AdvisorShares MSOS Daily Leveraged ETF · AMEX:MSOX
AdvisorShares MSOS Daily Leveraged ETF — AdvisorShares STAR Global Buy-Write ETF — Investor Presentation (September 2019)
21 slides from AdvisorShares MSOS Daily Leveraged ETF's investor presentation, September 2019
Slide 1: AdvisorShares STAR Global Buy-Write ETF
AdvisorShares STAR™ Global Buy-Write ETF Ticker: VEGA A Global Balanced Approach www.advisorshares.com 1
Slide 2: Table of Contents
Table of Contents About Advisor Shares 3 Portfolio Positioning 10 VEGA History 4 Case Study – Varying Volatility Environments 11 Investment Strategy 5 High Volatility 15 Partnervest Investment Team 6 Low Volatility 16 Investment Process: Extended High Volatility 17 Overview 7 VEGA Resources 19 The V
Slide 3: About AdvisorShares
About AdvisorShares AdvisorShares is based in Bethesda, MD and is a leading provider of actively managed exchange-traded funds (ETFs) ‒ Offering a diversified suite of varying strategies ‒ Featuring multiple, accomplished investment managers ‒ Delivering active management in the fully-transparent
Slide 4: A Brief History of VEGA
A Brief History of VEGA 2012 – Launched VEGA Launched 9/17/2012 Sub-advised by Partnervest Advisory Services, LLC Employed the following mandates: ‒ 8-10 equally weighted asset classes ‒ Volatility Based Reinvestment (VBR) – a systematic reinvestment discipline ‒ Varying option strategies to e
Slide 5: Investment Strategy
Investment Strategy The AdvisorShares STAR Global Buy-Write ETF (Ticker: VEGA) is a low volatility, moderate risk, global balanced portfolio strategically allocated to capital markets and tactically weights to specific regions, sectors or securities. Seeks to provide consistent and repeatable retu
Slide 6: Investment Team
Investment Team Kenneth R. Hyman, President and Chief Executive Officer Kenneth R. Hyman founded Partnervest in 2001 and serves as Co-Portfolio Manager and member of the Investment Management Committee overseeing the STAR Asset Management program. Prior to Partnervest, Mr. Hyman was the Senior Execu
Slide 7: Investment Process: Overview
Investment Process: Overview Partnervest’s STAR™ approach to portfolio construction includes: trategically allocates to the global capital markets ‒ Driven by macro economic factors and trends identified by its quantitative, proprietary modeling ‒ Utilizes broad market ETFs* as the underlying holdin
Slide 8: Investment Process: The VEGA Difference
Investment Process: The VEGA Difference Multiple Sources of Income Option Selling covered calls creates an additional Premium source of income that collectively, with bond interest and equity dividends, builds a cash Bond Equity position, functioning as a component of risk Interest Dividend manageme
Slide 9: Investment Process: Options Overlay Strategy
Investment Process: Options Overlay Strategy Covered Call Strategy Expected to write covered calls on 50% to 75% of the portfolio’s underlying holdings, on a normal basis Actively monitored and adjusted based on market conditions The higher the volatility (as measured by the VIX), the higher t
Slide 10: How Does VEGA Fit within a Portfolio
How Does VEGA Fit within a Portfolio As a risk-managed solution. Core Holding: VEGA is a low volatility, moderate risk, global balance portfolio that strategically allocates to the capital markets, tactically over weights regions, sectors, or securities and then employs option strategies seeking to
Slide 11: VEGA Case Study
VEGA Case Study The following case study illustrates how Partnervest Advisory Service’s active management style using its STAR™ investment process and varying option strategies navigates High, Low, and Extended High volatile market environments. Periods are determined to be High, Low and Extended Hi
Slide 12: VEGA Case Study – June 30, 2018 Portfolio
VEGA Case Study – June 30, 2018 Portfolio Ticker Weight Name Equity 74.43% Core Equity US Large Cap Stock SPY 50.56% SPDR S&P 500 US Small Cap Stock IWM 6.47% iShares Russell 2000 Non-US Dev Stock EFA 8.84% iShares MSCI EAFE US Large Cap Stock XLF 3.85% Financial Select Sector SPDR Non-US Dev Stock
Slide 13: VEGA Case Study – Reading a Candlestick Chart
VEGA Case Study – Reading a Candlestick Chart Red Candle – Closing Price in period lower, than previous Closing Price Green Candle – Closing Price in period higher, Upper than previous Closing Price Shadow Hollow Solid Candle – Closing Price in period lower, than Opening Price Body Hollow Candle – C
Slide 14: VEGA Case Study – Chart Legend
VEGA Case Study – Chart Legend Star images are used through the case study to draw attention to specific active management decisions and depending on the action taken, the coloration of the star will differ. Orange stars denote typical portfolio maintenance which can include tactical shift, underlyi
Slide 15: VEGA Case Study – High Volatility Environment
VEGA Case Study – High Volatility Environment Adjust Protective Puts Sell New Covered Calls Volatility-Based Reinvest, #1 Close Existing Covered Calls, Sell New Covered Calls Close Existing Covered Calls Sell Protective Puts Sell New Covered Calls Close ITM Calls, Rebalance underlying Sell New portf
Slide 16: VEGA Case Study – Low Volatility Environment
VEGA Case Study – Low Volatility Environment Close Existing Covered Calls, Reduce Underlying Position to Restore Premium Close Existing Covered Calls, Reduce Underlying Position to Restore Premium Sell New Rebalance Underlying Position Covered Calls to Target Weighing, Sell New Covered Calls Close E
Slide 17: VEGA Case Study – Extended High Volatility Environment
VEGA Case Study – Extended High Volatility Environment Buy Protective Puts, #1 Buy Protective Sell Protective Puts, #2 Puts, #1 Sell New Sell New Covered Calls Covered Calls Close Existing Covered Calls Remove XLF Tactical Adjust Fixed Volatility-Based Reinvest, #1 Trade & Replace with SPY Income Du
Slide 18: VEGA Case Study – Disclaimers
VEGA Case Study – Disclaimers The Case Study slides depict all actual trades placed for the STAR™ Global Buy-Write ETF (VEGA) within the stated periods, which were selected based on varying periods of volatility. A different time period would yield different trading activity results. No statement is
Slide 19: VEGA ETF Fund Page
VEGA ETF Fund Page Portfolio Manager Commentary Fact Sheet www.advisorshares.com/fund/vega www.advisorshares.com 19
Slide 20: Disclosures
Disclosures Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully bef
Slide 21: AdvisorShares Contact
AdvisorShares 4800 Montgomery Lane Suite 150 Bethesda, MD 20814 www.advisorshares.com AdvisorShares Investment Consulting Team: 1-877-843-3831 Follow AdvisorShares on Twitter Like us on Facebook Connect with us on Linked-in www.advisorshares.com 21
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