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INVESTOR PRESENTATION
1
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and ProprietaryPrepared: March 2015
ADVISER
PRESENTATION
Measures of Music and Risk:
Common languages for all liquid markets
CONCERT Strategies:
In tune with markets and client objectives
FERRELL CAPITAL MANAGEMENT
Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR
PRESENTATION
2
© 2015 Ferrell Capital Management, LLC All Rights
Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
CONCERT Philosophy
1. Relieve investor fear and protect capital
2. Control range of returns by tactically managing and allocating risk
3. Static benchmarks cannot adapt to changing risk – CONCERT can
4. Global market turmoil = sovereign bonds or cash
5. Wealth preservation critical – superior upside / downside capture
Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
3
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
Value Proposition
 Peace of mind and exposure to healthy markets
 Team - experienced in the math/science of measuring market risk and
the practical application of risk allocation
 Competitors = “Smart Beta”: static, unreliable
 CONCERT edge – unique risk pedigree
 Unconstrained by industry conventions
 Continuing thought leadership, new product development
Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR
PRESENTATION
4
© 2015 Ferrell Capital Management, LLC All Rights
Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
CONCERT Team – Experience*
Prepared March 2015
William G. Ferrell, President & CIO
Julie A., ETF Sales / Strategist
Joseph T. D’Avanzo, Financial Engineer
Stephen H. Bitteker, Sales / Marketing
David B., Investor & Board Member
Carol D., Legal Advisor
Sebastian M., ETF Research
Jim V.P., System Architect
FOR INSTITUTIONAL INVESTOR USE ONLY
* For reference purposes only. These companies are not endorsing nor sponsoring our offering
INVESTOR
PRESENTATION
5
© 2015 Ferrell Capital Management, LLC All Rights
Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
Market opportunity
Prepared March 2015
 $100B in emerging market ETFs
 exposure to declines in Russia (2014) and Brazil (2015)
 5 year return = 0%
 Cap-weighted and “Smart Beta” benchmarks:
 fixed and inefficient
 investors copy for lack of viable alternatives
 CONCERT – Reallocates high risk to stable return
 CONCERT – Scalable for global and domestic indices
FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
6
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
Barriers to Entry
 Intellectual Property: The CONCERT System - beyond the scope of
asset allocators
 Team - skills essential for quantitative portfolio management, trading,
execution and sales
 Common Vision, Professional Values and Focus on favorable investment
outcomes for investors
 Continued evolution will frustrate attempts to emulate
Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
7
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
0.0
0.5
1.0
1.5
2.0
(1) 0 +1
Portfolio
Marginal Sharpe
Sharperatio
ρ

