PORTFOLIO MANAGEMENT FOR ADVISERS

Dynamic Asset has built investment portfolios structured to meet very specific investment goals across liquidity and risk-return criteria.

They are used to manage your clients’ portfolios either individually or blended into an overall portfolio to suit their unique investment goals.

Dynamic Asset investment portfolios are suitable for the management of individual investors, self-managed super-funds, family trusts, businesses and retail superannuation investors.

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Short-term
Mid-term
Long-term Wealth Protector-1
Long-term Wealth Builder
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Cash Plus Portfolio

The Cash Plus Portfolio is a cash flow/liquidity orientated portfolio constructed with the aim of providing for capital or liquidity requirements between 3 and 12 months.

It uses a range of more defensively orientated, short-dated investments that aim to provide cash ‘plus’ or Term Deposit levels of income with minimal volatility.

The goals of the Cash Plus Portfolio are:

  • Return Target - RBA ‘special’ term deposit rate
  • Risk Target - Volatility of less than 0.5%
  • Income / Growth - The objective is to generate income only and no growth.
  • Timeframe - This portfolio should be held for a minimum of 3 months

USES 

Investors often want to hold cash aside as a buffer for emergencies or to cover expenses they know are coming up shortly. They may want a slightly higher return than leaving the money in the bank without the inconvenience of rolling over Term Deposits or opening online savings accounts.

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Short-Term Portfolio

The Short-Term Portfolio is a cash flow/liquidity orientated portfolio which aims to provide for capital or liquidity requirements between 12 months and three years.

It uses a limited range of lower volatility assets that aim to provide a higher level of income relative to Cash-Plus with low levels of growth and minimal volatility.

The goals of the Short-Term Portfolio are:

  • Return Target – RBA Cash + 1% (net of fees)
  • Risk Target - Volatility of less than 3%
  • Income / Growth - The objective is to generate 80% of its return target through income and 20% through growth
  • Timeframe - This portfolio should be held for a minimum of 12 months

USES

The Short-Term Portfolio is generally used to provide for known cash flow needs and capital security over the next 1 to 3 years.

Mid-term portfolio

The Mid-Term Portfolio is a cash flow/liquidity based portfolio which aims to provide for capital or liquidity requirements between 3 to 5 years.

It uses a broader mix of investments that aims to provide a moderate level of income and growth with low levels of volatility.

The goals of the Mid-Term Portfolio are:

  • Return Target – CPI + 2% (net of fees)
  • Risk Target - Volatility of less than 6%
  • Income / Growth - The objective is to generate 50% of its return target through income and 50% through growth
  • Timeframe - This portfolio should be held for a minimum of 3 years

USES

The Mid-Term Portfolio is generally used to provide for known cash flow needs and availability over the next 3 to 5 years.

Portfolios 2

Long-Term Wealth Protector Portfolio

The Long-Term Wealth Protector Portfolio is a risk/return based portfolio that aims to protect the value of capital using a mix of predominantly defensive and alternative investments, although it may hold growth assets if deemed appropriate.

The aim is to provide a reasonable income stream with some capital growth and moderate levels of volatility.

The goals of the Long-Term Wealth Protector Portfolio are:

  • Return Target – CPI + 3% (net of fees)
  • Risk Target - Volatility of less than 6%
  • Income / Growth - The objective is to generate 60% of its return target through income and 40% through growth
  • Timeframe - This portfolio should be held for a minimum of 5 years

USES

The Long-Term Wealth Protector Portfolio is generally used to hold longer-term investments and limit exposure to risk.

 

LONG-TERM WEALTH BUILDER PORTFOLIO

The Long-Term Wealth Builder Portfolio is a risk/return based portfolio that aims to build the value of capital using a mix of predominate growth and alternative investments. 

The aim is to provide mostly capital growth with some income and will experience higher levels of volatility relevant to other Dynamic Asset portfolios.

The goals of the Long-Term Wealth Builder Portfolio are:

  • Return Target – CPI + 5% (net of fees)
  • Risk Target - Volatility of less than 11%
  • Income / Growth - The objective is to generate 35% of its return target through income and 65% through growth
  • Timeframe - This portfolio should be held for a minimum of 7 years

USES

The Long-Term Wealth Builder portfolio is typically used by younger investors that have a long-term investment horizon, such as in their super, for investors that need higher returns to help meet their needs or for investors that want to borrow and invest in a portfolio that provides enough of a margin to justify the additional risk.

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How Dynamic Asset portfolios are used to manage client investments

Advisers typically use a mix of Dynamic Asset portfolios with the specific aim of matching portfolios to particular investment circumstances and investment goals of clients.

Dynamic Asset portfolios in use

Some of the significant benefits of this approach are that:

  • Client conversations are focused on their needs, their goals and the progress of their investments towards meeting those goals. It’s all about your client and what they want, which is why they came to you in the first place. It is client focused and valuable to them.

  • It underlines the value that you provide as an adviser in so far as you can clearly articulate why each portfolio meets their needs and that it is in their best interests.

  • The transparency, portfolio detail and research provided by Dynamic Asset provides ample opportunity to educate and inform your clients in a positive, efficient and engaging way.

  • Reporting is focused on the goals of their portfolio, not other arbitrary market benchmarks that have little or no relevance to their personal circumstances.

  • Clients that are clear on their goals, understand their investments and the progress being made are more confident. Confidence breeds trust and trust adds to satisfaction with the service your business provides. You can expect higher levels of client satisfaction, more referrals and higher levels of client retention.

  • The time invested in achieving this outcome is considerably less than when using the conventional asset allocation approach. This increases your client capacity, which increases your business revenue and profit results

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