GVM Managed Volatility Fund Presentation
- 2. Strategy Objectives The GVM Managed Volatility Fund is a mutual fund that is managed with the following key objectives in mind: Attractive long-term growth of capital Capture more equity upside than downside over a full market cycle Greater stability of returns Less risk and volatility than other equity funds 2
- 3. Key Philosophies We believe that: ◦ Volatility in the equity markets is not always a bad thing ◦ Upside volatility is what drives equity returns ◦ We are only concerned about downside market volatility Paying for portfolio protection at all times is expensive and can be a significant drag on returns In an upward trending market, our focus will be on generating extra yield When risk is high in the equity markets, we will step in to protect the portfolio Due to the high cost of portfolio protection, we would rather be a little too late to hedge than way too early 3
- 4. The Importance of Limiting Market Losses Recouping losses often forces investors to take additional portfolio risk Return Needed to Break Even After a Loss -75% 300% -60% 150% -50% 100% -40% 67% LOSS -30% 43% GAIN -25% 33% -20% 25% -15% 18% -10% 11% 4
- 5. Fund Composition The GVM Managed Volatility Fund combines an Exchange Traded Fund (“ETF”) based U.S. Large Cap Equity portfolio with our proprietary Dynamic Delta ProgramSM ETF-Based Dynamic U.S. Large Delta Cap Equity ProgramSM Portfolio 5
- 6. Dynamic Delta ProgramSM The Dynamic Delta ProgramSM is a disciplined and repeatable process that is designed to determine the level of risk in the equity markets The results of the process drive the hedging activities, if any, in the Fund The Dynamic Delta ProgramSM is a proprietary program that was developed by the Advisor based on technical indicators relating to several key themes Price Highs Momentum and Lows Moving Averages 6
- 7. Dynamic Delta ProgramSM Positive Market Environment High Risk Environment Focus on total return by attempting Focus on managing downside risk in to capture most of the market upside the portfolio in a cost effective and by generating additional manner while still allowing some portfolio yield opportunity for positive return 7
- 8. About the Advisor Gibson Volatility Management, LLC (“GVM”) is an SEC-registered investment advisor headquartered in Richmond, Virginia The firm’s two portfolio managers have over 27 years of combined investment experience and have managed risk during periods of extreme stress Sovereign debt crisis Enron era Global credit crisis Russian currency crisis Two bear markets Asian currency crisis Real estate bubble burst Long-Term Capital Management crisis Tech bubble burst 8
- 9. Biographies Shawn Gibson President and Portfolio Manager Shawn has over 15 years of investment experience with expertise in portfolio volatility management and yield enhancement, asset allocation, and low-correlation investment strategies. Prior to starting GVM, Shawn co- founded Park Ridge Asset Management, a boutique RIA designed to deliver sophisticated investment solutions to underserved investors. Shawn was formerly the Director for the Alternative Investments platform for BB&T Asset Management. In this role, Shawn developed and led the platform of various non-traditional strategies used by BB&T to improve portfolio diversification and mange portfolio risk. Previously, Shawn headed up the Equity Derivatives Group for Scott & Stringfellow, another BB&T affiliate, and was a market-maker for one of the largest international options trading firms in the country in San Francisco, CA and Greenwich, CT. Shawn graduated with a B.S. in Commerce from the University of Virginia. Shawn and his wife Valerie, a native of Argentina, have lived in Richmond, Virginia since 2000, and their extended families have lived in Virginia since 1990. In his free time, Shawn enjoys off-road biking and running, traveling and spending time with Valerie and their two daughters, Maia and Ella. Shawn was selected as Top Forty Under Forty by Richmond Style Magazine for his professional and civic accomplishments. Shawn currently serves on the board of the ASK Foundation (dedicated to helping the families of children with cancer), and is on the Advisory Council for the Ellen Shaw de Paredes Research Foundation (dedicated to the early detection and cure of breast cancer). 9
- 10. Biographies Chris White Co-Portfolio Manager and Director of Client Relations Chris comes to GVM with over 12 years of investment experience with expertise in institutional equity trading and tactical portfolio management. Prior to joining GVM, Chris developed and managed tactical asset allocation for individual investors at Virginia Asset Management. Previously, Chris served in several roles with Wachovia Securities. While at the firm, Chris was a First Vice President in the Capital Market Services group. He was responsible for overseeing IPO & Secondary offering deal flow into various financial advisory channels of Wachovia Securities while also being responsible for institutional relationship management within the firm’s retail network. Prior to that role he was a Vice President on the firm’s Investment Advisory equity trading desk servicing institutional money management clients of the firm. Chris began his career providing high net worth investment management and middle market institutional equity sales while at Morgan Stanley. He is a member of the Security Traders Association and is an affiliate member of the Market Technician Association. Chris is an active volunteer with Comfort Zone Camp, a non-profit organization based in Richmond, Virginia. Chris and his wife Kerri have three children, Julia, Holden, and Coby, and reside in Midlothian, Virginia. 10
- 11. Fund Share Classes Share Class A Advisor Institutional Symbol/Ticker GVMAX GVMVX GVMIX CUSIP 98147A675 98147A667 98147A659 Minimum Investment $2,500 $2,500 $100,000 Sales Load 5.75% Maximum None None 12b-1 Fee 0.25% 0.25% None Management Fee 1.00% 1.00% 1.00% 11
- 12. Contact Information Shawn Gibson Chris White President Co-Portfolio Manager Portfolio Manager Director of Client Relations Phone (804) 269-7731 Phone (804) 269-7721 shawn@gibsonvm.com chris@gibsonvm.com 117 S. 14th Street, Suite 205 Richmond, VA 23219 www.gibsonvm.com Investment advisory services are offered through Gibson Volatility Management, LLC. Securities and other investments held in investment management or investment advisory accounts at Gibson Volatility Management are not insured by the FDIC or any other government agency, and are subject to investment risk, including possible loss of principal invested. 12
- 13. Important Disclosures The Fund's prospectus contains important information about the Fund's investment objectives, potential risks, management fees, charges and expenses, and other information and should be read and considered carefully before investing. The Fund's past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Information provided with respect to the Fund’s portfolio holdings, sector weightings, number of holdings, and/or expense ratios are as of the indicated date and are subject to change at any time. You may obtain a current copy of the Fund's prospectus by calling 1-800-673-0550. Distributed by First Dominion Capital Corporation, Richmond, VA. Member FINRA. Exchange-Traded Funds (“ETFs”) are securities that track an index, a commodity or a basket of assets like an index fund, but trade like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Disclosures About Risk Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets of the Fund’s investments. There is the risk that these and other factors may adversely affect the Fund’s performance. The loss of money is a risk of investing in the Fund. Investment in the Fund is also subject to the following risks: market risk, ETF risk, options risk, non-diversification risk, U.S. governmental obligations risk, REITs risk and foreign risk. More information about these risks and other risks can be found in the Fund’s prospectus. 13