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Money Management Executive

Flexible Plan Acquires Assets, Industry Leader

April 09, 2001, 1:00 a.m. EDT 1 Min Read

John Sosnowy has agreed to sell the assets of his firm, Sosnowy Investment Management Co. of Cameron, Texas to Flexible Plan Investments of Bloomfield Hills, Mich., one of the nation’s largest investment advisory firms offering active management of mutual fund accounts.

Flexible Plan will gain about $145 million in assets from the acquisition, which will be paid for in a seven-year buyout arrangement, according to Jerry Wagner, president of Flexible Plan.

SIMCO, which manages only mutual fund and variable annuity accounts, will become a wholly owned subsidiary of Flexible Plan and will continue to be run by Sosnowy, who will also become a vice-president of Flexible Plan, according to the company.

Geographic consideration was one of the reasons for the acquisition, according to Wagner. SIMCO’s offices in Texas, Florida and Washington compliment Flexible Plan’s 17 offices very well giving the company needed coverage in those areas, he said.

“John [Sosnowy] brings a lot of experience in this type of business…and SIMCO gives us more management depth and research depth,” said Wagner. “On the other side, the deal will open up SIMCO’s client base to a much broader product offering because of our diversification.”

Sosnowy is the founder of the Society of Asset Allocators and Fund Timers of Littleton, Colo., the national trade organization for registered investment advisors who use market timing and dynamic asset allocation strategies to manage assets invested in mutual funds. Sosnowy is known for a proprietary econometric model he developed in 1970, which is based on a set of proprietary indicators and calculations used to project major market movements, according to Flexible Plan.

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