Vern Sumnicht founded iSectors® in 2008, an index exchange-traded fund (ETF) based investment strategist, to specialize in creating allocation models for investment advisors. iSectors®, LLC offers 15 allocation models with varying degrees of risk which allows advisors to create customized portfolio solutions for their clients. In addition, Vern is the CEO of Sumnicht & Associates, LLC, a family wealth management and institutional investment consulting business, established in 1988. Vern’s experience with high net worth and institutional clients has focused on the development, implementation and management of investment policies and asset allocation strategies.
Vern began to use what are now called iSectors® allocation models with his clients in 2004-2005. The models were created based on his 16 years of experience with his own clients and a deep understanding of their needs. iSectors®, LLC was created in an effort to share his experience and allocation models with other advisors who were interested in outsourcing investment management.
Prior to the development of Sumnicht & Associates, LLC and iSectors®, LLC, Vern worked as an investment broker for a regional brokerage house and, in this capacity, he learned first-hand the disadvantages of the commission-based brokerage approach, along with the inherit conflicts of interest. Sumnicht & Associates, LLC was developed to provide independent professional advice to clients on a “fee basis”, a business model which was new and innovative at that time, and now has become the industry standard for the provision of independent and conflict-free investment consulting.
Vern’s particular experience with high net worth and institutional clients has focused on the development, implementation and management of investment policies, and asset allocation strategies. His clients’ investment portfolios reflect his personal portfolio with a broad diversification to traditional stocks and bonds, as well as allocations to alternative investments including hedge funds, private equity, and real assets.
Vern also has experience in sophisticated estate planning strategies for high net-worth clients. Vern manages investments for, and personally acts as trustee, for numerous children’s, generation-skipping, and other trusts. He has experience working with intergenerational wealth planning, family governance, family control and succession issues, and the education of future generations that will inherit substantial wealth. Vern pioneered the concept of values transfer. After years of hearing clients express their fears of leaving children too much money, he realized that the financial planning profession did a good job transferring financial wealth to the next generation. However, without transferring to our children the values necessary to be good stewards of that wealth, we may very well do our children more harm than good.
For more than 25 years, Vern has published articles and has been interviewed by and quoted in many publications, including the Wall Street Journal, Investor’s Business Daily, Financial Advisor, Investment News, and Forbes. He has also been a guest on the MoneyTalk radio show. Vern wrote a white paper titled, “Practical Applications of Post Modern Portfolio Theory (PMPT).” This paper examines Modern Portfolio Theory (MPT) and some of the issues PMPT and Behavioral Finance have with MPT. The paper continues with practical ways to address these issues and catapult MPT to a new level of usefulness.
Vern was featured as one of the Nation’s Top 100 Wealth Advisors in Worth Magazine. Sumnicht & Associates has also been ranked among the Nation’s Top 100 Wealth Managers by Bloomberg, the recipient of the Fox Cities Chamber of Commerce, and Industry’s Small Business of the Year Award. He has received many other awards and recognitions.
Vern received his bachelor’s degree and MBA from the University of Wisconsin-Whitewater. He is a Certified Financial Planner (CFP®) and is a member of Beta Gamma Sigma and the Financial Planning Association.
Vern is an active member of St. Pius X Catholic Church, where he serves on the Foundation’s Board of Trustees. In addition, Vern serves on the Board of Directors of Widows of Prayer and is a board member of Surface Mount Technology, Inc. He has also served on numerous other boards, including St. Frances Xavier Catholic Education System and Goodwill Industries of Northeast Wisconsin.
Vern and his wife Debbie are the proud parents of two children.