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Flexible Plan Investments


 

After traveling more than 20,000 miles over the last month, my mind is overflowing with strong impressions gained from my travels. The richness of the culture, the beauty of the lands, and the friendliness of the people in Australia and New Zealand cannot be overstated. As Americans, we tend to think of ourselves as the youngest kid on the block with a freshness and youthfulness that puts Europe’s stodginess to shame. Yet “down under” there is a land as big as the USA with a history half as long and economies just in the earliest stages of expansion.

And, now that I’ve been there and returned, while I will never come to grips with the international dateline, where a day in my life seemed to disappear at both ends of my trip, evaporating at one end and being chewed up by travel on the other, I have to say that I was extremely impressed by the “miracle” of modern travel. To leave a spot in Michigan and arrive in Sydney within minutes of the expected arrival time always blows me away. And then navigating around a new continent with a map and, sometimes, a GPS; leaving from yesterday’s destination and arriving at tomorrow’s, repeatedly, over weeks of time without a mishap, is phenomenal.

Yes, there was that time when we went around the block three times before the GPS sorted itself out, and working around the rubble and new construction in the Red Zone in Christchurch was frustrating. But overall, the ability to plan a trip from afar and then execute it with incredible precision is mindboggling when one considers the nature of the logistics involved. Modern investing has a long way to go to match that exactitude.

Compare the certainty of such navigation to what is offered to investors by most of today’s investing profession. Passive asset allocation with its focus on the average return, average volatility and average correlation of the various asset classes that are brought together to form an investor’s portfolio, is like setting out to tour the United States but only going to Lebanon, Kansas, because it is the geographical center of the country. (Of course, that’s the center of the contiguous United States, if you add in the land masses of Alaska and Hawaii, the center shifts to Belle Fourche, South Dakota!)

 

Unfortunately, even active management using quantitative methodologies does not provide the certainty of today’s navigation devices. The state of the knowledge in the industry is such that we can only deal with probabilities. (Are we likely in a bull market or not?) If we had relied on that same level of exactness with our trip, when we set out for Auckland, New Zealand, we could have landed in any of the 48 volcano cones that ring the city instead of arriving at our hotel in the central business district, where we intended to go.

Still, it’s far better than the “average” destination of passive asset allocation. With quantitative analysis we can target a level of risk that we will be exposed to and we can create specific allocations to the actual asset classes that we want to go to for our returns without being constrained by having to own a little bit of everything.

Yes, that still means that when we aim to get out at a top or invest at a bottom, we may instead miss entirely or get only partially there. As investors, we need to realize that the science of investing is not as far along as the science of navigation.

It would be wrong for investors to think that they can “book a flight” to a 10% return with less than a 1% risk given the current state of investment science. Yet it would be equally wrong to think that throwing darts at the stock listing page of the Wall Street Journal is the best an investor can do in trying to navigate the world of investing today.

Maps and GPS devices work because they are based upon fixed measurements between places with exact locations. They are unchanging. When you apply the equally invariable methodology of mathematics to these measurements, precision is the result.

In contrast, when investing, we are dealing with the less precise laws of supply and demand that involve imperfect information about both and which is filtered by the emotions of a multitude of humankind. These can still be manipulated by the precise methodology of mathematics (the basis for the science of statistics), but statistics can only yield probabilities, not certainties.

In setting investor expectations, we must always remember that investing must lag navigation in terms of exactitude. But it is precisely for that reason that we need to apply as many of the statistical tools available as possible, rather than only using the few chosen by conventional wisdom to navigate the still largely uncharted waters of today’s investment landscape. A portfolio of quantified, risk-managed strategies seeks to do this, while a passively managed portfolio of asset classes falls far short.

Last week, the US stock market extended the rally that began with the bottom that I discussed in my last In My Opinion feature before my travels began five weeks ago. The market gained ground in each of those weeks, as investors overcame their fears of Ebola, a European slowdown, and impending US rate hikes.

