ALPS Asset Allocation Growth & Income - Investor Class · NASDAQ:RLGAX

ALPS Asset Allocation Growth & Income - Investor Class — ALPS Sector Dividend Dogs Series — Investor Presentation (December 2015)

27 slides from ALPS Asset Allocation Growth & Income - Investor Class's investor presentation, Dec 31, 2015

1. Slide 1: Teaching an Old Dog a New Trick

   YOUR BUSINESS 0 YOUR BUSINESS ADVISORY SERVICES ADVISORY SERVICES PORTFOLIO SOLUTIONS PORTFOLIO Teaching an OldADVISORY SERVICES Dog a New Trick PORTFOLIO SOLUTIONS

2. Slide 2: Agenda

   1 Agenda § Overview of Current Equity Income Indices § ALPS Sector Dividend Dogs Series (NYSE: SDOG, IDOG & EDOG) § The Importance of a Starting Universe § 3 Key Potential Benefits § Yield § Diversification § Mean Reversion § ETF Facts (SDOG, IDOG & EDOG) There are risks involved with invest

3. Slide 3: Equity Dividend Index Themes

   2 Equity Dividend Index Themes Most of the popular dividend indices typically have the following themes: § Beginning Universe of 1000+ securities § Screens, along with a yield component, are based on combination of one, two or all of the following: § Consistency – must have paid a dividend for 5,

4. Slide 4: Potential Drawbacks of Dividend-Weighted Indices

   3 Potential Drawbacks of Dividend-Weighted Indices Using these standard screens we believe leads to one, two or all of the following potential drawbacks: § Modest Yield – Many dividend indexes only provide moderate yield relative to the overall market § Stock concentration – Despite accessing a ba

5. Slide 5: A Dividend Trade-Off?

   4 A Dividend Trade-Off? High Yield + OPTIMAL Low Diversifica5on YIELD Modest Yield + Sub-­‐OPTIMAL High Diversifica5on DIVERSIFICATION

6. Slide 6: ALPS Sector Dividend Dogs Series [SDOG, IDOG & EDOG]

   5 YOUR BUSINESS ADVISORY SERVICES PORTFOLIO SOLUTIONS ALPS Sector Dividend Dogs Series [SDOG, IDOG & EDOG]

7. Slide 7: Index Construction: 'Dogs Of The Dow' Theory with a Twist

   Index Construction 6 'Dogs Of The Dow’ Theory with a Twist SDOG follows the S-Net Sector Dividend Dogs Index (SDOGX) while IDOG follows the S-Net International Sector Dividend Dogs Index and employ the following index construction methodology: § All constituents of SDOGX must be members of the S&P

8. Slide 8: Sector Dividend Dogs Advantage

   7 Sector Dividend Dogs Advantage § The ALPS Sector Dividend Dogs Series (SDOG. IDOG & EDOG) can potentially overcome shortcomings of other dividend indices by providing the following: § Quality Universe / Pure Yield – SDOG, IDOG & EDOG begin with smaller, quality starting universes which allows yi

9. Slide 9: Importance of a Starting Universe (SDOG)

   8 Importance of a Starting Universe (SDOG) SDOGX Index uses the S&P 500 as it’s starting universe. Potential benefits of beginning with the S&P 500 include: § Often referred to as the leading large-cap US equity Benchmark Index § Stringent screens on size, liquidity and quality § Liquid, well-cap

10. Slide 10: Importance of a Starting Universe (SDOG) continued

    9 Importance of a Starting Universe (SDOG) continued S&P 500 DIVIDEND PAYERS BY SECTOR 90 80 70 60 50 40 30 Total Stocks Dividend Paying Stocks 20 10 0 Source: S&P Indices as of March 31st 2014.

11. Slide 11: Importance of a Starting Universe (IDOG)

    10 Importance of a Starting Universe (IDOG) IDOGX Index uses the S-Net Developed Markets Index (ex-Americas) as it’s starting universe. S-Net DMI uses the following screens to identify qualifying securities: § Must be a member of the World Bank High Income Countries* § 70% - 73% of each stock mark

12. Slide 12: Importance of a Starting Universe (IDOG) continued

    11 Importance of a Starting Universe (IDOG) continued S-NET DMI DIVIDEND PAYERS BY SECTOR 120 100 80 60 40 Total Stocks Dividend Paying Stocks 20 0 Source: S-Network Global Indexes as of March 31st 2014.

13. Slide 13: Importance of a Starting Universe (EDOG)

    12 Importance of a Starting Universe (EDOG) EDOGX Index uses the S-Net Emerging Markets Index (ex Taiwan and South Korea) as its starting universe. S-Net EMI uses the following screens to identify qualifying securities: § Approx. 85% of each stock market capitalization of qualifying countries § El

14. Slide 14: Importance of a Starting Universe (EDOG) continued

    13 Importance of a Starting Universe (EDOG) continued S-NET EMI DIVIDEND PAYERS BY SECTOR 160 140 120 100 80 60 Total Stocks 40 Dividend Paying Stocks 20 0 Source: S&P Indices as of March 31st 2014.

