hotline

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.


 
  August 18, 2014        
  In my opinion
by Jerry Wagner
 

How could Little Stevie predict in 1973 where stocks were going to go today?


In 1973 Michigan-born Stevie Wonder released a single that climbed to the top of the R&B charts and hit number 3 on the rock and roll rankings. It began:

People keep on learnin’
Soldiers keep on warrin’
World keep on turnin’

Stevie’s words sum up the stock market action last week and its course over much of the current quarter. Once again the drums of war interrupted the stock market as it tried to recover ground lost in the first half of the quarter to Ukrainian, Gaza, and Iraqi war news.

In contrast, just prior to Stevie having put pen to paper to write his song, the United States had entered into a cease fire with the North Vietnamese, although bombing continued in Cambodia and America’s longest war would not end for many more months. And, of course, just months after the song’s release the fourth and largest Arab-Israeli conflict began when Egyptian and Syrian forces attacked Israel as Jews marked Yom Kippur, the holiest day in their calendar (Oct. 6).

The more things change the more they stay the same.

In 1973, the nation was, as it is today following 9/11, Iraq, and Afghanistan, weary of war. But while we yearn for peace, conflict continues to rear its ugly head. And the uncertainty conflict brings seems always to send the financial markets reeling.

Powers keep on lying
While your people keep on dyin’
World keeps on turnin’

Friday was no exception, as the market rallied in the morning on news of a lower-than-expected rise in producer prices (an indication of lower inflationary pressures). But then around noon, the news began to filter into the markets of a Ukrainian attack on a Russian armored convoy that had crossed into the Ukraine. With this happening on the back of a border confrontation with an unrequested convoy of 262 trucks carrying purported humanitarian aid from the same country that also had 45,000 troops stationed on that border, the stock markets around the world quickly tanked.


Source: Bespoke Investment Group


Source: Bespoke Investment Group

In maneuvering the markets I have always been known as a trend-follower. I try to stay in the market when the primary trend is moving higher and then seek safety when it turns lower. Of course, identifying the primary trend can be a challenge. But for more than a year (almost two years now) I have labeled it as “rising” and have been encouraged that whenever the market started to slip how quickly stocks have rallied and started higher again.

Teachers keep on teachin’
Preachers keep on preachin’
World keeps on turnin’


Source: Bespoke Investment Group

The greatest problem with trend following is, of course, losing your focus on the trend. This usually happens because of unexpected events. Headlines, as I have often written, can easily lead us astray and take us off track if we let them. It takes discipline to follow your plan in the face of such distractions.

Yet as we have seen once again this quarter, the trend usually does reassert itself until it is decisively broken. That did not happen earlier this month and it did not happen on Friday.

Lovers keep on lovin’
Believers keep on believin’
Sleepers just stop sleepin’

That’s not to say there are not plenty of things that could send this market lower and ultimately break the long-term uptrend of the stock market. Earnings reports in the just completed reporting period were only mildly bullish, more economic reports are disappointing than exceeding expectations, and seasonal trends turn down at month’s end. Add to that the Fed’s annual meeting this week in Jackson Hole and a weakening economy in Europe, and you have plenty of potential trend disruptors.

Yet, until those items and the negative headlines translate into lower prices that decisively break the uptrend line, I think we can depend on the stock market to seek the title to Stevie Wonder’s 1973 hit:

“Higher Ground”

Check out the 100-million record seller – Stevie Wonder singing his 1973 hit.

Not only were most stock indexes and our strategies higher last week, but today stocks are soaring.

Sing it Stevie…

All the best,

Jerry

PS: Check out my appearance on TheStreet.com last Friday, where I commented on the current crisis and the use of gold in a traditional flight to safety.


     
  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
 
  August 18, 2014      
Top of page
  What's happening at Flexible Plan

Announcing: New Guidelines for the Small Accounts Program at Trust Company of America and Schwab Institutional

With the increasing difficulty in servicing Small Accounts that are initiated and/or result in values under $5,000 due to insufficient transfers or systematic withdrawal programs; beginning August 25, 2014, the following changes will go into effect for new accounts under $25,000:

  • Only checks will be accepted to fund an account under $25,000.
  • Transfers will no longer be accepted to fund Small Accounts. Please request a check from the current custodian (payable to the successor custodian).
  • Flexible Plan will no longer monitor funding for Small Accounts; therefore, if the account has not funded after 60 days, the client will receive a non-management letter.
  • Systematic withdrawals will not be accepted on accounts under $25,000.
  • Small Account Set-Up fees still apply – 3% of the estimated investment amount, up to a maximum of $350.
  • Small Account balance minimums will be screened on a monthly basis. Accounts reduced below $5,000 due to client withdrawals will receive a termination notice.
  • To accommodate new account paperwork for Small Accounts currently in the processing queue, a short grace period will be granted.

After September 15th, if a transfer form is received, the advisor will be notified by email to request a check from the current custodian.



