Dynamic Asset provides actively managed, goals-based investment portfolios designed to support financial advisers and their clients.
Our approach is different by design. Portfolios are built around real client goals, managed actively through changing market conditions, and structured to be practical, scalable and compliance-ready for advisory businesses.
Used within managed accounts, this approach can improve investment outcomes, reduce behavioural errors and deliver meaningful efficiencies for advisers.
Traditional portfolio construction relies heavily on risk profiling and long-term strategic asset allocation. In practice, this often fails to align portfolios with how clients actually use their money.
Goals-based investing starts from a different place. Instead of asking how much risk a client can tolerate, it focuses on what the money is for, when it is needed, and how critical the outcome is.
Independent research supports this approach. Russell Investments’ Value of an Adviser report found that helping clients avoid behavioural mistakes through goals-based frameworks can add up to 1.90% per annum to long-term investment outcomes.
It all starts with your investment philosophy. The table below demonstrates the clear difference between Goals Based Investing using a Dynamic Asset Allocation approach - and Risk Profile Based Investing using a Strategic Asset Allocation approach.
A simple way to consider which method you think is the most appropriate is to ask yourself how you’d want your money to be managed.
In short, Goals Based Advice and Goals Based Investing focuses on the individual investor outcomes. Risk-profile-based investing focuses on fitting investors into predefined models.
Dynamic Asset believes the conventional Strategic Asset Allocation approach exposes clients and advisers to unnecessary risk.
Research by Schroders has shown that the Strategic Asset Allocation approach fails to meet a 5% real return objective nearly half the time over rolling five- and ten-year periods. Analysis by State Street Global Advisors has also shown that a static balanced fund fails across a significant proportion of market cycles.
For advisers, this isn’t just an investment issue. When clients miss their goals, it becomes a business risk.
There is a better way.
Most clients have more than one financial objective. Capital needed for income, short-term spending or long-term growth should not all be managed the same way.
Dynamic Asset portfolios are designed to support different objectives, including:
Our differentiated range of portfolios can be used individually, blended or transitioned over time as client needs evolve, allowing advisers to deliver more personalised and flexible solutions without adding complexity.
GOALS
Preserve capital and grow
investor’s wealth
Target a real rate of return on every
portfolio – after fees and inflation
We believe successful investing is about helping clients achieve their goals with confidence.
That means:
LEARN MORE IN THIS VIDEO
Watch Jerome Lander, Portfolio Manager and Goals Based Investing specialist, discuss the Dynamic Asset approach to managing Goals Based Investment Portfolios.
To deliver specific investment outcomes, we take a forward-looking approach that respects market history but focuses on the realities of today. Each portfolio is managed using a disciplined three-step process designed to align investments with objectives, manage risk and respond to changing conditions.
1. asset allocation
Asset allocation is one of the most important drivers of long-term outcomes. We begin by determining the most appropriate mix of assets to support each portfolio’s stated objective.
Each portfolio is regularly modelled and reviewed using expected returns and potential risks. These results are considered alongside valuations, market conditions, sentiment and momentum to determine whether adjustments to the asset allocation are appropriate.
2. investment selection
Once the asset allocation is set, we implement it by selecting investments and managers that we believe are best positioned to deliver the required outcome over the relevant timeframe.
Detailed due diligence is conducted on each investment and manager, with a focus on quality, transparency, independent thinking, and the ability to deliver strong risk-adjusted returns relative to cost. Investments are monitored continuously and reviewed as conditions change.
3. portfolio management
The final step is ongoing portfolio management - implementing decisions efficiently, maintaining portfolio alignment, and ensuring operational and compliance requirements are met.
Each investment is managed against a target weighting, based on:
Protecting investor capital is central to Dynamic Asset’s approach. In addition to managing portfolios toward specific investment objectives, we have established a robust governance and operational framework designed to ensure client assets remain secure under all circumstances.
The full detail of these arrangements is set out in the relevant offer documents. A summary of the key protections is outlined below.
Advisers and clients have full visibility over all investments, transactions and fees at all times. Portfolios can be viewed and monitored on an ongoing basis, providing continuous transparency and oversight.
Each portfolio operates under a clearly defined mandate that sets out:
These mandates are established with care and due diligence and are monitored continuously to ensure portfolios operate strictly within agreed parameters.
Dynamic Asset has implemented extensive governance measures over the management of client assets. Oversight is provided through the Investment Committee, whose role includes monitoring portfolio activity, ensuring mandate compliance, and providing independent challenge where required.
Dynamic Asset is responsible for the investment management of portfolios but does not hold client assets or have access to investor capital. Our role is limited to providing investment advice, portfolio models and portfolio management decisions in accordance with the applicable MDA or SMA structure and the relevant mandate or model.
Portfolio implementation, trading, administration and reporting are provided through appropriately licensed and regulated service providers and platform infrastructure.
Depending on whether the service is delivered as an MDA or SMA, the relevant controls and oversight are in place to ensure portfolios are implemented in accordance with the applicable mandate or model and within required compliance parameters.
All investments are held by an independent custodian. Beneficial ownership of assets remains with the investor at all times.
The custodian’s role is to hold assets at arm’s length from all parties involved in day-to-day portfolio management, providing an additional layer of protection.
For superannuation investors, an additional layer of oversight is provided by the fund trustee. The trustee ensures portfolios are managed in members’ best interests and in accordance with superannuation law and regulatory requirements.
Dynamic Asset operates within a highly regulated environment. All portfolio management activities are subject to applicable financial services laws, regulatory oversight and legal protections.
Dynamic Asset’s business and reputation depend on careful stewardship of client capital. In addition to portfolio management, multiple independent layers of governance, administration and custody are in place to support the secure operation of portfolios and ensure investor assets remain held separately and beneficially owned by the investor.
