OMAHA, Neb., Aug. 5, 2013 /PRNewswire/ -- 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 three of its ETF Managed Income Strategy models are now available on the platform of FTJ FundChoice,™ LLC ("FTJFC"). Hebron, Ky.-based FTJFC provides advisors with efficient and scalable back-office solutions that allow them to focus on raising assets and servicing clients.
The ETF Managed Income Strategy models utilize a multi-faceted strategy designed to deliver consistent and reliable income from a diversified, risk-budgeted portfolio of income-producing assets. The models are meant to provide clients with income for immediate or future use in all market conditions. They seek to accomplish this by favoring diversified investments that offer strong income yield and growth opportunities, such as preferred stocks, investment-grade and high-yield bonds, dividend-paying stocks, and managed futures. CLS's portfolios have been composed of ETFs since 2001 in order to give investors more tax-efficient, cost-effective and transparent investment options.
"Our ETF Managed Income Strategy models are a unique type of managed income vehicle, offering investors the opportunity to withdraw income to meet immediate financial needs," said Todd Clarke, CEO of CLS. "These portfolios are designed to give investors much more overall flexibility and security than similar products."
Unlike many other income products, the ETF Managed Income Strategy allows investors to reserve funds for future distributions in cash and reserve accounts. The cash account is designed to keep funds safe for short-term distribution needs, typically three months. The reserve account is for intermediate-term distribution needs, typically four to 15 months out. Because the reserve funds are not needed immediately, they can invest in securities that offer a yield higher than short-term bank CDs, but still provide significantly low risk for security purposes. By utilizing income-oriented investments for the bulk of the portfolio, the cash and reserve accounts can be replenished on a regular basis primarily with income from those investments rather than through sale of investment securities at fluctuating net asset values. Investors have the flexibility to adjust the size of the cash and reserve accounts to meet their individual income needs.
CLS's risk-budgeting methodology provides investors in the ETF Managed Income Strategy models with the security of a constant level of risk. Under this approach, each portfolio is assigned a risk score relative to a diversified equity portfolio, but stocks and bonds are viewed on a continuum instead of within a traditional ratio. CLS also analyzes each asset's potential for return and its risk using a proprietary combination of three risk measurements with quantitative inputs.
"In light of the market volatility we continue to experience, it is vital that investors have access to a product that offers a consistent stream of income regardless of market conditions," said Mr. Clarke. "Thanks to FTJFC, a greater number of investors can benefit from our dependable, flexible, and secure investment models, as well as our stringent risk-management practices, which are synonymous with CLS's innovative approach to portfolio diversification."
"We are excited to welcome CLS to 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."
About CLS: CLS Investments, LLC ("CLS") is one of the largest independent third party money managers in the United States. Founded in 1989, the firm manages individual, qualified plan, and variable annuity portfolios of mutual funds, exchange traded funds, and individual stocks and bonds. CLS serves over 40,000 individual investors and as of June 30, 2013, maintained more than $5.6 billion in assets under management. The company professionally manages money using the principles of risk budgeting and tactical asset allocation, and maintains an experienced team of portfolio managers and analysts. To learn more, visit http://www.clsinvest.com.
About FTJFC: 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 FTJ FundChoice, LLC.
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.
SOURCE CLS Investments, LLC