Abacus FCF Small Cap Leaders ETF · CBOE:ABLS
Abacus FCF Small Cap Leaders ETF — TrimTabs Asset Management — Non-Deal Roadshow (January 2020)
27 slides from Abacus FCF Small Cap Leaders ETF's roadshow presentation, January 2020
Slide 1: Free Cash Flow Investing: Markets and Performance Review Webinar
Free Cash Flow Investing Markets and Performance Review Webinar For TTAC and TTAI January 2020
Slide 2: Goals
Macro Overview Free Cash Flow Research Update Goals Actively Managed ETFs Quality for the Long Term Performance Review for Q4 2019 Q&A 2
Slide 3: Investment Elements: What is Driving Equity Markets?
Investment Elements: What is Driving Equity Markets? • 2019: The De-Escalation of Macro Risks • Monetary AND Fiscal Policy 3
Slide 4: Sector Compositions for the Decade (2010-2019)
Sector Free Cash Flow Compo Russell 3000 Companies ons for the Decade (2010-2019) 1000K Sector Il Business Services Industrials Il Consumer Cyclicals Materials Consumer Services Ml Technoleay 300K Consumer Staples I Telecom Hl Energy ue Tl Healthcare 800K 700K 600K 500K Consumer Staples donsumer Sta
Slide 5: Past performance does not guarantee future results
Past performance does not guarantee future results. 5
Slide 6: Actively Managed ETFs
Proprietary Multi-Factor Process Actively Managed ETFs Active Management Equal Weighting 6
Slide 7: Multi-Factor Quantitative Model
Multi-Factor Quantitative Model • Cash Investment flow remaining after Universe capital expenditures • Difficult to manipulate Best indicator • Flow Free Cash Growth of a company’s financial health • Cash flow remaining after capital expenditures • Difficult to manipulate • Best indicator of a compa
Slide 8: Investment Process
Investment Process Ranking Active Management Weighting Lowest scoring stocks are Sector Allocation We equally weight stocks candidates for removal at the time of purchase Moats Highest scoring stocks are TTAC usually has about candidates for inclusion Tax Consequences 100 stocks Other risks and fund
Slide 9: Quality for the Long Run
Quality for the Long Run Potential Corporate Moats: • Free Cash Flow • Strong Balance Sheet • Actual “Cash” Moat • Innovative or Disruptive Technology • Competitive Advantage • Leadership Position • Brand Awareness • Recurring Revenues 9
Slide 10: Consumer Trends
Consumer Trends • US unemployment at historically low levels • Rising wages and low consumer debt in the US • Continued high levels of consumer confidence • More cash in hand due to refinancing • Best US consumer balance sheets in 40 years • Household formation rising • Emerging Chinese middle class
Slide 11: Consumer Plays
Consumer Plays TTAC TTAI • Amazon (AMZN) • Alibaba (BABA) • Nike Inc. (NKE) • Adidas (ADS.GR) • LuLulemon (LULU) • LuLulemon (LULU) • Monster Bev (MNST) • Dufry AG (DUFN.SW) • Sanderson Farms (SAFM) • Rightmove (RMV.LN) 11
Slide 12: Global Leading Economic Indicators
Global Leading Economic Indicators *Please refer to the important disclosures on the last two pages of the slideshow Data Source: OECD 12
Slide 13: Where Do We Fit Into a Portfolio?