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


 
  August 18, 2014      
Top of page
  Last week in the market

Tensions increase in Ukraine, yet stocks rise

News of Ukrainian troops destroying Russian military vehicles sent Treasury yields down Friday but had little effect on the weekly performances of the Dow (+0.66% to 16,662.91), S&P 500 (+1.22% to 1,955.06) and Nasdaq (+2.15% to 4,464.93).4

% Change Y-T-D 1-Yr Chg 5-Yr Avg 10-Yr Avg
DJIA
+0.52
+10.26
+15.75

+6.74

NASDAQ
+6.90
+23.82
+24.97
+15.04
S&P 500
+5.77
+17.68
+18.94
+8.11
Real Yield 8/15 Rate 1-Yr Ago 5-Yrs Ago 10-Yrs Ago
10Yr TIPS Yd
0.16%
0.60%
1.85%
1.82%

  YTD-July returns
DJIA
-0.08%
NASDAQ
4.63%
S&P 500
4.45%

Sources: online.wsj.com, bigcharts.com, treasury.gov - 8/15/14 5,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.



Retail sales cool off in July

They were flat according to the Commerce Department, with core retail sales (excluding food, car, gasoline and home improvement purchases) up just 0.1%. Economists polled by Reuters believed overall retail sales would advance 0.2% last month. Is this a signal that Q3 growth won’t come near Q2 growth? It does reflect subdued consumer spending in the quarter’s first month.1



Yearly wholesale inflation continues to dip

The 12-month gain in the federal government’s Producer Price Index has gradually declined since the April reading, when it was measured at 2.1%. July brought a 0.1% increase in the headline PPI, but that still left the yearly gain at just 1.7%.2



Factory output jumps

Federal Reserve data showed a 1.0% increase in industrial output last month; July’s gain was the largest since February. July witnessed a 10.1% leap in auto production, the largest monthly improvement for that gauge in more than five years.3


Consumer sentiment moves south

The preliminary August reading on the Thomson Reuters/University of Michigan's consumer sentiment index was not good. The 79.2 mark was not only below the final 81.8 reading for July, it also represented a 9-month low.3



Citations

1 - tinyurl.com/nsnnqa5 [8/13/14]
2 - investing.com/economic-calendar/ [8/15/14]
3 - reuters.com/article/2014/08/15/us-usa-economy-prices-idUSKBN0GF11G20140815 [8/15/14]
4 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [8/15/14]
5 - markets.wsj.com/us [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F15%2F13&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F15%2F13&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F15%2F13&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F14%2F09&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F14%2F09&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F14%2F09&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F16%2F04&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F16%2F04&x=0&y=0 [8/15/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F16%2F04&x=0&y=0 [8/15/14]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/15/14]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/15/14]



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



 
  August 18, 2014      
Top of page
  Gold

New vocabulary word: “de-dollarization”

Recent events in the new “de-dollarization” movement: “Gazprom clients shift to Euros and the renminbi; the UK signs currency swap agreements with China; NATO-ally Turkey cuts ties and mulls de-dollarization; Switzerland jumps in the currency swap agreements; BRICS create their own non-US-based funding vehicle [detailed in a previous Hotline column]; Russia's oligarchs have shifted cash holdings to Hong Kong; Russian and Chinese central banks have agreed to a draft currency swap agreement, which will allow them to increase trade in domestic currencies and cut dependence on the US Dollar in bilateral payments.” – ZeroHedge.com

Notice the main player in many of these moves is China. Considering recent macro developments by China involving gold, we need to investigate further.

Loss of Reserve Currency Status ➤ Lower Dollar ➤ Higher Gold

  Hedged Gold Bullion
Top of page

Hedged Gold Bullion lost 0.37% last week. The 65% allocation in The Gold Bullion Strategy Fund (QGLDX, -0.37%) was responsible for the majority of the losses. The 25% hedging position in the ProFunds-Short Precious Metal Fund (SPPSX) from Tuesday (8/12) through Thursday (8/14) netted a small loss for the portfolio’s weekly return.

  TVA Gold
Top of page

TVA Gold was down 0.28%, while The Gold Bullion Strategy Fund (QGLDX) was down 0.38% for the same period, as a recent build-up in the metal’s price experienced a slight sell-off. The strategy was 60% long for the week as gold continued to have slightly higher than desired volatility.

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 last week, the gold spot price declined 0.37% as the US Dollar strengthened. The Gold Bullion Strategy Fund (QGLDX) lost 0.38% for the week. The small difference was due to QGLDX’s early close at 1:30PM (rather than 4:00PM). The prices of short-duration fixed income ETF holdings were nearly flat on average over last week, while the COMEX gold futures contracts lowered by 0.37%.

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



 
  August 18, 2014      
Top of page
  Quantified Funds

US equity markets were up last week. The NASDAQ Composite gained 2.15%, the S&P 500 was up 1.22%, and the Dow Jones Industrial Average recorded a weekly gain of 0.65%. Nine of the ten S&P industrial sectors were up for the week. The move upward was led by Health Care (2.32%), Information Technology (1.75%), Consumer Staples (1.41%), and Industrials (1.22%). All of the Quantified Funds were up last week. The Quantified Market Leaders Fund (QMLFX) was up 2.08%, the Quantified All-Cap Equity Fund (QACFX) gained 1.41%, the Quantified Managed Bond Fund (QBDSX) was up 0.49%, and the Quantified Alternative Investment Fund (QALTX) gained 1.51%.

