Defense  Protfolio
Our defensive portfolio is designed to produce a conservative return while the market is rising and amazing results when the market crashes.
 

Important 

INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. 

THIS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF SUCH STATE.

Historical Simulated Index and Back-test Returns

Hypothetical backtested model performance is not a guarantee of future performance of a client’s investment. The back-tested performance herein was derived from the retro-active application of a model developed with the benefit of hindsight. Hypothetical back-tested model results may be materially different from results experienced by actual advisor clients. The actual performance may result in a partial or complete loss of the client’s investment. These performance numbers are for reference only and were not achieved through actual trading.

There are significant limitations inherent in hypothetical back-tested model results, particularly that model returns do not reflect actual trading and may not reflect the effect material economic and market factors may have had on the advisor’s decision making had the advisor actually managed client funds.

Gross performance in the hypothetical back-tested model presented does not reflect the deduction of investment advisory fees. A client's actual returns will be reduced by the advisory fees and other expenses it may incur in the management of its advisory account.

Defense Portfolio

Distribute

The Fund seeks to generate consistent periodic distributions…

&

Defend

… while preserving capital over the long term

Below is an illustration of the distribution of S&P 500® monthly returns between January 1950 and June 2016. Historically, over this time period (16,713 rolling monthly periods) the monthly performance of the S&P 500® has been within a +10% to -10% range 97% of the times. Note that while the Fund targets a +10% to -10% range, at times, the size of that range may vary to meet the 0.60% monthly premium target.

Range Bound Methodology 
If S&P500 Performance over the month is within this Range, then the Strategy seeks to suffer no loss
If S&P500 Performance over the month is less than the Lower Bound of the Range, the Strategy will suffer a loss
Rule Based Methodology 
Baseline 
Set the Strike 10% OTM
If this generates anywhere between 30 and 150 bps, we're all set.
Lower Volatility 
In the event those strikes don’t generate at least 30bps, will tighten the range accordingly so that strategy generates 30bps.
Example: March 2017: -8.5% (30bps)
Higher Volatility 
If 10% OTM strikes generate more than 150bps in any given month, we’ll widen the ranges accordingly
Example: November 2008:  -32% (150bps)
Range Bound Strategy: Hypothetical Strategy Performance -2008
Lehman Brothers Collapses
  • October – Global Financial Crisis
Range Bound Strategy: Hypothetical Strategy Performance -2001
Lehman Brothers Collapses
  • March –Tech Bubble
  • September – September 11th Terrorist Attack
Risk/Return
Correlation