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In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures
 

To our readers
Everything in the newsletter pertains to strategies available on our Strategic Solutions platform at Trust Company of America. The same strategies are implemented on many other products: mutual funds, variable annuity, variable life and retirement platforms. Therefore, we expect the strategic discussion may be of interest to you. Note, however, that since these products have their own subaccount and fund universes and different internal expenses, the results and trading of the same strategy on other platforms may differ substantially from those described herein.



Managed Retirement Plan Participants:

Most of you are managed using Lifetime Evolution and our sub-advised funds, so those topics will be most applicable to your account. But, more and more of you are in plans using Market Leaders. If so, that newsletter section may interest you.


 
  July 21, 2014        
  In my opinion
by Jerry Wagner
 

Are you looking but not seeing?

Five stock market factors you may have missed


She jumped off the couch and made a mad dash for the window. Immediately, she started that frenzied mix of barking and whining that meant she saw something. She leaped into the air and executed a half twist. And then did it again. She had to get outside and take on the intruder.

I walked to the door. Peering out as far as the wetlands, I saw nothing moving. I looked across the lake to the opposite shore – still nothing. I turned to the still excited dog and said, “I’m looking, but I’m not seeing.”

That’s often the problem, isn’t it? We can look right at something and not see it if we are distracted. There’s a famous film of a basketball practice that students are often asked to watch. Before the movie starts, the instructor asks the students to count the number of passes made by the team in white. The class watches and reports on the results of the inquiry. The instructor then asks, “Did you see anything else?” Invariably the answer is a lot of head shaking and a chorus of “no’s”. “Watch it again”, he says. This time they all see it - the woman with the umbrella walking right across the basketball court. It was so obvious, but about half the observers miss it.

Here’s the original black and white version done in the 1970’s by the father of Cognitive Psychology, Ulric Neisser.

Try the modern (2004) version in color, popularized by two Harvard psychologists, Christopher Chabris and Daniel Simons, with a man in a gorilla suit: (it’s at the bottom of the page and has a twist at the end).

Of course, this inability to see what is right in front of us happens every day to some of us. Just ask my wife when I can’t find my keys sitting on top of the dresser.

I feel this is just what is happening with most investors and the stock market at the present time. We’re in the midst of a historic bull market and yet most people are easily distracted and missing it entirely. Certainly it was easy to be distracted last week. First we had the Federal Reserve Report and Fed Chair Janet Yellen’s testimony to the House and Senate committees concerning the market being “substantially stretched” by the stock performance of smaller firms in the Biotech and social media fields, then the loss of the second Malaysian airliner, followed by the Israeli incursion into the Gaza Strip. Each event caused its own reaction. Yet while the reactions were negative (including our first greater-than-1% daily down move in more than three months), the stock market finished the week higher than it began.

The latter two events were first horrifying then discouraging, and all were replays of historic events that shook the market in the past as well (the 80’s downing of the Korean flight and what seems like a never-ending series of crises in the Middle East stretching back to the forties). The statement generally attributed to Yellen, but actually only mentioned in the Federal Reserve Report, was reminiscent of Fed Chairman Greenspan’s “irrational exuberance” remark. While his 1996 observation ultimately proved prescient, it took four years for his fears to be realized. I think the Fed’s cautioning could also prove premature this time around.


Source: Bespoke Investment Group

In any event, it is “easy to see” why many investors could be diverted from the big picture in the stock market when so much negativity was raining down upon them in terms of newspaper headlines and TV news “exclusives.” Yet the facts are that we are in the middle of a five-year bull market that has seen the value of the S&P 500 soar over 100%, set new all-time highs after all-time highs, and even after last week’s news events finds itself within striking distance of the 2000 mark.

To avoid the distractions we try to focus here each week on a few salient factors: earnings, interest rates, volatility, economic reports, seasonality, sentiment, and market trend. In the short and intermediate terms, very little else matters to the underlying direction of stock prices. At the present time most, but not all, of these suggest higher stock prices to come.

Earnings reports for the second quarter are still in the early stages but pile on this week as one-third of the S&P 500 stocks and half of the 30 Dow Jones Industrial stocks check in with new intelligence. We started earnings reporting this year with a rare occurrence – analysts were making more positive revisions than negative heading into reporting season. So far, in light preliminary reporting, the analyst trend to the positive side has continued, as more than 60% of reporting companies have surprised to the upside. As has been the case throughout this five-year market rally, this is very positive, and if it continues could provide the basis for further stock price increases in the near future.

Interest rates had a very volatile week. First, economic reports and the Federal Reserve report drove rates higher, then as the Ukrainian tragedy and the Gaza turmoil unfolded, the flight to quality that always follows these crises ensued, driving rates lower. Lower rates are bullish for the market, and even with the spike in rates early in the week, yields were lower by week’s end.


Source: Bespoke Investment Group

While many worry that the recent low volatility being experienced by stock market indexes is the prelude to a market correction, we find that if one focuses on the level of volatility in the short term – defined as 20 to 30 market days – as we do with our Targeted Volatility Analysis (TVA) applied with our VAN and TVA Gold strategies, low volatility can persist, and it is usually good for the market involved. Even with a bit of a spike last week, both stock and gold volatility remain historically low (as is the volatility of bonds, the dollar and oil, by the way).

Economic reports are one of the main negatives currently. For a month now they have been tending more to disappointing than being positive. Last week was no exception – of the eighteen reports, only five were better than economists had expected.

Similarly, our measure of seasonality, our Political Seasonality Index, is in the negative camp as it topped out on the 18th and heads lower until bottoming on the 8th.

Investor sentiment seems to be neither “substantially stretched” nor exhibiting the “irrational exuberance” characteristic of market tops. Rather, bullish sentiment in the weekly AAII investor poll is closer to a low point than a high, and bearish sentiment, while at the lower end of the scale, jumped sharply last week.

When you combine these six factors with the strong upward trend in stocks, particularly the large cap variety and the breadth of the large cap indexes, five out of the seven factors that we focus on are now pointing higher. This suggests higher stock market prices ahead.

Of course, it is always possible that while I think I’m watching the man in the gorilla suit, maybe the factors we are watching are really the basketball players. Or maybe this time the events of the day are the true invisible gorilla. Because everyone has a different perspective when it comes to seeing the forest for the trees, we use disciplined strategies to watch over our accounts. Our computerized methodologies are trained to both look …and see.

All the best,

Jerry


     
  About Jerry Wagner
CEO for Flexible Plan Investments, Ltd. (FPI), Jerry Wagner is a leader in the active investment management industry. Since 1981, Flexible Plan Investments has focused on preserving and growing capital through a robust active investment approach combined with risk management. Headquartered in Michigan, FPI offers a wide array of strategies and services that help financial advisors build their business and retain clients. More importantly, FPI helps thousands of clients achieve their long-term financial goals.
 