The Quantified All-Cap Equity Fund (QACFX) made slight changes last week, shifting its weightings in four leading stock baskets, which were over 40% of the portfolio’s composition: “CMPS- Double 10 Value” (14%), “All-Cap- Margin” (13%), “All-Cap Earnings” (8%), and “CMPS- Double 10 Dividend and Growth” (7%). 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 PDL BioPharma, Inc. (PDLI, 2.04%) and the common stock of Skechers USA Inc. (SKX, 1.95%).

The cash level within the All-Cap Fund decreased to 13.47% last week. The Fund’s daily pattern trading of S&P 500 futures started the week 6% long, changed to 8% short on Thursday’s close, and 16% short on Friday’s close to begin this week. Our TVA-based futures hedge position began the week 5% short, changed to neutral on Tuesday’s close, and remained neutral for the rest of the week.

The Market Environment Indicator (MEI) remained bullish last week. With the adjustment in the Quantified Market Leaders Fund (QMLFX) at the beginning of June, equity asset class allocations were maintained through Friday: Emerging Markets (19.2%), Large-Cap Growth (4.8%), Large-Cap Value (14.4%), and Mid-Cap Value (9.6%).

Total sector ETF weightings remained at 52% last week. Distribution of sector holdings and weights were as follows: Electronics (13%), Real Estate (13%), Energy Services (13%), and Technology (13%).The individual ETF positions with the leading portfolio weightings were the iShares Dow Jones Technology ETF (IYW, 7.5%), the Ultra Dow 30 ProShares ETF (DDM, 6.7%), ProShares Ultra Real Estate ETF (URE, 6.0%), and the Direxion Emerging Markets Bull 3X ETF (EDC, 5.3%).

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

Among the largest ETF positions there were a few changes: allocations to the WisdomTree Managed Futures Strategy ETF (WDTI, 2.00%), the Claymore S&P Global Water ETF (CGW, 1.99%), the PowerShares Global Water ETF (PIO, 1.98%), and the WisdomTree International Real Estate ETF (DRW, 1.69%) increased.

The cash level within the Fund decreased to 18.58% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation started the week 3% long, changed to 3% short on Thursday’s close, and 6% short on Friday’s close to begin this week. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week 10.5% long, changed to 9% long on Tuesday’s close, and 13.5% long on Friday’s close to begin this week.

The Quantified Managed Bond Fund’s (QBDSX) two leading broad-bond index ETF holdings, the iShares Barclay’s 20+ Year Treasury Bond ETF (TLT, 1.90%) and the Vanguard Total Bond Market ETF (BND, 0.43%), were up for the week.

The 10-year US Treasury yield decreased to 2.34% for the week. The Fund increased weightings in the iShares Barclays 20+ Year Treasury Bond ETF (TLT) from 8.8% to 10.3% and in the SPRD Barclays Capital International Treasury Bond ETF (BWX) from 4.9% to 6.4%, while decreasing allocations in the iShares S&P National Muni Bond ETF (MUB) from 6.3% to 4.9% and in the PIMCO Total Return ETF (BOND) from 2.6% to 1.8%. Cash remained at 23%.

The 10% active portfolio exposure to 30-Year US Treasury Bond futures in the Fund started the week short, changed to long on Wednesday’s close, and short on Thursday’s close to begin this week. The position lost around 0.07%.

Fund (Inception) Symbol Qtr Ending 6/30/14 YTD Ending 7/31/14 1 Year Ending 7/31/14 Since Inception Ending (7/31/14) Annual Expense Ratio
The Gold Bullion Strategy Fund (7/5/13) QGLDX 2.71% 5.69% (3.58%) 2.31%s 1.66%
Quantified Managed Bond Fund (8/9/13) QBDSX 1.68% 2.63% N/A 2.47% 1.68%
Quantified All-Cap Equity Fund (8/9/13) QACFX 0.99% (3.13%) N/A 1.40% 1.51%
Quantified Market Leaders Fund (8/9/13) QMLFX 4.62% 1.43% N/A 7.87% 1.71%
Quantified Alternative Investment Fund (8/9/13) QALTX 2.34% 0.38% N/A 8.74% 2.20%

As of the most recent prospectus, the expense ratios for the Gold Bullion Strategy Fund are as follows: Investors’ Class (No Load), 1.66%; Class A, 1.66%; Class C, 2.41%. The maximum sales charge imposed on Class A share purchases (as percentage of offering price) is 5.75%. An additional 2% redemption fee applies to all share classes, including Investors’ Class, when shares are redeemed within 7 days of purchase.

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



 
  August 18, 2014      
Top of page
  Diversified Bonds

Diversified Bonds gained 0.15% last week, as four of its seven portfolio components gained. Global Maturities gained the most, followed by Managed Income.

