Dynamic Prime is a global tactical asset allocation strategy offering a more active approach to risk management. Dynamic Prime will appeal to advisors and clients who are willing to assume manager risk in an effort to reduce portfolio volatility.
Dynamic Prime adheres to the Modern Portfolio Theory principles of diversification and rebalancing but it seeks to improve risk management by taking into consideration the value characteristics of asset classes. Pinnacle believes that global markets offer a sufficient number of asset classes, geographies, sectors and industries to construct a diversified portfolio without owning asset classes with an unattractive risk-reward profile. By avoiding more vulnerable asset classes, this strategy may avoid the “pot holes” that can damage cumulative returns and increase portfolio volatility. Ken Solow, chairman of the Investment Committee, reviews this process in detail in his book Buy and Hold is Still Dead (Again).
Dynamic Prime offers five risk models from Conservative to Ultra Appreciation.