CLS Investments
We are pleased to provide the following information on CLS Investments, one of our sub-advisors:
Overview:
CLS Investments, LLC ("CLS") is a professional money management firm and an SEC registered investment adviser. Since 1989, CLS has partnered with financial representatives, retirement plan sponsors, and countless other financial professionals to help individual investors achieve their financial goals.
- Manages more than $8 billion in assets
- Maintains an experienced team of portfolio managers and analysts, including four who hold the Chartered Financial Analyst designation
- Manages portfolios of mutual funds, exchange traded funds, and individual stocks and bonds
- Offers an extensive menu of active investment strategies specializing in risk budgeting
Investment Approach
Markets go up, markets go down, and markets even go sideways. The expression, "the only constant is change," is likely as true today as the day it was first spoken. CLS understands the challenges of keeping pace with all the changes in the marketplace - as one of the largest independent 3rd party money managers in the United States, we keep pace every day. As a SEC Registered Investment Adviser, we utilize a proven investment methodology and deliver diverse investment strategies to more than 40,000 investors, though our methodology allows us to focus on the needs and preferences of individual investors. Our expert portfolio management is available to you, too.
CLS offers a unique, disciplined, active investment methodology called risk budgeting. Think of a risk budget as a thermostat. Everyone has a comfort zone - some may like the thermostat set at 68° while others may prefer 73°. No matter what the temperature is outside, the thermostat adjusts to keep the temperature inside at a preset level. Risk budgeting is essentially a thermostat for a investor's portfolio. We work with each investor to determine his or her risk budget according to personal financial goals, capacity for risk, and overall time horizon.
The CLS Investment Committee provides daily management of all CLS portfolios. We will make adjustments to account holdings in response to market conditions that cause the risk associated with the holdings to change, If these adjustments cause an increase in the overall risk of an individual investor's portfolio, CLS makes complementary adjustments to other holdings in the account to bring the portfolio back into alignment with the investor's risk budget.
Model Descriptions
Aggressive - Seeks account growth by primarily assuming equity market risk. Investors in this model should expect long-term returns similar to stock market performance, as well as swings in the value of their account in order to maximize the risk-return trade-off in the equity market. This model is best suited for investors with a high tolerance for market fluctuations.
Moderately Aggressive - Attempts to build the value of the account by tilting the portfolio toward the equity market. There is some volatility offset compared to the aggressive model, but fluctuations in value should still be expected. This model is best suited for investors who have a higher tolerance for market fluctuations, but are not willing to capture most of the equity market swings associated with a more aggressive stance.
Moderate - Pursues an even balance between growth of capital and income generation. Investors in this model should anticipate some swings in account value. Such swings are expected to be to a lesser degree than in the aggressive model, but to a greater degree than in the conservative model. This model is best suited for investors with some tolerance for market fluctuations.
Moderately Conservative - Strives to build account value by angling the portfolio toward income generation. There is more volatility than in the conservative model, but investors should expect more mild swings in the value of their account compared to the moderate and aggressive models. This model is best suited for investors who have a lower tolerance for market fluctuations, but are more willing to capture some of the swings in the equity market to grow the portfolio beyond income generation alone.