USA Market Stability Marketing Brochure
Ty McGuire Ocean Capital Sample Marketing Brochure European Exchange Traded Product ETN / ETP / ETF
Beacon VP Capital
Ocean Quant
Ty McGuire
Beyond the Codes_Repositioning towards sustainable development
Ty McGuire USA Market Stability
1. Introducing
Ocean's first
liquid Exchange
Traded Product
"Our emphasis on preservation of capital and income equips us with the ability to
help clients better manage their obligations. We believe this approach can enable
us to produce strong results for the client while significantly reducing volatility
and downside risk."
Ty McGuire | Partner | Ocean Capital Advisors
4. 2• A blend of alternative and
traditional approaches in a single investment
• Reduced Volatility and downside protection
• Exchange traded convenience
Enhanced
diversification
• Passive Index Replication with
built-in risk management
Risk
Management
5. 4
5
Liquidity
• An Exchange Traded Product listed on the
London and Frankfurt Stock Exchanges
Established
leader
• Managed by Ocean Capital Advisors
• The new generation of investment
managers, using advanced
mathematics
6. 4
Rtt
4
1. Equity market declines were selected by identifying the two most recent
instances when the SP 500 declined by more than 40%. Use of different time
periods would yield different results.
2. The information provided is for illustrative purposes only and is not meant to
represent the performance of any particular investment or USAMS ETP. An
investor cannot invest directly in an index. Alternatives and equities (SP
500 Index) have different risk and return profiles. Equities (SP 500 Index)
are subject to market risk or the risk of loss due to adverse company and
industry news, or general economic decline. Alternative investments involve
special risks including,
but not limited to, liquidity risks, foreign investment risks, higher fees and
expenses, regulatory restrictions, and loss of all or a significant portion of the
investment, or volatility of returns due to leveraging, short-selling or other
speculative practices. An investor should evaluate alternatives and equities in the
context of his or her investment objectives.
3. USA Market Stability ETP is a new strategy and has a limited performance
history. Performance shown is not representative of USAMS ETP or the
performance of any USAMS ETP investment.
Why USA Market Stability ETP?
Preservation of capital, appreciation
dividends with downside protection
Mitigated downside risk when equity markets declined significantly
Avoiding large draw-down losses is critical to accumulating wealth.
An equity portfolio would have taken close to five years to recoup losses following the ’08
global financial crisis.
8. What is this Strategy?
Our goal is not only to seek strong performance over the long term but also
to outperform the US economy over a full market cycle while providing stability.
We constructed a portfolio to replicate the broader index while providing
dividends, upside potential, and reduced draw-downs.
The overall portfolio structure incorporates the approach of US economic
replication along with the use of our proprietary hedging strategy that delivers
excellent risk management.
.
PROPRIETARY ALGORITHMS
Our proprietary algorithms give us a competitive advantage allowing us
to generate alpha while mitigating draw-downs and other portfolio risks
SMART BETA
Our smart beta strategies are structured to reduce volatility, improve
diversification, as well as enhance returns.
MONTHLY DIVIDENDS
Each of our funds distribute monthly dividends to their shareholders
UPSIDE MARKET POTENTIAL
We have the potential to capture more of the market upside, while still
mitigating downside risks
6
9. Portfolio Performance
Ocean Capital Advisors
With the prospect of rising volatility on the horizon, many investors are
looking to replace exposures with more diversifying allocations.
USA Market Stability ETP seeks to provide market upside capture while
mitigating downside risk.
10. What role can it play?
A better balance
of risk and
return
The strategy is designed to help you pursue smoother overall returns for
your portfolio while taking advantage of the opportunities
the markets present.
Portfolio
diversification1
USA Market Stability ETP
consists of:
1/3 SPY
1/3 ICE 20 year Treasuries
1/3 Dow Jones REIT
Volatility
mitigation1
By equal sizing allocations
we are focused on
preservation of capital
and reduced volatility.
Risk-adjusted
performance1
We seek to maximize
market upside capture over
a full market cycle but
with less risk than a
traditional passive portfolio.
%
1. There is no assurance that the strategy will achieve its goals or avoid losses.8
11. A complement to
fixed income and
equity allocations
A strategy that allocates a portion of both the fixed income and
equity sleeves of your portfolio to USAMS ETP is designed to
mitigate overall portfolio volatility while maintaining
exposure to growth assets.1
Fixed income
Traditional Portfolio Construction
60/30/10
Equities
Ocean Capital Advisors
9
USA Market Stability ETP
Ocean Capital Portfolio Construction
50/20/20/10
Equities
Cash
Fixed income Cash
12. 10
10
Why Ocean Capital?