Prepared March 2015
Allocations avoid markets in
turmoil and favor countries with
uncorrelated, attractive Sharpe
ratios
Note : size of bubble denotes
investment allocation.
Correlation
FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
8
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
Fixed allocation (annual rebalance)*
Marginal Sharpe vs. Fixed Allocation*
Concert Marginal Sharpe
Investment allocations represent a customized version of
the MSCI ACWI
FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
9
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and Proprietary
Prepared: December 2014
ADVISER
PRESENTATION
Picture
Marginal Sharpe Fixed Allocation
Return over period 106% 34%
Annualized return 10.3% 4.1%
Average return per month 0.85% 0.44%
Annualized volatility 9.2% 17.6%
Annualized semi-volatility (below zero) 4.9% 13.0%
Sharpe ratio 0.95 0.15
# of winning | losing months 57 | 31 57 | 31
Per cent winning | losing 65% 65%
# of winning | losing quarters 21 | 9 19 | 11
Per cent winning | losing 70% 63%
# of winning | losing years 7 | 1 6 | 2
Per cent winning | losing 88% 75%
Largest drawdown -17.6% -50.9%
Months to recover 24 66
Best and worst month 10.0% | -6.0% 17% | -15.0%
Best and worst quarter 16.1% | -9.1% 22.3% | -19.6%
Best and worst year 34.3% | -13.1% 49.1% | -43.0%
28 Feb 2007 - 09 Jul 2014
Key figures
FOR INSTITUTIONAL INVESTOR USE ONLY
Strategy is a customized version of the MSCI ACWI
INVESTOR PRESENTATION
10
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and ProprietaryPrepared: March 2015
ADVISER
PRESENTATION
 Crowdfunder terms require removal of private deal information
Capital Request
Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
11
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and ProprietaryPrepared: March 2015
ADVISER
PRESENTATION
 CONCERT software / hardware
 SMA’s for current clients
 Team employment contracts
 Distribution / Branding / Sales events
 CONCERT Emerging Market ETF launch
Use of Proceeds
Prepared March 2015
“The investment will launch a transformational risk allocation
philosophy uniquely designed to protect wealth and produce consistent
performance without relying on return forecasting.”
William G. Ferrell
FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
12
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and ProprietaryPrepared: March 2015
ADVISER
PRESENTATION
 Crowdfunder terms require removal of private deal information
Financial Overview
(,000)
Year 1 Year 2 Year 3
Revenue
Expenses
EBITDA
SH ROE
Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
INVESTOR PRESENTATION
13
© 2015 Ferrell Capital Management, LLC All Rights Reserved
Confidential and ProprietaryPrepared: March 2015
ADVISER
PRESENTATION
Vision
“Create efficient investment products that provide
peace of mind and better returns than traditional
benchmarks”
__________________________________
3 Greenwich Office Park
Greenwich, Connecticut 06831
+001 (203) 862-9500
wferrell@ferrellcapital.com
www.ferrellcapital.com
Summary
Prepared March 2015
VWO
FOR INSTITUTIONAL INVESTOR USE ONLY

