Managing Risk and Return Through Tactical Asset Allocation

EXCHANGE TRADED FUND STRATEGIES
At Brazos Capital, we have developed seven tactical, objective-based ETF strategies – which include core, fixed-income and all-cap equity allocations. In our view, no other factor has a bigger impact on portfolio performance and risk management than market segment allocation. This is why we diligently built our investment and research process around the tactical management of market segments. The goal of tactical asset allocation is to move among different asset classes within a risk-managed framework. We strive to take advantage of market inefficiencies in the short and immediate term with the goal of pursuing additional return.

With more than a decade of experience utilizing exchange-traded funds, Brazos Capital was one of the first retail money managers to offer customized buy-side management, rather than the traditional advisory outsourcing model of using mutual funds and third-party money managers.

Investing involves risk including the possible loss of capital. International investing involves additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. These risks are greater in emerging markets.

Investors should consider the investment objectives, risks, and charges and expenses of exchange traded funds carefully before investing. The prospectus contains this and other information about this investment. The prospectus is available from Brazos Capital and should be read carefully before investing.

Asset allocation and diversification do not guarantee a profit nor protect against loss.
EQUITY OFFERINGS
To complement our ETF Strategies, we manage Equity Portfolios in attempt to further lower the correlation with the core of our strategic allocation. Exposure to individual equities gives us the long only asset classes that tend to have high risk premiums but lower correlation to our core asset classes. Today, we feel this is an area where many are still under-represented in portfolios.

OUR EQUITY PORTFOLIOS INCLUDE

Equity Growth

Equity Growth is a focused and static selection of stocks with an objective to produce above-average price appreciation over the next year.

The selection process first screens eligible analysts based on tenure and stock rating accuracy as measured by StarMine. Analysts meeting the criteria are then invited to propose one name for the new list. As in all previous years, the analyst’s judgment about company fundamentals, growth prospects, and the risks associated with the stock’s anticipated appreciation are based largely on their knowledge and judgment of many critical variables that must be evaluated. A company management’s ability to execute and deliver on investor expectations during a period of uncertain economic activity is also a critical factor. This process has resulted in what we believe to be a reasonably balanced lists with respect to broad industry exposure and other characteristics while meeting the liquidity needs of that period.

Equity Income

Equity Income is a blend of Value and Growth stocks, and 95% of the portfolio is made up of Large Cap stocks with the balance in Mid- Cap names. The Portfolio is classified as 50% Growth, 25% Value, and the balance a combination of the two. Sector weightings are allocated closely to the S&P 500 sector weightings.
STRATEGIC FIXED INCOME
We build strategic, discretionary taxable and tax-advantaged fixed income portfolios customized to our clients needs and risk parameters. Like our other investment offerings, managing your Fixed Income Portfolios on a discretionary basis gives us 100% control of what we buy or sell without being completely dependent on a third-party bond manager.

Our Platform Optimized for Your Benefit
Our Raymond James Fixed Income Capital Markets division has been established in Europe for over 25 years and has offices in London, Paris, Dusseldorf, Brussels and Geneva. With more than 40 years of strong performance in the fixed income markets, Raymond James is well-positioned to meet the fixed income needs of capital markets across the globe.

We work directly with our specialized traders and sales teams in the US and London to provide our clients with the offerings, expertise, strategies and trading strength to help meet their distinct portfolio and strategic objectives. We also offer our families valuable services like extensive research offerings, portfolio accounting, and asset/liability services. Our trading capabilities cover municipals to mortgage-backed, governments to corporate bonds and more.
PRIVATE AND ALTERNATIVE OFFERINGS
For our clients, we use private and alternative investments as RISK RE-SHAPERS. Alternatives can reshape the risks of the exposures they use, resulting in the potential for lower beta, lower total volatility, and sometimes low correlation to traditional asset classes. These Strategies use core and satellite asset classes, with the specific objective of reshaping the risks of those asset classes.

In our mind these private and alternative investments or RISK RE-SHAPERS offer:
1) Differentiate returns from those of core stocks and core bonds
2) Seek to reduce long-term portfolio risk, with a lesser effect on long-term portfolio returns
3) Attempt to mitigate the effects of severe bear markets, particularly in core equities

Alternative Strategies - Characteristics and Potential Benefits

*Alternative Investments involve substantial risks that may be greater than those associated with traditional investments and may be offered only to clients who meet specific suitability requirements, including minimum net worth tests. These risks include but are not limited to: limited or no liquidity, tax considerations, incentive fee structures, speculative investment strategies, and different regulatory and reporting requirements. There is no assurance that any investment will meet its investment objectives or that substantial losses will be avoided.