Access to a leader
in alternatives
Ocean’s industry position enables us to
attract and retain investment talent, establish
robust investment processes and partner with
advisors to deliver quality
alternative solutions to investors.
Position People
W H AT SE T S US APAR T
Audited Track Record
Top quality Service providers
Low Fees
Passive Investments with built-in hedging
Diverse team
Next generation of investing
Use of AI Passive Replication
International experience
Washington DC based
13. 11
11
Process Partnership
Disciplined investment and operational due diligence;
proprietary risk management and technology
Full transparency that facilitates rigorous due diligence
Dynamic portfolio allocations to capture attractive
market opportunities
London Frankfurt Stock Exchanges
Trident Fund Services
Euronext
KPMG
Harney Westwood Riegels
Venable LLP
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Ocean Capital Advisors
15. Important Risks: An investment in an exchange traded
product should be considered a speculative investment
that entails substantial risks; you may lose part or all of
your investment, or your investment may not perform as
well as other investments. Exchange Traded Products
involve special risks including, but not limited to, loss of
all or a significant portion of the investment due to a
variety of practices, lack of liquidity and volatility of
returns. The following is a summary description of
certain additional principal risks of investing in Exchange
Traded Products:
Allocation Risk — Ocean Capital Advisor's judgment
about the attractiveness, value or market trends affecting
a particular asset class, investment style, sub-adviser or
security may be incorrect and this may have a negative
impact upon performance. Derivatives Risk — The use of
derivatives involves the risk that their value may not move
as expected relative to the value of the relevant underlying
assets, rates or indices. Derivatives can
be subject to counter-party credit risk and may entail
investmentexposuregreaterthantheirnotionalamount.
DistressedSecuritiesRisk—Investmentsinsecuritiesof
businessenterprisesinvolvedinworkouts,liquidations,
reorganizations, bankruptcies and similar situations
involveahighdegreeofriskoflosssincethereistypically
substantialuncertaintyconcerningtheoutcomeofsuch
situations. Event-Driven Trading Risk — Involves the
risk that the specific event identified may not occur as
anticipated and that this may have a negative impact
uponthemarketpriceofthesecuritiesinvolved.Foreign
Investments/EmergingMarketsRisk—Involvesspecial
risks caused by foreign political, social and economic
factors,includingexposuretocurrencyfluctuations,less
liquidity,lessdevelopedandlessefficienttradingmarkets,
politicalinstabilityandlessdevelopedlegalandauditing
standards.HighPortfolioTurnoverRisk—Activetrading of
securitiescanincreasetransactioncosts(thus lowering
performance) and taxable distributions. Model and
Technology Risk — Involves the risk that model-based
strategies, data gathering systems, order execution and
trade allocation systems and risk management systems
may not be successful on an ongoing basis or could
contains errors, omissions, imperfections or
malfunctions.Multi-ManagerRisk—Managersmaymake
investmentdecisionsthatconflictwitheachotherandas a
result,thestrategycouldincurtransactioncostswithout
accomplishing any net investment result.
PreparedbyOcean Capital Advisors,L.L.C
Please note
All investors should consider the investment
objectives, risks, charges and expenses of the
strategy carefully before investing. The
Investment Policy Statement and, if available,
the summary terms contain this and other
information about the strategy. You can obtain
a termsheet and, if available, a prospectus,
from the website
(http://www.ocafunds.com). All investors are
urged to carefully read the Prospectus and, if
available, the summary terms, in its entirety
before investing.
Glossary of Indices
Market indices obtained through Bloomberg. Indices are
unmanaged, and investors cannot invest in an index. The
volatility of the indices presented may be materially
different from that of the performance of Ocean Capital
Advisors. In addition, the indices employ different
investment guidelines and criteria than Ocean Capital
Advisors; as a result, the holdings in Ocean Capital
Advisors may differ significantly from the securities that
comprise the indices. The performance of the indices has
not been selected to represent an appropriate benchmark
to compare to the performance of Ocean Capital Advisors,
but rather is disclosed to allow for comparison of Ocean
Capital's performance to that of well-known and widely
recognized indices. In the case of equity indices,
performance of the indices reflects the reinvestment
of dividends.
SP 500 Total Return Index: Market capitalization-
weighted index that includes 500 stocks representing all
major industries. Returns are denominated in U.S. dollars
and include dividends. The Index is a proxy of the
performance of the broad U.S. economy through changes
in aggregate market value.