Strategy Weekly returns YTD-July returns Allocation
Diversified Bond Portfolio 0.15% 0.59%  
Government Bond Trading* -0.16% 0.23% 12%
Strategic High Yield Bond -0.05% 1.18% 21%
Systematic Long/Short Bond Trading -2.09% -12.34% 6%
Global Maturities 0.60% 2.73% 21%
Managed Income 0.53% 2.61% 21%
Managed Income Aggressive 0.24% 3.96% 5%
Managed Income - 100% SAF 0.44% 1.11% 14%

*Start date March 11, 2014

  Strategic High Yield Bond
Top of page

Strategic High Yield Bond remained in cash last 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



 
  August 18, 2014      
Top of page
  Diversified Tactical Equity

Diversified Tactical Equity gained 1.49% last week, as nine of its ten component strategies gained. Self-adjusting Trend Following and Volatility Adjusted NASDAQ gained the most.

Strategy Weekly returns YTD-July returns Allocation
Diversified Tactical Equity 1.49% 1.02%  
Classic 1.12% -1.03% 7%
Contrarian S&P Trading -0.05% 0.35% 11%
Gold Equities Trading 0.48% -1.00% 12%
Market Leaders Dynamic Aggressive 1.64% 0.09% 10%
Political Seasonality Index 0.71% 2.28% 6%
S&P Tactical Patterns 0.70% -1.56% 12%
Self-adjusting Trend Following 5.09% 4.48% 11%
Systematic Advantage 1.19% 4.68% 10%
Third Day Tactical Blend 0.81% -4.36% 12%
Volatility Adjusted NASDAQ 3.10% 7.56% 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 gained 1.12% last week, as all four of its positions gained. Three of its holdings gained more than 1%. Classic’s DAAP implementation reduced its equity exposure to 20% at last Friday’s close. All other Classic accounts remain fully invested.

  Political and Seasonal Tendencies
Top of page

Political Seasonality Index remained in its 50% position in a 2X-leveraged Dow Jones Industrial Average-based fund all week, rising 0.71% last week.

PSI Chart

  S&P Tactical Patterns
Top of page

S&P Tactical Patterns gained 0.70% last week. The strategy had a 60% long exposure to the S&P 500 Index from Monday through Thursday, switched to an 80% short exposure at Thursday close for Friday, and increased to a 160% short exposure to the index on Friday’s close to start this 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

We saw a very strong advance last week as earnings season wraps up. The NASDAQ 100 jumped to a 2014 high and another multi-year high by Friday's close – the gain was just over 2.5%, moving STF up over 5%. This is the fifth week in 2014 where the index has gone up more than 2% – four of the five jumped more than 2.5%.

Earnings season for the NASDAQ 100 basically ends with Cisco reporting. Fortunately, they delivered good news in the net earnings and beat reduced expectations for revenue. Additionally, cost cutting measures seemed to be well received.

So, where to now? The trends are firming up as the market continues to recover from the swoon from a couple of weeks ago. STF will continue this week at 2X until something breaks, not just bends.


SELF-ADJUSTING TREND FOLLOWING (STF) INDEX

Listed below is the STF Index. The Index is calculated by the NYSE using the same rule set and tradable securities that are used in our STF managed account service. The Index is designed to track the STF portfolio management strategy offered by Flexible Plan Investments and does not represent any particular account or custodian. It is important to note that an index does not include management fees in its calculation. Despite any differences between the Index and managed accounts, the Index may be used as an indicator of how STF is likely performing.

  CNBC Yahoo! Bloomberg Morningstar Direct Intuit Quicken
Self-adjusting Trend Following FPSTF ^FPSTF FPSTF FPSTF FPSTF

 

 
  Third Day Tactical
Top of page

Third Day Tactical Blend gained 0.81% and Third Day Tactical Blend Balanced gained 0.59% last week. We entered the equity markets at Tuesday’s close on a short-term momentum indication, captured Wednesday’s gain, and remained in cash the rest of the week.


Weekly returns YTD-July returns
Third Day Tactical Blend 0.81% -4.36%
Third Day Tactical Blend Balanced 0.59% -3.72%
  Volatility Adjusted NASDAQ
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Volatility Adjusted NASDAQ was up 3.10% for the week, while the NASDAQ 100 was up 2.58% for the same period, rebounding off of the lows from a sell-off triggered by unrest in Eastern Europe. VAN was 1.4X long on Monday and Tuesday, but 1.2X long for the rest of the week. Last week the strategy performed very much in line with expectations when taking leverage into account.


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



 
  August 18, 2014      
Top of page
  Dynamic Fund Profiles

All of the DFP suitability profiles continued the re-sampled efficiency portfolio allocations from the prior week’s update. Over last week, all profiles rose over 1%. Except for a fractional loss in The Gold Bullion Strategy Fund (QGLDX, -0.37%), all other underlying sub-advised funds gained over the week, ranging from the Quantified Market Leaders Fund’s (QMLFX) 2.08% advance to the Quantified Managed Bond Fund’s (QBDSX) 0.49% weekly addition.

