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New Tools Just In Time

At the May 2015 FTJ FundChoice Advisor Summit Frank Barbera, who manages Ocean Park Asset Management Balanced Risk, warned us of the global issues being played out in our markets. As a participant of our Bull/Bear panel, Mr. Barbera’s bearish view of the markets certainly gave those of us in attendance something to think about. While we now watch much of what he talked about play out, many investors are likely wondering what to do next. One thing is certain: clients will be scrutinizing their August statements and will be looking for clarity.

FTJ FundChoice recently introduced a suite of tools and strategies developed for precisely this purpose. MMS helps clients better align expectations and results through a Three Mandate Approach of Strategic, Tactical, and Diversifier. Our revamped Risk Return Questionnaire describes these three distinct investment scenarios: rising markets, sideways markets, and falling markets, and asks clients to explain their expectations during each scenario to establish an overall risk level. Once the risk score is determined, our new proposal system provides a potential mix of strategies that seeks to insulate clients from the unpredictability of market cycles.

Over the last several months, FTJ FundChoice has introduced a number of new strategists. Through our partnership with Rocaton Investment Advisors, we were able to sort through the hundreds of options and narrow this down significantly for our advisors. Many of the newest strategies have been specifically chosen for their potential to be utilized in our Diversifier mandate. Diversifiers may add significant benefits and opportunities during periods of market stress.

Whether the goal is to calm a current client relationship or develop a new prospect, MMS and our new proposal system will help in providing client clarity. Market cycle changes are unpredictable, yet inevitable. Volatility is a double edged sword, offering both short term pain and longer term opportunity.

For clients not as prepared as Frank Barbera, we can still turn this into an opportunity to strengthen their confidence in us. With MMS you can help them make good decisions during the tough times.


The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained in this commentary is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. All investments carry a certain risk, and there is no assurance that an investment will provide positive performance over any period of time. An investor may experience loss of principal. Investment decisions should always be made based on the investor’s specific financial needs and objectives, goals, time horizon, and risk tolerance. The asset classes and/or investment strategies described may not be suitable for all investors and investors should consult with an investment advisor to determine the appropriate investment strategy. FTJ FundChoice does not guarantee any minimum level of investment performance or success of any index portfolio or investment strategy. Past performance is not indicative of future results. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice.