SMART Portfolios are designed to be dynamic.

SMART Portfolios designed to be efficient.

 

Increasing equity exposure in up markets.

Reducing equity exposure in down markets.

SMART Portfolios are simple, but effective.

Portfolios generally have no more than 6 holdings.

Require minimal trading.

Costs range as low as 0.55%

 

 

*Use the Portfolio Allocator to calculate buy tickets and

trade on the custody platform of your choice

 

 

SMART Portfolios are designed to deliver results in all market conditions.  Passive/strategic investing has generally performed well in most market conditions but has been vulnerable to losses during bear markets that have experienced harsh drawdowns.  SMART Portfolios have been designed to be efficient to help meet client investment goals.

 

Stock & Bond Markets have historically transitioned between four distinct market conditions:

More than a Portfolio.

Strategic + Opportunistic + Tactical = SMART Portfolios

Our approach is comprised of strategic, opportunistic and tactical segments.  We believe the optimal portfolio combination results in portfolios that know how to adapt to changing markets making them dynamic thus, smarter.

 Strategic Asset Allocation

Strategic

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.

Opportunistic

Opportunistic investing provides the potential to add “alpha” or value to a portfolio by maintaining the flexibility and willingness to act when unexpected events occur that cause over or under valuations of an asset class, sector or industry.

In the Opportunistic segment we incorporate one (1) holding, for roughly 10%, that is intended to enhance the overall portfolio model. This could be a security, mutual fund or ETF. Criteria for the Opportunistic holding is:

  • Diversification
  • Expected long-term hold 
  • Low costs 
  • Enhanced performance or income 
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Tactical

The Tactical segment adds a dynamic investment approach that makes the portfolio smarter. The ability to overweight equities in up markets or underweight equities in down markets, enables the portfolio to systematically adapt to changing conditions. Over a full market cycle, which could include a bear market or correction period, the tactical segment may enhance performance and smooth returns.

This segment includes four (4) tactical holdings and is 40% of the SMART Portfolio. Each holding has a unique investment methodology designed to generate relevant returns when markets are positive and mitigate losses when markets turn negative.

 

Dynamic Portfolios are ‘SMARTER’

The tactical segment positions the portfolio to overweight equities in up markets while underweighting equities in down markets. 

 
 

Portfolios are optimally structured based on risk tolerance and loss threshold designed to meet specific client objectives.  Portfolios are designed to minimize the chances that the Portfolio will breach its drawdown threshold in bear markets:

 

Loss Threshold By Drawdown:

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Three Easy Steps

 

Step 1.  determine client's risk profile

 
 
 

 

step 2.  review & select desired portfolio, by core manager 

step 3.  create an investment allocation report

  • Use the portfolio allocator

  • Choose Fee Based (institutional share class) or Retail (c-share class) Account

  • enter the total investment amount to calculate, per holding, buys.

 

**Still trying to win the business?  Utilize our Portfolio Tools to create a Custom Proposal: