Strategic asset allocation considers an investor’s time horizon and the historical interrelationship of asset class prices irrespective of the current macroeconomic environment or the state of the business cycle. The Strategic segment incorporates one (1), risk-based, allocation portfolio fund that comprises 50% of every SMART Portfolio. Investment Firm offerings include: American Funds, Dimensional Funds (DFA), iShares, BlackRock, Oppenheimer Funds, and Vanguard Funds.
The benefits of utilizing strategic Portfolio Allocation Funds are two-fold:
A) Research from the selected Investment Firms make capital market assumptions and re-allocation decisions within the framework of each Fund, critical to enhanced strategic performance.
B) By using the single Fund solution, we minimize the number of holdings in the SMART Portfolio models, thus reducing trading activity and costs.