Strategic diversification

A portfolio is only as strong as its core

We utilize a wide array of dynamically risk-managed strategies carefully chosen from a group of experienced managers who can access a variety of diverse asset classes to achieve true strategic diversification.

For decades now, people have been told they must invest in more asset classes. But we don’t think asset class diversification goes far enough. After all, it didn’t provide all of the answers in the financial meltdowns of 2000 or 2008.

In addition, the portfolio losses experienced in those crashes should have taught us that most traditional investment strategies tend to be effective only in certain market environments. Relying on a single strategy, regardless of asset classes chosen, ignores the Wall Street saying that “Every strategy works, until it doesn’t.”

The Strategic Diversification concept takes investment risk management to a whole new level, with a mix of actively managed strategies that make it far more likely that some part of a portfolio is correctly positioned to weather market storms.

Not only can investors create their own portfolio of strategies, but Flexible Plan offers FUSION, a diversified portfolio of actively managed strategies and indices, leveraged and inverse, that reflects an investor’s risk tolerance, and then reallocates the portfolio to the mix that it deems to be the best strategic combination each month.

Adding multiple strategies to a portfolio seeks to provide a level of strategic diversification that aims to bridge the gap between bull market highs and bear market lows. It is an answer to “black swan” events, those unpredictable occurrences that send financial markets into a tailspin. The effect over time of having multiple strategies, each responding differently to various market environments, is designed to narrow the volatility on the path to one’s investment goals.

What diversification method has worked best since 2000?

When comparing the S&P 500 Index (buy and hold investing), a portfolio holding equal amounts of eleven different asset classes (a traditional asset allocation approach), a portfolio holding equal amounts of sixteen different types of strategies (a static portfolio of strategies), and, finally, an index tracking an actively managed portfolio of strategies (most like FUSION), the actively managed portfolio of active strategies does best where it matters most—delivering the most return for the risk taken.

How to put all this to work for you

Fusion - Powered by Flexible Plan Investments

In our experience, the best way to help investors realize their long term investment goals is to pursue a reasonable portion of the gains while managing downside risk – everyday. This is accomplished by creating customized portfolios of strategies based on the risk capacity and tolerance levels indicated by client.

The Fusion engine synchronizes multiple dynamically risk-managed strategies and asset class indexes into a robust strategically diversified portfolio customized according to individual risk thresholds.

The more customized
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FPI 35th Anniversary

Since 1981, Flexible Plan Investments has been dedicated to preserving and growing wealth through dynamic risk management. We are a turnkey asset management program (TAMP), which means advisors can access and combine our many risk-managed strategies within a single account. Our fee-based separately managed accounts can provide diversified portfolios of actively managed strategies within equity, debt, and alternative asset classes on an array of different platforms. We also offer advisors our OnTarget Investing tool to help set realistic, custom benchmarks for clients and regularly measure progress. Read More...