[rev_slider slidertitle=”IM Process” alias=”im-process”]
[ultimate_heading main_heading=”Global” main_heading_font_size=”desktop:20px;”][/ultimate_heading]
We are global investors. We believe diversification across domestic and international markets offers opportunities for enhanced growth and risk reduction.
[ultimate_heading main_heading=”Diversified” main_heading_font_size=”desktop:20px;”][/ultimate_heading]
We are diversified among various asset classes and sub-asset classes that tend to be less correlated with each other to support risk-adjusted returns in various market environments.
[ultimate_heading main_heading=”Balanced” main_heading_font_size=”desktop:20px;”][/ultimate_heading]
We are balanced with our allocations and generally believe that a mix of stock, bond and alternative investments may be appropriate at all stages on an investment cycle.
Dynamic’s Portfolio Construction Process
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At a minimum, we include asset classes that allow us to make core allocation decisions, including:
Allocation Consideration
Trade-Off
Global (include U.S)
Domestic vs. International
International (doesn’t include U.S.)
Developed vs. Emerging
Style
Growth vs. Value
Size
Large vs. Small-cap
Alternatives
High Exposure vs. Low Exposure
Hedges
High Hedging vs. Low Hedging
Bond Quality
High Quality vs. Low Quality
Bond Maturity
High Duration vs. Low Duration
Our three-step approach determines the optimal percentage to allocate to each investment:
- Assign expected risk and return characteristics to asset classes/investments utilized.
- Determine the mixes of assets that provide the greatest expected return for a given amount of risk, often referred to as the “efficient frontier.”
- Select portfolio along the efficient frontier to provide optimal desired risk and return based on client situation.
Open architecture: We utilize non-proprietary investments within our allocations which we believe provides several key benefits, including:
- Helps diversify portfolio risk through issuer diversification.
- Provides the ability to better control expenses and potential to boost returns.
- Eliminates conflicts of interest and risk of bias.
Screening: We screen for Best of Breed investment selection to represent each asset class:
- Exposure
- Process
- Risk Consistency
- Performance
- Cost
Due Diligence: Our thorough due diligence process includes both fund manager and investment reviews to determine:
Manager Review:
Is the firm built to last?
- Infrastructure
- Processes
- Security
Investment Review:
Is the fund built to last?
- Investment Process
- Key Personnel
- Cost and Efficiency
Ongoing Monitoring: Our ongoing monitoring includes regularly scheduled reviews to ensure expectations are met and there are no major changes:
- Qualitative Reviews: On an annual basis, Dynamic conducts due diligence conference calls with fund investment teams to identify potential changes in four key areas: cost, investment process, key investment or leadership personnel, or firm structure.
- Quantitative Reviews: On a quarterly basis, Dynamic runs all funds through a proprietary scorecard focused on evaluating cost, consistency of process and historic performance.
Portfolio Implementation and Monitoring
[ultimate_heading main_heading=”Contact Dynamic for Your Free Consultation” main_heading_font_size=”desktop:35px;”][/ultimate_heading]
