ARTICLES

In today’s complex market environment, the choice of investment approach is more than just a portfolio decision - it’s a business-defining one. For financial planning firms and dealer groups, the investment philosophy they choose to work with can either strengthen their client relationships or quietly undermine them.

Advisers know that the risks of following an outdated investment approach, or one that may not work well in these times, extends well beyond poor portfolio performance. They can ripple into client trust, business reputation, compliance risk, and long-term commercial sustainability.

For decades, Strategic Asset Allocation (SAA) has been the cornerstone of portfolio construction. From super funds to retail advice practices, it became the “default setting” — the framework advisers trusted to manage client capital through all market conditions.

Better Portfolio solutions than the old 60/40

Matthew Walker | September 2025

For much of the past four decades, Strategic Asset Allocation (SAA) has formed the foundation of portfolio construction. The principle is simple: establish a long-term mix of equities, bonds, and alternatives based on risk tolerance, rebalance periodically, and maintain discipline. In a world of globalisation, falling inflation, and declining interest rates, that framework worked exceptionally well.

For decades, retail investors have been handed the same investment framework: static strategic asset allocation, risk profiles labelled “conservative,” “balanced,” or “growth,” and the assumption that history always repeats. That framework worked in the disinflationary decades of falling rates and globalisation — but today it looks fragile.

Inflation is sticky. Growth is slowing. Debt is piling up. Geopolitical tensions and currency debasement are front-page news. Investors can no longer afford to rely on old rules of thumb.

That’s why we built Dynamic Asset — to change the playbook.

Investors today are navigating one of the most complex market backdrops in decades — inflation risks, geopolitical tensions, shifting central bank policy, and a world in transition from fossil fuels to new technologies.

Against this environment, our Wealth Builder and Wealth Protector portfolios have delivered exceptional results over the past 12 months. 

In the realm of financial planning, the choice of investment approach is a critical factor that can determine the success or failure of a business and the financial well-being of its clients. The risks associated with an erroneous investment strategy extend beyond mere financial losses and can have profound implications for the reputation, legal standing, and client relationships of financial planning firms.

A market correction can spell disaster for a financial planning business. Time is lost calming clients’ nerves rather than building your business. Some clients may even leave after seeing their capital shrink, and your income may plunge along with the market.

When prospective clients ask why they should choose your advice firm over another, are you able to provide them with a compelling reason that clearly makes you stand out from the competition? 

Successful financial advisers require a rare mix of technical and interpersonal skills. A significant part of the client experience is created by how you structure engagement to ensure a positive client journey. One that is empathetic, informative, understood, and pinpoint-focused on their unique circumstances.