     


Disclosures


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures
 
  July 21, 2014      
Top of page
  What's happening at Flexible Plan

George Yang, Ph.D., CFA, to speak at International Conference

Later this week, Senior Portfolio Manager Dr. George Yang will present a working paper titled “Optimal Probabilistic Market Timing using Bull Bear Cycle Statistics” at the 2014 China Finance Review International Conference in Shanghai, China. The paper, co-authored with Flexible Plan President Jerry Wagner, demonstrates how probabilistic market timing based on bull and bear market cycle statistics can be effective in managing risk in US and international investments. Dr. Yang’s work using theoretical formulation and detailed quantitative analysis is one of many approaches utilized at Flexible Plan to manage client accounts.


Trust Company of America Streamlines Account Applications

In a positive move to simplify their account opening process, TCA has consolidated their new account applications and reduced the number down to two!

  • The Client Application (requiring a Social Security Number) handles: Individual, Joint, Custodial, IRA, Roth IRA, Beneficiary IRA, Beneficiary Roth IRA, SEP IRA, SARSEP, Simple IRA and Legal.
  • The Entity Application (requiring a Tax Identification Number) opens: Trusts, Company, S & C Corporations, Exempt, Solo(k) and Solo(k) Roth, Partnerships, Qualified Retirement Plans.

Financial Advisors should look for these new forms on TCA’s website beginning today (July 14, 2014). Old forms will only be accepted for 90 days, so begin using the new forms immediately to avoid delays.


2nd Quarter Statements

2nd quarter account summaries, OnTarget statements, and Quarterly President’s Letter are now available. Clients who have elected to receive electronic delivery of our correspondence to you can login to ontargetinvesting.com to retrieve these quarterly reports. If you haven’t received your statement or need assistance, please contact Client Services at 800-347-3539 x 1 to set up e-delivery.


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures


 
  July 21, 2014      
Top of page
  Last week in the market

Household sentiment dips

July’s preliminary University of Michigan consumer sentiment index came in at 81.3, missing expectations (economists surveyed by Briefing.com forecast an 84.0 reading). The index was down 1.2 points from its final June mark.3

% Change Y-T-D 1-Yr Chg 5-Yr Avg 10-Yr Avg
DJIA
+3.16
+9.98
+21.98

+6.94

NASDAQ
+6.12
+22.73
+30.48
+13.53
S&P 500
+7.03
+17.10
+25.00
+7.97
Real Yield 6/13 Rate 1-Yr Ago 5-Yrs Ago 10-Yrs Ago
10Yr TIPS Yd
0.26%
0.38%
1.81%
1.96%

  YTD - June
DJIA
+1.51%
NASDAQ
+5.54%
S&P 500
+6.05%

Sources: USATODAY.com, bigcharts.com, treasury.gov - 7/18/146,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.



Stocks advance, even with anxieties

The crash of Malaysia Airlines Flight 17 in Ukraine, a ground offensive by Israel into Gaza: these headlines gave investors pause, but M&A action and earnings reports sent stocks higher for the week. Thursday, the CBOE VIX jumped 32% to settle at 14.54, yet the S&P 500 closed just 1.2% lower. The 5-day scorecard: DJIA, +0.92% to 17,100.18; S&P 500, +0.52% to 1,978.22; NASDAQ, +0.38% to 4,432.15.1,2,6



Retail sales, wholesale prices rise in June

Overall U.S. retail sales were up 0.2% last month; the gain was 0.4% with car buying factored out. The Commerce Department revised the May gain 0.2% higher to 0.5%. After retreating 0.2% in May, the headline Producer Price Index advanced 0.4% in June; the core PPI rose 0.2%. Annually, producer prices were up 1.9%.3,4



Fewer housing starts last month

The Census Bureau noted 9.3% less groundbreaking in June, plus a 4.2% retreat in building permits. Single-family starts dipped 9.0% to the slowest annualized pace since November 2012.5



Citations

1 - blogs.wsj.com/moneybeat/2014/07/18/about-that-big-vix-spike/ [7/18/14]
2 - google.com/finance?q=INDEXSP%3A.INX&ei=44bJU-jFFer8igLgzYGgAg [7/18/14]
3 - briefing.com/investor/calendars/economic/2014/07/14-18 [7/18/14]
4 - investing.com/economic-calendar/ [7/18/14]
5 - reuters.com/article/2014/07/17/us-housing-starts-idUSKBN0FM1FT20140717 [7/17/14]
6 - usatoday.com/money/markets/overview/ [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F18%2F13&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F18%2F13&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F18%2F13&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F10%2F09&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%10F2%2F09&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F10%2F09&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F19%2F04&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F19%2F04&x=0&y=0 [7/18/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F19%2F04&x=0&y=0 [7/18/14]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/18/14]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/18/14]


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Gold

Coming soon: a new alternative financial system



“The five BRICS countries have reached a broad consensus on their $100 billion development bank though some differences remain, the Chinese Vice Foreign Minister Li Baodong said on Monday ahead of a summit in Brazil next week to be attended by President Xi Jinping.

The new bank will symbolize the growing influence of emerging economies in the global financial architecture long dominated by the United States and Europe through the International Monetary Fund and the World Bank.” Voice of Russia, 7/7/14

As anticipated, leaders of Brazil, Russia, India, China and South Africa announced the formation of the New Development Bank, based in Shanghai, and a series of currency agreements (“Contingent Reserve Arrangement”), new counterparts to the World Bank and IMF, respectively.

This development is part of an ongoing pattern by many countries, especially China, to move away from the US Dollar as the world’s reserve currency. “China is entering into more and more major deals with other countries to settle trades in yuans, instead of dollars. This includes the European Union (the world’s largest economy).” Washington's Blog, 10/23/13

With the strengthening of the monetary status of the BRICS countries and the potential loss of the global influence of the US Dollar, we believe there will be higher prices for gold.

Loss of Reserve Currency Status → Lower Dollar → Higher Gold

  Hedged Gold Bullion
Top of page

Hedged Gold Bullion lost 1.32% last week. The 25% hedge in the ProFunds Inverse Precious Metals Fund (SPPSX, +0.54%) helped offset losses from the 65% weighting in The Gold Bullion Strategy Fund (QGLDX, -2.16%).


  TVA Gold
Top of page

TVA Gold was down 1.31% for the week, while The Gold Bullion Strategy Fund (QGLDX) was down 2.16% for the same period. The strategy began the week 60% long, changing to 80% long on Monday’s close as volatility in the gold market had somewhat pulled back. The movement downward was concentrated nearly entirely in a move of more than -2% on Monday. The metal gained slightly on Thursday in response to global political turmoil, but sold off a bit from that gain on Friday to end down for the week.

