocation

Our focus is on the long term productivity of our clients’ portfolios.  We do not attempt to time the markets.  We do believe in building an appropriate allocation based on the client’s characteristics such as age, risk tolerance, time frame and portfolio objectives.

Diversification is a key component employed in our manager selection and asset allocation.  We extensively screen and select managers that integrate together to minimize overlap, so that their holdings compliment their respective investment styles.  Once we have selected the most appropriate manager for each sector of our portfolio, we will then assign that manager a percentage of the portfolio.  We never place too great of a percentage of the portfolio in the hands of any one manager or investment vehicle.

There is no guarantee that asset allocation or diversification will enhance overall returns, outperform a non-diversified portfolio, nor ensure a profit or protect against a loss.

Risk

We believe that a client should not take more risk than is required to meet their goals and objectives.  Therefore, every manager is scrutinized to insure that the return that is being provided is in line with the level of risk that is being taken.  One of the key characteristics that we review during our manager selection process is the capture ratio which allows us to hire managers that can provide downside management, in addition to participation in the upside potential of the market.  We build portfolios that are defensive in nature, intended to minimize the volatility a client will experience when the market is moving significantly in one direction or the other.

Returns

We do not chase returns and have a disciplined approach to managing assets.  We will never move into a manager or asset class simply because it is the latest item of interest in the financial markets.  We prefer to insure that managers and asset classes are proven and appropriate for our clients prior to adding them to our portfolio.

Portfolio returns are important. While they are not the ultimate decision-making factor, returns are crucial in our due diligence process.  We seek to build portfolios and select managers that consistently outperform their peers and benchmarks.

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