Dynamic Moderate Strategy Q2 2025: Portfolio Allocation, Risk Metrics, and Global Positioning

Dynamic Moderate Strategy Overview (Q2 2025)

By the Wealth Advisors at Paramount Associates Wealth Management

This Q2 2025 overview outlines the Dynamic Moderate Strategy as managed by Paramount Associates Wealth Management of Greenwood Village, Colorado. Designed for investors seeking a globally diversified moderate asset allocation, the strategy reflects Paramount’s economic modeling, global rankings, and momentum analysis while maintaining flexibility across asset classes, market capitalizations, and geographic regions.

As a registered investment advisor serving Greenwood Village and the broader South Metro Denver area, Paramount Associates Wealth Management applies disciplined portfolio construction principles focused on long-term financial planning, risk management, and consistent investment execution.

Strategy Objective and Methodology

The Dynamic Moderate Strategy seeks to provide global equity and bond exposure aligned with Paramount Associates’ investment framework. The strategy allows for dynamic shifts among equities, fixed income, cash, and alternative investments in accordance with established Investment Policy Statement guidelines. This flexibility enables the portfolio to adapt to changing market conditions while maintaining a moderate risk profile suitable for investors focused on long-term wealth management.

Investments within the strategy may include individual stocks, exchange-traded funds, open-end mutual funds, and interval or private investment strategies. As with all investment strategies, assets may fluctuate in value, and there is potential for underperformance relative to benchmarks during certain market environments.

Market Environment and Q2 2025 Commentary

During the second quarter of 2025, markets responded to newly introduced global tariffs, which initially surprised investors. After digesting the changing trade dynamics, markets rebounded quickly. International equities outperformed U.S. markets during this period, 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 returns.

Looking forward, markets continue to monitor corporate earnings trends and Federal Reserve policy decisions, both of which remain critical drivers of global asset pricing and portfolio positioning.

Asset Allocation and Portfolio Structure

As of June 30, 2025, the Dynamic Moderate Strategy maintained a diversified allocation across asset classes. U.S. equities represented approximately 27% of the portfolio, complemented by non-U.S. equities at roughly 16%. Fixed income accounted for just over 16%, while cash holdings represented about 11%. Alternative investments comprised approximately 29% of total assets, reflecting a commitment to diversification beyond traditional stock and bond allocations.

This balanced structure is intended to support portfolio resilience across varying economic cycles, an important consideration for wealth management clients in Greenwood Village and surrounding Colorado communities.

Sector and Regional Exposure

Sector diversification within the strategy emphasizes technology, financial services, industrials, healthcare, and utilities, with additional exposure across consumer sectors and basic materials. Technology represented the largest sector allocation, reflecting its ongoing role in global economic growth and productivity.

From a regional perspective, the portfolio maintained significant exposure to the United States while also allocating capital across developed and emerging international markets, including Europe, the United Kingdom, Latin America, Asia, and select emerging regions. This global diversification supports long-term investment objectives while reducing reliance on any single economy or market.

Performance and Risk Metrics

Since inception, the Dynamic Moderate Strategy has delivered competitive long-term performance relative to its blended benchmark, which consists of the MSCI World All Cap Index and the Bloomberg Global Aggregate Bond Index. Performance metrics highlight the strategy’s focus on risk-adjusted returns rather than short-term market timing.

Key risk measures, including Sharpe Ratio, Sortino Ratio, beta, and maximum drawdown, indicate a portfolio designed to balance return potential with downside management. Lower beta and drawdown figures reflect a moderated response to broad market volatility, an important feature for investors prioritizing capital preservation alongside growth.

Long-Term Portfolio Perspective from Greenwood Village Wealth Advisors

For clients working with Paramount Associates Wealth Management of Greenwood Village, the Dynamic Moderate Strategy represents an approach grounded in disciplined asset allocation, global diversification, and evidence-based investment management. Rather than reacting to short-term headlines, the strategy emphasizes adaptability, risk awareness, and alignment with long-term financial planning goals.

As a Greenwood Village-based investment advisory firm serving South Metro Denver, Centennial, and nearby Colorado communities, Paramount Associates Wealth Management remains focused on helping investors navigate complex global markets with clarity, consistency, and a long-term perspective.