Dynamic Quant is a global tactical asset allocation strategy with a meaningful quantitative component. Dynamic Quant will appeal to advisors and clients who are willing to assume manager and strategy risk in an effort to reduce portfolio volatility.
Dynamic Quant is a wealth manager’s quantitative solution. Many advisors are aware that some clients are attracted to a more quantitative investment solution. And as fiduciaries, these advisors are also aware that some quantitative strategies have performed very well right up until the moment they did not. Dynamic Quant satisfies the interest of clients who prefer a more quantitative approach and also the interest of the advisor who wants to hedge against the possibility that one day the quantitative strategy could perform poorly. Dynamic Quant employs a core satellite structure with its proven Dynamic Prime strategy in the core portfolio (62.5%) and a US rules-based quantitative strategy in the satellite portfolio (37.5%).
Dynamic Quant offers only one risk model. The tactical nature of both the core portfolio and the satellite portfolio allows the mix to be quite different in a bull or bear posture. In a neutral posture, it will own 75% equities and 25% fixed income. A bearish posture will see 19% equities and 81% fixed income while a bullish posture will see 87.5% equities and 12.5% fixed income.