WHITE PAPER

The role of gold in investment portfolios

What role should gold play in modern portfolio diversification?

We examine some of the history and ongoing debate over owning gold from the context of an investor. Quantitative analysis of gold in different economic and market regimes demonstrates that gold has been valuable for investors as both an alternative source of return and also as a hedge against other asset-class risk. Contrary to conventional wisdom, the study finds that over the period from 1973 to 2019, the efficient allocation addition of gold to a typical balanced (60% equity/40% bond) investor portfolio ranged from 5% to 35%, depending on the desired risk preference. Furthermore, the optimal allocation (maximum point on the efficient frontier) was at the 20% mark, as it produced the highest risk-adjusted return.

6-time recognized
Inc. 5000
Fastest-growing
Private Company

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Inherent in any investment is the potential for loss as well as profit. A list of all recommendations made within the immediately preceding twelve months is available upon written request. Please read Flexible Plan Investments’ Brochure Form ADV Part 2A carefully before investing.

There is no guarantee that any investment strategy will generate a profit or prevent a loss. There is no guarantee the Gold Bullion Strategy Fund or Gold Bullion Strategy Portfolio (VIT) will achieve its objective.

The principal risks of investing in The Gold Bullion Strategy Fund are detailed in the prospectus and include risks of the Sub-advisor’s Investment Strategy, Risks of Aggressive Investment Techniques, High Portfolio Turnover, Risk of Investing in Derivatives, Risks of Investing in ETFs, Risks of Investing in Other Investment Companies, Leverage Risk, Taxation Risk, Concentration Risk, Gold Risk, Wholly-owned Corporation Risk, Risk of Non-Diversification and interest rate risk. “Gold Risk” includes volatility, price fluctuations over short periods, risks associated with global monetary, economic, social and political conditions and developments, currency devaluation and revaluation and restrictions, trading and transactional restrictions.

An investor should consider the investment objectives, risks, charges and expenses of each The Gold Bullion Strategy Fund before investing. This and other information can be found in the Funds’ prospectus, which can be obtained by calling 1-855-647-8268. The prospectus should be read carefully prior to investing in The Gold Bullion Strategy Fund.

FOR FINANCIAL PROFESSIONAL USE ONLY