SWM ETF portfolios presentation

SECURE WEALTH MANAGEMENT

the ETF portfolio manager

Why ETFs?

The fastest-growing financial instrument globally: at end Dec 2015 there was over USD 3 trillion invested in ETFs, with

over 4,500 individual ETFs available for purchase (source: ETFGI)

During Q2 2015, ETFs overtook hedge funds, measured by total assets managed

Why the exponential growth?

ETFs offer several client-friendly advantages:

Low-cost: typical cost of a liquid ETF is 0.1% - 0.2% per annum

Liquidity: ETFs are some of the most liquid investment available anywhere, offering ease of purchase and sale

bid-ask spreads

Transparency: ETFs are completely transparent with regard to their holdings, performance and costs

Diversification: Every ETF typically contains between 100 and 1000 individual securities, providing a highly

investment vehicle

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Strong 7-year performance history

Strong track record for SWM ETF portfolios, dating back 7 years

Net returns ranging from c.3% for SWM fixed-income portfolio to c.16% for SWM equity portfolio (1 x leveraged)

Significant outperformance vs. benchmark for every single strategy on almost every time horizon

Almost no ETF portfolio managers outside the USA can claim a track record dating back 7 years. The industry in

Europe and in Asia is still in its infancy

SWM was the first pure-play ETF portfolio manager in Switzerland

Combined portfolio management experience of over 90 years on the SWM team

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SWM ETF portfolios

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SWM investment philosophy

SWM aims to provide clients with superior long-term risk adjusted returns within a transparent and low-cost framework

precise risk controls ensure that the volatility of a client’s portfolio remains within the defined range for their risk tolerance

both core and satellite positions are actively managed within each of our strategies

a blend of fundamental and proprietary technical analysis is used for asset selection and risk management

risk is managed using proprietary internal processes, and HeavyTails software from FNA (SWM’s strategic partner for risk management)

long put options are systematically employed to protect client capital

emphasis on protecting investors from material drawdowns whilst providing upside participation in-line with their risk appetite

SWM portfolio guidelines

fixed-income conservative balanced growth equity

3 month volatility below 5% below 5% below 10% below 12% below 15%

3 month beta vs MSCI World - 0.15 to 0.40 0.30 to 0.60 0.60 to 0.95 0.80 to 1.00

equity component 0% to 10% 15% to 40% 30% to 60% 60% to 95% 80% to 100%

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The SWM team

Mark Browne

Director

James Dougall, CFA

Managing Director, lead portfolio manager

Ved Vyas, CFA

senior portfolio manager

Alan Laubsch

independent risk oversight

Simon Pettigrew

portfolio analyst

Sujed Leangsakul

portfolio analyst

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conservative balanced growth equity fixed income

-0.55% -0.38% -0.81% -1.94% -0.52%

-1.03% -2.63% -1.66% 2.39% -1.97%

01-Oct-09 01-Oct-09 01-Jul-10 29-Sep-15 23-Sep-15

4.83% 5.30% 5.77% 7.78% 2.93%

5.79% 7.47% 11.85% 14.07% 3.96%

0.79 0.67 0.46 0.53 0.62

1.30% 0.88% 1.23% 2.48% 2.49%

24.28% 43.99% 68.69% 84.77% -

69.92% 45.45% - - 100.00%

- - 5.14% 4.38% -

1.80% 2.15% 2.59% 5.08% -

2.05% 2.02% - - -

0.67% 1.13% - - -

- 2.51% 2.50% 2.45% -

1.28% 2.74% 21.08% 3.33% -cash

fixed income

preference shares

commodities

property

options

currency

annualised net return since inception

annualised volatility since inception

Sharpe ratio

current yield

asset allocation

equity

portfolio performance

net return December 2015

net return 2015

inception date

SWM ETF portfolio snapshot*

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* figures correct as on 31st December 2015; performance figures for SWM fixed-income and equity ETF portfolios prior to inception date based on back-tested performance data

SWM ETF portfolio

performance versus benchmarks

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December 2015 performance last 3 years performance

2015 full-year performance last 5 years performance

* SWM fixed-income and equity ETF portfolio performance before inception is based on back-tested performance data and does not represent performance of actual SWM client portfolios

