The Founding of Summit Asset Management

Summit Asset Management was founded by Frank A. Jones.   Frank is a well-known Memphis businessman who worked for many years for Cook Industries.  During this time he served on the Federal Reserve Board of St. Louis.

As a successful mutual fund investor for many years, Frank got the idea to start Summit while he served on the investment committees of non-profit institutions.  Large institutions employ investment consultants to help the trustees set investment goals, select the best managers, track results and make adjustments to the strategy when appropriate.

The institutional consultants practiced a method of investing called asset allocation.  Frank noticed that many of the managers the consultants selected for institutions also operated mutual funds.   Frank began adjusting his own investments toward the institutional asset allocation approach.  Pretty soon relatives and friends were asking him to manage their money too.

Being the entrepreneur he is, Frank founded Summit Asset Management Inc. to serve the needs of individuals, families and small businesses using methods adapted from big money institutions.  From the beginning, Summit was compensated by a simple management fee based on the amount of assets.   Clients were always invested in low cost, no-load funds that do not charge sales commissions or “loads”.

In October 1991, Summit Asset Management, Inc. became large enough that Frank registered with the Securities & Exchange Commission.  About the same time, Charles Schwab & Company began to offer a service to investment advisors where they could be authorized through a limited power of attorney to manage client investments in Schwab accounts.   Schwab served as custodian and offered multiple investment alternatives through their mutual fund supermarket.

In 1995, Frank hired a young finance major named Lance Hollingsworth.  The stock market soared and, by the end of 1998, the assets of the firm reached about $80 million.

At age 71, Frank Jones decided that the business needed experienced younger partners who could succeed him.   In 1998 he began discussions with Alex Thompson and Stephen Rhea.   Steve and Alex, friends from childhood, shared a passion for stock market investing.  Steve's background was banking, and Alex spent 25 years in the insurance business.   Both had hands on experience with managing client investments.  As they approached age fifty, they were ready to change their careers and were discussing starting a business venture.

In January, 1999, Summit Asset Management LLC was formed with Frank, Steve, Alex and Lance as the principals.  By agreement, Frank remained active in the firm for five years while Steve, Alex and Lance purchased his financial interest.   During that time, Steve and Alex helped Frank more than double the assets under management and expanded the service to clients to include financial planning.

In late 2003, at the urging of Steve, Alex and Lance, Frank joined Cumberland Trust & Investment Company of Nashville to help them open their Memphis office.   Cumberland Trust is an important strategic partner of Summit Asset Management because they are a trust company that does not manage money.   Therefore Summit clients can use Cumberland for family trusts with the assurance that the family can continue to retain Summit (or another firm) as their investment advisor.  

Today, Summit Asset Management LLC has surpassed $400 million of assets under management but still maintains the original vision: use institutional quality investment methods to help individuals, families and small businesses achieve their financial goals.

Our compensation is still fee only, which allows the firm to make objective investment decisions without worrying about the impact on our compensation.   How advisors are compensated affects their advice.  Earning a management fee that grows only if we grow your investments aligns our interests and goals with our clients and is a better model for investment success.