Where Do We Fit Into a Portfolio? Diversified All Cap All weather high quality Alternative to passive buyback ETFs Alpha generation potential 13
Slide 14: Fund Performance
All Cap US Free Cash Flow Strategy (TTAC) Fund Performance All Cap International Free Cash Flow Strategy (TTAI) 14
Slide 15: TrimTabs All Cap US Free-Cash-Flow ETF (TTAC)
TrimTabs All Cap US Free-Cash-Flow ETF (TTAC) Inception Date: September 27th, 2016 TTAC: ~$127 million AUM (as of 12/31/19) • TTAC continues to experience asset growth across all channels, including independent RIAs and large regional B/Ds QUARTER END PERFORMANCE (As of 12/31/2019) Annualized Since
Slide 16: TrimTabs All Cap US Free Cash Flow ETF (TTAC)
TrimTabs All Cap US Free Cash Flow ETF (TTAC) Source: Morningstar Direct 16
Slide 17: TrimTabs All Cap US Free Cash Flow ETF (TTAC)
TrimTabs All Cap US Free Cash Flow ETF (TTAC) Source: Morningstar Direct 17
Slide 18: TTAC Top Holdings
TTAC Top Holdings (as of 1/15/2020) Ticker CUSIP Security Description % of Net Assets MSFT 594918104 MICROSOFT CORP 1.47 MSCI 55354G100 MSCI INC 1.44 LULU 550021109 LULULEMON ATHLETICA INC 1.41 MCO 615369105 MOODYS CORP 1.40 V 92826C839 VISA INC 1.39 ANSS 03662Q105 ANSYS INC 1.35 LDOS 525327102 LEID
Slide 19: TrimTabs All Cap International Free-Cash-Flow ETF (TTAI)
TrimTabs All Cap International Free-Cash-Flow ETF Inception Date: June 28th, 2017 (TTAI) TTAI: ~$13 million AUM Investable universe includes all developed countries outside of the United States (Europe, Far East, Asia + Canada) TTAI follows a similar investment methodology of TTAC, adjusted for fore
Slide 20: TTAI Investment Growth of $10,000 (NAV)
TrimTabs All Cap International Free Cash Flow ETF (TTAI) Investment Growth of $10,000 (NAV) Source: Morningstar Direct 20
Slide 21: TTAI Top Holdings
TTAI Top Holdings (as of 1/15/2020) Ticker CUSIP Security Description % of Net Assets EWY 464286772 ISHARES INC MSCI STH KOR ETF 3.19 ADS GR 4031976 ADIDAS AG 1.52 ASML NA B929F46 ASML HOLDING NV 1.45 DSY FP 5330047 DASSAULT SYSTEMES 1.45 RMV LN BGDT3G2 RIGHTMOVE 1.41 SIKA SW BF2DSG3 SIKA AG 1.39 CA
Slide 22: Leader in Free Cash Flow Research
Leader in Free Cash Flow Research Free Cash Flow: An Upgrade to Management Report, February 2017 Buybacks: Do All Roads Lead to Riches, August 2018 Free Cash Flow: A Superior Investment Indicator, October 2018 As Interest Rate Rise, Check that Leverage, November 2018 Introducing the Free Cash Flow F
Slide 23: TrimTabs in the Media
TrimTabs in the Media Janet Johnston Goes Inside Out to Pick Tech Winners, TD Ameritrade Network, January 2019 The Best Way to Get Quality in Your Portfolio, FINSUM, February 2019 Janet Johnston on Bloomberg Daybreak Asia, BLOOMBERG, February 2019 10 Fund Managers to Watch, FINANCIAL PLANNING, March
Slide 24: Our People
Our People The TrimTabs management team has broad investment management experience, with proven expertise in all areas of asset management. Bob Shea – Chief Executive Officer and Co-Chief Investment Officer Janet Flanders Johnston, CFA – Co-Chief Investment Officer and Portfolio Manager Alan Rubenfe
Slide 25: Contact Us
Contact Us Alan Rubenfeld Director of Sales +1 (212) 217-2514 alan.rubenfeld@trimtabsfunds.com Derin Cohen Chief Compliance Officer derin.cohen@trimtabsfunds.com Follow us on Twitter: @trimtabsadvisor Follow us on LinkedIn: TrimTabs Asset Management 25
Slide 26: Disclosures
Disclosures The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-800-617-0004. Read it carefull
Slide 27: Distribution and Index Definitions
TTAC and TTAI are distributed by Quasar Distributors, LLC. The Russell 3000® Index measures the performance of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The Index measures the performance of approximately 98% of the total market capitalization of the publicly
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