Overview
ADV Part 2A Disclosure Brochure
Asset Management 5
NorthCrest, from time to time, may recommend to WEAS investments in unaffiliated investment companies, such as
mutual funds or exchange-traded funds, which charge fees and expenses (as described in each investment company’s
prospectus). WEAS may execute on these recommendations for their clients. Therefore, WEAS’ client incurs several
management fees in connection with assets invested in such products: the internal fee paid to the WEAS adviser and
the adviser of the investment company. NorthCrest does not charge a fee to WEAS for our services.
In the event NorthCrest engages in separately managed advisory services with unaffiliated investment advisers,
NorthCrest may investment or recommend investments of the sub-account client assets in unaffiliated investment
companies, such as mutual funds or exchange-traded funds, which charge fees and expenses. Therefore, in these
situations, the sub-account client incurs fees of the investment adviser, the investment company and NorthCrest.
In addition to NorthCrest advisory fees, unless other arrangements are made, investment adviser clients through
separately managed advisory services relationship with NorthCrest, are responsible for all other fees and costs
associated with executing securities transactions and maintaining custody of their assets. Such fees and costs include,
but are not limited to, transaction or ticket charges, custodial fees, and other related expenses charged by custodians
and imposed by broker-dealers. Please refer to the “Brokerage practices” section (Item 12) of this Form ADV for
additional information regarding WEAS and NorthCrest.
In the event an unaffiliated investment adviser engages in a separately managed advisory relationship with NorthCrest,
NorthCrest does not charge or accept fees based on capital gains or capital appreciation of assets held in sub-account
client accounts (also referred to as performance-based fees). If NorthCrest did accept these types of fees, the conflicts
of interest that arise in connection with such arrangements would be explained.
NorthCrest provides services only to Wealth Enhancement Advisory Services LLC (WEAS) for the benefit of WEAS’
clients. NorthCrest does not provide services to unaffiliated investment advisers.
NorthCrest manages several investment strategies across equities and fixed income. While each of these strategies are
unique in their mandate, the common investment philosophy across all NorthCrest strategies is to
build broadly diversified, low turnover, risk-managed portfolios that will generate consistent excess returns over time.
We believe our strategies implement active, bottom-up investment processes that are efficient, systematic, and scalable.
Quantitative Screening Models
Some of NorthCrest’s strategies implement quantitative screening models to varying degrees that support our security
selection and underlying securities analysis. The screening criteria and inputs vary and are tailored to support specific
investment strategies.
Fundamental Analysis
NorthCrest also employs fundamental analysis in its security selection process. Some NorthCrest strategies use
fundamental analysis in conjunction with quantitative screening models, while other strategies are entirely driven by
bottom-up fundamental analysis. For all equity strategies, NorthCrest seeks to build a mosaic of information, evaluating
such attributes as company products and markets, business drivers and risk factors, industry trends, and the
macroeconomic environment. The underlying fundamental analysis of holdings in NorthCrest’s fixed income strategies
is predicated on NorthCrest’s view of credit profile and the attractiveness of the relative spreads in the context of the
fundamental outlook of each individual issue in conjunction with the broader macroeconomic outlook and its implications
for the interest rate environment.
Fundamental analysis does not attempt to anticipate market movements. This presents a potential risk, as the price of
a security can move up or down along with the overall market regardless of the economic and financial factors
considered in evaluating the security.
Process
Using quantitative screening and fundamental analysis allows NorthCrest to build diversified portfolios of the holdings
we believe represent the most attractive opportunities. While the number of holdings in each of NorthCrest’s strategies