Separately Managed Account (SMA) Strategies

Separately Managed Account (SMA) Portfolios

 

A separately managed account is a customized portfolio of investments designed to help investors reach their individual financial goals. This account offers combined benefits of active professional money management with added flexibility and tax advantages while the securities are directly owned by the investor.

We offer six SMA strategies (see back) that combine stocks, bonds, no-load mutual funds, exchange-traded funds and hedging strategies to meet and achieve the broad variety of goals of today’s investors.

The SMA option is ideal for the client who wants full transparency of the securities held in their account and the weightings of the various asset categories in which they are invested. It enables our portfolio-management team to maintain an approach that is consistent with a client’s investment objectives, even amid changing market conditions.

Primary Benefits

  • Customization
  • Tax Sensitivity
  • Broad Diversification
  • Active Management
  • $100,000 Minimum

Separately Managed Account (SMA) Portfolio Strategies

Income (Cash Yield)

The Income Portfolio is a multi-asset strategy designed to provide a high level of income for the investor with a conservative or moderately conservative risk tolerance. In constructing the portfolio, an emphasis is placed on income, with a secondary objective of total return. The portfolio has the flexibility to invest in a wide range of income-producing asset classes and will seek to take advantage of opportunities in areas such as sectors, yield, and duration. In addition to fixed income, the portfolio may invest in equities and alternatives, subject to certain limits. The benchmark for the strategy is the Bloomberg Barclays U.S. Govt/Credit 1-5 Year Index.

Balanced

The Balanced Portfolio seeks income and capital appreciation consistent with reasonable risk through exposure to equity and fixed income. It is ideal for an investor with a moderate risk tolerance. The strategy has the flexibility to adjust equity exposure based on market conditions, with a 30%-70% range. Equity exposure is generally broadly diversified across market capitalizations, along with dynamic allocations to sectors and styles with a favorable view. Fixed income holdings will also be dynamically managed to take advantage of opportunities across sectors, yield, and duration. The benchmark for the strategy is a blend of 50% S&P 500 Index and 50% Bloomberg Barclays U.S. Intermediate Govt/Credit Index.

Balanced Tax-Managed

The Balanced Tax Managed Portfolio is designed for those clients with a moderate risk tolerance who seek income and capital appreciation, while attempting to minimize the impact of taxes. In managing the portfolio, minimizing the effect of taxes is the primary objective. The allocation is strategic in nature with a neutral position of 60% equities and 40% fixed income. Equity exposure will include broad diversification across various market capitalizations. Fixed income exposure will also be broadly diversified across sectors, credit quality, and maturities. The strategy is highly customized to each client to exercise control over tax events. The benchmark for the strategy is a blend of 50% S&P 500 Index and 50% Bloomberg Barclays U.S. Intermediate Govt/Credit Index.

Equity

The Equity Portfolio seeks aggressive growth and capital appreciation primarily through exposure to equities, ideal for investors with an aggressive risk tolerance. The portfolio will be dynamically managed to take advantage of opportunities in areas such as market cap, style, and sectors while managing risk. Under normal circumstances, this portfolio will hold at least 80% in equity investments. The benchmark for the strategy is the S&P 500 Index.

Equity Tax-Managed

The Equity Tax-Managed Portfolio is designed for those clients with an aggressive risk tolerance who seek growth and capital appreciation, while minimizing the impact of income taxes. In managing the portfolio, minimizing the effect of taxes is the primary objective. The allocation is strategic in nature, broadly diversified across market capitalizations, sectors and styles. The strategy is highly customized to each client to exercise control over taxable events. The benchmark for the strategy is the S&P 500 Index.

The Standard & Poor’s 500 Stock Index consists of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The market value-weighted index is designed to be a leading indicator of the U.S. equities, is meant to reflect the risk/return characteristics of the large cap universe and includes the reinvestment of all dividends. Indexes are unmanaged and cannot be invested into directly. Investing in limited sectors may increase overall volatility of your portfolio. Investing in any securities involves a risk of loss.