Winfield Smathers, CEO, Shorebridge Wealth Management

Winfield Smathers, CEO of Shorebridge, spoke with Invest: about helping clients manage their wealth through uncertain economic times. “We give clients options so they can make adjustments with enough years left to make course corrections. We give clients necessary information to empower their decisions,” Smathers said.

What have been Shorebridge Wealth Management’s most significant milestones and initiatives over the past 12 months?

We’ve had record revenue and asset growth in the past 12 months. We’ve eclipsed $1.2 billion in our assets under administration, a new high water mark for us. All of my advisers are at their highest producing levels. Everyone is benefiting from their own career growth and strong market growth. I am seeing continued strength moving forward. The average age of a financial advisor in the US is  56, but the average age in my firm is in the low 40s. We have a unique runway for growth because of our demographics.

What strategies have you employed to achieve record growth?

We are fee-based investment advisors. Because of a rising market, the value of assets under management we oversee rises and the fee we earn from that asset base, while it stays level, generates more revenue. We are a beneficiary of the business model. Rising assets helps our revenue grow. The other thing catapulting us forward are the young, hungry advisors in the early to mid part of their careers who are hitting their stride, resulting in new assets coming into the firm. 

What was the vision behind launching the Pittsburgh chapter of the Alliance of Merger & Acquisition Advisors (AM&AA), and what role will Shorebridge play in its growth?

One of my financial advisers is on the executive committee of the chapter. She works with business owners going through transactions to sell their businesses. She is building her businesses around this model and is involved on the national level in the organization. The local chapter will be good for Pittsburgh, promoting M&A in the region. It’s great for the business owners to know there’s an organization out there that will help them complete transactions and help the families involved become stewards of their wealth and work through complex issues beyond the sale.

How has your institutional consulting practice evolved, and what distinguishes Shorebridge’s approach to serving nonprofits and foundations?

Our firm has been managing money for nonprofits since inception in 2013 but some of us have been working with nonprofits dating back to the 1990s. All of my financial advisors have the ability to build relationships with organizations, and when they get into a position where they need fiduciary help, they are looking for people they trust. We are very active through those connections. We typically are involved in smaller and midsized, local charitable organizations. Managing endowments is very similar to managing portfolios for high-net worth  individuals. Giving back to the community with our time, talent, and treasure is a core value. Through the initiatives of our entire team, we have developed relationships that have been very fruitful.

How does your structured approach to financial planning set you apart in the Pittsburgh market and beyond?

Most good financial advisory firms are plan-oriented. We work primarily with individuals and families who require planning to achieve their objectives. Most often, it’s planning for retirement, but education planning is another common goal. Our relationships start with the planning phase. Adjunct to that is the advisory part of the practice and helping manage money for those objectives. We’re a high-quality, fiduciary firm that always does what’s best for the client. We’re not in the sales business, we are in the advice business. We have a reputation that our client service sets us apart. 

Beyond numbers and markets, Shorebridge is deeply engaged in the broader Pittsburgh community. In what ways does your team contribute locally?

At the firm level, our contribution is typically financial support. We launched an initiative last year where we volunteered on a weekend before Thanksgiving to prepare packaged meals for the community. Individually, we have a strong sense of community and many people at our firm serve on boards and volunteer for various organizations. Our people want to get engaged and help. Pittsburgh is a diverse, tight-knit community, and different team members have different causes they support. We encourage individuals to support organizations they hold near and dear to their hearts. 

How is Shorebridge positioning itself amid consolidation trends? Is growth through acquisition or strategic partnership something you’re exploring?

M&A is being driven by private equity. Private equity has found that wealth management is a good business to invest in, with sticky clients and high levels of recurring revenue. Everybody has an ear to the floor to learn, and it’s important to understand where we are in our life cycle. We aren’t ready to be in the selling game yet. We want to ensure our culture is maintained and our clients are at the forefront of our business. If it’s not best for the client and our employees, it isn’t something we will seek out. It’s a trend that will continue because the business lends itself to the private equity world. 

What are some of the key concerns you’re seeing among clients approaching retirement, particularly in the Pittsburgh region, and how are you addressing them?

The big concern most clients have is knowing when they can retire and if they have enough money to live out their lives. There is also concern from people who don’t know what to do after they retire after a lifetime of routines and relationships. They want to sustain an intellectual level that aligns with their working years. Clients are typically concerned about being able to afford their lifestyle. We plan well in advance to give them actionable information  years before retirement. We help them stay in control of their finances and retirement timeline. We also have some clients who want to retire, but we give them information that compels them to rethink the decision. They may have to change their expectations, work longer, or save more diligently. We give clients options so they can make adjustments with enough years left to make course corrections. We give clients necessary information to empower their choices. 

What are your top priorities this year in terms of client service, expansion, or strategic focus, especially in the local context?

Our key goal is to continue growing the firm by attracting  new clients and new financial advisors. We want to continue positioning ourselves for the future, so when it’s time to move on we are in the right place with the right partners to continue providing the exemplary service our clients are accustomed to. We need to ensure we are not making business mistakes and running the firm smartly and profitably. Our employees and clients need a place of continuity for their careers and families for generations to come. That includes preserving the culture and integrity of the firm. We’re always figuring out better ways to do things, becoming more efficient, and pinpointing areas for improvement.