Homrich & Berg Case Study

"We’ve grown our firm by focusing on innovative investment strategies and holistic planning. Our new diversified separate account program permits us to create portfolios utilizing our preferred investment managers, while also delivering significant value by customizing individual portfolios based on each client’s tax and risk characteristics."
Mark Rogozinski
Chief Operating Officer

Summary

In 2006, Homrich & Berg, an independent Registered Investment Advisor (RIA) based in Atlanta, Georgia, wanted to provide its high-net-worth clients with more customized investment solutions. Homrich & Berg had historically utilized long-only mutual funds and separate accounts, along with hedge funds and other alternative products in tailoring investment solutions for its clients. In developing a new offering, the firm wanted to reduce the operational complexity of providing wealth management solutions while also greatly increasing the sophistication and customization available to its clients. Homrich & Berg began looking for a fully integrated investment solution, one that would complement its existing financial planning process and help them provide a superior experience for their clients.

Homrich & Berg quickly narrowed its search for a solution to evaluating overlay managers. Working with an overlay manager, they would be able to integrate multiple products into a single custodial account for a client while also getting high degrees of customization and tax efficiency. Homrich & Berg wanted to work with an overlay manager that could integrate portfolios from its preferred managers, and also create highly adaptable solutions for its most demanding high-net-worth clients. Integration with its existing custodian and providing enhanced performance reporting were also key selection criteria.

The Right Combination

After a lengthy and comprehensive search process that included detailed evaluations of various overlay managers, Homrich & Berg turned to Placemark, which offered Homrich & Berg the right combination of services and investment process capabilities to meet all of its core requirements. With the new multi-manager program, Homrich & Berg can construct portfolios using its preferred domestic equity managers, and complement those portfolios with hedge funds, private equity, and other investments, assembling a complete wealth management solution. Placemark creates custom portfolios for Homrich & Berg clients who have embedded gains, concentrated positions, or other complex wealth situations. Placemark also provides transition analysis and services for clients funding accounts with existing investments. "Placemark’s ability to customize portfolios for taxes, even in consideration of external gains and losses, allows us to use the multi-manager portfolio as part of a broader integrated wealth management offering for our clients," said Mark Rogozinski, Chief Operating Officer at Homrich & Berg. In addition to acting as the discretionary overlay manager on the portfolios, Placemark coordinates back-office and administrative functions and provides billing services on the multi-manager portfolios.

"We’ve grown our firm by focusing on innovative investment strategies and holistic planning," Rogozinski continued. "Our new diversified separate account program permits us to create portfolios utilizing our preferred investment managers, while also delivering significant value by customizing individual portfolios based on each client’s tax and risk characteristics."

Implementation

Placemark’s considerable experience in working with Homrich & Berg’s preferred custodian, trading partners, and investment managers was critical to getting the program developed to the firm's specifications and making it operational quickly. While other providers can often take a year or more to implement similar programs, Placemark and Homrich & Berg were able to launch the program in just a few months. Furthermore, Homrich & Berg has the flexibility to make back-office changes, include new custodians, add new managers and product types, and make other program enhancements in the future, knowing that Placemark can support their future needs.

With Placemark’s Web-based Advisor Workstation, Homrich & Berg has improved its overall service offering by providing client service associates with access to client information, including account performance, transaction history, and holdings. In addition, advisors can also directly manage client accounts for taxes by using the workstation to provide information on external tax events as well as update individual client security restrictions and preferences.

Results

Working in partnership with Placemark, Homrich & Berg was able to quickly develop an industry-leading platform, expanding its value proposition and enhancing service to its clients. Since launching the platform in the first quarter of 2006, Homrich & Berg’s program results have been impressive, both in terms of advisor adoption and total assets under management. The new multi-manager program surpassed its modest year-one sales target within the first four months, and the program has quickly become a core component of Homrich & Berg’s comprehensive wealth management offering.