Low Volatility Investing Investment Strategies to Minimize Volatility

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Low Volatility Investing: Investment Strategies to Minimize Volatility Tiburon Research May 28, 2020

Low Volatility Investing: Investment Strategies to Minimize Volatility Tiburon Research May 28, 2020

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 1

Low Volatility Investing Emerged Around 2000 and Has Subsequently Evolved through its Early, Middle,

Low Volatility Investing Emerged Around 2000 and Has Subsequently Evolved through its Early, Middle, & Recent Phases Low Volatility Investing Market History Low Volatility Investing Emerged Approximate Dates: Key Steps: 2000 • 2000: Low Early Phase 2000 - 2010 • XXXX: -- Middle Phase 2011 - 2018 • XXXX: -- Recent Phase 2019 - 2020 Low Volatility Investing Today 2020 • XXXX: -- volatility investing emerged Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 2

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 3

Low Volatility Investing Market Growth can by Measured by the Number of Firms, and

Low Volatility Investing Market Growth can by Measured by the Number of Firms, and their Number of Employees, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Low Volatility Investing Market Growth Measures Firms Employees Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 5

Low Volatility Investing can be Defined to Include Packaged Products & Separately Managed Accounts

Low Volatility Investing can be Defined to Include Packaged Products & Separately Managed Accounts (SMAs) Low Volatility Investing Market Definition Packaged Products Open-End Mutual Funds Separately Managed Accounts (SMAs) Exchange Traded Funds (ETFs) Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 6

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 7

Low Volatility Investing Firms Can Specifically be Ranked by their Number of Employees, Clients,

Low Volatility Investing Firms Can Specifically be Ranked by their Number of Employees, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Low Volatility Investing Leading Firms Measures Employees Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 9

Low Volatility Investing can be Segmented to Include Packaged Products & Separately Managed Accounts

Low Volatility Investing can be Segmented to Include Packaged Products & Separately Managed Accounts (SMAs) Low Volatility Investing Market Segments Low Volatility Investing Market Definition Packaged Products Open-End Mutual Funds Separately Managed Accounts (SMAs) Exchange Traded Funds (ETFs) Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 10

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 11

Low Volatility Investing Packaged Products Market Growth can by Measured by the Number of

Low Volatility Investing Packaged Products Market Growth can by Measured by the Number of Firms, and their Number of Employees, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Low Volatility Investing Packaged Products Market Growth Measures Firms Employees Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™

Low Volatility Investing’s Packaged Products can be Defined to Include Open-End Mutual Funds &

Low Volatility Investing’s Packaged Products can be Defined to Include Open-End Mutual Funds & Exchange Traded Funds (ETFs) Low Volatility Investing Packaged Products Market Definition Open-End Mutual Funds Exchange Traded Funds (ETFs) Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 13

Low Volatility Investing Packaged Products Firms Can Specifically be Ranked by their Number of

Low Volatility Investing Packaged Products Firms Can Specifically be Ranked by their Number of Employees, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Low Volatility Investing Packaged Products Leading Firms Measures Employees Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™

Low Volatility Investing’s Packaged Products can be Segmented to Include Open-End Mutual Funds &

Low Volatility Investing’s Packaged Products can be Segmented to Include Open-End Mutual Funds & Exchange Traded Funds (ETFs) Low Volatility Investing Packaged Products Market Segments Open-End Mutual Funds Exchange Traded Funds (ETFs) Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 15

Low Volatility Investing Packaged Products’ Future Predictions Include… Low Volatility Investing Packaged Products Future

Low Volatility Investing Packaged Products’ Future Predictions Include… Low Volatility Investing Packaged Products Future Predictions -- -- Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 16

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 17

Low Volatility Investing Separately Managed Accounts (SMAs) Market Growth can by Measured by the

Low Volatility Investing Separately Managed Accounts (SMAs) Market Growth can by Measured by the Number of Firms, and their Number of Employees, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Low Volatility Investing Separately Managed Accounts (SMAs) Market Growth Measures Firms Employees Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™

Low Volatility Investing Separately Managed Accounts (SMAs) Firms Can Specifically be Ranked by their

Low Volatility Investing Separately Managed Accounts (SMAs) Firms Can Specifically be Ranked by their Number of Employees, Clients, Accounts, Net New Accounts, Assets Under Management, Net Flows, Revenues, & Net Profits Low Volatility Investing Separately Managed Accounts (SMAs) Leading Firms Measures Employees Clients Accounts Net New Accounts Assets Under Management Net Flows Revenues Net Profits Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™

Low Volatility Investing Separately Managed Accounts (SMAs') Future Predictions Include… Low Volatility Investing Separately

Low Volatility Investing Separately Managed Accounts (SMAs') Future Predictions Include… Low Volatility Investing Separately Managed Accounts (SMAs) Future Predictions -- -- Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 20