Dynamic Fund Profiles (DFP) Allocation August – November 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 11.47% 22.05% 28.77% 28.10% 9.61%
DFP Moderate 19.97% 22.62% 24.09% 23.72% 9.60%
DFP Balanced 23.31% 24.18% 17.60% 25.30% 9.61%
DFP Growth 26.17% 25.91% 11.20% 27.09% 9.63%
DFP Aggressive 28.48% 27.68% 5.48% 28.72% 9.64%

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

 

Weekly Return
(8/8-8/15/2014)

YTD-July returns
Dynamic Fund Profiles Conservative 1.02% 0.95%
Dynamic Fund Profiles Moderate 1.12% 0.33%
Dynamic Fund Profiles Balanced 1.20% -0.21%
Dynamic Fund Profiles Growth 1.28% -0.66%
Dynamic Fund Profiles Aggressive 1.35% -0.82%


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



 
  August 18, 2014      
Top of page
  Faith Focused Investing

The Faith Focused Investing portfolios were strongly up last week with the more aggressive portfolios gaining the most. The Aggressive portfolio was up 1.07%, while the Conservative portfolio was up 0.79%. The portfolios traded on Thursday with no major changes to asset class exposures.

For last week, the Faith Focused Investing portfolios returned:

Faith Focused Investing portfolios
Weekly returns YTD-July returns
Faith Focused Investing Aggressive 1.07% -0.49%
Faith Focused Investing Growth 0.98% -0.22%
Faith Focused Investing Balanced 0.93% -0.06%
Faith Focused Investing Moderate 0.87% 0.00%
Faith Focused Investing Conservative 0.79% 0.31%

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



 
  August 18, 2014      
Top of page
  Fusion

Last week portfolio performance ranged from 3.53% to 0.67%. This wide range of performance illustrates the diversity of strategies deployed in the Fusion strategy. Allocations were quite varied in their respective allocations to stocks, bonds, gold, leverage, and inverse positions, which are designed to be in alignment with each client’s risk profile.

Volatility remains in the low end of its historical range. In this environment, Fusion is likely to select enhanced beta (leveraged) funds in a deliberate attempt to achieve the targeted risk at every profile level given the drawdown limitations each client has provided in their suitability questionnaire responses. Adjustments are made to 50% of the asset class and strategy allocations within the Fusion portfolios 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-July returns
Fusion Aggressive 3.53% -2.31%
Fusion Growth 3.18% -2.96%
Fusion Balanced 2.68% -2.98%
Fusion Enhanced Income 2.21% -3.66%
Fusion Moderate 1.92% -3.62%
Fusion Conservative 1.19% -4.47%


FUSION INDEXES

Listed below are the Fusion Indexes as calculated by the NYSE.

These Indexes are designed to track the primary Fusion risk profiles that Flexible Plan implements on behalf of clients. It is important to understand that all of these Indexes are based on the same Fusion methodology used in managed client accounts; however, they do not represent any particular account or custodian. The Indexes may also have a different rebalancing periodicity from when the Fusion portfolios make changes to their respective allocations at the various custodians where Fusion is implemented. Also note that indexes do not incorporate management fees. Despite these differences, the Indexes may be used as an indicator of how the Fusion risk profiles are likely performing.

Several primary quote services make these Indexes widely available, and each service publishes the current and historical data on different schedules. The following is the current list of services and the corresponding symbol for each of the Fusion Indexes:

Fusion Index CNBC Yahoo! Bloomberg Morningstar Direct Intuit Quicken
Flexible Plan Aggressive Fusion Index FPFA ^FPFA FPFA FPFA FPFA
Flexible Plan Balanced Fusion Index FPFB ^FPFB FPFB FPFB FPFB
Flexible Plan Conservative Fusion Index FPFC ^FPFC FPFC FPFC FPFC
Flexible Plan Enhanced Income Fusion Index FPFE ^FPFE FPFE FPFE FPFE
Flexible Plan Growth Fusion
Index
FPFG ^FPFG FPFG FPFG FPFG
Flexible Plan Moderate Fusion Index FPFM ^FPFM FPFM FPFM FPFM


  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



 
  August 18, 2014      
Top of page
  Lifetime Evolution

The Lifetime Evolution portfolios were strongly up for the week with a strong relationship between portfolio risk and return. The equity-only portfolio rose 1.28%, while the bond-only portfolio gained 0.69%. All positions gained for the first allocation of the week, with only a few small losing positions on Friday within equities and alternative funds.

Last week, the Lifetime Evolution profiles returned:

Lifetime Evolution profiles
Weekly returns YTD-July returns
Lifetime Evolution Aggressive 1.16% -2.29%
Lifetime Evolution Growth 1.10% -1.87%
Lifetime Evolution Balanced 1.02% -1.52%
Lifetime Evolution Moderate 0.97% -1.14%
Lifetime Evolution Conservative 0.79% -0.14%

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



 
  August 18, 2014      
Top of page
  Market Leaders

Strong earnings growth in Q2 continued to impress investors. According to S&P Capital IQ, earnings per share are running 10.2% above last year’s returns. Additionally, over 60% of the S&P 500 companies beat the Street’s revenue estimates according to Bespoke Investment Group.

