Why active management

6 reasons to consider active management

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Active management defined

Active management seeks favorable risk-adjusted returns in any market environment, generally employing sophisticated algorithms and models to capture gains and protect against losses in a wide variety of sectors, asset classes, and geographies.



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Buy-and-hold is dead(ly)

While bull market runs are impressive, history shows it is not a matter of “if” but “when” the next bear market will occur. Investment expert Kenneth Solow sums it up: “Patiently waiting for stocks to deliver historical average returns does not rise to the level of an investment strategy.”



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Bear market math is daunting

It takes longer than most investors think to recover from bear markets—a gain of 50% is needed to overcome a 33% portfolio loss.



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Risk first: ALWAYS

As one prominent active manager said, “No one would ever jump into a car without brakes, so why would investors even consider having an investment strategy that did not have a strong defense?”



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Alignment with investor psychology

Behavioral finance studies have documented the tendencies of investors to operate on the destructive principles of “fear and greed.” Disciplined active management takes emotion out of the equation.



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Does "set it and forget it" really make sense?

For retirees in particular, the “sequence of returns” dilemma can have a devastating effect on future income needs. Active management offers a prudent path to achieving the twin goals of asset preservation and compounded capital growth.





Working with Flexible Plan

Learn how Flexible Plan Investments can help you build your fee-based business in this 20-minute presentation.

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Peter Mauthe
VP, Corporate Development
Flexible Plan Investments, Ltd.


Contact your Flexible Plan regional business consultant at 800-347-3539 ext. 2 or schedule an appointment below.