OMAHA, NE--(Marketwired - July 01, 2014) -
- Five unique risk budgeting-oriented ETF options will be offered immediately in partnership with FTJ FundChoice
- CLS's Core Plus ETF models are designed to provide consistent and flexible income from a diversified, proprietary risk budgeted portfolio, regardless of market conditions
- CLS may further expand third party distribution of ETF Core Plus offerings via additional relationship managers in near future
CLS Investments, LLC ("CLS"), a third party money manager and a leading manager of exchange traded funds ("ETFs") within individual investor portfolios, has announced that five new Core Plus ETF models will immediately become available on the FTJ FundChoice, LLC ("FTJFC") platform. All five of the ETF models will be managed according to CLS's proprietary Risk Budgeting Methodology.
"We believe that risk budgeting is the key to successful investment outcomes for clients," said Rusty Vanneman, Chief Investment Officer at CLS. "We are happy to partner with FTJ FundChoice to expand the reach of our risk budgeted strategies even further."
Much like a scale keeps weight balanced, CLS's Risk Budgeting Methodology helps to ensure that the amount of risk in the portfolio stays consistent with the level initially established for it, even as conditions within the investment environment change. When markets change, moves are made within the portfolio in an attempt to take advantage of asset classes that are relatively attractive. If a move makes the portfolio too aggressive or too conservative, a reciprocal adjustment is made to keep the portfolio within its specified risk budget range.
CLS's risk budgeted Core Plus ETF models each typically invest in 8 to 20 ETFs that have larger positions in core asset class ETFs and some smaller satellite positions in ETFs focused on specific sectors, countries, and alternative assets. CLS's portfolios have been composed of ETFs since 2001, when there were 119 ETFs on the market -- today, there are more than 1,600. CLS believes that there is an irreversible trend toward ETF investing, reflecting an evolution for the better in the money management industry. The expanding universe of products means investors in ETFs need experienced managers more than ever.
"Investors have realized the advantages of ETFs over traditional mutual funds: liquidity, transparency, reliable returns, tax efficiency and lower cost," said Todd Clarke, CEO of CLS. "ETFs lend themselves well to portfolio construction and asset allocation. They offer advisors the ability to be nimble and to easily understand the market and asset exposures being taken, in real time."
"We are excited to feature CLS on our platform as a third-party money manager in our ETF Strategist Program," said Dean Cook, President of FTJ FundChoice. "CLS is well equipped to provide us a series of model portfolios that focus on our client's distribution needs."
Available New ETF Models
- Core Plus ETF Aggressive 100 (Risk Budget 100)
- Core Plus ETF Aggressive 90 (Risk Budget 90)
- Core Plus ETF Moderately Aggressive 75 (Risk Budget 75)
- Core Plus ETF Moderate 60 (Risk Budget 60)
- Core Plus ETF Conservative 30 (Risk Budget 30)
CLS is an Omaha-based, family-owned and operated boutique registered investment advisor managing in excess of $6 billion*. As one of the largest third party money managers and ETF strategists in the U.S., CLS partners with thousands of advisors, plan sponsors, and institutions to offer a full suite of outsourced portfolio management solutions for more than 35,000 individual investors. CLS specializes in creating portfolios based on a distinct risk budgeting methodology and active asset allocation approach. The CLS investment process is governed by systematic research across asset classes and strategies and the continuous measuring of risk. CLS first claimed compliance with the Global Investment Performance Standards (GIPS) in 2002, and the firm's portfolio performance going back as far as 2003 has been independently verified. CLS is a member of NorthStar Financial Services Group, LLC, which currently has more than $233 billion* in assets under management and administration. To learn more, visit www.clsinvest.com.
About FTJ FundChoice
Established in 2001, FTJ FundChoice, LLC ("FTJFC") strives to provide advisors efficient and scalable back-office solutions, necessary to meet the needs of their clients. Solutions include investment management, performance reporting, fee billing, company branding and model portfolio trading. FTJFC's mission is to assist advisors in developing an elite advisory business through back office solutions. Advisors have the ability to manage a diversified investment plan for their clients gaining access to a variety of asset allocation strategies. For additional information, visit www.FTJFundChoice.com
This material does not constitute any representation as to the suitability or appropriateness of any security, financial product or instrument. There is no guarantee that investment in any program or strategy discussed herein will be profitable or will not incur loss. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation, and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that security values may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not a guide to future performance. Individual client accounts may vary.
A client's risk budget is derived from the client's specific answers to CLS's Confidential Client Profile questionnaire, which establishes the client's financial goals, ability to handle risk, and overall investment time horizon. The individual client risk budget is expressed as a percentage of the risk of a well-diversified equity portfolio.
An ETF is a type of investment company whose investment objective is to achieve the same return as a particular index, sector, or basket. To achieve this, an ETF will primarily invest in all of the securities, or a representative sample of the securities, that are included in the selected index, sector, or basket. ETFs are subject to the same risks as an individual stock, as well as additional risks based on the sector the ETF invests in.
While ETFs tend to be lower in cost to other investment companies, such as mutual funds, costs still apply; refer to the prospectus for complete details on the fees associated with the security.
*as of 5/31/2014