The intermediate-term indicators continue to point toward more gains on the horizon. Interest rates remain low, more economic indicators are outperforming expectations than disappointing, and we have 

just completed a very positive earnings reporting season. Furthermore, investor sentiment has actually been becoming less bullish as this rally wears on, indicating that the complacency usually seen at market tops has not surfaced as yet, and, finally, year-end positive seasonality is just around the corner.

However, while Thanksgiving week has normally been bullish, during the current five-year-plus bull market, it has been flat to down, and the S&P 500 and all but two of its sectors remain very overbought. As a result, some short-term price weakness should not come as a surprise here.

Yet, just as was the case before I set off on my travels five weeks ago, this does not mean that one should abandon stocks. No, the advice remains to continue to hold a portfolio of quantified, risk-managed strategies with a primary emphasis on stock market strategies, as further gains are expected from that quarter yet this year.

While investing may never offer the exactitude that navigation provides, when done properly it does provide the opportunity to travel from one’s present state to a future goal, with the added bonus that should the unexpected occur along the way, active management can employ many tools to reduce the chances for dead-ends and detours along the way.

 

All the best,

Jerry

PS I want to thank Ron Rowland, Dave Moenning, and David Wismer for substituting for me in writing the In My Opinion feature during my absence. Their wisdom and ability to express themselves so clearly makes me envious, and thankful that they are available to us.

Anyone want to see some vacation pictures? We literally have thousands!

Taken a few days before Mr. Putin did the same thing, while in Brisbane at the G-20.


Stimulus signals push stocks higher

A surprise interest rate cut by the Bank of China and a pledge from European Central Bank President Mario Draghi to stoke euro area inflation gave U.S. equities a lift Friday. The S&P 500 ended the week 1.16% higher at 2,063.50; across five days, the Dow rose 0.99% to 17,810.06 and the Nasdaq 0.52% to 4,712.97. The S&P has now surged more than 11% off of its October low.4,5

% Change Y-T-D 1-Yr Chg 5-Yr Avg 10-Yr Avg
DJIA
+7.44
+11.24
+14.52

+6.98

NASDAQ
+12.84
+18.74
+23.92
+12.60
S&P 500
+11.64
+14.90
+17.81
+7.53
Real Yield 10/17 Rate 1-Yr Ago 5-Yrs Ago 10-Yrs Ago
10Yr TIPS Yd
0.45%
0.60%
1.21%
1.62%

  10/31/14 Y-T-D returns
DJIA
4.91%
NASDAQ
10.87%
S&P 500
9.18%

Sources: online.wsj.com, bigcharts.com, treasury.gov - 11/21/14 6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.


Home sales improve, permits hit 6-year peak

Last month saw a 1.5% gain in existing home sales, according to the National Association of Realtors. That took the annualized increase in home buying to 2.5%. NAR measured the inventory of unsold homes at 5.1 months in October; compare that with 11.9 months in July 2010. Census Bureau data showed building permits at a high unseen since June 2008 thanks to a 4.8% October jump (there was a 10.0% leap in permits for apartment projects alone). October did see less groundbreaking, with housing starts slipping 2.8%; year-over-year, they were still up 7.7%.1,2


CPI stays still in October

The overall Consumer Price Index didn’t budge last month, although the Labor Department did report the core CPI (which excludes energy and food prices) advancing 0.2%. The Producer Price Index was up 0.2% last month after an 0.1% September decline.3


Factory output disappoints

Economists surveyed by MarketWatch expected U.S. industrial production to rise 0.2% after the 0.8% gain in September. Instead, the Federal Reserve’s latest report showed industrial output down by 0.1% for October.3



