Dynamic Aggressive Taxable Strategy Overview (Q2 2025)

By the Wealth Advisors at Paramount Associates Wealth Management

This Q2 2025 overview details the Dynamic Aggressive Taxable Strategy as managed by Paramount Associates Wealth Management of Greenwood Village, Colorado. The strategy is designed for investors seeking a globally diversified, aggressive asset allocation within a taxable investment structure, emphasizing long-term capital appreciation while incorporating disciplined risk management and tax awareness.

As a registered investment advisor located in Greenwood Village and serving the South Metro Denver region, Paramount Associates Wealth Management applies an evidence-based investment process grounded in economic modeling, global rankings, and momentum analysis to support comprehensive wealth management and portfolio strategy.

Strategy Objective and Investment Methodology

The Dynamic Aggressive Taxable Strategy seeks to provide global equity and bond exposure in alignment with Paramount Associates’ economic model and Investment Policy Statement guidelines. The strategy maintains flexibility across equities, fixed income, cash, and alternative investments, as well as across growth versus value styles, market capitalizations, and global regions.

Investment vehicles within the strategy may include individual stocks, exchange-traded funds, open-end mutual funds, interval funds, and private investment strategies. As with all aggressive investment strategies, portfolio values may fluctuate, and periods of underperformance relative to benchmarks may occur.

Market Environment and Q2 2025 Commentary

During the second quarter of 2025, markets reacted to newly introduced global tariffs that initially surprised investors and created short-term volatility. As markets digested the evolving trade environment, equity markets rebounded quickly. International markets outperformed U.S. equities, a trend supported by a weakening U.S. dollar.

Performance was not limited to public equities. Private investments, particularly infrastructure-focused allocations, contributed positively to portfolio results. Looking forward, market participants continue to monitor corporate earnings trends and Federal Reserve policy decisions as key drivers of market direction.

Asset Allocation and Portfolio Composition

As of June 30, 2025, the Dynamic Aggressive Taxable Strategy maintained a growth-oriented allocation. U.S. equities represented approximately 44% of the portfolio, while non-U.S. equities accounted for roughly 26%. Fixed income exposure remained limited at just over 1%, cash holdings were modest, and alternative investments comprised approximately 27% of total assets.

This allocation reflects an aggressive, tax-aware structure designed to capture global equity market growth while maintaining diversification across asset classes—an important consideration for taxable investors working with a Greenwood Village wealth management firm.

Sector Allocation and Equity Exposure

Sector diversification within the strategy emphasized technology as the largest allocation, reflecting its continued role in innovation, productivity, and earnings growth. Financial services and industrials also represented meaningful portions of the portfolio, supporting participation in economic expansion and capital investment cycles. Healthcare, communication services, consumer sectors, utilities, and basic materials provided additional diversification.

This broad sector exposure is intended to support long-term growth while managing concentration risk across global markets.

Regional Diversification and Global Reach

From a geographic standpoint, the strategy maintained significant exposure to the United States, representing just under 60% of assets. International exposure included developed and emerging markets across Europe, the United Kingdom, Latin America, Asia, Japan, and select emerging regions.

For clients of Paramount Associates Wealth Management in Greenwood Village, Centennial, Castle Pines, and surrounding South Metro Denver communities, this global positioning supports long-term portfolio resilience while reducing reliance on any single economy or region.

Performance and Risk Metrics

Since inception, the Dynamic Aggressive Taxable Strategy has delivered competitive long-term performance relative to its custom blended benchmark, composed of 92.5% MSCI World All Cap Index and 7.5% Bloomberg Global Aggregate Bond Index. Performance results are presented both gross and net of fees and emphasize consistency rather than short-term market timing.

Risk metrics—including a Sharpe Ratio of 1.25, Sortino Ratio of 2.45, beta of 0.73, and maximum drawdown of approximately -5.76%—highlight the strategy’s focus on risk-adjusted returns. Up-market and down-market capture ratios further demonstrate the portfolio’s ability to participate in rising markets while moderating downside exposure during periods of volatility.

Long-Term Tax-Aware Growth Perspective from Greenwood Village Wealth Advisors

For investors working with Paramount Associates Wealth Management of Greenwood Village, the Dynamic Aggressive Taxable Strategy represents a disciplined approach to global investing that integrates aggressive growth objectives with tax awareness and risk management. Rather than reacting to short-term market movements, the strategy emphasizes diversification, adaptability, and alignment with long-term financial planning goals.

As a Greenwood Village-based investment advisory firm serving South Metro Denver and surrounding Colorado communities, Paramount Associates Wealth Management remains focused on helping clients navigate complex global markets with clarity, structure, and an evidence-based investment process.