Dynamic Planner, the UK’s leading risk based financial planning system, is now risk rating L&G’s Future World Global Opportunities Fund.

Managed by Colin Reedie, the award-winning L&G Future World Global Opportunities Fund is ranked No1 in its sector – IA Mixed Investment 20-60% Shares for its five-year performance. The fund follows a robust risk budgeting approach in portfolio construction and adopts an inherent conservative risk management culture. The fund invests in a wide range of assets, including equites and bonds, which meet Legal & General Investment Management long term sustainable investment criteria, based on environmental, social and governance factors.

On the independent and propriety 19 year Dynamic Planner Asset Risk Model the L&G Future World Global Opportunities Fund is a Risk Profile 5.

Yasmina Siadatan, Chief Revenue Officer, Dynamic Planner said: “L&G Future World Opportunities Fund is award-winning, with an interesting investment remit which incorporates L&G’s Climate Impact Pledge. Currently topping its sector for five year performance, we are pleased to be working closely with L&G to help match the fund to suitable investors through Dynamic Planner.

“There are now over 40 L&G solutions risk profiled with Dynamic Planner, meaning we take data direct from L&G to accurately risk assess the underlying holdings, institutional level research which is then available within the software to all our clients and their end investors through reports. We are delighted to welcome another L&G fund and further broaden out the choice of investment solutions and funds for our clients.”

Colin Reedie, Fund Manager and Head of Active Strategies, Legal & General Investment Management said: “We are living through remarkable times, both geopolitically and in financial markets. This creates prime investment opportunities that we have designed the L&G Global Ops fund to target. Our success is born out of a distinctive structure and process, underpinned by shrewd individual contributions to the team effort.”

Read to find more information about the fund on: https://fundcentres.lgim.com/en/uk/private-investors/fund-centre/Unit-Trust/Future-World-Sustainable-Opportunities-Fund/

Dynamic Planner, the UK’s leading risk based financial planning system, has made the first of several new key hires into its Customer Success and Marketing teams to continue to accelerate its growth and scale further.

Three new team members have joined: Will Dunwell, as Marketing Director to lead the Marketing team with more than 20 years of experience in scaling SaaS businesses to draw on; James O’Gara as Customer Success Director, with an extensive background in delivering positive outcomes for customers, joins having spent the past five years at Morningstar; and Neil Andrews, who joins as Customer Success Manager following eight years at Intelliflo, has spent 25 years in financial services and financial services technology.

The Customer Success Team will ensure a customer centric approach and build on trusted partnerships to ensure clients and their customers are achieving their goals – a critical driver of the success of Dynamic Planner. The Marketing Team will focus on executing growth campaigns, brand awareness and driving digital transformation.

Yasmina Siadatan, Chief Revenue Officer, Dynamic Planner said: “Dynamic Planner is now used by 40% of UK advice professionals and has risk profiled more than 2 million investors. We are proud to have built a market leading award-winning product which our clients tell us has been integral to meeting the demands of Consumer Duty.

“Our ambition is to continue to drive innovation in the UK financial planning market, and these new appointments will give us the firepower to make it happen. It’s an incredibly exciting time at Dynamic Planner and we are delighted to have James, Will and Neil on board. With their background and experience they will be a formidable addition to the team, ensuring that we have a strong customer-centric approach to our growth, that we fully understand our clients’ goals and that we communicate and listen in a meaningful way.”

Dynamic Planner, the UK’s leading risk based financial planning system, has added Omba’s Managed Portfolio Service (MPS) to its growing range of over 900 model portfolio solutions.

Omba MPS is aimed at advisers and designed to provide transparent, cost-effective and tax-efficient access to global and multi-asset managed portfolios. It consists of three ranges of investment options: Core, ESG and UK, with a total of eight portfolios all now risk profiled on Dynamic Planner.

The Omba MPS portfolios added to Dynamic Planner are:

Yasmina Siadatan, Chief Revenue Officer, Dynamic Planner said: “Model portfolios have seen significant growth in recent times driven by technology adoption and the increasing regulatory burden on advisers, whether MiFID2 or Consumer Duty.

“As a result we are working with an ever increasing number of MPS providers to ensure we deliver the full choice to our clients and theirs, with MPS solutions risk profiled on Dynamic Planner now totalling over 900. We welcome Omba’s Managed Portfolio Service in bringing advice firms even more choice when it comes to risk profiled MPS on Dynamic Planner.”

Co-Founder Mark Perchtold, Omba said: “We are excited to announce Dynamic Planner has risk profiled our Managed Portfolio Service (MPS). Since our inception in 2017, we have specialised in ETFs and our independence is what sets us apart.

“We believe having our MPS risk profiled on Dynamic Planner will provide enhanced choice to the UK adviser market as they strive to meet the dynamic and evolving needs of their client base.”

To find out more about Omba’s Model Portfolio Services, visit their website here

Dynamic Planner, the UK’s leading risk based financial planning system, has added a new level of granularity to researching and reviewing the performance of DFM model portfolios.

As part of Dynamic Planner’s continued expansion of its in Research capability, past performance for over 900 DFM MPS solutions currently risk profiled has been added and Dynamic Planner’s DFM MPS Report Service has launched. This in-depth reporting will be specifically focused on ensuring advice firms are fully equipped to deliver good outcomes for clients under Consumer Duty requirements, demonstrating the value received for the risks being taken when using model portfolios.

The DFM MPS Report Service will provide an extensive level of insight powered by Dynamic Planner’s 72-asset class risk model and the collection of full underlying funds holdings with performance data sourced directly from the portfolio manager. Calculations are referenced against a set of fully regulated multi-asset benchmarks, provided by MSCI, alongside the appropriate risk-adjusted peer group comparators in Dynamic Planner.

Chris Jones, Chief Proposition Officer, Dynamic Planner said: “Having launched our Single Strategy Mapped service earlier this year, we continue to evolve our research capabilities so that advisers have everything they need in one end to end journey. Adding past performance for DFM MPS and our new reporting service is the latest phase of this and will equip advice firms with deeper dive research, aiding target market selection and enabling them to really get under the bonnet of these solutions for client suitability. Any questions regarding structure, fees and other characteristics will be easily answered, and all within Dynamic Planner.

“Our asset risk model, and relationship with MSCI put us in a unique position to provide advice firms with the granular level of data needed to ensure they are fully equipped to deliver good outcomes for their clients, clearly demonstrating the value received for the risks being taken using model portfolios.”

The in-depth research considers key risk/reward characteristics, calibrated on both a forward and historic basis, alongside trend analysis of key ESG metrics of underlying fund holdings from over 67,000 mutual funds and ETFs via an API service. Traditional performance calculations are also complemented with more detailed financial ratios and rolling risk/reward metrics, based on a relative risk-adjusted peer basis for added target market relevance. All key facts on the underlying MPS fund charges, management fees, re-balancing frequency, investment objectives and approach are included, directly sourced from the portfolio managers.

Dynamic Planner also uniquely provides historical trend analysis of ESG risks for MPS solutions rather than just considering the latest snapshot of data. These reports are updated quarterly and downloadable from Dynamic Planner’s Research Hub.

By Ben Goss

Back in the late 1990s, I left my job to found an internet startup. I remember the sense of possibility at that time, the expectation that everything would change. And, 25 years on, so it has proved.

From banking to buying car insurance to planning a holiday, we do everything online, and increasingly on our mobiles. The pace of change has been unprecedented. New digital technologies such as mobile, AI and personalised content have the power to transform your business. Not tomorrow but today.

At Dynamic Planner, we’re focused on harnessing their full potential to scale your success. In the advice industry, we have our own megatrends. Consumer Duty requires ongoing servicing to be delivered to customers in return for ongoing fees. Capital is being invested at unprecedented levels and demand for advice is outstripping supply.

A two-year development. A 20-year dream

According to the FCA, 4 million people received advice in 2022, but 10 million could have benefited from it. We know from our research and conversations with you that you’re bullish about the opportunities. But we also know that there are some material challenges that stand in the way of your ability to create the capacity in your business that makes profitable growth possible.

