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?
Financial advisers regularly undertake an exploration of client goals to gain a better understanding of their clients. However, the targeting of specific financial goals in portfolio management is still not commonplace. The reliance on risk profile, in effect, dislocates client goals from Portfolio Management and makes it harder for investor clients to understand the value of financial advice.
Market leading investment and superannuation platform HUB24 has added Dynamic Asset Managed Account portfolios to its platform IDPS Choice menu.
Structural changes in global investment markets are casting doubt on the revered 60/40 asset allocation traditionally utilised by financial advisors. Rather than boosting returns and protecting investors during downturns, it could fail to deliver an adequate mix of protection and returns.
Listed Australian Financial Services Group, InterPrac, has added Dynamic Asset Managed Account portfolios to their Approved Product List (APL).
