TOPS™ PROTECTED ETF PORTFOLIOS Introducing managed ETF portfolios that seek to protect asset growth in bull markets and defend against major losses during market downturns by employing volatility management and capital protection strategies. PROFESSIONALLY MANAGED ETF PORTFOLIOS CAPITAL PROTECTION STRATEGY VOLATILITY MANAGEMENT 1 2461-NLD-11/14/2011 For Advisor Use Only. Not To Be Distributed To Members of the public.
Limitations & Disclosures • Past performance is not indicative of future results. Recipients must make their own independent decisions regarding any strategies or securities or financial instruments mentioned herein. • Milliman Inc. does not make any representations that products or services described or referenced herein are suitable or appropriate for the recipient. Many of the products and services described or referenced herein involve significant risks, and the recipient should not make any decision or enter into any transaction unless the recipient has fully understood all such risks and has independently determined that such decisions or transactions are appropriate for the recipient. • Any discussion of risks contained herein with respect to any product or service should not be considered to be a disclosure of all risks or a complete discussion of the risks involved. • The recipient should not construe any of the material contained herein as investment, hedging, trading, legal, regulatory, tax, accounting or other advice. The recipient should not act on any information in this document without consulting its investment, hedging, trading, legal, regulatory, tax, accounting and other advisors. 2 For Advisor Use Only. Not To Be Distributed To Members of the public.
TOPS™ THE OPTIMIZED PORTFOLIO SYSTEM ‣ A Risk-Based Asset Allocation Program Investment Alliance ‣ Diversified Portfolios of exchange-traded funds (ETFs) ‣ Seeks to create efficiency in investing through asset allocation ‣ Maps Allocation to specific ETFs ‣ One of the longest running ETF portfolio management systems in the U.S. ‣ Started in 2002 ‣ Managed by Valmark Advisers, Inc. ‣ AUM of over $2 billion ‣ ETF Portfolio Managers for: ‣ Separately Managed Accounts ‣ Bank Trust ‣ Collective Investment Funds (401k) ‣ Variable Insurance Trust 3 For Advisor Use Only. Not To Be Distributed To Members of the public.
BKLN 1. Interest Rate Insurance • Picture BKLN as Insurance for Interest Rates 2. Fixed Income ETFs are different than Equity ETFs • ETFs lead the price discovery often in Fixed Income ETFs 3. Short Maturity • 4.5 Years • JNK has a 7 year average maturity 4. Resets • Every ~45 days 5. Diversification • 100 Issues • Not just banks! 4 For Advisor Use Only. Not To Be Distributed To Members of the public.
BKLN 6. Prioritized Debt 6. Redefine Duration • No more calculation of how much you should lose in a rising interest rate environment. 7. Redefine Duration • Non correlated asset class. 5 For Advisor Use Only. Not To Be Distributed To Members of the public.
TOPS™ CONTACT: Chief Investment Officer Michael.Mcclary@valmarksecurities.com 800-765-5201 Director of Investment Research Tyler.Denholm@valmarksecurities.com 6 For Advisor Use Only. Not To Be Distributed To Members of the public.
Important Information Milliman, Inc. does not make any representations that products or services described or referenced herein are suitable or appropriate for the recipient. Many of the products and services described or referenced herein involve significant risks, and the recipient should not make any decision or enter into any transaction unless the recipient has fully understood all such risks and has independently determined that such decisions or transactions are appropriate for the recipient. Milliman, Inc. does not ensure a profit or guarantee against loss. Historical analysis charts included in this presentation are for illustrative purposes only. There performance depicted in these illustrations is not guaranteed. Realized performance may differ due to varying market conditions. Changes and modifications to enhance the strategy depicted in these illustrations can be made by Milliman at any time. Volatility targets shown in this presentation are estimates for illustrative purposes. Actual realized volatility might differ due to varying market conditions. Milliman does not guarantee the funds’ realized volatility. Any discussion of risks contained herein with respect to any product or service should not be considered to be a disclosure of all risks or a complete discussion of the risks involved. The recipient should not construe any of the material contained herein as investment, hedging, trading, legal, regulatory, tax, accounting or other advice. The recipient should not act on any information in this document without consulting its investment, hedging, trading, legal, regulatory, tax, accounting and other advisors. TOPS™ Protected ETF Portfolios assess fees and expenses that are separate and distinct from each respective underlying variable annuity or fund option. Early withdrawals or surrenders may be subject to surrender charges (contingent deferred sales charges). Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. For tax purposes only, withdrawals will come first from any gain in the contract. Federal and state tax laws in this area are complex and subject to change. Consult your personal tax adviser on all tax matters. Withdrawals will generally reduce the death benefit, Contract Value and any living benefit amount. Guarantees based upon the claims-paying ability of th insurance company. Guarantees do not apply to the investment performance or account value of the underlying variable portfolios. Variable annuities are long-term investments designed to accumulate money on a tax-deferred basis for retirement purposes. Upon retirement, variable annuities may pay out an income stream of a series of payments or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining contract value. Product, product features and rider availability vary by state. Variable annuities are subject to market fluctuation and risk. Principal value and investment returns will fluctuate and you may have a gain or loss when money is withdrawn. Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawals of tax-deferred accumulations are subject to ordinary income tax. Withdrawals made prior to age 59 1⁄2 may incur a 10% IRS tax penalty. 7 For Advisor Use Only. Not To Be Distributed To Members of the public.
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