FWDB AdvisorShares FolioBeyond Smart Core Bond ETF - - PowerPoint PPT Presentation

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AdvisorShares FolioBeyond Smart Core Bond ETF

Narrator: Yung Lim, CEO of FolioBeyond

FWDB

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Narrator: Yung Lim, CEO of FolioBeyond

Table of Contents

About FolioBeyond….......................... 3 The Case for FWDB……..……...….... 10 Investment Strategy Overview……….. 4 How FWDB Fits Within a Portfolio….. 11 Investment Process Overview………. 5 Strategy Summary.....................…….. 12 Analysis and Allocation……..….......... 6 Benefits of Active ETF Structure…….. 13 Security Selection……………..…....... 7 About AdvisorShares……………….... 14 Portfolio Management......………..….. 8 Contact Us..............……………………. 15 Risk Management......………..…........ 9 Disclosure………………………………. 16

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Narrator: Yung Lim, CEO of FolioBeyond

About FolioBeyond

§ FolioBeyond represents the next generation, institutional-quality quantitative asset management platform – intersecting a deeply experienced investment team rooted in fixed income markets with state-of-the-art financial technology. § Their advanced asset allocation algorithms and forward-looking innovation deliver an institutional-style asset manager through an accessible and fully-transparent ETF for advisors, accredited investors, and individual investors to utilize. § FolioBeyond’s advanced optimization framework is built from over 100 years of combined experience spanning investment management, risk management, quantitative trading and financial technology.

Next slide: Investment Strategy Overview

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Narrator: Yung Lim, CEO of FolioBeyond

Investment Strategy Overview

§ FWDB is a dynamic, core bond strategy that seeks investment results that exceed the price and yield performance of its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. § The actively managed FWDB features institutional-quality portfolio management employing FolioBeyond’s quantitative process that invests without selection bias. § The advanced asset allocation process is opportunistic and evaluates a multitude of factors, actively investing across 20-plus distinct bond classes that cover the major sectors of the global investable fixed income universe. § FWDB utilizes rigorous risk management that customizes constraints and estimates return volatility based on a combination of implied and historical volatility measures.

Next slide: Investment Process Overview

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Narrator: Yung Lim, CEO of FolioBeyond

Investment Process Overview

§ FWDB’s quantitative process utilizes FolioBeyond’s advanced optimization framework which integrates deep investment management expertise with state-of-the-art financial technology.

Next slide: Analysis & Allocation

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Narrator: Yung Lim, CEO of FolioBeyond

Analysis & Allocation

Next slide: Security Selection

§ FWDB can dynamically can invest across 20-plus distinct fixed income classes across various credits and duration, primarily using liquid ETFs in its underlying portfolio:

US GOVERNMENT AGENCY / SOVEREIGN INVESTMENT GRADE SUB INVESTMENT GRADE

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Narrator: Yung Lim, CEO of FolioBeyond

Security Selection

From a universe of ETFs representing each investable subsector, which is agnostic to fund families, the manager focuses on multitude of factors including sector exposures, size, liquidity, cost, index tracking, manager quality Demonstrative of an experienced institutional portfolio manager – the strategy incorporates primary and secondary factors to make systematic asset allocation decisions without selection bias With a focus on value, the manager examines forward-looking yields as

• pposed to historical returns; factors in

all adjustments to reflect costs and benefits of embedded options, credit risk, tax effects and inflation forecasts

Best of Breed ETFs Systematic Model Forward- Looking Focus

Next slide: Portfolio Management

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Narrator: Yung Lim, CEO of FolioBeyond

Portfolio Management

Next slide: Risk Management

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Narrator: Yung Lim, CEO of FolioBeyond

Risk Management

FWDB employs rigorous risk management that integrates major risk attributes and customizes constraints and estimates return volatility:

Model automated and rebalanced daily as needed Estimate return volatility based on combination of both historical volatility and forward-looking, implied volatility measures Determine correlations across all asset classes Manage downside risk in stressed environments Overlay momentum effects to adjust risk projections

Next slide: The Case for FWDB

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Narrator: Yung Lim, CEO of FolioBeyond