Disclosures

     
  TVA Gold trades The Gold Bullion Strategy Fund (QGLDX) using Flexible Plan’s proprietary Targeted Volatility Analysis (TVA). TVA uses the precious metal’s past volatility to position the account in a portfolio divided between the gold bullion fund and a money market or bond mutual fund. The objective of the strategy is to allow participation in a portion of the returns of gold while targeting a lower level of risk. The advantage of this is the opportunity to create a return stream equivalent to that experienced with equities but at less risk than either gold or the S&P 500 Index has historically yielded.  
     

  The Gold Bullion Strategy Fund
Top of page

Over the week, the gold spot price lost 2.08% while the US Dollar strengthened. The Gold Bullion Strategy Fund (QGLDX) lost 2.16% for the week. The difference was mostly due to QGLDX’s early close at 1:30PM (rather than 4:00PM). The prices of short-duration fixed income ETF holdings were lower on average over last week, while the COMEX Gold futures contracts lost 2.08%.

Disclosures


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Quantified Funds

US equity markets were up last week. The NASDAQ Composite gained 0.38%, the S&P 500 was up 0.54%, and the Dow Jones Industrial Average recorded a weekly gain of 0.92%. Seven of the ten S&P industrial sectors were up for the week. The move upward was led by Information Technology (1.55%), Financials (0.96%), Telecommunications (0.96%), and Energy (0.65%). Except for the Quantified Managed Bond Fund (QBDSX), which was down 0.39%, the Quantified Funds were up. The largest gain was in the Quantified All-Cap Equity Fund (QACFX, 0.29%), followed by the Quantified Alternative Investment Fund (QALTX, 0.28%), and then the Quantified Market Leaders Fund (QMLFX, 0.18%).

The Quantified All-Cap Equity Fund (QACFX) made slight changes last week, shifting its weightings in four leading stock baskets, which were at over 35% of the portfolio’s composition: “All-Cap- Margin” (15%), “CMPS- Double 10 Dividend and Growth” (11%), “All-Cap Kirkpatrick Bargain” (5%), and “All-Cap Earnings ” (4%). Among domestic sector distributions, Industrials and Financials led with portfolio allocations of 13% and 12%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of Skechers USA Inc. (SKX, 1.93%) and the common stock of Trinity Industries (TRN, 1.91%).

The cash level within the All-Cap Fund remained at 10% last week. The Fund’s daily pattern trading of S&P 500 futures started and ended the week 6% long. Our TVA-based futures hedge position was neutral throughout the week.

The Market Environment Indicator (MEI) remained bullish last week. With the adjustment in the Quantified Market Leaders Fund (QMLFX) since the beginning of June, equity asset class allocations remained the same from the prior week: Large-Cap Growth (12%), Large-Cap Value (12%), Mid-Cap Growth (12%), Mid-Cap Value (12%).

Total sector ETF weightings remained at 52% last week. Distribution of sector holdings and weights were as follows: Electronics (11%), Real Estate (13%), Energy Services (13%), Technology (2%), and Biotech (13%). The individual ETF positions with the leading portfolio weightings were the iShares Russell Midcap Value Index ETF (IWS, 7.5%), the Ultra Dow 30 ProShares ETF (DDM, 6.7%), ProShares Ultra Nasdaq Biotechnology ETF (BIB, 6.5%), and the Ultra Real Estate ProShares ETF (URE, 6.0%).

Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative sub-portfolio made no major changes.

Among the largest ETF positions there were a few changes: allocation to the First Trust ISE Water Index ETF (FIW, 2.25%) and the SPDR S&P International Utilities Sector ETF (IPU, 1.62%) decreased, while allocation to the Claymore S&P Global Water ETF (CGW, 2.74%) and the iShares S&P Global Utilities ETF (JXI, 2.04%) increased.

The cash level within the Fund decreased to 10.17% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation started and ended the week 3.0% long. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week 10.5% long, changed to 15% long on Tuesday’s close, 10.5% long on Wednesday’s close, 12% long on Thursday’s close, and 9% long on Friday’s close to begin this week.

The Quantified Managed Bond Fund’s (QBDSX) two leading broad-bond index ETF holdings, the Vanguard Total Bond Market ETF (BND, 0.09%) and the Peritus High Yield Bond ETF (HYLD, -0.92%), were mixed for the week.

The 10-year US Treasury yield decreased to 2.48% for the week. The Fund increased weightings in the iShares Barclays 20+ Year Treasury Bond ETF (TLT) from 6.5% to 8.8%, while decreasing allocations in the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) from 8.4% to 6.1%.

The 10% active portfolio exposure to 30-Year US Treasury Bond futures in the Fund started the week long, changed to short on Tuesday’s close, and long on Thursday’s close to begin this week. The position lost around 1.68%.

Fund (Inception) Symbol Qtr Ending 6/30/14 1 Year Ending 3/31/14 Since Inception Ending (7/18/14) Annual Expense Ratio
The Gold Bullion Strategy Fund (7/5/13) QGLDX 2.71% N/A 4.88% 1.55%
Quantified Managed Bond Fund (8/9/13) QBDSX 1.68% N/A 2.97% 1.68%
Quantified All-Cap Equity Fund (8/9/13) QACFX 0.99% N/A 4.26% 1.51%
Quantified Market Leaders Fund (8/9/13) QMLFX 4.62% N/A 11.72% 1.71%
Quantified Alternative Investment Fund (8/9/13) QALTX 2.34% N/A 11.19% 2.20%

The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate and an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted.  For current performance, please call 1-855-647-8268.

Risks associated with the Quantified Funds include active frequent trading risk, aggressive investment techniques, small and mid-cap companies risk, counter party risk, depository receipt risk, derivatives risk, equity securities risk, foreign securities risk, holding cash risk, limited history of operations risk, lower quality debt securities risk, non-diversification risk, investing in other investment companies (including ETFs) risk, shorting risk, asset backed securities risk, commodity risk, credit risk, interest risk, prepayment risk, and mortgage backed securities risk.  For detailed information relating to these risks, please see prospectus.

The principal risks of investing in The Gold Bullion Strategy Fund are Risks of the Sub-advisor’s Investment Strategy, Risks of Aggressive Investment Techniques, High Portfolio Turnover, Risk of Investing in Derivatives, Risks of Investing in ETFs, Risks of Investing in Other Investment Companies, Leverage Risk, Taxation Risk, Concentration Risk, Gold Risk, Wholly-owned Corporation Risk, Risk of Non-Diversification and interest rate risk. “Gold Risk” includes volatility, price fluctuations over short periods, risks associated with global monetary, economic, social and political conditions and developments, currency devaluation and revaluation and restrictions, trading and transactional restrictions.

An investor should consider the investment objectives, risks, charges and expenses of each Quantified Fund and The Gold Bullion Strategy Fund before investing. This and other information can be found in the Funds’ prospectus, which can be obtained by calling 1-855-647-8268. The prospectus should be read carefully prior to investing in The Quantified Funds or The Gold Bullion Strategy Fund.