The S&P gained 1.2% for the week and 75% of the leading asset classes and sectors within Market Leaders were able to outperform, and, in many cases, significantly outperform. All of the asset classes had gains of over 1%, and two sectors had gains greater than 2%. The weighted return of Market Leaders Strategic and Dynamic within the leading asset classes was 40% better than the benchmark S&P 500 for the week.

Rank
  Asset Class % change (8/8-8/15/14)  
#1   Mid-Cap Value (Tactical) 1.4%  
#1   Emerging Markets (Strategic & Tactical) 1.8%  
#2   Large Value (all Market Leaders) 1.1%  
#3   Mid-Cap Growth (Tactical) 1.5%  
#3   Mid-Cap Value (Strategic & Dynamic) 1.4%  
#4   Large Growth (all Market Leaders) 1.7%  
    S&P 500 Index 1.2%  
    All Country World Index 1.3%  
    Aggregate Bond Index 0.5%  

SECTORS

It was a great week for the majority of the sectors, with 75% outperforming the S&P 500. As a group, the four leading sectors managed to beat the market by 30%.

  • Electronics managed another monster week with a 3.5% move higher, just shy of three times the benchmark.
  • Share prices for energy-related companies were down for most of the week, but a strong rally in energy on Friday minimized the losses for the week.
  • Technology, the new addition this month, had another great week by posting a gain of 2.0%. In general, Technology earnings have been coming in very positive and above many analysts’ estimates.
  • Real Estate posted a nice gain of 1.4%.
Sector Leadership % change (8/8-8/15/14)
Electronics 3.5%
Technology 2.0%
Energy Services -0.7%
Real Estate 1.4%

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), Health Care (RYHAX), Energy Services (RYVAX), and Real Estate (RYREX)


Dynamic Weekly returns YTD-July returns
Market Leaders Dynamic Aggressive 1.64% 0.09%
Market Leaders Dynamic Growth 1.64% 1.05%
Market Leaders Dynamic Balanced 1.52% 1.92%
Market Leaders Dynamic Moderate 1.36% 2.90%
Market Leaders Dynamic Conservative 1.19% 3.75%
Strategic Weekly returns YTD-July returns
Market Leaders Strategic Aggressive 1.93% -0.92%
Market Leaders Strategic Growth 1.92% -1.80%
Market Leaders Strategic Balanced 1.85% -2.67%
Market Leaders Strategic Moderate 1.53% -3.21%
Market Leaders Strategic Conservative 1.09% -3.09%
Tactical Weekly returns YTD-July returns
Market Leaders Tactical Aggressive 1.81% -0.39%
Market Leaders Tactical Growth 1.74% 0.63%
Market Leaders Tactical Balanced 1.69% 1.83%
Market Leaders Tactical Moderate 1.55% 2.93%
Market Leaders Tactical Conservative 1.37% 4.28%

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



 
  August 18, 2014      
Top of page
  Other Custodians

ETF

The Rotational No-Load and Rotational No-Load/SAF portfolios posted moderately positive returns, while the ETF Market Leaders portfolios posted negative returns at Schwab last week.

The ETF Market Leaders portfolios had a clear inverse relationship between portfolio risk and return, with the aggressive profile losing 0.76% and the conservative profile losing significantly less (0.06%). The aggressive portfolio was held back significantly by a position in the iShares MSCI Turkey Index Fund, which lost almost 5%. The conservative portfolio held up better due to a very sizeable position in the Quantified Managed Bond Fund, which posted slightly positive returns.

The Rotational portfolios fared well (up 0.47% to 1.65%), with a positive relationship between risk and return. The non-SAF aggressive portfolio outperformed due to a 41% position in a defensive equity ETF, which gained 1.76%, and the SAF aggressive portfolio outperformed due to a 40% position in the Quantified Market Leaders Fund, which gained 2.08%. The conservative profiles were held back by modest bond fund returns.

ETF Market Leaders portfolios
Weekly returns YTD-July returns
ETF Market Leaders Conservative -0.06% -2.65%
ETF Market Leaders Moderate -0.36% -2.75%
ETF Market Leaders Balanced -0.54% -3.18%
ETF Market Leaders Growth -0.71% -2.48%
ETF Market Leaders Aggressive -0.76% -1.30%

Rotational No-Load ETF portfolios
Weekly returns YTD-July returns
Rotational No-Load ETF Aggressive 1.39% -0.17%
Rotational No-Load ETF Growth 1.16% -0.64%
Rotational No-Load ETF Balanced 0.93% -1.04%
Rotational No-Load ETF Moderate 0.71% -1.42%
Rotational No-Load ETF Conservative 0.47% -1.24%

