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A passive core is not enough

A traditional, passive core portfolio can do a good job of exposing investors to returns from a variety of asset classes. And simple asset-class diversification can be an effective tool against “baby bear” markets—short, shallow market declines of less than 20%.

But asset-class diversification seems to work best when investors need its averaging influences the least. When markets experience “grizzly bear” markets (deep, persistent declines of 20% or more), the diversification investors count on for protection can disappear.

Retirees, pre-retirees, and those taking withdrawals can be hit especially hard by these “grizzly bear” markets. Simple market math illustrates that the deeper the decline, the longer the recovery.

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Prepare for the next bear with dynamic risk management

Helping clients reach their financial goals can be challenging enough without limiting portfolios to inflexible buy-and-hold strategies with only one defensive tool. Investors need a portfolio that can continuously—dynamically—respond to market changes with several defensive tools that aim to smooth out market volatility while also seeking growth opportunities.

Can your clients’ existing portfolios do what a dynamically risk-managed portfolio can?

Respond automatically to changes in market conditions.

Offer multi-strategy diversification among asset classes, investment methodologies, and time lines.

Employ multiple levels of risk management—helping to mitigate steep losses in bear markets.

Smooth volatility, helping clients avoid market extremes.

Take advantage of the opportunities for growth that are present in most market environments.

Keep fees low, while offering a sophisticated, dynamically risk-managed, and fully diversified investment solution.

Allow clients to track progress against a custom benchmark tied to their suitability profiles.

3 ways to activate your core

We offer three different ways to have a core portfolio that uses American Funds, each designed to equip investors with the investment methodologies and tools to address the risks and opportunities present in every market environment. American Funds have a reputation for reliability and quality, which is why Flexible Plan Investments (FPI) is proud to offer actively managed solutions that can draw upon a universe of American Funds.

SUITABILITY-BASED

Alpha Beta Combo (AFAB)

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Designed to deliver a strategically diversified and robust core-and-explore portfolio by applying FPI’s allocation methodology to both a universe of the top-performing equity and income asset classes of American Funds and FPI’s QFC Multi-Strategy Portfolios (QFC MSP), a risk-managed blend of FPI’s QFC Multi-Strategy Core and QFC Multi-Strategy Explore strategies.

Factsheet

SUITABILITY-BASED

Evolution (AFEV)

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A dynamically risk-managed investment strategy that aims to invest in the top-performing equity and income asset classes of American Funds in accordance with suitability-based risk profiles.

Factsheet

TACTICAL

Classic (AFC)

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Classic (AFC) applies FPI’s tactical asset-allocation strategy to a universe of American Funds. The strategy is designed to use fundamental, monetary, technical, sentiment, and momentum indicators to identify intermediate-term to long-term market trends.

Factsheet

Active management positions

Bull Market
Seeks to keep the strategy invested in the leading equity funds. Uses short-term and long-term price trends to rank funds monthly.

Sideways Market
Seeks to avoid whipsaws by using equity funds, bond funds, and longer-term historical measurements.

Bear Market
Seeks to avoid underperforming funds. Can move to defensive positions, including money-market positions, when market conditions are unfavorable.

Peace of mind at a low cost

Clients don’t have to worry about costs getting in the way of gaining the professional investment management they need. Portfolio solutions that draw from Flexible Plan’s core and explore Quantified Fee Credit (QFC) strategies offer fee credits to offset all or a portion of our fees.

Request a proposal by calling 800-347-3539, ext. 2, or email sales@flexibleplan.com.