There is no guarantee that any of the Quantified Funds or The Gold Bullion Strategy Fund will achieve their investment objectives.

Disclosures

     
  For more information on the Quantified Funds, sub-advised by Flexible Plan Investments, Ltd., please review the prospectus and fund performance.

Current or historical holdings of the funds
 
     


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Diversified Bonds

Diversified Bonds fell 0.52% last week, as only two of its seven portfolio components gained. Managed Income Aggressive gained the most, placing it near the top of all Strategic Solutions gainers for the week.

Strategy Weekly returns YTD - June returns Allocation
Diversified Bond Portfolio -0.52% 2.00%  
Government Bond Trading* -3.20% 3.54% 12%
Strategic High Yield Bond -0.67% 3.33% 21%
Systematic Long/Short Bond Trading -1.07% -12.23% 6%
Global Maturities 0.24% 3.36% 21%
Managed Income -0.23% 3.68% 21%
Managed Income Aggressive 1.89% 5.05% 5%
Managed Income - 100% SAF -0.44% 2.44% 14%

*Start date March 11, 2014

  Strategic High Yield Bond
Top of page

Strategic High Yield Bond continued to hold its 100% invested position in a high-yield bond fund, falling 0.67% for the week.

Disclosures
     
  Diversified Bonds implements strategic diversification within the broad fixed income asset classes, ranging from domestic to global debt, and from government to high yield bonds. It is a blend of six actively managed fixed income strategies maintained and monitored by Flexible Plan Investments, each of which follows a rules-based discipline designed to best manage interest rate and other fixed income asset class market conditions utilizing no load index mutual funds. The Diversified Bonds portfolio seeks out allocations in the leading fixed income strategies that, when combined, seek to yield the highest return with a low level of targeted drawdown typical of a conservative portfolio. More information  
     


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Diversified Tactical Equity

Diversified Tactical Equity advanced 0.48% last week, as six of its ten component strategies gained. Self-adjusting Trend Following and Volatility Adjusted NASDAQ gained top honors as the NASDAQ 100 Index showed relative strength as compared to other well-known indexes.

Strategy Weekly returns YTD - June returns Allocation
Diversified Tactical Equity 0.48% 1.44%  
Classic -0.19% 3.43% 7%
Contrarian S&P Trading -0.05% 0.55% 11%
Gold Equities Trading -0.05% -0.78% 12%
Market Leaders Dynamic Aggressive -0.06% 4.46% 10%
Political Seasonality Index 0.89% 0.84% 6%
S&P Tactical Patterns 0.27% -0.21% 12%
Self-adjusting Trend Following 1.67% 2.47% 11%
Systematic Advantage 0.60% 6.60% 10%
Third Day Tactical Blend 0.15% -6.02% 12%
Volatility Adjusted NASDAQ 1.50% 5.55% 11%


Disclosures

     
  Diversified Tactical Equity implements strategic diversification within a selection of actively managed tactical strategies maintained and monitored by Flexible Plan Investments. Each of the strategies follows a rules-based discipline designed to best manage equity index and other asset class risk under various market conditions, utilizing no load index mutual funds. The Diversified Tactical Equity portfolio seeks to allocate within the leading tactical strategies that, when combined, seek to maximize return while reducing drawdown below a target level suitable for a growth-oriented investor. Each quarter the weightings among the eight component strategies will be reviewed and may be adjusted in accordance with Flexible Plan's proprietary technology. More information  
     
 
  Classic Update
Top of page

Classic fell 0.19% last week, as three four of its positions gained. All Classic accounts remained fully invested last week.

  Political and Seasonal Tendencies
Top of page

Political Seasonality Index gained 0.89% last week. It held its 50% position in a 2X-leveraged Dow Jones Industrial Average-based fund until Friday’s close, when it moved to cash.

PSI Chart

  S&P Tactical Patterns
Top of page

S&P Tactical Patterns gained 0.27% last week. The strategy had a 60% long exposure to the S&P 500 Index throughout last week.


Disclosures

     
  S&P Tactical Patterns seeks out daily patterns in the S&P 500 Index price direction. Markets reflect human emotions. Investors adopt patterns of behavior in response to those emotions. S&P Tactical Patterns seeks out high probability, repeatable patterns in the S&P 500 Index to identify periods to buy, use leverage, or go short (or inverse) to the market. More information  
     


  Self-adjusting Trend Following
Top of page

It was a much more volatile week. The NASDAQ 100 climbed to 14-year highs Monday and Wednesday, plunged on the news of Russian involvement in the downed Malaysian airliner and Israel's ground offensive, and then staged a massive comeback Friday to close at a third-high for the week and its best level YTD. The index advanced 0.9% when the dust settled, pushing STF up 1.67%.

Oh, by the way, there were earnings reported last week.

Google – Reported earnings that missed expectations while revenue topped Wall Street estimates on Thursday. Shares rallied in extended-hours trading.

EBay – Earnings edged past expectations while revenue fell slightly short of expectations on Wednesday. Shares rose decisively after initially fluctuating in extended-hours trading.

Yahoo! – Posted quarterly earnings and revenue that missed Wall Street expectations on Tuesday and also handed in current-quarter sales guidance that fell short of estimates. But shares still poked higher in extended-hours trading after the firm said it won't have to sell as much of its Alibaba stake.

Intel – Shares rallied after the firm reported quarterly earnings and revenue that beat analysts' expectations on Tuesday, citing stronger-than-expected demand for corporate PCs. However, SanDisk's cautious guidance overshadowed its above-consensus results and its shares fell.

Apple did not release earnings, but an announcement that it’s building apps for the iOS platform along with IBM initially sent shares higher at the thought of all of those iProducts penetrating corporate America in a more integrated manner.

This week more of the same – IOS platform, Russia, Gaza, and earnings – will probably all be blamed for market performance, but we will get to enjoy it at 2X.

 
  Third Day Tactical
Top of page

Third Day Tactical Blend gained 0.15% and Third Day Tactical Blend Balanced gained 0.09% last week. The model directed a 1.3X position for Wednesday, and a 1X position for Thursday and Friday. On Friday, we moved to 100% cash.


Weekly returns YTD - June returns
Third Day Tactical Blend 0.15% -6.02%
Third Day Tactical Blend Balanced 0.09% -4.88%
  Volatility Adjusted NASDAQ
Top of page

Volatility Adjusted NASDAQ was up 1.50% for the week, while the NASDAQ 100 was up 0.90%. VAN was 1.4X long for the majority of the week, changing to 1.6X long for Friday, then pulled back to 1.2X long at Friday’s close to begin this week in response to an increase in equity market volatility that was largely motivated by political unrest in eastern Europe. VAN, however, participated more strongly in Friday’s recovery than throughout the rest of the week, leading to stronger performance than average leverage for the week would suggest.


Disclosures

     
  Volatility Adjusted NASDAQ evaluates the current short-term volatility risk in the NASDAQ 100 Index relative to its long-term historical average on a daily basis. Equity markets do best during periods of low volatility, while most declines are presaged by higher volatility. The VAN strategy takes advantage of this relationship. In addition, it utilizes the market trend to seek to avoid missed opportunities and market declines not detected in advance by measures of volatility. More information  
     


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Dynamic Fund Profiles

All of the DFP suitability profiles continued the re-sampled efficiency portfolio allocations in place since early May, and over last week, all profiles declined. The underlying sub-advised funds were mixed over the week: the Quantified Market Leaders (QMLFX +0.18%), All-Cap Equity (QACFX, +0.29%) and Alternative Investment Funds (QALTX, +0.28%) gained, while the Quantified Managed Bond Fund (QBDSX, -0.39%) and The Gold Bullion Strategy Fund (QGLDX, -2.16%) had losses.

Dynamic Fund Profiles (DFP) Allocation May – August 2014

  Quantified Market Leaders Fund (QMLFX) Quantified All-Cap Equity Fund (QACFX) Quantified Managed Bond Fund (QBDSX) Quantified Alternative Investment Fund (QALTX) The Gold Bullion Strategy Fund (QGLDX)
DFP Conservative 13.99% 21.79% 28.17% 26.43% 9.62%
DFP Moderate 21.24% 23.51% 23.16% 22.46% 9.63%
DFP Balanced 24.27% 24.93% 16.61% 24.55% 9.64%
DFP Growth 26.87% 26.57% 10.24% 26.65% 9.67%
DFP Aggressive 29.17% 28.39% 4.02% 28.75% 9.67%

Dynamic Fund Profiles (DFP) Recent Net-of-Fee Performance:

 

Weekly Return
(7/11-7/18/2014)

YTD-June returns
Dynamic Fund Profiles Aggressive -0.07% 2.54%
Dynamic Fund Profiles Growth -0.10% 2.58%
Dynamic Fund Profiles Balanced -0.14% 2.88%
Dynamic Fund Profiles Moderate -0.18% 3.25%
Dynamic Fund Profiles Conservative -0.21% 3.71%


Disclosures

     
  Dynamic Fund Profiles uses the latest in asset allocation technology – Resampled Efficiency. A patented process, Resampled Efficiency seeks to overcome deficiencies in traditional optimization, namely the assumption that each asset class will return exactly what history has shown. It builds uncertainty into its analysis resulting in increased diversification. More information  
     

In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Faith Focused Investing

The Faith Focused Investing portfolios were mixed for the week, with four out of five portfolios up. Fixed income positions helped performance during the week. There were changes to the portfolios last week, and all portfolios were fully invested according to their risk profile.

For last week, the Faith Focused Investing portfolios returned:

Faith Focused Investing portfolios
Weekly returns YTD - June returns
Faith Focused Investing Aggressive 0.39% 1.39%
Faith Focused Investing Growth 0.26% 1.52%
Faith Focused Investing Balanced 0.17% 1.59%
Faith Focused Investing Moderate 0.10% 1.63%
Faith Focused Investing Conservative -0.03% 1.79%

Disclosures
     
  Faith Focused Investing is based on the same investment management techniques that have, since 1998, approximated the S&P 500 Index in total return with less risk in our For A Better World strategy. Flexible Plan ranks the performance of the available funds on an ongoing basis, regularly screening and rotating the funds in each client's portfolio to keep them invested in the top ranked, qualifying funds. For more information go to: http://www.faithfocusedinvesting.com  
     

In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Fusion

This past week the portfolio performance ranged from 0.67% to -0.29% from the more aggressive to the more conservative end of the performance spectrum. Performance was largely driven by allocations to 2X NASDAQ 100 and 2X emerging markets funds. Allocation to gold, inverse emerging markets, and Russell 2000 funds weighed on performance.

Volatility continues to hover near historic lows. In this low volatility investment environment, Fusion is likely to select enhanced beta (leveraged) funds in order to achieve the targeted return and risk profile at every level. This is a deliberate intent to live up to the performance expectations of clients given the drawdown limitations each client has provided us in their suitability questionnaire responses. Adjustments are made to 50% of the asset class and strategy allocations within each Fusion portfolio each week for accounts custodied at Trust Company of America. This makes the Fusion portfolios at all risk profile levels more sensitive to changes in direction, volatility, and correlation of markets. In addition, the individual strategies may make position changes at any time.

Fusion portfolios Weekly returns YTD - June returns
Fusion Aggressive 0.67% -0.54%
Fusion Growth 0.62% -1.30%
Fusion Balanced 0.39% -1.40%
Fusion Enhanced Income 0.19% -1.80%
Fusion Moderate 0.14% -1.78%
Fusion Conservative -0.24% -2.27%


  FUSION underlying allocations (TCA)
   
Allocations PDF  


  FUSION PRIME underlying allocations (TCA)
   
Allocations PDF  


Disclosures

     
  Fusion is our flagship core portfolio management approach which draws on the over 33 years of experience Flexible Plan has in researching and utilizing hundreds of different investment strategies and innovative risk management techniques. Fusion employs strategic diversification, a revolutionary way of measuring and managing risk, and incorporates an algorithm to evaluate and manage asset category correlation. All of these tools are used together to enhance performance and manage risk in a dynamic fashion so that portfolios can adapt to changing market conditions. For more information click here: http://www.flexibleplan.com/public/fusion-portfolio.aspx  
     

 


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Lifetime Evolution

The Lifetime Evolution portfolios were mixed for the week, with eight out of twelve portfolios up. The position gains were mixed, but The Gold Bullion Strategy Fund was the biggest laggard during the week, down over 2%. There were changes to the portfolios last week, and all portfolios were fully invested according to their risk profile.

Last week, the Lifetime Evolution profiles returned:

Lifetime Evolution profiles
Weekly returns YTD - June returns
Lifetime Evolution Aggressive 0.22% 0.18%
Lifetime Evolution Growth 0.15% 0.43%
Lifetime Evolution Balanced 0.10% 0.61%
Lifetime Evolution Moderate 0.07% 0.84%
Lifetime Evolution Conservative -0.10% 1.44%

Disclosures
     
  Lifetime Evolution, an exclusively price momentum based strategy that can move to a 100% cash position, has 12 suitability-based investor profiles and is available on most of our investment platforms, including Strategic Solutions. More information  
     


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Market Leaders

Short bouts of optimism and pessimism dominated the markets’ trading pattern last week. Optimism centered upon strong US corporate earnings for the majority of the week. But, tragic news of a civilian jetliner being shot down over Ukraine coupled with new fighting in the Gaza Strip on Thursday raised investors’ fears. The big dip came on Thursday, but with good earnings all week, investors chose to focus on that by week’s end.

