IC Dynamic Asset Allocation  

The Investment Center has partnered with Horizon Investments to provide our advisors with an active management portfolio: IC Dynamic Asset Allocation.

How It Works:

All active portfolio management can be considered dynamic at its core. Investments are purchased and sold in varying increments and held for various periods of time.  However, no industry standard definition exists for what makes a portfolio labeled "dynamic" as opposed to "static".  We can best describe Dynamic Asset Allocation in comparison with Static Asset Allocation.  Static Asset Allocation is characterized by the assets it includes, the data that is used, and the frequency of the rebalancing. The typical static allocation is built using the long-run historical returns and correlations of the major asset classes (Equity, Debt, Cash, Real Estate, etc.) and is usually rebalanced annually. The process is straightforward and can be easily accomplished using various off the-shelf software packages. Once the portfolio allocation is built, no major changes are made unless the client's circumstances change. 

In contrast, Dynamic Asset Allocation is a more flexible approach to asset management. A dynamic portfolio incorporates all the same asset classes as static portfolios, but also includes sectors, alternative strategies, and other available investment options. The use of shorter-term (high-frequency) data is the second major difference. Quantitative analysis and qualitative research of daily returns are used to identify what investment options to overweight and underweight. The re-allocation process is also more frequent than a static model and often responds to the current business cycle or prevailing market trends. Overall, Dynamic Asset Allocation gives the manager the flexibility to focus assets and provide a more consistent risk-adjusted return.

Research, powered by Horizon Investments LLC:

Asset Allocation Modeling -The Horizon Management Committee screens the relevant universe of investment options to find the best active manager or passive index that meets the portfolio goals and current market environment and uses diversification to help control the volatility of the portfolio.

Signal Presentation to The Investment Center - Horizon will present the rebalancing instructions to The Investment Center.  The Investment Center will accordingly rebalance the accounts.

Available Portfolios:

Conservation Plus

Seeks current income over a market cycle. Suitable for investors with a low toleration for fluctuation in principle and who seek some independence from market volatility.

Conservative

Seeks modest growth and income over a market cycle. This diversified portfolio seeks to achieve its stated goal through capital preservation, consistent holdings in debt vehicles and majority participation in sustained periods of market growth.

Moderate

Seeks growth and income over a market cycle. This diversified portfolio seeks to achieve its goal through consistent holdings in debt and equity funds.

Growth

Seeks growth over a market cycle. This diversified portfolio seeks to achieve its stated goal through overweighting market leaders during sustained periods of market growth.

Focused

Capital Appreciation in any given market segment at any time. Can be positioned long, short, or neutral. Suitable for the aggressive investor.