Asset Allocation

We have been building and refining our asset allocation model since 2005 as an essential component to support our risk questionnaire. It is the engine behind the risk-reward trade-off for each client portfolio, driving expected returns and the risk assessment of funds and strategies.

A screenshot of Asset Allocation within Dynamic Planner

Asset Risk Modelling

To help determine a suitable portfolio with a client, Dynamic Planner can be used to show a range of outcomes that could reasonably be expected for each risk profile over a given time horizon.

Calculations are based on a single ‘benchmark’ asset allocation built by our asset and risk model team to provide a good return and to be easily understood and replicated by users of Dynamic Planner. The median figure is then used for planning.

Our asset risk model enables you to assess any combination of asset classes, demonstrate to clients how much risk it involves and how it differs from a given risk profile ‘benchmark’ asset allocation. We achieve this by incredibly detailed research to gain an understanding of the returns, volatility and correlation for 49 different asset classes that we believe can have a material impact on the risk and return of a portfolio. For the multi-asset funds that subscribe to our service, we obtain actual holdings in detail directly from the manager. Otherwise, we obtain holdings from data provided by the likes of Financial Express and Lipper.

Our asset risk model has a medium to long-term investment horizon to match the length of time the investor is expected to remain invested. It does not react to short-term market movements and should not be used to trade. We do, of course, make sure that it remains accurate and relevant by reviewing the assumptions and the ‘benchmark’ asset allocation each quarter via our Investment Committee. To ensure good governance and the highest quality information and insight, we augment our team with external academic thinking and non-executive board members chosen for their deep industry expertise.

“Dynamic Planner is instrumental to our investment proposition, I would have no hesitation in recommending it”

John McMahonAdvantage Wealth Management Ltd

“It is straightforward to use and I really like the reports it produces for clients, which illustrate things like the efficient frontier and where a client’s portfolio currently sits, and where it will potentially sit following your recommendation”

Catherine MorganEssendon Financial Planning

Award Winning Risk Profiling

  • A 49 asset class model provides default, optimised allocations for each risk level and easy comparisons with a client’s current allocation
  • Beautifully designed risk profiling reports can be produced at the touch of a button that can be white labelled for your firm
  • iPhone and iPad app enriches face-to-face suitability discussions
  • Email client invitation enables risk profiling to be completed securely online – saving you time
Risk Profiling app on the iPad

Next - Test your client’s capacity for loss at the point of advice and into the future

Cash Flow Planning

Want to see what Dynamic Planner can do for you?

Schedule a free no-obligation demo with a business consultant and experience the full functionality of Dynamic Planner.