With international tensions still in investors’ minds, leadership was in the less-volatile large caps while the more-volatile small stocks continued to be shunned: the large-cap benchmark (S&P 500) was up 0.5% with the Russell 2000 falling 0.7% for the week. Fortunately, Market Leaders was completely out of small caps at the start of the new month and quarter and entirely focused on large and mid-cap stocks.

The bad news was good news for bonds as they rallied 0.4%, almost recouping the prior week’s losses.

Rank
  Asset Class % change (7/11-7/18/14)  
#1   Mid-Cap Value (Strategic & Tactical) 0.3%  
#2   Large Value (Strategic & Tactical) 0.9%  
#3   Mid-Cap Growth (Strategic & Tactical) -0.1%  
#4   Large Growth (Strategic & Tactical) 0.2%  
    S&P 500 Index 0.5%  
    All Country World Index 0.6%  
    Aggregate Bond Index 0.1%  

SECTORS

It was a mixed week for the sectors, with two outperforming the benchmark S&P by almost 100%, one on pace with the market, and a volatile down week for another:

  • Electronics had market-like returns, gaining 0.5%.
  • Biotechnology continues to be volatile, gaining early in the week. But several negative comments from the head of the Federal Reserve created uncertainty and a sell off.
  • Political unrest and a growing economy pushed Energy Services prices up to almost twice the market’s returns for the week.
  • Real Estate was able to put two positive weeks together and outpaced the market two-fold.
Previous Leading Sectors % change (7/3-7/11/14)
Electronics -2.5%
Biotechnology -4.7%
Energy Services -2.9%
Real Estate 0.7%

Both risk management indicators, TVA (Targeted Volatility Analysis) and the MEI (Market Environment Indicator) remain bullish, and therefore all of the Market Leaders profiles remain fully invested and participating in the current rally.

Source: FastTrack, S&P 500 (sp-cp), Mid-Cap Value (IWS), Small-Cap Value (IWN), Small-Cap Growth (IWO), Large Value (IWD), Russell 2000 (RUT-I), Russell Mid Cap (RUM-I), Russell Large Cap (RUI-I), Aggregate Bond Index (AGG), Developed Countries (EFA), Mid-Cap Growth (IWP), All Country World Index (ACWI), Value Line Arithmetic Average (VLE-I), U.S. Ten Year Treasury Yield (US10) Electronics (RYSAX), Biotechnology (RYOAX), Energy Services (RYVAX), and Real Estate (RYREX)


Dynamic Weekly returns YTD - June returns
Market Leaders Dynamic Conservative 0.05% 4.87%
Market Leaders Dynamic Moderate 0.03% 4.74%
Market Leaders Dynamic Balanced 0.01% 4.59%
Market Leaders Dynamic Growth -0.01% 4.55%
Market Leaders Dynamic Aggressive -0.06% 4.46%
Strategic Weekly returns YTD - June returns
Market Leaders Strategic Aggressive 0.12% 3.21%
Market Leaders Strategic Growth 0.09% 1.97%
Market Leaders Strategic Balanced 0.07% 1.00%
Market Leaders Strategic Moderate 0.05% 0.51%
Market Leaders Strategic Conservative -0.08% 0.15%
Tactical Weekly returns YTD - June returns
Market Leaders Tactical Moderate 0.14% 4.83%
Market Leaders Tactical Balanced 0.14% 4.47%
Market Leaders Tactical Growth 0.14% 4.01%
Market Leaders Tactical Aggressive 0.11% 3.67%
Market Leaders Tactical Conservative 0.09% 5.38%

Disclosures
     
  Market Leaders invests only in the leading funds of the leading asset classes, based on historical price momentum. It is available in three versions: Strategic (with no market timing), Tactical (which can move up to 50% in cash during market corrections) and Dynamic (which, in addition to cash, can use short sales for defensive purposes.) Strategic and Tactical are available on most platforms, while Dynamic is restricted to platforms that offer Rydex, Direxion or ProFunds. For more information go to: http://www.ontargetinvesting.com/home/marketlead.aspx  
     


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Other Custodians

ETF

The Rotational No-Load, Rotational No-Load/SAF, and Market Leaders ETF portfolios posted extremely muted returns at Schwab this week. Returns ranged from 0.17% to -0.09% across all three strategies. The Rotational No-Load and No-Load/SAF portfolios were helped by their large-cap equity exposure, but this was mostly offset by poor returns in small caps. The Market Leaders ETF portfolios were generally helped by their equity exposure, but returns were offset by sizeable positions in the SPDR Wells Fargo Preferred Stock ETF.

ETF Market Leaders portfolios
Weekly returns YTD - June returns
ETF Market Leaders Aggressive 0.02% 0.92%
ETF Market Leaders Growth -0.01% -0.28%
ETF Market Leaders Balanced -0.03% -1.04%
ETF Market Leaders Moderate -0.06% -0.66%
ETF Market Leaders Conservative -0.09% -0.50%

Rotational No-Load ETF portfolios
Weekly returns YTD - June returns
Rotational No-Load ETF Aggressive 0.17% 2.30%
Rotational No-Load ETF Growth 0.16% 1.75%
Rotational No-Load ETF Balanced 0.15% 1.30%
Rotational No-Load ETF Moderate 0.11% 0.67%
Rotational No-Load ETF Conservative 0.04% 0.00%

Rotational No-Load ETF/SAF portfolios
Weekly returns YTD - June returns
Rotational No-Load ETF/SAF Aggressive 0.16% 3.02%
Rotational No-Load ETF/SAF Growth 0.14% 2.39%
Rotational No-Load ETF/SAF Balanced
0.14%
1.74%
Rotational No-Load ETF/SAF Moderate 0.10% 1.25%
Rotational No-Load ETF/SAF Conservative 0.00% 1.09%


Other Custodian Quantified Fund-Based

Market Leaders Strategic portfolios
Weekly returns YTD - June returns
Market Leaders Strategic Aggressive 0.13% 4.23%
Market Leaders Strategic Growth 0.10% 3.27%
Market Leaders Strategic Balanced 0.07% 2.26%
Market Leaders Strategic Moderate 0.04% 1.82%
Market Leaders Strategic Conservative -0.10% 2.31%

Market Leaders Strategic/Alternative SAF portfolios
Weekly returns YTD - June returns
Market Leaders Strategic/Alternative SAF Aggressive 0.16% 3.74%
Market Leaders Strategic/Alternative SAF Growth 0.13% 2.98%
Market Leaders Strategic/Alternative SAF Balanced 0.11% 2.16%
Market Leaders Strategic/Alternative SAF Moderate 0.08% 1.83%
Market Leaders Strategic/Alternative SAF Conservative -0.04% 2.21%

Dynamic Fund Profiles portfolios
Weekly returns YTD - June returns
Dynamic Fund Profiles Aggressive -0.07% 2.54%
Dynamic Fund Profiles Growth -0.10% 2.58%
Dynamic Fund Profiles Balanced -0.14% 2.88%
Dynamic Fund Profiles Moderate -0.18% 3.25%
Dynamic Fund Profiles Conservative -0.21% 3.71%



Other Custodian Fusion/Fusion Prime Portfolios

Performance ranged from 0.82% to 0.12% to from the more aggressive to the more conservative portfolio allocations. This is well aligned with the risk profiles that were designed as part of Fusion. The better performance at the more aggressive end of the risk profile range was largely due to allocations to indexes and strategies that had positions in 2X NASDAQ 100 and 2X emerging markets funds. Weighing on performance were allocations to the Russell 2000 and gold.

