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Strategically Diversify to Actively Manage Risk
Unlike buy and hold or fixed asset allocation
strategies, CIM's approach is flexible and dynamically
adjusts portfolio risk to meet current market
conditions. The approach seeks the most
favorable investment opportunities and attempts to
reduce risk when the markets become unstable.
CIM uses a proprietary tool called the Risk Adjusted
Performance Ratio (RAPR™) to adjust portfolio
allocations and risk exposures to changes in the
market environment.
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As shown in the graph below, CIM's Dynamic Asset Allocation method is flexible and
adapts to changing market conditions. If the RAPR signals that there is significant
instability in the U.S. stock market, the InvestFlex™ Strategies may lower risk by
reducing its allocations to U.S. stocks and increase allocation to traditionally less risky
assets such as cash and fixed income. Alternatively, the RAPR may signal more
favorable opportunity outside U.S. stocks and increase allocations to asset classes such
as international stocks, emerging market stocks, real estate or commodities.
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The hypothetical allocations shown above are for illustrative purposes only intended to
demonstrate the potential benefit of implementing a dynamic allocation strategy.
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