The Case for FWDB

Provides fixed income portfolio diversification that spreads investment risk across 20-plus distinct bond classes Employs dynamic, institutional-quality asset management that intersects deep expertise in fixed income markets with state-of- the-art financial technology Actively allocates without selection bias and employs rigorous risk management to seek better absolute returns and better-risk adjusted returns than its benchmark FWDB allows a simplified fixed income solution, and is designed for advisors and investors seeking a single strategy that invests across most major bond sectors

Next slide: How FWDB Fits Within a Portfolio

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Narrator: Yung Lim, CEO of FolioBeyond

How FWDB Fits Within a Portfolio

§ FWDB can serve as a core, standalone investment strategy for a fixed income allocation. § Delivers an alpha-seeking strategy that aims to deliver better absolute returns and better risk-adjusted returns than what it represented in the Bloomberg Barclays U.S. Aggregate Bond Index. § FWDB can be utilized as an efficient way to quickly implement portfolio overlays for gaining smart fixed income exposure.

Next slide: Strategy Summary

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Narrator: Yung Lim, CEO of FolioBeyond

Strategy Summary - FWDB

§ Actively managed ETF featuring the next generation, institutional-quality quantitative asset management platform which delivers a dynamic, core bond strategy designed to seek investment results that exceed the price and yield performance of its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. § FWDB’s opportunistic, systematic approach evaluates a multitude of primary and secondary factors, combined with rigorous risk management, which can provide an efficient and effective means of achieving total returns in the fixed income market. § FWDB’s dynamic portfolio diversification seeks to mitigate its risk by investing across 20-plus different bond classes across various durations and credit qualities – unlike other fixed income ETFs that track popular bond indexes which are heavily tilted towards U.S. Treasuries and U.S. government agency debt securities. § FolioBeyond’s advanced optimization framework is built from over 100 years of combined experience in fixed income investment management, risk management, quantitative trading and financial technology.

Next slide: Benefits of the Active ETF Structure

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Narrator: Yung Lim, CEO of FolioBeyond

Benefits of the Active ETF Structure

§ Full Transparency – Investors can view all the underlying holdings of this active ETF on a daily

basis.

§ Intraday Liquidity – This active ETF can be bought and sold like a stock during the market trading day. Also, volume does not equal liquidity. This ETF’s liquidity is driven by the constituents of its underlying portfolio. § Operational & Tax Efficiency – Unlike mutual funds where investors are responsible for taxes on capital gains, the active ETF structure provides the potential to not pay any taxable capital gain distributions.

Next slide: About AdvisorShares

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Narrator: Yung Lim, CEO of FolioBeyond

About AdvisorShares

§ AdvisorShares is a leading provider of actively managed exchange-traded funds (ETFs). § AdvisorShares became among the first firms to bring actively managed ETFs to market, delivering numerous “industry firsts,” and remains a leading and innovative provider in the rapidly expanding actively managed ETF space. § Our diversified suite of investment strategies features accomplished investment managers making active decisions, similar to traditional mutual funds, except our fund portfolios are delivered in a fully-transparent ETF structure.

Next slide: Contact Us

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Narrator: Yung Lim, CEO of FolioBeyond

Contact Us

AdvisorShares 4800 Montgomery Lane Suite 150 Bethesda, MD 20814 www.advisorshares.com You May Reach an AdvisorShares Investment Consultant by Calling: 1-877-843-3831

Follow AdvisorShares on Twitter ’Like' Us on Facebook

Next slide: Disclosure

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Narrator: Yung Lim, CEO of FolioBeyond

Disclosure

There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. ETNs have a maturity date and generally, are backed only by the creditworthiness of the issuer. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market (e.g., the commodities market), changes in applicable interest rates, and changes in the issuer's credit rating and economic, legal, political or geographic events that affect the market. Other Fund risks include market risk, equity risk, early closing risk, liquidity risk and trading risk. The Fund will be subject to the risks associated the Underlying ETFs’ or ETP’s investments such as commodity risk, concentration risk, credit risk, fixed income risk, high yield risk, income risk, interest rate risk, and investment risk.

BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED BY CALLING 1.877.843.3831. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST. Distributor: Foreside Fund Services, LLC