Citations

1 - haver.com/comment/comment.html?c=141120E.html [11/20/14]
2 - haver.com/comment/comment.html?c=141119A.html [11/19/14]
3 - marketwatch.com/economy-politics/calendars/economic [11/21/14]
4 - bloomberg.com/news/2014-11-21/u-s-index-futures-rise-as-s-p-500-heads-for-fifth-weekly-gain.html [11/21/14]
5 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [11/21/14]
6 - markets.wsj.com/us [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F21%2F13&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F21%2F13&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F21%2F13&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F20%2F09&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F20%2F09&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F20%2F09&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F22%2F04&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F22%2F04&x=0&y=0 [11/21/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F22%2F04&x=0&y=0 [11/21/14]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/21/14]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/21/14]

 


Not to be outdone by the Bank of Japan’s yen sale, the European Central Bank (ECB) has announced its own version of a currency fire sale.

“Speaking at a banking conference in Frankfurt, Mr. Draghi said the European Central Bank would ‘do what we must to raise inflation and inflation expectations as fast as possible’ … Mr. Draghi spoke Friday as the world’s central banks are increasingly concerned that very low inflation will tip into outright deflation.”
New York Times, 11/21/14

Europe “one step a way” from Japan-style deflation

“Philippe Legrain, former economic advisor to the President of the European Commission, says if the euro zone falls into deflation, it could be stuck there—a scenario that would be ‘catastrophic’.”
CNBC, 11/21/14

So, the ECB will soon be joining Japan in combating deflation by effectively raising the price of gold in its own currency, by devaluation through massive printing.

This is a variation of the method the US used during the Great Depression, when it raised the price of gold by arbitrarily fixing the price over 40% higher. If the widespread recessions/slowdowns in Asia and Europe manage to drag the US economy down with them, we may be facing the same deflationary threat—and we already know the gold-leafed playbook the government will be forced to reopen.


Over the last week, the gold spot price rose 1.08% despite that the US Dollar jumped to a new four-year high. The Gold Bullion Strategy Fund (QGLDX) gained 0.89% for the week, which was partially due to QGLDX’s early close at 1:30PM (rather than 4:00PM for the gold spot price). The prices of short-duration fixed income ETF holdings were slightly lower, on average, over last week, while the COMEX gold futures contracts added 1.02%.


Total Return

Fund (Inception) Symbol Qtr Ending 9/30/14 YTD Ending 10/31/14 1 Year Ending (10/31/14) Since Inception Ending (10/31/14)* Annual Expense Ratio
The Gold Bullion Strategy Fund (7/5/13) QGLDX (9.06%) (3.95%) (12.97%) (5.24%) 1.66%
Quantified Managed Bond Fund (8/9/13) QBDSX (1.66%)
1.82%
0.95% 1.35% 1.68%
Quantified All-Cap Equity Fund (8/9/13) QACFX (4.12%)
(3.61%)
0.48% 0.72% 1.51%
Quantified Market Leaders Fund (8/9/13) QMLFX (6.04%)
(1.43%) 2.18% 3.92% 1.71%
Quantified Alternative Investment Fund (8/9/13) QALTX (2.20%) 0.75% 5.56% 7.39% 2.20%

*Annualized

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.

 

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

US equity markets were up last week. The NASDAQ Composite gained 0.52% last week, the S&P 500 was up 1.16%, and the Dow Jones Industrial Average recorded a weekly gain of 0.99%. Nine of the ten S&P industrial sectors were up for the week. The move upward was led by Materials (2.76%), Energy (2.49%), Utilities (1.70%), and Health Care (1.53%). Except for the Quantified Managed Bond Fund (QBDSX), which was flat for the week, the Quantified Funds were up. The largest gain was in the Quantified Market Leaders Fund (QMLFX, 2.11%), followed by the Quantified Alternative Investment Fund (QALTX, 0.75%), and then the Quantified All-Cap Equity Fund (QACFX, 0.61%).

