Asset Management

Smith Capital’s investment management process is built on our passion for stewardship of our clients’ investment assets and financial futures.  In that regard, our focus is on strategically and tactically balancing risk and return.

The foundation of our process is the discipline of strategic asset allocation, which is the prudent allocation of investment capital among a mix of varied asset classes that are not all highly correlated to each other.  Historically, numerous studies have shown and confirmed that the majority of an investment portfolio’s average long-term return and risk is attributed to its exposure to broad asset classes.

Our research and experience has verified that this attribution characteristic is significant and should form the basis of an investment portfolio’s core foundation.  For this reason, we believe that the primary factor in producing investment success is the optimal development, implementation, and active management of a prudently allocated portfolio.  This strategic allocation policy serves as the foundation for our Core Wealth Steward portfolios.

However, we believe that markets are not perfectly efficient and that mis-pricings in broad markets and asset classes do occur.  Therefore, rather than implementing a certain “static” allocation based on objectives, age, and risk tolerance (and then leaving it alone), we employ “dynamic” allocation to tactically underweight or overweight asset classes when the risk/reward trade-off warrants.  This is not market timing per se, but rather determining when the capital markets (and their underlying asset classes) are overvalued or undervalued, and acting accordingly.  For an overview of our Tactical Allocation process, click here.