GUEST COLUMN: Manage your risk

Dynamic asset allocation takes asset allocation to another level.

As a seasoned investor, you know the value of effective asset allocation. But you can also unlock additional opportunities by taking traditional asset allocation one step further via an investment strategy known as dynamic asset allocation.

As you may already know, asset allocation is the practice of allocating investments across various asset classes, such as equity and fixed income, to best balance risk and reward for each investor.

You have your own unique risk tolerance, which differs from that of other investors. You also have your own asset allocation strategy based on your tolerance for risk, your financial goals and your investment timeline.

Dynamic asset allocation takes asset allocation to another level.

Through ongoing analysis of the global financial market, investment managers can uncover opportunities that still fit within the parameters of an appropriate pre-determined range of risk tolerance. The primary aim of such an investment is to reduce the impact of shorter-term market fluctuations, thus providing a smoother ride towards achieving your long-term financial goals.

Here’s an example of a fund portfolio guided by dynamic asset allocation principles:

The foundation of the fund is a strategic asset mix of fixed income, real property and equity investments.

The allocations around each type of investment are adjusted by a skilled investment professional based on ongoing assessments of the global financial market. Where the portfolio manager has a positive view on the global economy he may have a higher weight in equities without necessarily assuming the associated risk that is typical of more traditional equity funds. That’s because of the presence of several low volatility equity funds.

Dynamic asset allocation portfolios are typically available as unit trust, corporate class, T-series or fixed income funds.

A dynamic investment solution might be for you if you want to:

Have a more active management approach to your investments.

Have an expert portfolio management team taking care of day-to-day investment decisions.

And, depending on the portfolio you choose, obtaining tax-efficient income from your investments now or in the future (T-series) or deferring income tax on your investment (corporate class).

Speak to your professional consultant today to find out more about the benefits of dynamic asset allocation and how such a portfolio can work with your financial plan.

Andy Erickson is the division director with Investors Group, Vernon. This article is provided for information purposes only. Please consult with a professional advisor before implementing a strategy.

 

 

Just Posted

RCMP wish North Okanagan grads safe season

Friendly reminders to grads, friends and families to enjoy a safe graduation

Rail trail facility plan open to Coldstream tonight

Development options include washroom and commercial building

UPDATE: Logging truck spill cleared east of Lumby

Accident happened between McInnes Road and Rawlings Lake Road

Community comes together for Easter Seals Camp Winfield

On June 15, the community of Lake Country came out to help raise funds for Easter Seals Camp Winfield

PHOTOS: Vernon Community Music School hosts “Hootenanny Hoedown”

The music school hosted their annual year-end country fair on June 7

PHOTOS: Elusive ‘ghost whale’ surfaces near Campbell River

Ecotourism operator captures images of the rare white orca

RCMP Emergency Response team swarms Kelowna home

Water is flooding Highway 33 in Kelowna Monday afternoon

Victoria mom describes finding son ‘gone’ on first day of coroners inquest into overdose death

Resulting recommendations could change handling of youth records amidst the overdose crisis

Dash-cam video in trial of accused cop killer shows man with a gun

Footage is shown at trial of Oscar Arfmann, charged with killing Const. John Davidson of Abbotsford

Suicide confirmed in case of B.C. father who’d been missing for months

2018 disappearance sparked massive search for Ben Kilmer

Eight U.S. senators write to John Horgan over B.C. mining pollution

The dispute stems from Teck Resources’ coal mines in B.C.’s Elk Valley

Restrictive policies affecting labour mobility for care aides in B.C.

‘I had to take two competency exams and pay over $1,400,’ said an Okanagan care aide

Threats charge against Surrey’s Jaspal Atwal stayed

Atwal, 64, was at centre of controversy in 2018 over his attendance at prime minister’s reception in India

Emerging artists given chance at Shuswap’s Roots Blues Festival

Chosen participants can perform two 40-minute sets on the Wednesday or Thursday night, and more.

Most Read