While volatility persists near a multi-year low, Fusion is likely to select enhanced beta funds in order to achieve the targeted return and risk profile at every risk profile level. Monthly adjustments are made to asset class and strategy allocations within each Fusion portfolio. In addition, the individual strategies within each portfolio may make position changes at any time.

Fusion/Fusion Prime Portfolios
Weekly returns YTD - June returns
Fusion Aggressive 0.82% -0.97%
Fusion Growth 0.74% -2.60%
Fusion Balanced 0.52% -2.68%
Fusion Moderate 0.33% -1.84%
Fusion Conservative 0.12% -1.05%

  Underlying Allocations (Schwab)
   
Allocations PDF




Jefferson National Monument Advisors Fusion/Fusion Prime Portfolios


This past week portfolio performance ranged from 0.66% to -0.01% from the more aggressive to the more conservative portfolio allocations. The difference in performance between the conservative versus the aggressive end of the risk profile range was driven by exposure to equities. In particular, the more aggressive risk profiles tended to have larger allocations to strategies and indexes that allocated to 2X NASDAQ 100 and 2X S&P 500 funds. The more conservative strategies were adversely affected this week by their relatively larger allocation to gold.

Volatility is near a multi-year low. In this low volatility investment environment, Fusion is likely to select enhanced beta funds in order to achieve the targeted return and risk profile at every level. Periodic adjustments are made to asset class and strategy allocations within each Fusion portfolio. In addition, the individual strategies within each portfolio may make position changes at any time.

Below is a link to the Fusion allocations for the Fusion Jefferson National Monument Advisor portfolios.

Fusion/Fusion Prime Portfolios
Weekly returns YTD - June returns
Fusion Growth 0.66% 8.68%
Fusion Aggressive 0.54% 9.98%
Fusion Balanced 0.45% 7.08%
Fusion Moderate 0.16% 6.51%
Fusion Conservative -0.01% 4.92%

  Underlying Allocations (Jefferson National)
   
Allocations PDF




Nationwide marketFLEX Fusion/Fusion Prime Portfolios


This past week’s performance ranged from 0.30% to -0.71% from the more conservative to the more aggressive portfolio allocations. Performance was negatively impacted by allocations to gold and Russell 2000 funds. The more aggressive risk profiles had larger allocations to these two sectors, which performed poorly on the week.

Volatility remains near a multi-year low. In this low volatility investment environment, Fusion is likely to select enhanced beta funds in order to achieve the targeted return and risk profile at each level. Monthly adjustments are made to asset class and strategy allocations within each Fusion portfolio. In addition, the individual strategies within each portfolio may make position changes at any time.

Below is a link to the Fusion allocations for the Fusion Nationwide MarketFLEX portfolios.

Fusion/Fusion Prime Portfolios
Weekly returns YTD - June returns
Fusion Conservative 0.30% -1.04%
Fusion Moderate 0.22% 0.43%
Fusion Balanced -0.09% 1.02%
Fusion Growth -0.49% 0.88%
Fusion Aggressive -0.71% 3.65%

  Underlying Allocations (Nationwide)
   
Allocations PDF


Disclosures

     
  Flexible Plan Investments, Ltd. now offers managed account services for both PCRAs and individual accounts at our new custodian. For more information about our newest custodian contact our Sales Department at 800-347-3539 Ext. 2  
     


In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures


 
  July 21, 2014      
Top of page
  Select Alternatives

Select Alternatives returned 0.33% for the week. The strategy was helped the most by its holdings in the Prudential Global Real Estate Fund, the Catalyst Strategic Insider Fund, and the Diamond Hill-Focus Long-Short Fund.

Disclosures
     
  Select Alternatives combines the diversification and liquidity of alternative investments traditionally available only to hedge funds. Historically, these alternative asset classes have been non-correlated to the broad markets and seek to provide a portfolio both risk management and upside potential.  
     

In My Opinion
What's Happening at Flexible Plan
Last Week in the Market
Strategy Performance
Gold
Quantified Funds
Diversified Bonds
Diversified Tactical Equity
Dynamic Fund Profiles
Faith Focused Investing
Fusion
Lifetime Evolution
Market Leaders
Other Custodians
Select Alternatives
Strategic Solutions


Disclosures



 
  July 21, 2014      
Top of page
  Strategic Solutions

Last week the broad global market sectors were led higher by government bonds and global large-cap stocks. Given the low volatility environment we are in, headlines continue to have a large influence on short-term market behavior. The leading strategies last week were WP Aggressive (2.96%), Managed Income Aggressive (1.89%), and Self-adjusting Trend Following (1.67%). The lagging strategies were TVA Gold (-1.31%), Hedged Gold Bullion (-1.32%), and Government Bond Trading (-3.20%). This range of performance from various strategies and asset classes is among the many reasons Flexible Plan stresses the importance of strategic diversification in conjunction with active investment management.

  Weekly returns
WP Aggressive 2.96%
Managed Income Aggressive 1.89%
Self-adjusting Trend Following 1.67%
Volatility Adjusted NASDAQ 1.50%


Disclosures

     
  Drawing on dozens of different strategies, Strategic Solutions is available for taxable and tax-deferred accounts. Generally, one can combine different strategies in a single account allowing for strategic diversification, not just asset class diversification. Clients and their financial advisors can pick their own strategies ($5,000 per strategy), FPI will choose, monitor and reallocate strategies for you in FUSION ($25,000 minimum), or, for accounts over $100,000, FUSION Prime.  
     

Disclosures  

Past performance does not guarantee future results. The opportunity for profits carries with it the possibility of losses. A complete list of all of our recommendations over the last 12 months is available upon request. Evolution Asset Allocation rankings reflect only the price action of the funds in each family, rather than the indexes reported herein. Such rankings are shorter term and utilize diversification among different funds. Therefore, they may appear to conflict with the longer term, single asset readings of our market indicators. In fact, the differences merely reflect the contrasting objectives and time horizons of each. Index returns are provided for informational purposes only; they are not meant to be applied as benchmarks since the statistical risk and volatility of client portfolios may materially differ from the indexes displayed.

