Following the rapid economic bounce back from Covid lockdowns, the Investment Committee [IC] had become increasingly concerned about the impact of rising inflation expectations, taking hold at a time when the level of economic and geo-political uncertainty remains elevated.

This environment presents many challenges when constructing risk-adjusted asset allocation benchmarks, particularly given the sensitivity of bonds to rising interest rates and their heightened correlation to equities.

You can read more about Dynamic Planner’s Investment Committee meeting in July, when the annual asset allocation review was conducted.

As part of this process, there was lengthy and detailed discussion around the implications for each of the benchmarks, in the event of an inflation shock and resultant elevated episodes of market volatility.

The strategic changes, which will be live in Dynamic Planner from Friday 7 October 2022, expressed the following themes:

A reminder: on Thursday 20 October 2022, Dynamic Planner’s Chief Investment Strategist, Abhi Chatterjee will present an update on the performance of the asset allocation benchmarks and the wider market outlook. Register for the quarterly webinar.