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 21

Low Volatility Investing’s Future Predictions Include Moderate Growth in Low Volatility Investing & Fastest

Low Volatility Investing’s Future Predictions Include Moderate Growth in Low Volatility Investing & Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) Low Volatility Investing Future Predictions Moderate Growth in Low Volatility Investing Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 22

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 23

Low Volatility Investing’s First Future Prediction is Moderate Growth in Low Volatility Investing Comments

Low Volatility Investing’s First Future Prediction is Moderate Growth in Low Volatility Investing Comments • -- Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 24

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth –

Outline · Low Volatility Investing Market Evolution – Market History – Market Growth – Market Definition – Leading Low Volatility Investing Companies · Market Segments – Packaged Products v Open-End Mutual Funds v Exchange Traded Funds (ETFs) – Separately Managed Accounts (SMAs) · Low Volatility Investing Future Predictions – Moderate Growth in Low Volatility Investing – Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 25

Low Volatility Investing’s Second Future Prediction is Fastest Growth in Low Volatility Investing Exchange

Low Volatility Investing’s Second Future Prediction is Fastest Growth in Low Volatility Investing Exchange Traded Funds (ETFs) Comments • -- Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 26

Tiburon Strategic Advisors Comments • Focus on corporate-level strategy - Serve senior executives only

Tiburon Strategic Advisors Comments • Focus on corporate-level strategy - Serve senior executives only at financial services companies - Key services: market seminars, market research, & strategy consulting - Served over 450 corporate clients and completed over 2, 200 projects since 1998 - Host semi-annual CEO Summits, offer free weekly research releases, and offer free business benchmarking tools for all types of advisors • Chip Roame background - Mc. Kinsey & Company - The Charles Schwab Corporation - Tiburon since 1998 Source: Tiburon Research & Analysis 20. 05. 28 – Low Volatility Investing © Tiburon Strategic Advisors, LLC™ 27

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Tax Efficient Investing Investment Strategies to Minimize TaxesTax Efficient Investing Investment Strategies to Minimize Taxes
Volatility Surface 1 Implied Volatility 2 Volatility SmileVolatility Surface 1 Implied Volatility 2 Volatility Smile
Saving and Investing Investing and Free Enterprise InvestingSaving and Investing Investing and Free Enterprise Investing
Low Volatility Equity Investing Anomaly or Algebraic ArtifactLow Volatility Equity Investing Anomaly or Algebraic Artifact
MINIMIZE SECRETS ECONOMY OF MECHANISM MINIMIZE SECRETS ONLYMINIMIZE SECRETS ECONOMY OF MECHANISM MINIMIZE SECRETS ONLY
Volatility Smiles What is a Volatility Smile nVolatility Smiles What is a Volatility Smile n
Chap 9 Estimating Volatility Consolidated Approach Estimating VolatilityChap 9 Estimating Volatility Consolidated Approach Estimating Volatility
VOLATILITY ADJUSTMENT FULL AND WEIGHTED VOLATILITY ADJUSTMENT FORVOLATILITY ADJUSTMENT FULL AND WEIGHTED VOLATILITY ADJUSTMENT FOR
Navigating Market Volatility Volatility can spark questions andNavigating Market Volatility Volatility can spark questions and
Investing through Investment Clubs Mahogany Money Machine InvestmentInvesting through Investment Clubs Mahogany Money Machine Investment
Investment Styles Investment Styles Growth Value Momentum InvestingInvestment Styles Investment Styles Growth Value Momentum Investing
Investing in the Future Securities and Investment StrategiesInvesting in the Future Securities and Investment Strategies
Global Investment Management Value Investing Strategies Geoff AllbuttGlobal Investment Management Value Investing Strategies Geoff Allbutt
MARKET INSIGHTS Market Volatility Investing Introduction Whilst economiesMARKET INSIGHTS Market Volatility Investing Introduction Whilst economies
Low operating efficiency Low income High costs LowLow operating efficiency Low income High costs Low
LOW FLOW ANESTHESIA LOW FLOW ANESTHESIA LOW FLOWLOW FLOW ANESTHESIA LOW FLOW ANESTHESIA LOW FLOW
Low Risk Tolerance High Low Adjustment High LowLow Risk Tolerance High Low Adjustment High Low
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Investment Banking Overview Investment Banking Function o InvestmentInvestment Banking Overview Investment Banking Function o Investment
Investment Analysis University of Winnipeg Investment Group InvestmentInvestment Analysis University of Winnipeg Investment Group Investment
INVESTMENT Investment is the investment arm of BankINVESTMENT Investment is the investment arm of Bank
Investment Principles Morningstars Investment Management Group Our investmentInvestment Principles Morningstars Investment Management Group Our investment
Investment Triangle Investment Triangle The ideal investment wouldInvestment Triangle Investment Triangle The ideal investment would