Smith Capital Advisors (SCA) assists clients with optimally allocating and rebalancing their portfolios through market cycles based on their customized plan, using institutionally based investment principles.
SCA first assists clients with determining the appropriate risk profile for each managed investment account. Each portfolio SCA oversees is asset allocated using institutionally based guidelines. Daily monitoring (see second paragraph, below) ensures accounts remain in the appropriate risk profiles through rising or declining market cycles. As clients progress towards longer term objectives, SCA ensures that risk profiles are adjusted as appropriate (from equity to growth to balanced, etc.).
On a daily basis, SCA reviews and monitors the asset class drift within clients’ portfolios, and objectively rebalances accounts anytime an asset category drifts beyond a pre-determined threshold. This is especially important during periods of great market swings to help ensure portfolios remain in the appropriate risk profile while taking advantage of temporary market dislocation. For example, in a past equity market pullback, SCA sold bonds that held their value/advanced, to purchase equities at a market low, with the goal of keeping clients’ asset allocation in balance while securing additional equities. The additional equities secured during rebalancing helped clients’ portfolios to recover more quickly during the subsequent equity market recovery and led to better risk adjusted investment results.
Additionally, there is ongoing in-depth research and review of each mutual fund, ETF or security held in clients’ advisory portfolios by the 5 Private Wealth Advisors with SCA, and by Northwestern Mutual home office investment professionals who incorporate investment research by third parties, such as the Institutional Arm of Morningstar, into their decision making, to help ensure all holdings within clients’ portfolios remain among the best options in their asset category. If the forward-looking performance of any security is uncertain, SCA is alerted and replaces that holding accordingly to ensure accounts remain optimally invested at all points in time.
SCA advocates that discipline, not emotion, is what drives our institutionally based asset management process. Advisors at SCA help clients to not allow short term information or news to influence their long-term investment strategy.