How does the Dynamic Planner service help?

The Dynamic Planner service is the most widely used risk profiling and investment planning service in the UK.

It is chosen by private banks and wealth managers, as well as high quality regional and local financial planning and advisory firms, to help structure their recommendations.

They rely on the quality of the Dynamic Planner service (the technology, the asset and risk model, and the team behind it) to enable them to:

  • Accurately risk profile their clients
  • Accurately assess the clients’ current investment portfolios to see if they are suitable for the risk profiles selected
  • Create risk-based financial plans and more comprehensive financial planning reports
  • Choose suitable risk profiled investments if required (using either risk profiled or risk targeted funds – see the next chapter for more details)
  • Track and manage the suitability of clients’ investments on an ongoing basis
  • Provide clients with regular reviews, reports and apps to help them keep track of their investments

Dynamic Planner asset & risk modelling

At the heart of the Dynamic Planner service is powerful and robust asset and risk modelling, based on Modern Portfolio Theory (MPT) introduced by Nobel Prize winner, Harry Markowitz and others, in 1952.

MPT has been used to run very large pension funds for institutions for many decades. Dynamic Planner makes this technique available to individual financial planners and their clients.

The 10 risk profiles each have a corresponding asset allocation mix constructed from the 15 asset classes (investment types) employed within Dynamic Planner.

The 15 classes can broadly be classified into cash, bonds (debt issued by companies or governments with a promise to pay interest), commercial property and equities (i.e. company shares traded on a stock market).

In the Dynamic Planner Service, the use of ‘riskier assets’ increases across the range from Risk Profile 1 through to Risk Profile 10.

For example, Risk Profile 1 uses a cash-only asset allocation, Risk Profile 5 invests around 60% in equities, whilst Risk Profile 10 is predominately allocated to equities and indeed in riskier emerging or developing equity markets such as Asia.

Review existing portfolio pie charts