Dynamic Moderate Taxable Strategy Q2 2025: Portfolio Allocation, Risk Management, and Long-Term Tax-Aware Investing

Dynamic Moderate Taxable Strategy Overview (Q2 2025)

By the Wealth Advisors at Paramount Associates Wealth Management of Greenwood Village, Colorado

This Q2 2025 overview outlines the Dynamic Moderate Taxable Strategy as managed by Paramount Associates Wealth Management of Greenwood Village, Colorado. The strategy is designed for investors seeking a globally diversified moderate asset allocation within a taxable investment structure, incorporating equity, fixed income, cash, and alternative investments in alignment with Paramount’s economic model, global rankings, and momentum analysis.

As a registered investment advisor serving Greenwood Village and the broader South Metro Denver area, Paramount Associates Wealth Management focuses on tax-aware portfolio management, long-term financial planning, and disciplined risk management for individuals, families, and institutions.

Strategy Objective and Investment Framework

The Dynamic Moderate Taxable Strategy seeks to provide global equity and bond exposure while maintaining flexibility across asset classes, investment styles, market capitalizations, and geographic regions. Portfolio construction follows Investment Policy Statement guidelines and allows for dynamic adjustments among equities, fixed income, cash, and alternative investments as market conditions evolve.

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 periods of underperformance relative to benchmarks may occur.

Market Environment and Q2 2025 Commentary

During the second quarter of 2025, markets reacted to the introduction of new global tariffs, which initially created uncertainty across equity and fixed income markets. As investors absorbed the implications of shifting trade dynamics, markets rebounded quickly. International equities outperformed U.S. markets during the period, supported in part by a weakening U.S. dollar.

Performance gains were not limited to public equities. Private investments, particularly infrastructure-focused allocations, contributed positively to returns, reinforcing the role of alternatives within a diversified taxable portfolio. Looking ahead, markets continue to focus on corporate earnings trends and Federal Reserve policy decisions as key drivers of asset prices.

Asset Allocation and Portfolio Composition

As of June 30, 2025, the Dynamic Moderate Taxable Strategy maintained a balanced allocation across asset classes. U.S. equities represented approximately 34% of the portfolio, while non-U.S. equities accounted for roughly 20%. Fixed income exposure stood near 12%, cash holdings around 7%, and alternative investments comprised approximately 27% of total assets.

This diversified allocation structure reflects a deliberate approach to balancing growth potential, income generation, liquidity, and risk management—an important consideration for taxable investors working with a Greenwood Village wealth management firm.

Sector Exposure and Equity Positioning

Sector allocation within the strategy emphasizes diversification across major areas of the global economy. Technology represented the largest sector exposure, reflecting its ongoing role in productivity, innovation, and earnings growth. Financial services, industrials, healthcare, and consumer sectors also played meaningful roles in overall portfolio construction, with additional exposure to utilities, communication services, and basic materials.

This broad sector mix is designed to reduce reliance on any single industry while supporting long-term return objectives across varying economic environments.

Regional Diversification and Global Reach

From a geographic perspective, the strategy maintained significant exposure to the United States, complemented by allocations to developed and emerging international markets. Regional exposure included Europe, the United Kingdom, Asia, Latin America, and select emerging regions, providing global diversification beyond domestic markets.

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 investment resilience while managing concentration risk.

Performance and Risk Metrics

Since inception, the Dynamic Moderate Taxable Strategy has delivered competitive long-term performance relative to its custom blended benchmark, which consists of the MSCI World All Cap Index and the Bloomberg Global Aggregate Bond Index. Performance results are presented both gross and net of fees and reflect a focus on consistency rather than short-term market timing.

Risk metrics—including Sharpe Ratio, Sortino Ratio, beta, and maximum drawdown—indicate a portfolio designed to moderate volatility while maintaining participation in up markets. Lower beta and controlled drawdown figures reflect the strategy’s emphasis on managing downside risk within a taxable investment framework.

Long-Term Tax-Aware Portfolio Perspective

For investors working with Paramount Associates Wealth Management of Greenwood Village, the Dynamic Moderate Taxable Strategy represents a disciplined approach to global investing that integrates asset allocation, risk management, and tax considerations. Rather than reacting to short-term market events, the strategy emphasizes adaptability, diversification, 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 markets with clarity, consistency, and a long-term perspective grounded in evidence-based investment management.