S.M.A.R.T Asset Allocation
What is SMART Asset Allocation?
We created a rule-based investment process that is Strategic, helps our clients Maximize Gains, Adapts to current market conditions, manages Risk, and is Tactical. It's still asset allocation only S.M.A.R.T-er.
S – Strategic
M – Maximize Gains
A – Adapts
R – Manages Risk
T – Tactical
- Holding onto underperforming assets never made sense to us, so we'll favor better performing asset classes while minimizing allocations to low performing ones.
- Our investment strategy is based on the premise that different asset classes have varying cycles of performance, and by investing in multiple classes the overall investment returns will be more stable and less susceptible to adverse movements in any one class.
- Even though all investments involve some sort of risk, whether it’s market risk, interest risk, or inflation risk we take steps to minimize the negative impact of these risks to your portfolio.
You can view our performance HERE.
Our models use a combination of strategic and tactical investing, and the differences are explained below to help you understand the difference.
Strategic asset allocation is a passive investment style that sets long-term target asset allocations and assembles a portfolio based on those long-term target asset allocations. Over time, the performance of the various asset classes will cause the portfolio to drift from the established long-term targets. Portfolios will be periodically rebalanced to return it to those long-term asset allocations. Accordingly, trades that occur in the portfolio are designed to restore the long-term asset allocation and typically are not designed to take advantage of any current market conditions at the time of the trade.
Is the practice of making proactive changes in a portfolio due to changes in market valuations or outlook.
Our tactical investment style seeks to add value by actively adjusting a portfolio by overweighing attractive market exposures and underweighting unattractive market exposures utilizing one or more themes. Strategies utilizing an active allocation methodology may hold more concentrated portfolios than portfolios managed by a strategic methodology. Increased concentration may lead to a wider range of performance over time. Tactical strategies will still be risk-managed, however they will not likely maintain a consistent risk profile and can quickly become more aggressive or conservative as market conditions change. Elite Asset Management recommends that its Tactical strategies be used as a supplement to, and not as a substitute for, a client’s overall well-diversified investment portfolio.
Please Contact Us to learn more.