"Model Account" results for the identified investment management strategy(s) shown are time weighted geometrically linked returns.  Except where noted, statistics are taken from single strategy accounts and are representative of our largest mutual fund and variable annuity holdings. These returns reflect actual accounts and dates of Flexible Plan's buy and sell signals. If an account terminates during a period, an alternative single account is substituted. Selection of accounts to serve as "model accounts" is based on the longevity of the account and least number of additions and withdrawals. Accordingly, many of the single accounts serving as 'models' are titled in the name of Flexible Plan's President and controlling shareholder, a person related to Flexible Plan.

If single strategy account histories are unavailable, statistics applicable to such accounts are derived from the exchange history files of each strategy used. Actual buy-sell trading signals and pricing are used in conjunction with such files to create the applicable statistics for each model account. These exchange-history derived returns are believed representative of each strategy's actual results, but the results do not represent the actual experience of any client during the period. Therefore, these results may not reflect the impact that material economic and market factors might have had on the results. Nor do they reflect any problems of execution or pricing that may have been encountered in the actual implementation of the buy and sell signals shown in the exchange history files, the effect of which has not been determined, and may be indeterminable.

SUITABILITY PROFILES: For many strategies Adviser provides suitability based profiles with names such as, without limitation, Conservative, Moderate, Balanced, Growth and Aggressive or with numerical designations such as 25, 40, 60, 80, 100.  Clients should draw no conclusions from such titles.  Rather they are simply a way of designating the hierarchical ranking of Adviser's Profiles within a strategy.  They are not meant to imply any ranking within some universal risk measure or benchmark, nor are they equivalent to a Client's subjective concept of the term.

Enhancements have been made in our methodologies on numerous occasions, which are believed to have had a positive effect on returns. The amount is not precisely quantifiable, but as strategy actual buy and sell signals are used, to the extent described, the effect of these enhancements is reflected. Efforts to develop indicators are ongoing and may result in further changes. Dividends are reinvested.

Utilizing performance between selected dates may not be indicative of overall performance of a profile since the dates chosen by the operator of the program may have been selected to present optimum performance and may not be representative of investment performance of any profile during a different period. Inquiry for current results is always advised. Mutual fund or annuity results will vary based upon their volatility as they relate to the S&P 500 Index or other indices that may be shown.  Specific mutual funds, sub-accounts or indices may materially outperform or under perform these results. Various mutual funds or sub-accounts used in any model account may no longer be available due to the result of advisor's, sponsor's or fund advisor's periodic review, fund consolidations and/or exchange conditions imposed by the funds or annuity.

Reference to popular market indexes are included to demonstrate the market environment during the period shown and are not intended as "benchmarks" Index returns are after dividends. Since Index dividends are posted after the end of each month, they are retroactively prorated on a daily basis (which tends to understate returns if the end date range is inclusive of the current partial month). The investment program for the accounts included in the profiles includes trading and investment in securities in addition to those that may be included in the S&P 500. Such indexes may not be comparable to the identified investment strategies due to the differences between the indexes' and the strategies' objectives, diversification, represented industries, number and type of component investments, their volatility and the weight ascribed to them. No index is a directly tradable investment.

For all strategies, the maximum current management fee in effect is 2.6% annually. Fees are deducted quarterly, in arrears with pro-ration of partial periods. Strategic Solutions strategy(s) may include up to a 1.2% establishment fee at inception. All mutual fund fees and expenses are included to the extent they are reflected in net asset value; other fees may apply. If a front -end fund purchase is contemplated, any commission charged should be deducted. As individual tax rates vary, taxes have not been considered.

For the ETF Market Leaders Strategic Strategies, returns are presented net of approximate trading commissions of $860 annually (but prorated and applied quarterly) on a $150,000 account (minimum of $8.95 per trade with e-delivery of statements - see brochure for details). The trading commissions are the investor's responsibility.

Advisor retains the right to predicate certain of its strategies on trading signals furnished by non-affiliated firms. In each such instance, the non-affiliated firm is under contract to Adviser to provide, and in certain instances, implement all buy and sell directions for management of Client accounts in the associated Advisor strategies. And, as with all third parties, Flexible Plan by necessity relies on their information, data, and software provided, but whose reliability, while believed to be accurate, cannot be guaranteed and losses may result from reliance upon them. These are normal risks for which Flexible Plan takes no responsibility beyond use of reasonable care in its selection of the third party.

Advisors Preferred LLC ("AP"). Pursuant to a contract with AP, Flexible Plan Investments, acting in the capacity of a sub-adviser, provides investment advisory services for select equity, income, derivative and ETF Investments which Flexible Plan also may use in selected strategies regardless of the Investments described as being utilized elsewhere in this Brochure. If these Investments are used in Client's portfolio, since Adviser would receive a fee for its sub-adviser activities, Clients will receive a pro-rata credit on their billing. AP is a federally registered investment adviser and is the adviser of the Gold Bullion Strategy Fund, Gold Bullion Strategy Portfolio and the Quantified family of funds. Flexible Plan Investments, Ltd. serves as investment sub-adviser to The Gold Bullion Strategy Fund and the Quantified funds, distributed by Ceros Financial Services, Inc. (member FINRA). AP is the Funds' investment adviser and is a wholly-owned subsidiary of Ceros Financial Services, Inc. AP is compensated by the funds in its role as investment adviser to the funds on the basis of assets under management in the funds. You may obtain a Prospectus by calling Advisors Preferred LLC at (888) 572-8868 or writing Advisors Preferred, LLC 1445 Research Boulevard, Ste. 530, Rockville, MD 20850 or download the PDF from: www.goldbullionstrategyfund.com or www.quantifiedfunds.com.

An investor should consider the investment objectives, risks, charges and expenses of The Gold Bullion Strategy Fund before investing. This and other information can be found in the Fund's prospectus, which can be obtained by calling 1-855-650-7453. The prospectus should be read carefully prior to investing in The Gold Bullion Strategy Fund.

There is no guarantee that The Gold Bullion Strategy Fund will achieve its investment objectives.

Flexible Plan Investments, Ltd. serves as investment sub-advisor to The Gold Bullion Strategy Fund and the Quantified Funds, distributed by Ceros Financial Services, Inc. (member FINRA). Ceros Financial Services, Inc. and Flexible Plan Investments, Ltd. are not affiliated entities. Advisors Preferred, LLC is the Fund's investment adviser. Advisors Preferred, LLC is a wholly-owned subsidiary of Ceros Financial Services, Inc.

The principal risks of investing in The Gold Bullion Strategy Fund or the Quantified Funds are Risks of the Sub-advisor's Investment Strategy, Risks of Aggressive Investment Techniques, High Portfolio Turnover, Risk of Investing in Derivatives, Risks of Investing in ETFs, Risks of Investing in Other Investment Companies, Leverage Risk, Taxation Risk, Concentration Risk, Gold Risk, Wholly-owned Corporation Risk, Risk of Non-Diversification and interest rate risk. "Gold Risk" includes volatility, price fluctuations over short periods, risks associated with global monetary, economic, social and political conditions and developments, currency devaluation and revaluation and restrictions, trading and transactional restrictions.