Heavyweight engagement models that rely on formal ‘advice episodes’, with their accompanying compliance overhead, suck up time for advisers and clients alike. So, at Dynamic Planner we asked ourselves, what if we could change these for you? What if we could remove the blockers and create more capacity for you digitally?

Our latest innovation at Dynamic Planner is designed to help you scale your success with engaging financial planning that is valued by the client, and that is less work for your firm, not more.

We’ve been working on this development for the last two years, but it’s something we’ve dreamt about for 20: the idea of helping you put a financial plan in the palm of the client’s hand.

Your new app by Dynamic Planner

We want to help you enhance your digital provision in a Consumer Duty world and demonstrate the ongoing value of your services. We want to enable you to engage clients via a meaningful digital experience. And we want to create capacity in the advice process, to drive the productivity gains you’re looking for.

We’ve built the digital future of financial planning, Tram, your new app powered by Dynamic Planner.

It’s a clean canvas your business can white label and enables your clients to check that their financial plans are on track. It is somewhere they can feel reassured, supported, and special. They can read regular content which is targeted to them. And they can securely message you.

First thoughts from advisers and clients

During early trials of Tram, what have businesses like yours said? Here’s one adviser: “We’ve been really, really impressed. The app itself is aesthetically pleasing and has a premium feel. And the content is a real USP and sets it apart. It adds to our proposition and provides the client with a great experience.”

Consumers themselves, who have been granted early access, have said of Tram: “Clear, crisp, and simple. My information being available was seamless and easy to get to the point where I could get started. The biometric login was very helpful. Having access to the app means I don’t need to speak to my adviser as often. I can see myself checking this on a weekly basis.”

Exciting, to say the least.

I feel the same possibility now that I did back in the late 1990s. Technology is transforming financial advice and there is so much we can achieve. We look forward to working with you in the year ahead to help you maximise the value of Dynamic Planner, to your business and to your clients. I feel confident that together we can scale your success.

Tram, your new app by Dynamic Planner. Register your interest and as nears launch later this year, we’ll keep you on track with its progress.

The Dynamic Planner Investment Committee (IC) met on Tuesday 23 January, coincidentally called ‘Super Tuesday’ in the US state of New Hampshire, where the race for the White House began with primary elections for the Republican party nomination. In fact, elections are expected to cover around 60% of world GDP over the course of 2024, so plenty for investors to ponder should there be promises of unfunded tax cuts, more protectionism or increased fiscal profligacy. But no doubt the ‘re-match’ in the US will be the centre of global attention.

As the impact of higher energy and food prices has subsided, and supply chains for globally traded goods have normalised, headline rates of inflation have fallen significantly over the course of 2023, but remain much higher than Central Bank targets.

The IC reflected on the still high embedded inflation expectations and the current market fixation about what the US Fed plans to do next with interest rates (following its pause announcement in November). Premature expectations of early and deeper cuts have propelled the S&P 500 to record highs, whilst earnings growth, retail sales and industrial production levels have remained flat at best.

The global economy looks set to slow in 2024, as fiscal policy starts to drag on growth and higher interest rates weigh on household and business activity, with excess savings built up during the pandemic largely spent. By stripping away the impact of the massive fiscal stimulus measures, the likelihood was that the US economy has been in intermittent periods of recession during 2023.

The US and Global government bond yield curves remain inverted, and interest rate normalization is required as high non-transitory inflation expectations persist. With slow growth, lower tax revenue, eye-wateringly high government debt and fiscal deficits, and Central Banks unwinding their balance sheets with QT, there will be a rising supply of bond issuance at a time of declining investor sentiment / demand. Hence the curve is expected to steepen at the longer end, resulting in negative real bond returns into the foreseeable future. The risk of greater economic volatility and a potential global government debt crisis persists, despite recent market optimism.

The IC discussed the potential of AI (particularly generative AI tech) on productivity and employment, with echoes of a potential ‘dot.AI’ bubble, given the 25% concentration of the US stock market in the ‘Magnificent 7’ tech stocks. As AI will help drive robotics and accelerate onshoring, the implications of a diminishing competitive advantage for China and emerging markets were noted.