The Quantified All-Cap Equity Fund made some changes last week, shifting its weightings in four leading stock baskets, which were over 52% of the portfolio’s composition: “All-Cap Quality Acceleration” (18%), “All-Cap Low Debt” (18%), “All-Cap Cash Flow” (9%), and “All-Cap Asset Efficiency” (8%). Among domestic sector distributions, Information Technology and Health Care led with portfolio allocations of 22% and 17%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of Edwards Lifesciences Corp. (EW, 2.75%) and the common stock of AAR Corp. (AIR, 1.84%).

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 the week 20% short and changed to neutral on Tuesday’s close to begin this week. Our TVA-based futures hedge remained neutral throughout last week.

The Market Environment Indicator (MEI) remained bullish last week. On Friday, equity asset class allocations within the Market Leaders Fund remained at the following: Large-Cap Growth (19.20%), Large-Cap Value (4.80%), Mid-Cap Growth (14.41%), and Small-Cap Growth (9.58%). Total sector ETF weightings remained at 52% from the prior week. Distribution of sector holdings and weights were as follows: Electronics (13%), Health Care (13%), Biotech (13%), and Technology (13%). The individual ETF positions with the leading portfolio weightings were the iShares Dow Jones US Technology ETF (IYW, 7.5%), the ProShares Ultra NASDAQ Biotechnology ETF (BIB, 6.5%), the ProShares Ultra Mid-Cap 400 ETF (MVV, 6.0%), and the ProShares Ultra QQQ ETF (QLD, 6.0%).

Within the Quantified Alternative Investment Fund, the Long/Short Market Neutral Alternative sub-portfolio decreased allocation to the Advantage Dynamic Total Return Fund (AVGRX, 2.96%).

Among the largest ETF positions there were a few changes: allocations to the Wisdom Tree Managed Futures Strategy ETF (WDTI, 4.80%) and the SPDR Materials Select Sector ETF (XLB, 3.83%) increased, while allocations to the Vanguard Materials VIPERs ETF (VAW, 3.30%) and the Market Vectors Nuclear ETF (NLR, 5.61%) decreased.

The cash level within the Fund decreased to 10.37% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation started the week 10% short and changed to neutral on Tuesday’s close to begin this week. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started and ended the week 15% long.

The Quantified Managed Bond Fund’s two leading broad-bond index ETF holdings, the iShares S&P National Muni Bond ETF (MUB, -0.03%) and the SPDR Nuveen Barclays Municipal Bond ETF (TFI, 0.00%), were mixed for the week.

The 10-year US Treasury yield decreased to 2.31% for the week. The Fund increased weightings in the SPDR Nuveen Barclays Municipal Bond ETF (TFI) from 7.68% to 9.06% and in the iShares Barclay’s 7-10 Year Treasury Bond ETF (IEF) from 7.12% to 8.44%, while decreasing allocations in the Peritus High Yield Bond ETF (HYLD) from 8.76% to 7.40% and in the PowerShares Build America Bond ETF (BAB) from 5.32% to 4.92%. Cash increased to 7.48%.

The 10% active portfolio exposure to 30-Year US Treasury Bond futures in the Fund started the week short, changed to long on Monday’s close, short on Wednesday’s close, and long on Friday’s close to begin this week. The position lost around 0.60%.

 

Total Return

Fund (Inception) Symbol Qtr Ending 9/30/14 YTD Ending 10/31/14 1 Year Ending (10/31/14) Since Inception Ending (10/31/14)* Annual Expense Ratio
The Gold Bullion Strategy Fund (7/5/13) QGLDX (9.06%) (3.95%) (12.97%) (5.24%) 1.66%
Quantified Managed Bond Fund (8/9/13) QBDSX (1.66%)
1.82%
0.95% 1.35% 1.68%
Quantified All-Cap Equity Fund (8/9/13) QACFX (4.12%)
(3.61%)
0.48% 0.72% 1.51%
Quantified Market Leaders Fund (8/9/13) QMLFX (6.04%)
(1.43%) 2.18% 3.92% 1.71%
Quantified Alternative Investment Fund (8/9/13) QALTX (2.20%) 0.75% 5.56% 7.39% 2.20%

*Annualized

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.

