Flexible and transparent. Tailored to each investor.
A Separately Managed Account (SMA) is an investment vehicle composed of stocks, bonds and other individual securities that is overseen by a professional money manager. Unlike other investment options, like mutual funds, where money is combined with that of other investors, the investor directly owns the securities within an SMA. Because they own the securities, they have more control over those investments, and there are more options for customization.
We offer six SMA strategies that combine a blend of no-load mutual funds and exchange-traded funds 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
- Tax Sensitivity*
- Broad Diversification
- $100,000 Minimum
*Only available on Strategic Strategies
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 can 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.
Strategic Balanced
The Strategic Balanced Portfolio is designed for those clients with a moderate risk tolerance who seek income and capital appreciation. 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 benchmark for the strategy is a blend of 50% S&P 500 Index and 50% Bloomberg Barclays U.S. Intermediate Govt/Credit Index.
Strategic Moderate Aggressive
The Strategic Moderate Aggressive Portfolio seeks capital appreciation, through exposure to equities and fixed income securities. The portfolio is ideal for the investor with a moderate aggressive risk tolerance. The allocation is strategic in nature with a neutral position of 80% equities and 20% 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 benchmark for the strategy is a blend of 80% S&P 500 Index and 20% 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.
Strategic Equity
The Strategic Equity Portfolio is designed for those clients with an aggressive risk tolerance who seek growth and capital appreciation. The allocation is strategic in nature, broadly diversified across market capitalizations, sectors, and styles. The benchmark for the strategy is the S&P 500 Index.
NOTE: The Standard & Poor’s 500 Stock Index Consists Of 500 stocks chosen for market share, 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.
Capital Defender Asset Allocation
Investors are always looking for ways to balance risk and return to meet their financial objectives. There is generally a trade-off between capturing returns and a willingness to accept downside volatility. Seeking higher returns generally coincides with higher volatility. However, there a variety of investing styles that look to address this trade-off. One approach is to use momentum investing. Momentum is based on the premise that rising prices and upward trends tend to persist over time. There is a wide array of research that supports this.
We have implemented a strategy that uses momentum and breadth, along with a tactical hedge, to determine an allocation that we believe will balance growth opportunities and capital preservation.
It begins with measuring momentum in 12 major risk asset classes including equities, fixed income, and commodities monthly. We then measure the breadth, which tells us how strong the momentum is. Based on the breadth, we determine how much to allocate to the protection asset, U.S. Treasuries. The remaining portion is equally weighted across the 6 risk asset classes with the highest momentum.
Since the scoring is done monthly, this leaves an investor at risk if there is a sharp mid-month market reversal. To address this risk a tactical hedge can be implemented. A variety of macroeconomic indicators are utilized to determine if a hedge should be used. Generally, the hedges are held for a short time.
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