There were no changes made to this quarter’s capital market assumptions, which follows a consistent process of long-term analysis. In preparation for the annual strategic allocation review later in the year, the IC reviewed ongoing analysis of additional asset classes / risk factors to be potentially included in the model. It continues to ensure that the markets and instruments being used by our asset management clients are accurately represented in Dynamic Planner.

Read the full Q1 2024 analysis from the Dynamic Planner Investment Committee.

Dynamic Planner’s Investment Committee (IC) met on Monday 24 July with the main task of reviewing the inputs and outcomes from the optimisation process for setting the 2023/24 strategic benchmark asset allocations.

The IC discussed the anticipation of a ‘return to normal’ for financial markets as yield curves should normalize to an upward slope given higher inflation expectations. The US Federal Reserve’s next rate move and its ‘higher for longer’ policy mantra are predicated on high and sticky inflation.

Inflation may have fallen from its peak, but not enough for the Fed to officially pause rate hikes, given its official 2% inflation target. It is unlikely to pivot and cut rates meaningfully within the next two years. However, whilst unstated, a significant slowdown in economic activity or renewed regional banking problems would also get the Fed to take action. On the subject of US banks, the crisis has ebbed since March, but the dangers haven’t gone away.

The dual prospects of slowing global economic and negative earnings growth for the coming quarters raises the risk of ‘intermittent’ rather than ‘deep’ recession. Rising interest rates, unrelenting fiscal deficits and high government debt, reversing QE holdings and high levels of market leverage, due to LDI strategies however, increases the risk of currency and bond market volatility.

Conversely, China, the world’s second-largest economy, officially slipped into deflation for the first time in two years as consumer prices fell 0.3 per cent. Prices had already flatlined for much of 2023, bucking the global inflationary cycle. The property market debt overhang also continues to cast an ongoing shadow over any resurgent growth hopes in China.

UK gilt yields have spiked again in response to unexpectedly strong inflation and labour market numbers. The persistent underlying strength of core inflation suggests the UK is fundamentally diverging from Europe and the US. The recent interest rate rises have had a negligible impact on demand or the housing market (so far), but the economy is teetering on recession whilst unemployment remains lower than expected at this stage of the economic cycle and strong wage inflation (and industrial action) persists. Market expectations are for interest rates to be ‘higher for longer’ in the UK than elsewhere.

The IC approved the Capital Market Assumptions for Q3 2023 which signalled significantly large increases for fixed income volatility (around 10 bps), relative to previous quarters.

Expected returns for fixed income were increased given the recent rise in bond yields. There were also increases for equity return expectations (but to a lesser extent), with the exception of the UK, where they have been lowered.

Read full, Q3 2023 analysis from the Dynamic Planner Investment Committee.

Dynamic Planner, the UK’s leading risk based financial planning system, has partnered with M&G Wealth to launch bulk valuation integration.

The partnership underlines Dynamic Planner’s commitment to expanding its ecosystem of integrated partners so that advice firms can enjoy the full benefits of integration, and at a critical point, when everything is about to be seen through the lens of Consumer Duty

The integration will effectively speed up the advice process for advisers selecting funds and other investment options via the M&G Wealth platform. It avoids both the need to rekey and risk of miscalibration, and in line with Consumer Duty, provides the adviser with a more accurate, direct from provider data flow.

Yasmina Siadatan, Sales & Marketing Director at Dynamic Planner said: “We welcome our new partnership with M&G Wealth. Advice firms face a difficult time over the coming months as they work hard to get ready for new regulation. We see our job as helping make this transition period easier. Direct from provider data flows are critical for both speed and accuracy, but also a key consideration for Consumer Duty. We are committed to continually broadening and deepening our ecosystem of integrated partners for the benefit of all our clients and look forward to working with M&G Wealth and our mutual customers over the coming months and years.”

Rich Denning, CEO M&G Wealth Platform said: “Consumer Duty is without doubt so important for our industry and we want to be at the forefront of adviser support in every aspect. This integration and our ongoing partnership with Dynamic Planner will help our mutual clients clearly identify and deliver value to their customers whilst assisting them in achieving the outcomes they require.”

