Did you know that Dynamic offers 26 Portfolio Lines to advisors and RIA firms? The team behind Dynamic portfolios allows advisors to focus on client relationships by freeing up valuable time. Methodically designed to increase the consistency of investment strategy and better client outcomes, Dynamic Managed Portfolios focuses on asset allocation, risk-adjusted returns by executing within a framework of highly organized processes and discipline.
Many advisors choose to use Dynamic portfolios for a significant number of reasons, according to Craig Morningstar, Dynamic chief operating officer. “The most common reasons include cost efficiency, highly consistent design, process-driven investment selection, risk-adjusted returns, ongoing portfolio maintenance, active management of cash and distributions, and typically higher risk adjusted returns than other solutions,” said Morningstar.
He credits Dynamic’s “highly disciplined processes and detail-oriented Portfolio Management team” in supporting a range of client needs that goes beyond trading and portfolio management.
The team consists of three areas: Portfolio Management professionals handle day-to-day portfolio management and core production activities; Portfolio Consulting handles everything from additional information requests to advanced portfolio design, trading and strategic portfolio implementations, with coaching and consulting; and the Investment Committee meets on a regular basis to review a range of portfolio considerations and oversees the functions of Dynamic portfolios.
“I’ve been with Dynamic portfolios since the beginning,” said Vince Asaro of Dynamic Wealth Advisors in Clinton Township, Mich., “and I believe in the team.”
For Asaro, “since the beginning” dates back to 2013, when he joined Dynamic. At that time, he was a “disciple of Dimensional,” a fund company he credits for keeping fees low and their academia-based philosophy on investing. However, over the years “Craig and Marisol (Fung, Portfolio Team Manager and Consultant) have opened my eyes to other funds,” he added.
Different Portfolios for Different Needs
The Dynamic team understands there are many different ways advisors desire to service their clients’ portfolios. Some offer portfolios at the account level, others at the household level. Account sizes vary, so the investment selection for a small account isn’t the same as that of a larger account. And, different account types can utilize different investment selections due to tax considerations.
Further, client situations may benefit from third party separate account managers, and there are different ways advisors outsource investments.
“Dynamic’s goal is to provide a wide range of the most common portfolio strategies driven by advisor and client demands,” explained Morningstar. “The 26 Portfolio Lines have a range of equity to fixed investment allocations from zero to 100 percent equity.”
Approximately six portfolios are included in each of the 26 Portfolio Lines. In addition to covering the full spectrum of equity to fixed income allocations, Portfolios Lines are commonly structured by the following:
- Product type (ETFs or mutual funds)
- Investment style (multifactor, index, etc.)
- Retirement or tax efficient account type, and
- Specialty portfolios (high growth defensive, monthly income, yield focused, sustainable, long-term distribution, market cycle and long-term distribution defensive).
The team that executes Dynamic Portfolios’ disciplined processes is critical to the results experienced by advisors and their clients. “Having such a talented group of people building, monitoring and adjusting the portfolios takes a huge load of responsibility off my shoulders,” said Asaro. “I’ve never created these (portfolios) on my own because I know my strength is on the relationship side—helping my clients make the most informed decisions for their families.”
Asaro continued, “Craig and his team can do this better than I can, and on a daily basis. My faith in them allows me to not only focus on building wealth for my clients, but also on making a difference in their lives.”
Managed Portfolios by Design
The Dynamic team has decades of experience designing and managing portfolios for advisors and advisory firms. According to the Morningstar, Dynamic portfolios are developed from research that leads to intentional design and ongoing portfolio maintenance.
“There are proven processes, research methods and documentation that create the opportunity for ongoing improvement in portfolio risk and return results,” he said. “Many Dynamic portfolios have come from advisor requests. Dynamic researches common investment strategies on an ongoing basis through various resources. Utilizing due diligence and research, Dynamic develops viable portfolio lines that have a high likelihood of being selected by advisors.”
How does an advisor find the best portfolio for a particular client situation? The Portfolio Management team helps advisors use a tool to quickly find a short list (two to five portfolios) of best portfolios for any given client situation. There are multiple ways to narrow the selection, e.g., by account type, account size, product type, investment provider and risk profile.
For assistance on more complex situations, advisors can call the Portfolio Management team or schedule a Portfolio Consulting call to review more complex and/or large client situations.
Ongoing Due Diligence
By intentional design, Dynamic’s disciplined processes include ongoing portfolio reviews and due diligence on portfolio investments. Ongoing due diligence doesn’t stop at the security level. The Dynamic team routinely reviews every asset for investment style within the portfolio, comparing portfolios against other similar portfolios and across portfolio lines.
For more information, the Dynamic Portfolio Management Team can be reached at (877) 257-3840, option 4 or via email at firstname.lastname@example.org.
(Photo: Dayne Topkin, Unsplash)