 

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

 


 

That might seem like a somewhat-silly, rhetorical question, but it actually helps illuminate an issue facing many financial advisors today. And it also serves to highlight an important benefit to the type of actively managed portfolio strategies offered by Flexible Plan Investments, Ltd.

I have interviewed several dozen financial advisors over the past year in my role as editor of Proactive Advisor Magazine. Many are seeing an interesting phenomenon among new clients walking through their door for the first time. There seems to exist what I will call a “barbell” distribution among investors regarding their attitudes toward risk. A disproportionate number of investors are very fearful of high risk assets, especially the equity markets. Another large cohort has seemingly forgotten the lessons of the past two market crashes of this century, and advocate for a very aggressive posture on risk (emboldened by the bull market gains since 2009). The net result is the challenge for investors (and their advisors) to find the appropriate outlook on risk management in today’s investment environment.

One wealth advisor recently told me that his objective is to fully explain to investors over time three relatively “simple” concepts. And if he was successful, he said, more than half of the battle was won in terms of investor education surrounding the financial and investment planning process. Those concepts are:

“There is no return that is totally without risk.”

“The higher the potential return of an investment, the higher the potential risk – and vice versa.”

“The goal should be in constructing a portfolio that achieves the appropriate level of risk-adjusted returns for an investor’s specific financial and investment goals—not making comparisons to any market benchmark.“

This particular advisor was a proponent of the “bucket” approach to retirement planning, as well as an advocate of active investment management within that framework. The timing of our conversation was quite fortuitous, as Proactive Advisor Magazine had just published an article on that very topic (See Bucket Investing and Risk Management.”) This article was an excerpted version of a quite extensive white paper on the topic, written by Flexible Plan’s Jerry Wagner (Founder and President), George Yang (Co-Chief Investment Officer) and David Varadi (consultant and former FPI VP Economic Research & Strategy Development).

The paper provides a thorough discussion of the “bucket” asset allocation approach and many of the issues around its implementation, including “The Myth of Time Diversification,” “The Sequence of Returns Dilemma,” “Systematic Withdrawals vs. Constant Rebalancing,” and “The Role of Active Management within the Bucket Approach.” (The full whitepaper, “Bucket Investing With Dynamic Risk-Managed Portfolios” can be downloaded here.)

To summarize the paper’s important conclusion:

“The bucket method with active management shows the potential for much higher returns (versus buy- and-hold rebalancing), and given its greater psychological appeal to investors, is a more ideal combination … Furthermore, in implementing the bucket approach we found that using different Fusion suitability profiles for different target return buckets proved to be a promising method of further integration to maximize the outcome from a bucket approach to financial planning.”

Fusion is Flexible Plan’s flagship portfolio product, which offers a full array of portfolio options accommodating suitability profiles across the potential client risk spectrum. This discussion of active management within the context of a bucket asset allocation approach gets at the core of the risk-averse vs. adverse-to-risk issue. Risk aversion in the extreme will lead investors to very low returning asset classes, and, as is well-documented, may result in shortfalls in an income stream through a lengthy retirement. On the flip side, investors who are appropriately adverse to risk should be receptive to active management solutions that work to minimize portfolio drawdowns during times of market stress, while providing competitive returns through full market cycles.

As the white paper further notes, “A time-horizon-based ‘bucketing’ approach for wealth management was designed to address psychologically both the safety of near-term liquidity need and the goal of long-term growth of wealth.” That the “long-term growth of wealth” can be accomplished while an investor and his or her advisor maintain a healthy “adverse to risk” outlook is really at the core of the active management approach practiced by Flexible Plan Investments. And that approach might help all investors who are frequently “risk-averse.”

Have a great week.

 - David



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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