Our Dynamic Market Strategy provides investors with a traditional strategic portfolio but with an additional level of risk management. Dynamic Market will appeal to advisors and clients who prefer a more passive, low cost and tax efficient investment solution but who also wish to mitigate market volatility by adding an additional layer of risk management.
The idea is simple. The portfolio is divided into two distinct allocations: a core allocation (70% of the portfolio) and a satellite allocation (30% of the portfolio). The core allocation is a traditional “buy and hold” portfolio that employs diversification and rebalancing to manage risk. The satellite allocation employs a risk overlay that dynamically adjusts exposure between equities, fixed income and cash based on market conditions and, in so doing, tilts the aggregate portfolio to a defensive, neutral or aggressive position.
Dynamic Market Series offers three model portfolios to investors: Conservative, Moderate Growth, and Appreciation.