The Toroso Target 8 Series consists of five distinct portfolios comprised of ETFs and other exchange traded products (ETPs), that are structured to reflect a client’s economic point of view while considering the client’s risk tolerance and time horizon. Toroso recognizes the need for clients to express their economic point of view while achieving more consistent returns than those structured using more traditional approaches such as Modern Portfolio Theory. Risk is mitigated using 4 distinct asset classes such that not one economic scenario will deplete a client’s portfolio under stressful market events.
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Toroso Investments, LLC
The Toroso Target 8 Series consists of five distinct portfolios comprised of ETFs and other exchange
traded products (ETPs), that are structured to reflect a client’s economic point of view while
considering the client’s risk tolerance and time horizon. Toroso recognizes the need for clients to
express their economic point of view while achieving more consistent returns than those structured
using more traditional approaches such as Modern Portfolio Theory. Risk is mitigated using 4 distinct
asset classes such that not one economic scenario will deplete a client’s portfolio under stressful
market events.
Asset Classes
Use 4 distinct asset classes to minimize volatility by
structuring portfolios with low asset correlation. The four
asset classes are:
Equities to provide growth in a
prosperous economy.
Commodities, real estate and other
securities that benefit from inflation to
provide stability and growth when interest
rates rise and bond prices fall.
Cash Equivalents to maintain portfolio
value when other assets decline. Keeps
cash available to purchase securities
when markets bottom.
Bonds to provide some lift if deflation
takes hold.
5 Distinct Portfolios to meet Clients’
ECONOMIC VIEWS
Toroso Neutral Strategy:
strives for a competitive return with
lower volatility than the overall U.S.
equity market.
Toroso Prosperity Strategy:
higher allocation to equities to capture
growth in companies
Toroso Inflation Strategy:
higher allocation to commodities, real
estate, etc.
strives to avoid negative impacts to
purchasing power
Toroso Recession Strategy:
higher allocation to cash equivalents
strives to minimize risks associated
with investing in equities and
commodities
Toroso Deflation Strategy:
• higher allocation to bonds
• strives to minimize risks associated
with investing in equities and
commodities
About Toroso Investments
Toroso is an SEC registered investment advisory firm whose investment philosophy is focused on a simple diversified asset
allocation approach which strives for consistent performance while accommodating the client’s economic point of view, risk
tolerance and investment time horizon. Clients include Private Wealth Management, Corporate, Endowment, and Retirement
accounts. With over 80 years of combined investment-related experience, Toroso’s management team is focused on developing
investment portfolios that allow clients to express their economic point of view and prosper accordingly.
Target 8 Series
2. 623 Fifth Avenue, 15th
Floor New York NY 10022 torosoinv.com 2
Toroso Investments, LLC
Security Selection
Toroso believes its in-house developed analysis provides
an important competitive advantage. Toroso gets “under the
hood” of ETP construction to avoid concentrated and
uncompensated risk, discover discounts and premiums,
determines security overlaps and measures the
fundamentals of the portfolio.
Key Advantages
Economy Focused The prevailing economic climate exerts the greatest long-term effect on the markets.
Four Asset Classes Used Most asset allocation strategies stick to a stock-bond or a stock-bond-cash mix.
Correlation Profile Enhanced When market turbulence strikes, many “correlations go to one” – particularly U.S. and
international stocks
Fundamental Security Selection Getting under the hood of ETP construction to avoid concentrated and
uncompensated risks.
Disclosure
The Toroso Target 8 Series of Portfolios are subject to underlying expenses such as the annual expense ratios of the ETPs used to construct the
portfolios, which generally include an embedded investment management fee paid to the investment adviser of the ETP. In addition, trading and
transaction fees and other expenses such as custody and clearing are incurred in the management of these strategic multi-asset allocation portfolios.
The market price for a share of an ETP may fluctuate from the value of its underlying securities. Consequently, ETPs can trade at a discount or premium
to their net asset value. Certain equity and commodity ETPs are often more volatile and less liquid and present greater risks of loss of capital.
Furthermore, certain ETPs employ strategies such as leverage or have the investment goal of performing opposite to a particular benchmark and may
not be suitable for investment periods longer than one day due to the high volatility in their market price.
Investments in fixed income ETPs are subject to the risks associated with debt securities including credit risk and interest rate risk.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, WHICH MAY VARY.
The investment process and strategies described above reflect Toroso Investments’ ongoing efforts to monitor and manage various risks in its clients’
portfolios, but does not imply, and no representation is made, that client portfolios are low risk. The investment strategies presented and/or discussed
may not be suitable for all types of prospective investors or clients and Toroso Investments, LLC’s investment advisory services may not be available in
all states or countries. All investing involves risk, including the possible loss of all principal invested. The information and statements presented above
should not be construed as investment advice and should not be relied upon solely as the basis for evaluating the investment strategies presented or
Toroso Investments LLC’s advisory services. Prospective clients should perform an independent review of all facts and information prior to making a
determination as to whether Toroso Investments LLC’s advisory services are appropriate for them based on their individual circumstances. Registration
with the SEC does not imply a certain level of skill or training.
Objective:
Neutral
Prosperity
Recession
Inflation
Deflation
1. Determine Benchmark:
VTI
GLD
SHY
AGG
2. Seek Alpha:
+/- Sectors
+/- Geography
+/- Asset Classes
3. Ensure Diversification:
Security Usage
Market Caps
Duration
4. Make Product Selection:
Expense Ratio
Trading Volume
Tax Impact
5. Optimize Fundamentals:
Price to Earnings,
Sales, Book Value
Return on Equity
Yield & Credit Quality