PARTNERING TO MEET YOUR
INVESTMENT AND STEWARDSHIP GOALS
SMI Private Client helps investors manage their portfolios prudently, so they can provide for their families and give more generously to fulfill God’s purposes. We believe Christians are stewards of the resources God has entrusted to them. Our job is to help clients manage money in ways that honor Him.
18
Years of Experience
$1.1B+
in Managed Assets
$8M+
in Donations Processed
950+
Private Client Households
SMI Advisory Services information as of 10/31/2024
Private Client Benefits
creating value for you
Professional
Management
Management
Professional Management
- Accounts proactively managed by a team of Chartered Financial Analysts (CFAs).
- Portfolios implement the Sound Mind Investing strategies.
- Regular rebalancing across all managed accounts.
- Asset Location — Strategies allocated across different account types to improve tax efficiency.
- Tax Loss Harvesting — In taxable accounts, the intentional realization of losses in some positions to offset gains in others, deferring your tax liability and enabling gains to compound longer.
- Wash Sale Monitoring — Track and monitor trades across managed accounts to help mitigate costly wash sale issues.
- Asset Protection Guarantee — If you lose cash or securities from your account due to unauthorized activity, Charles Schwab will reimburse you for the amount lost.
SMI
Sound Mind Investing
Strategies
Strategies
SMI Strategies
ENHANCED STOCK UPGRADING: The Power of Stock Momentum
Stock Upgrading is a strategy based on the observable phenomenon that recent performance tends to persist. This strategy uses Individual Stocks, Mutual Funds and ETFs (collectively, "Securities"). The strategy may invest in US Large-Cap Securities, US Small-Cap Securities, International Securities and/or commodities, depending on Stock Upgrading's current assessment of the momentum within each group. Securities are held as long as they demonstrate superior leadership among their peers. Each month the strategy re-assesses the current holdings and replaces lagging Securities with new leaders.
ENHANCED DYNAMIC ASSET ALLOCATION
Enhanced DAA (EDAA) is a strategy designed to participate in bull market gains, while striving to reduce losses during bear markets. EDAA owns a variety of ETFs drawn from six broad asset classes. EDAA measures trend/momentum to dynamically shift the portfolio weightings assigned to each potential holding. Broadly speaking, EDAA will always allocate among a variety of stock, bond, and alternative holdings, but the weightings between the specific holdings will vary according to market conditions and their impact on each potential investment vehicle's trend. DAA is an all-weather strategy that has generated impressive back-tested results, in large part via its ability to play good defense during bear markets.
SECTOR ROTATION: High Risk, High Reward
This strategy invests in a small number (normally 5, but up to 10) of stock funds and ETFs focused on specific sectors, like technology or financial services, demonstrating strong recent momentum. It’s a high-risk/high volatility strategy. While its peaks have been higher and its valleys lower than SMI’s other strategies, Sector Rotation has generated impressive long-term returns. The strategy is intended to comprise only a modest portion of your stock allocation.
JUST-THE-BASICS: Simple Excellence
Using index funds, we spread your allocation across the global stock market. Just-the-Basics is designed to match the performance of the market in a tax-efficient manner, so it is well-suited for use in taxable accounts.
BOND UPGRADING: The Power of Bond Momentum
We include bonds to provide safety and stability. This strategy combines a bond index fund base with rotating bond funds that vary in duration, credit rating, and type. Bond Upgrading evaluates its holdings each month and replaces lagging bond funds with those showing greater momentum.
Stewardship
Focus
Focus
Stewardship Focus
- A focus on SMI stewardship principles.
- SMI Private Client is a fiduciary, meaning we are obligated to put client interests ahead of our own.
- Extensive experience with QCDs, donating appreciated assets, and utilizing donor advised funds to help your giving go further.
- Continuity of portfolio management in the event of Death, Disability, or Impairment, including helping surviving spouse:
- Reregister account titles
- Claim step-up basis on taxable accounts
- Update beneficiaries
- Invest based on new risk tolerance
- Privacy and security policies safeguard your personal and financial information.
- Our team monitors your accounts and assists with contribution and distribution requests.
- Asset Protection Guarantee — If you lose cash or securities from your account due to unauthorized activity, Charles Schwab will reimburse you for the amount lost.
Personalized
Portfolios
Portfolios
Personalized Portfolios
- Assessment of your risk capacity and risk tolerance.
- Proposed portfolio based on your risk assessment.
- A customized portfolio to fit your specific preferences.
- Clients investing at least $250,000 work one-on-one with a dedicated Stewardship Advisor.
Transparent
Cost
Cost
Transparent Cost
- Simple annual management cost of 0.85% for Premier, 0.95% for Select, and 1.00% for Classic clients.
- Accounts are billed at the end of each month (in arrears) based on the average balance for the month.
- Utilizes institutional funds with lower costs when available.
- Advisory and fund costs below industry averages.
- SMI Private Client covers all trading commissions.*
* Although SMI Private Client covers all Charles Schwab commissions, SEC Fees will still apply, as will short-term redemption fees, if applicable. Health Savings Accounts may not receive free trades, since they are opened by third party administrators.
Client
Dashboard
Dashboard
Client Dashboard
- View your investment holdings, returns, and financial plan all in one place.
- Monitor portfolio performance by SMI strategy, by account, and by security.
- Access Charles Schwab statements and tax documents.
- Track account activity, including contributions and distributions.
- Schedule services, including contributions and distributions, personal information and beneficiary updates, and opening of new accounts.
- Using the SMI Private Client Mobile App, clients can check balances and transactions, track performance, monitor financial plans, view statements and tax forms, and contact us.
Private Client Tiers
invest with us
Classic
$50,000
minimum investment
minimum investment
- Email Support
1.00%
Annual Management Fee
Select
$250,000
minimum investment
minimum investment
- Dedicated Stewardship Advisor
- Live Phone Support
- MoneyGuide Access & Assistance
- Social Security Claiming Analysis
0.95%
Annual Management Fee
Premier
$1,000,000
minimum investment
minimum investment
- Dedicated Stewardship Advisor
- Live Phone Support
- MoneyGuide Access & Assistance
- Social Security Claiming Analysis
- Reimbursement of Transfer Fees from Prior Custodians*
- Tax Return Analysis & Strategies
*reimbursed via billing credits, up to $750 per household
0.85%
Annual Management Fee
Portfolios below $50,000 are encouraged to consider the
SMI Funds
, which are run by the same SMI Private Client management team.
Choose SMI Private Client
- Diversified portfolio of Sound Mind Investing (SMI) strategies
- Custom allocations to fit your personal circumstances and risk tolerance
- Advanced SMI-focused online reporting tools
- Support in achieving your financial and stewardship goals
- Select & Premier clients work directly with a dedicated Stewardship Advisor
Contact:
If you have questions or would like to speak to someone about SMI Private Client, reach out to us by phone or email.
800-796-4975