Rotational No-Load ETF/SAF portfolios
Weekly returns YTD-July returns
Rotational No-Load ETF/SAF Aggressive 1.65% -0.18%
Rotational No-Load ETF/SAF Growth 1.43% -0.69%
Rotational No-Load ETF/SAF Balanced 1.20% -1.28%
Rotational No-Load ETF/SAF Moderate 0.96% -1.59%
Rotational No-Load ETF/SAF Conservative 0.73% -0.98%


Other Custodian Quantified Fund-Based

Market Leaders Strategic portfolios
Weekly returns YTD-July returns
Market Leaders Strategic Aggressive 2.03% 0.06%
Market Leaders Strategic Growth 1.75% -0.76%
Market Leaders Strategic Balanced 1.46% -1.63%
Market Leaders Strategic Moderate 1.16% -1.98%
Market Leaders Strategic Conservative 0.88% -0.57%

Market Leaders Strategic/Alternative SAF portfolios
Weekly returns YTD-July returns
Market Leaders Strategic/Alternative SAF Aggressive 1.91% -0.18%
Market Leaders Strategic/Alternative SAF Growth 1.70% -0.83%
Market Leaders Strategic/Alternative SAF Balanced 1.45% -1.54%
Market Leaders Strategic/Alternative SAF Moderate 1.22% -1.80%
Market Leaders Strategic/Alternative SAF Conservative 0.99% -0.67%

Dynamic Fund Profiles portfolios
Weekly returns YTD-July returns
Dynamic Fund Profiles Aggressive 1.35% -0.82%
Dynamic Fund Profiles Growth 1.28% -0.66%
Dynamic Fund Profiles Balanced 1.20% -0.21%
Dynamic Fund Profiles Moderate 1.12% 0.33%
Dynamic Fund Profiles Conservative 1.02% 0.95%



Other Custodian Fusion/Fusion Prime Portfolios

Performance ranged from 3.95% to 1.30%. This range of performance from the aggressive to conservative risk profiles illustrates how Fusion crafts portfolios taking into consideration both risk and return. The more aggressive portfolios benefited from larger allocations to emerging market and NASDAQ 100 funds. The more conservative allocations benefited from modest exposure to the NASDAQ 100 and emerging markets and lower volatility due to larger allocations to fixed income sectors.

Volatility remains in the low end of its historical range. In this environment, Fusion is likely to select enhanced beta (leveraged) funds in a deliberate attempt to achieve the targeted risk at every profile level given the drawdown limitations each client has provided in their suitability questionnaire responses. 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-July returns
Fusion Aggressive 3.95% -0.59%
Fusion Growth 3.55% -1.82%
Fusion Balanced 2.93% -2.16%
Fusion Moderate 2.12% -1.63%
Fusion Conservative 1.30% -1.36%

  Underlying Allocations (Schwab)
   
Allocations PDF




Jefferson National Monument Advisors Fusion/Fusion Prime Portfolios


This past week portfolio performance ranged from 2.53% to 1.25% for the more aggressive to the more conservative portfolio allocations. The difference in performance between the aggressive and the conservative end of the risk profile range was largely due to the exposure to NASDAQ 100 and emerging market equities. The more conservative portfolios also benefited from modest exposure to the NASDAQ 100 and emerging markets as well as lower volatility exposure to fixed income sectors.

Volatility remains in the low end of its historical range. In this environment, Fusion is likely to select enhanced beta (leveraged) funds in a deliberate attempt to achieve the targeted risk at every profile level given the drawdown limitations each client has provided in their suitability questionnaire responses. Approximately every month 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-July returns
Fusion Growth 2.59% 7.75%
Fusion Aggressive 2.53% 9.07%
Fusion Balanced 2.17% 6.34%
Fusion Moderate 1.70% 5.76%
Fusion Conservative 1.25% 4.31%

  Underlying Allocations (Jefferson National)
   
Allocations PDF




Nationwide marketFLEX Fusion/Fusion Prime Portfolios


This past week’s performance ranged from 2.49% to 0.95%. The more aggressive risk profiles benefited from exposure to the NASDAQ 100 and emerging markets. The more conservative portfolios also benefited from modest exposure to the NASDAQ 100 and emerging markets as well as lower volatility exposure to fixed income sectors.

Volatility remains in the low end of its historical range. In this environment, Fusion is likely to select enhanced beta (leveraged) funds in a deliberate attempt to achieve the targeted risk at every profile level given the drawdown limitations each client has provided in their suitability questionnaire responses.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-July returns
Fusion Aggressive 2.49% 2.33%
Fusion Growth 2.37% 0.28%
Fusion Balanced 2.01% 1.39%
Fusion Moderate 1.45% 1.15%
Fusion Conservative 0.95% -0.17%

  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


 
  August 18, 2014      
Top of page
  Select Alternatives

Select Alternatives gained 1.32% for the week. The strategy benefited from a 38% weighting in the AQR Risk Parity Fund, which gained 1.46% through Thursday. The position was trimmed to 31% and gained another 0.17% on Friday.

