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Target 8 Series
- 1. 623 Fifth Avenue,15th Floor New York NY 10022 torosoinv.com 1 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