15. Slide 15: Dividends

    14 Dividends SDOG, IDOG & EDOG apply a pure yield methodology to a liquid, well capitalized universe of stocks on a sector-by-sector basis. In our opinion the potential benefits of having yield as a primary screen may include:* § Yield has been a significant portion of most major large-cap indices

16. Slide 16: Diversification

    15 Diversification By isolating ‘Dogs Theory’ to a quality starting universe on a sector-by-sector basis SDOG, IDOG & EDOG provide excellent diversification at both the stock and sector level. Potential benefits of this strategy include: § Unlike many dividend indices that are heavily weighted towa

17. Slide 17: Mean Reversion (Dogs Theory)

    16 Mean Reversion (Dogs Theory) Annual reconstitution and quarterly rebalances provide several potential benefits including: § Annual Reconstitution § ‘Dogs’ theory uses a deep-value approach which may result in mean reversion for stocks that are temporarily undervalued § Isolating the screens on

18. Slide 18: SDOG Index Characteristics

    17 SDOG Index Characteristics S-Net Sector Dividend Dogs Index Characteristics (SDOGXTR) Yield 4.71% # of Securities 49 Top 10 Holdings 21.75% 8.13% 10.72% Utilities 9.68% Consumer Discretionary 10.49% Industrials Energy 9.97% Health Care 10.25% Consumer Staples Information Technology 10.14% Financi

19. Slide 19: IDOG Index Characteristics

    18 IDOG Index Characteristics S-Net International Sector Dividend Country Allocation Characteristics Dogs Index (IDOGXTR) United Kingdom 25.77% Yield 5.49% Australia 22.55% # of Securities 50 France 8.00% Japan 7.82% Top 10 Holdings 21.18% Spain 7.70% Sweden 4.19% 9.68% 10.24% Finland 4.02% Consumer

20. Slide 20: EDOG Index Characteristics

    19 EDOG Index Characteristics S-Net Emerging Markets Sector Country Allocation Characteristics Dividend Dogs Index (EDOGXTR) Indonesia 11.02% Yield 6.43% Poland 10.70% # of Securities 50 South Africa 10.67% China 10.19% Top 10 Holdings 22.02% Malaysia 9.94% Thailand 8.89% 9.11% 10.71% Brazil 8.82% F

21. Slide 21: SDOG Constituents

    20 SDOG Constituents Consumer Discretionary Consumer Staples Energy Financials Health Care Yield – 4.74% Yield – 3.58% Yield – 7.78% Yield – 3.93% Yield – 3.30% COH MO COP CINF Cincinnati Financial ABBV US Coach Inc US Altria Group Inc US ConocoPhillips US Corp US AbbVie Inc KO ESV IVZ BAX F US Ford

22. Slide 22: IDOG Constituents

    21 IDOG Constituents Consumer Discretionary Consumer Staples Energy Financials Health Care Yield – 6.42% Yield – 4.32% Yield – 7.95% Yield – 6.54% Yield – 3.86% JCNC Jardine Cycle & BATS British American ANZ Aust and NZ AZN SP Carriage Ltd LN Tobacco plc BP/ LN BP Plc AU Banking Group LN AstraZeneca

23. Slide 23: EDOG Constituents

    22 EDOG Constituents Consumer Discretionary Consumer Staples Energy Financials Health Care Yield – 5.00% Yield – 4.72% Yield – 7.86% Yield – 8.86% Yield – 2.02% ASTRO Astro Malaysia EXITO 2883 China Oilfield BHW Bank Handlowy w BDMS Bangkok Dusit MK Holdings Bhd CB Almacenes Exito SA HK Services-H P

24. Slide 24: Summary

    23 Summary § Equity income oriented investors shouldn’t have to choose between potential yield and diversification § The ALPS Sector Dividend Dogs Series seeks to provide investors with the three key potential benefits: § Potential Yield § Sector & Stock Diversification § Alpha Potential There

25. Slide 25: SDOG, IDOG & EDOG ETF Facts

    24 SDOG, IDOG & EDOG ETF Facts SDOG IDOG EDOG Ticker: SDOG IDOG EDOG Underlying Index: SDOGXTR IDOGXTR EDOGXTR Total Expense Ratio: 0.40% 0.50% 0.60% Dividends Paid: Quarterly Quarterly Quarterly Rebalance Schedule: Quarterly Quarterly Quarterly Website: www.alpssectordividenddogs.com Phone: 866.675

26. Slide 26: SDOG, IDOG & EDOG Disclosures

    25 SDOG, IDOG & EDOG Disclosures Risks An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus which contain this and other information call 866.675.2639 or visit www.alpsfunds.com. Read the prospectus carefully before inv

27. Slide 27: Contact Information

    26 Contact Information Jeremy Held, CFA* – Director of Investment Strategy & Research 1290 Broadway, Suite 1100 Denver, CO 80203 720-917-0633 303-881-6135 jeremy.held@alpsinc.com Jennifer Levesque* – Institutional Client Relations 1290 Broadway, Suite 1100 Denver, CO 80203 720-917-0633 jennifer.leve

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