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



 
  August 18, 2014      
Top of page
  Strategic Solutions

Last week global equity markets moved higher. August tends to be a time when investor participation lacks enthusiasm, but this was not the case last week as investors came out in force. Flexible Plan is dedicated to active management and strategic diversification which together seek to deal with changing market moving events and investor moods.

For the week, Self-adjusting Trend Following (5.09%), Fusion Aggressive/Fusion Prime 32 (3.53%), and Fusion Prime 28 (3.32%) were the leading strategies. The lagging strategies for the week were Hedged Gold Bullion (-0.37%) and Systematic Long/Short Bond Trading (-2.09%). This range of performance among our various strategies and asset classes is among the many reasons Flexible Plan stresses the importance of strategic diversification in conjunction with active investment management.

Strategic Solutions Portfolios
Weekly returns
Self-adjusting Trend Following 5.09%
Fusion Aggressive 3.53%
Fusion Prime 32 3.53%
Fusion Prime 28 3.32%
WP Aggressive 3.19%
Fusion Growth 3.18%
Volatility Adjusted NASDAQ 3.10%
Fusion Prime 24 3.03%


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.


INDEX DISCLOSURE  

This presentation is provided for information purposes only and should not be used or construed as an indicator of future performance, an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Flexible Plan Investments, Ltd. cannot guarantee the suitability or potential value of any particular index.

These results do NOT represent actual trading or client experience, and do not reflect the impact of decision making or economic or market factors experienced during actual management of funds. The actual return may be lower or higher than the performance quoted. Annual returns are compounded monthly. Performance between selected dates may be misleading as indicative of overall performance of an index.

The Fusion Indexes are provided by Flexible Plan Investments Ltd. (“FPI”) and calculated by the NYSE Group, Inc. The inception date of the Fusion Indexes is 1/1/1998. The Self Adjusting Trend Following (STF) Index is provided by Flexible Plan Investments Ltd. (“FPI”) and maintained currently at Morningstar. The inception date of the STF Index is 1/1/1998. The indexes are rules-based and are an illustration of mathematical principles embodied in the Fusion arithmetical formula that is applied to derive the index results. It does not predict or project the performance of an investment or investment strategy as one cannot invest directly in an index.

While FPI’s Fusion strategies are based on the Fusion Indexes, and the FPI STF strategy is based on the STF Index, the indexes reflect the theoretical performance an investor would have obtained had it invested in the manner shown and does not represent returns an investor actually attained, as investors cannot invest directly in an index. No representation is being made that any client will or is likely to achieve results similar to those presented herein.

Fusion is predicated on combining multiple, dynamically risk-managed strategies into a single portfolio which is designed to add an extra level of risk-reduction and return to navigate diverse market environments, black swans, and uncertainty. It considers three different factors in a proprietary (post-Modern Portfolio Theory) methodology consistently applied over the period shown to generate trading strategy exposure: 1) momentum or relative strength of each strategy; 2) volatility or risk of each strategy; and 3) correlation of each strategy to other strategies in a portfolio context.

The Fusion Indexes are constructed illustrating the historical allocated performance from various sources, including actual returns of FPI’s model account strategies, ETFs and open-end mutual funds (including long/short and/or leveraged funds). From January 1998 to December 2013, Fusion Index performance was calculated by FPI. Index calculations from January 2014 forward were performed by the NYSE Group, Inc. From January 1998 to December 2013, there have been no assets managed under the Index rules at FPI. The Fusion mathematical algorithm has been in use by FPI since February, 2013. FPI reserves the right to make enhancements to the Index methodology.

The Fusion Indexes and the STF Index contain no management or advisory fees, other than the internal fees and expenses reflected in the NAV of the mutual funds or ETFs used. A client account in a FPI offered Fusion strategy will incur advisory fees; additional fees may apply including transactions and trading costs determined by the Custodian of the account. These fees and costs will decrease the return experienced by a client. Individual client account results will vary from the Fusion Index returns. Current and prospective clients should not assume that future performance will be the same or profitable. Distributions have been reinvested. When provided, dividends are reinvested for indexes. In those cases where indexes do not provide dividend information, those returns would be understated. As individual tax rates vary, taxes have not been considered.

The FPI FusionSM Indexes (the “Indexes”) are calculated by NYSE Group, Inc. or its affiliates (“NYSE Group, Inc.”). The FPI Fusion Index strategies or managed accounts, which are based on the Indexes, are not issued, sponsored, endorsed, sold or promoted by NYSE Group, Inc., and NYSE Group, Inc. makes no representation regarding the advisability of investing in such product.

NYSE GROUP, INC. MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE FPI FUSION SM/® INDEXES OR ANY DATA INCLUDED THEREIN. IN NO EVENT SHALL NYSE GROUP, INC. HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

PAST RESULTS DO NOT GUARANTEE FUTURE RESULTS. Please read Flexible Plan Investments' Brochure Form ADV Part 2A carefully before investing. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX. THESE RESULTS DO NOT REPRESENT ACTUAL TRADING OR CLIENT EXPERIENCE.