-0.55%

-1.16%

-2.64%

-1.95%

0.53%

-0.55% -0.38%-0.81%

-1.94%

-0.52%

conservative balanced growth equity* fixed-income*

benchmark SWM ETF portfolio

-3.88%-4.93%

-7.09%

-3.56% -3.15%

-1.03%

-2.63%-1.65%

2.39%

-1.96%



0.83% 1.06% 2.74%

18.55%

-5.12%

8.85% 10.08%5.19%

29.64%

1.02%



10.76% 10.55% 10.27%

27.66%

4.56%

21.58% 23.04%

10.32%

42.62%

18.07%



figures correct as on 31st December 2015

BlackRock / SWM partnership

SWM has a partnership arrangement with BlackRock Switzerland

SWM co-brands with iShares/BlackRock, and implements elements of ETF Model Portfolio strategies supplied by BlackRock (MPS). This

assists us with our asset selection and risk management processes. The MPS form the basis for SWM’s Conservative and Balanced ETF

portfolios.

BlackRock’s ETF Model Portfolio solutions team is over 180-strong worldwide, providing a very significant resource for SWM

BlackRock Model Portfolio Solutions offer a single platform that delivers asset allocation, investment management, risk management

capabilities and investment views, and includes inputs from BlackRock’s proprietary quantitative risk management technology Aladdin

SWM is in direct contact with BlackRock’s 20-strong London-based ETF liquidity team, who provide information on off-market and pre-

market liquidity for SWM’s ETFs. The BlackRock team are also in contact with our execution partners Leonteq to ensure best execution for

our partner firms and their clients

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Financial Network Analytics (FNA)proprietary risk alerting technology

HeavyTails platform*

* correlation map as on 28th September 2015

FNA is a strategic partner of Secure Wealth Management

FNA’s HeavyTails software helps SWM sense and

respond to emerging systemic risks

HeavyTails provides visual insights from complex

financial data using network analysis techniques on

SWM’s universe of ETFs

combines correlation analysis with sigma (volatility)

analysis to provide a visual indicator of positive and

negative event outliers

detailed time series analysis, scenario and stress

testing algorithms

FNA implements cutting edge research in Financial

Cartography and collaborates with top universities

around the globe

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SWM investment process

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contact us

Secure Wealth Management

13 route de Florissant

CH-1206 Geneva

Switzerland

Tel: +41 22 354 8970

email: [email protected]

website: www.securewm.com

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disclaimer / risk warning

This document is intended for information purposes only and you should not take, or refrain from taking any action as a consequence of it,

without consulting a suitably qualified person. This document is not intended for use by persons located or resident in jurisdictions which

restrict the publication of this document or the availability of its content. The content of this document does not constitute an offer to sell or a

solicitation to purchase, nor an advice or a recommendation to acquire or dispose of any investment or to engage in any other transaction. This

document should not be distributed to, or used by, any person or entity, in any jurisdiction where such activities would be unlawful or where it

would require Secure Wealth Management Holding Limited Partnership. (“SWM”) or any of its affiliates to be registered, licensed, authorized,

approved or otherwise qualified. The information contained in this document is not intended to provide professional advice and should not be

relied upon in that regard. Investors are advised to obtain appropriate professional advice where necessary. Investment involves risks. Past

performance is not indicative of future results of an investment. The value of an investment may fall as well as rise and may become valueless

and investors may not be able to recover the amount invested. Investors are advised to contact the entity with which they deal, or the entity

that provided this document to them, if they require further information. The information in this document has been obtained or derived from

sources believed by SWM to be reliable, but SWM makes no guarantee, representation or warranty and accepts no responsibility or liability as

to its accuracy or completeness. Any opinions or estimates contained in this document represent the judgement of SWM at the time of the

publication of this document and are subject to change without notice.

The content of this document is protected by legal copyright and this document may not be reproduced or further distributed in whole or in part

for any purpose without the prior written consent of SWM.iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its

affiliates (“BlackRock”) and are used under license. BlackRock makes no representations or warranties regarding the advisability of investing

in any product or service offered by Secure Wealth Management Holding Limited Partnership, Christchurch, New Zealand, succursale de

Geneve, Suisse. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service

offered by Secure Wealth Management Holding Limited Partnership, Christchurch, New Zealand, succursale de Geneve, Suisse.

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SWM ETF portfolios presentation

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