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FCM Value Proposition

  • 1. INVESTOR PRESENTATION 1 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and ProprietaryPrepared: March 2015 ADVISER PRESENTATION Measures of Music and Risk: Common languages for all liquid markets CONCERT Strategies: In tune with markets and client objectives FERRELL CAPITAL MANAGEMENT Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
  • 2. INVESTOR PRESENTATION 2 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION CONCERT Philosophy 1. Relieve investor fear and protect capital 2. Control range of returns by tactically managing and allocating risk 3. Static benchmarks cannot adapt to changing risk – CONCERT can 4. Global market turmoil = sovereign bonds or cash 5. Wealth preservation critical – superior upside / downside capture Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
  • 3. INVESTOR PRESENTATION 3 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION Value Proposition  Peace of mind and exposure to healthy markets  Team - experienced in the math/science of measuring market risk and the practical application of risk allocation  Competitors = “Smart Beta”: static, unreliable  CONCERT edge – unique risk pedigree  Unconstrained by industry conventions  Continuing thought leadership, new product development Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
  • 4. INVESTOR PRESENTATION 4 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION CONCERT Team – Experience* Prepared March 2015 William G. Ferrell, President & CIO Julie A., ETF Sales / Strategist Joseph T. D’Avanzo, Financial Engineer Stephen H. Bitteker, Sales / Marketing David B., Investor & Board Member Carol D., Legal Advisor Sebastian M., ETF Research Jim V.P., System Architect FOR INSTITUTIONAL INVESTOR USE ONLY * For reference purposes only. These companies are not endorsing nor sponsoring our offering
  • 5. INVESTOR PRESENTATION 5 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION Market opportunity Prepared March 2015  $100B in emerging market ETFs  exposure to declines in Russia (2014) and Brazil (2015)  5 year return = 0%  Cap-weighted and “Smart Beta” benchmarks:  fixed and inefficient  investors copy for lack of viable alternatives  CONCERT – Reallocates high risk to stable return  CONCERT – Scalable for global and domestic indices FOR INSTITUTIONAL INVESTOR USE ONLY
  • 6. INVESTOR PRESENTATION 6 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION Barriers to Entry  Intellectual Property: The CONCERT System - beyond the scope of asset allocators  Team - skills essential for quantitative portfolio management, trading, execution and sales  Common Vision, Professional Values and Focus on favorable investment outcomes for investors  Continued evolution will frustrate attempts to emulate Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
  • 7. INVESTOR PRESENTATION 7 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION 0.0 0.5 1.0 1.5 2.0 (1) 0 +1 Portfolio Marginal Sharpe Sharperatio ρ  Prepared March 2015 Allocations avoid markets in turmoil and favor countries with uncorrelated, attractive Sharpe ratios Note : size of bubble denotes investment allocation. Correlation FOR INSTITUTIONAL INVESTOR USE ONLY
  • 8. INVESTOR PRESENTATION 8 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION Fixed allocation (annual rebalance)* Marginal Sharpe vs. Fixed Allocation* Concert Marginal Sharpe Investment allocations represent a customized version of the MSCI ACWI FOR INSTITUTIONAL INVESTOR USE ONLY
  • 9. INVESTOR PRESENTATION 9 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and Proprietary Prepared: December 2014 ADVISER PRESENTATION Picture Marginal Sharpe Fixed Allocation Return over period 106% 34% Annualized return 10.3% 4.1% Average return per month 0.85% 0.44% Annualized volatility 9.2% 17.6% Annualized semi-volatility (below zero) 4.9% 13.0% Sharpe ratio 0.95 0.15 # of winning | losing months 57 | 31 57 | 31 Per cent winning | losing 65% 65% # of winning | losing quarters 21 | 9 19 | 11 Per cent winning | losing 70% 63% # of winning | losing years 7 | 1 6 | 2 Per cent winning | losing 88% 75% Largest drawdown -17.6% -50.9% Months to recover 24 66 Best and worst month 10.0% | -6.0% 17% | -15.0% Best and worst quarter 16.1% | -9.1% 22.3% | -19.6% Best and worst year 34.3% | -13.1% 49.1% | -43.0% 28 Feb 2007 - 09 Jul 2014 Key figures FOR INSTITUTIONAL INVESTOR USE ONLY Strategy is a customized version of the MSCI ACWI
  • 10. INVESTOR PRESENTATION 10 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and ProprietaryPrepared: March 2015 ADVISER PRESENTATION  Crowdfunder terms require removal of private deal information Capital Request Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
  • 11. INVESTOR PRESENTATION 11 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and ProprietaryPrepared: March 2015 ADVISER PRESENTATION  CONCERT software / hardware  SMA’s for current clients  Team employment contracts  Distribution / Branding / Sales events  CONCERT Emerging Market ETF launch Use of Proceeds Prepared March 2015 “The investment will launch a transformational risk allocation philosophy uniquely designed to protect wealth and produce consistent performance without relying on return forecasting.” William G. Ferrell FOR INSTITUTIONAL INVESTOR USE ONLY
  • 12. INVESTOR PRESENTATION 12 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and ProprietaryPrepared: March 2015 ADVISER PRESENTATION  Crowdfunder terms require removal of private deal information Financial Overview (,000) Year 1 Year 2 Year 3 Revenue Expenses EBITDA SH ROE Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY
  • 13. INVESTOR PRESENTATION 13 © 2015 Ferrell Capital Management, LLC All Rights Reserved Confidential and ProprietaryPrepared: March 2015 ADVISER PRESENTATION Vision “Create efficient investment products that provide peace of mind and better returns than traditional benchmarks” __________________________________ 3 Greenwich Office Park Greenwich, Connecticut 06831 +001 (203) 862-9500 wferrell@ferrellcapital.com www.ferrellcapital.com Summary Prepared March 2015 VWO FOR INSTITUTIONAL INVESTOR USE ONLY

Editor's Notes

  1. www.ferrellcapital.com/bubbles-lux-static www.ferrellcapital.com/bubbles-lux-rotation