Dynamic Planner, the UK’s leading risk-based wealth planning and financial advice system, is set to launch a Financial Wellbeing Questionnaire on Friday 16th June. It has been designed to enable advisers to identify vulnerability characteristics in line with Consumer Duty.

Its development and creation has been led by Dynamic Planner’s Head of Psychology and Behavioural Insights, Dr Louis Williams, in collaboration with Dynamic Planner’s fund research team and academics from Henley Business School, part of the University of Reading.

The launch forms part of Dynamic Planner’s long-term commitment to helping investors better understand their financial situation and is an integral addition to Dynamic Planner’s suite of investor profiling questionnaires. Advice firms can now assess a client’s risk appetite, sustainability preferences and vulnerability characteristics in one place.

Aligned with key questions and the algorithm of the FCA’s Financial Lives Survey completed by 22,000 people, Dynamic Planner’s Financial Wellbeing Questionnaire has been rigorously tested with over 1,000 UK investors, providing the means to understand a client’s individual differences and needs. Incorporating all elements to support the four key drivers of vulnerability as set out by the FCA, it meets the requirements of Consumer Duty to identify vulnerabilities and those who are susceptible to harm, so that appropriate support can be provided.

Louis Williams, Head of Psychology & Behavioural Insights at Dynamic Planner said: “With the first deadline for Consumer Duty imminent, the launch of our Financial Wellbeing Questionnaire powers the identification of vulnerabilities with technology, enabling financial advisers to assess individual clients across four key areas: health, life events, resilience, and capability.

“Aligned with the FCA’s Financial Lives Survey and designed in collaboration with academics from Henley Business School, it provides advisers with a solution to the call to action set out by Consumer Duty to assess a client’s vulnerability characteristics.

“We are committed to supporting advice firms in helping their clients better understand their financial situation and choose investments that are suitable to fund the life they want. The Financial Wellbeing Questionnaire is another example of us delivering on that commitment.”

Financial advisers using the Financial Wellbeing Questionnaire with their clients will receive a report for their Consumer Duty record which highlights areas of vulnerability. The report includes insights and tips to help with life’s challenges to share with the client and aims to encourage higher levels of resilience so that a client’s level of financial self-efficacy and wellbeing increase.

Using Dynamic Planner’s Financial Wellbeing Questionnaire with Clients

Financial wellbeing results indicating the level of vulnerability for each of the four drivers

Not a Dynamic Planner user? Schedule a free no-obligation demo with a business consultant and experience the full functionality of Dynamic Planner.

The Dynamic Planner Investment Committee met on Thursday 27 April and reflected on the wider financial sector frailties following the fall-out of the Silicon Valley and First Republic Bank collapses in the US. In Europe, the dramatic loss of confidence in Credit Suisse led to a deposit run-off at digitally enabled speed and a wipe-out of its statutory capital reserves, held in specialist bonds called Contingent Convertibles or ‘Cocos’.

These events are symptomatic of the sharp increase in interest rates, shrinking central bank balance sheets and the receding tide of global liquidity that had flooded the financial system for much of the past decade. For those financial institutions that have relied too much on cheap liquidity, by taking on too much leverage and aggressively mismatching their balance sheets, times will be challenging given their magnified exposure to bond duration risk.

Should confidence in the banking system weaken further, this could result in contagion risks in other financial markets, particularly the leveraged pension funds. However, it was acknowledged that the major global banks are more robust than in the lead-up to the 2008 financial crisis, with global regulators requiring much greater capital and liquidity buffers. Despite the financial challenges faced from higher interest rates, growth has been more resilient than expected. Aided by a decline in energy prices, with a mild winter in the northern hemisphere helping reduce demand for natural gas, growth appears to have picked up in early 2023. Alongside the rapid reopening of the Chinese economy following the lifting of Covid restrictions, global growth has been more resilient than expected this year.

The IC also discussed the stickiness of underlying inflation being higher than expected at this stage of the economic cycle, indicating a broad-based ability for companies to both pass on higher input costs and maintain, or even expand, margins.

Read Q2 2023 analysis from Dynamic Planner’s Investment Committee.