The performance data shown in this presentation represents past performance data. With any investment, past performance is not necessarily indicative of future performance. This presentation should not be misconstrued as an offer to buy or solicitation to sell any securities and any information herein is strictly for informational and educational purposes. One should always consult the help of their own financial advisor prior to making investment decisions.
The performance data of the Absolute Return Strategy (ARS) shown is representative of a size-weighted composite of accounts managed by the firm classified as the Absolute Return Strategy composite. The returns represent the net returns of any clients invested in the strategy, accounting for any management fees observed by the advisor. Please note that all performance in 2011 represents one non-fee-paying account comprised of the firm’s capital. Due to the nature of composite performance, it cannot be guaranteed that investors in a specific composite will receive the same gains as the size-weighted average of the composite. As of April of 2016, a majority of the separately managed accounts in the ARS composite gain their exposure to the ARS through a 40 Act Fund that utilizes the Absolute Return Strategy. The performance of the ARS shown on this sheet still represents a size weighted average of the SMA’s composite performance. Please note that accounts that are invested in the ARS via the 40 Act Mutual Fund pay the management fee via the fund’s expense ratio and therefore are not charged an additional management fee by the advisor.
The Absolute Return Strategy invests in derivative securities, including but not limited to exchange-traded option contracts. Specifically, the strategy buys and sells put and call options and utilizes leverage in some cases; these factors can cause portfolios invested in the strategy to show greater fluctuations than investments in the underlying assets. Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options. Put options give the purchaser the right, not the obligation, to sell a specified number of shares of the underlying security at a specified date in the future. The seller of a put option has the obligation, not the right, to have a number of shares delivered to them at a specified price at a specified date in the future in exchange for receiving a premium upfront for this risk. The buyer of a call option has the right, not the obligation, to purchase shares of the underlying security at a specific date in the future. The seller of a call option has the obligation, not the right, to deliver shares of the underlying at a specific date in the future.
The benchmark for the ARS is the Cboe S&P 500 BuyWrite Index. Any reference to the performance of the BXM Index represents the total returns of the index for the period referenced. Any information regarding the SPX Index represents the performance of the SPX Total Return Index which includes the reinvestment of dividends. Both indexes are unmanaged, uninvestable, and do not include any management fees associated with their performance.
Any performance figures referenced in this document are calculated by IPS Strategic Capital (IPS). While best efforts are made when calculating these metrics, IPS cannot guarantee the accuracy of any figures shown.