Flexible Plan Investments

How It Works
Each risk-management strategy* utilizes variable sub-accounts (funds) exclusively as the investment vehicles. Strategies are systematically managed in accordance with a carefully chosen risk reduction methodology, and this active management style seeks a substantially lower risk than the various market indexes.

Core Strategies
Strategies that are risk-adjusted, suitability-based and with built-in diversification

Lifetime Evolution — uses our proprietary momentum technology to manage separate stock and income sub-account portfolios, which are owned in varying percentages in one of twelve risk profiles, to meet each client’s risk tolerance and investment time horizon.

Market Leaders — offers investment management techniques based on the Market Leaders Index. Asset allocation choices are invested into the top performing asset classes and adjusted as market conditions warrant. Then investments in each asset class are invested in the top ranked funds. Available in Strategic, Tactical and Dynamic investment approaches.

Next Generation Asset Allocation — utilizes cutting-edge software from Morningstar/Ibbotson, employing Resampled Allocation. Investments are chosen from eighteen distinct asset classes, including international and alternative investments, within a Usharpe-filtered investment universe. Also employs daily hedging based on our proprietary Targeted Volatility Analysis.

Strategic Allocation — while investors can mix and match a customized portfolio of strategies themselves, Flexible Plan will also do it for them. Based on the answers to a Client Suitability Questionnaire, investors are assigned to an investment profile — Conservative, Moderate, Growth or Aggressive. Strategic Allocation will pre-select those strategies appropriate for each of the four suitability profiles and will follow the strategies chosen with monthly, weekly or, in some cases, daily review of its holdings.

Select Strategies
Specialized strategies to add focused portfolio diversification.

Bear Necessities — utilizes the Evolution approach to rotate between defensive sector sub-accounts.

Best Tech — an Evolution-based strategy that actively ranks sub-accounts from various technology industries and invests in three or more to help tame the inherent volatility of many of these sub-accounts.

Classic — a “100% in-100% out” weekly tactical asset allocation model that encompasses fundamental, monetary and technical
indicators, including sentiment and momentum measures, in a
purely quantitative, fact-based methodology with disciplined
implementation procedures.

Evolution II — a portfolio that draws on three to five fund universes utilizing different holding period requirements to expand the list of available funds and achieve time diversification. The strategy will invest in the best performing funds within each universe, chosen using our proprietary momentum-based dynamic asset allocation model. A money market fund is available within each universe as an alternative during times of equity market instability.

Global Select — uses our momentum ranking technology exclusively for international and global funds.

Managed Income — invests in only top performing corporate and government bond funds.

Political Seasonality — a tactical allocation strategy that alternates between money market and mutual funds with performance similar to the Dow Jones Industrial Average, following historical tendencies over the last 100+ years.

Sector Select — “selects” the best returning industry-specific sub-accounts from among a prestigious assortment of domestic and international sector sub-accounts.

Systematic Advantage — tactically divides the portfolio into investments representing a number of active management trading systems (over 100 are monitored daily) and allocates into equities or money market based on the indicators of each of the top-ranked systems.

Investing has never been easier. Isn’t it time you added as many select strategies to your portfolio as possible? Flexible Plan’s strategic diversification delivers a new generation of investment management.

* The type and number of strategies available is dependent on the policies of the variable annuity product chosen by the investor. See Brochure Form ADV Part II for detailed descriptions.

Reporting

Quarterly OnTarget Investing Report;
Quarterly newsletter;
Detailed quarterly Annuity Company statements;
Weekly Market Hotline and Classic Update by e-mail or at www.ontargetinvesting.com;
Personal daily account values at our website (www.ontargetinvesting.com). (Not all products are available.)

Performance Expectations: Active investment management is a conservative strategy seeking wealth preservation, as well as capital accumulation. It is not a get rich quick approach that can be evaluated over a short term. It may not meet the performance of various market indexes during periods when markets either experience rapid appreciation or exhibit no clear trend, but it tends to capture the returns when the markets are trending, and outperform them while prices are declining. Therefore, it requires a complete Bull and Bear market cycle (on average 4-7 years) to fairly judge its results.

Past Performance Does Not Guarantee Future Results. Inherent in any investment is the potential for loss as well as the potential for gain. A list of all recommendations made within the immediately preceding year is available upon request. Prior to investing, read and understand the risk considerations in the prospectus(s), our Brochure Form ADV Part II, and other information that can be obtained from your financial representative.