Hilton Presentation Tuesday, March 7th 2017

Invariant Tactical Solutions

Invariant Tactical Investment Process Identifying the key elements of the marketplace mosaic to guide our decision-making Top-down Global Macro - Macro assessment of global variables to identify fundamental long-term trends - Involves analysis of Business Cycles, Asset Classes, Sectors and Industries - Delivers thematic projections and broad context Technical and Complex Systems - Technical analysis provides insight into short-term market trends resulting from emotion-driven investors - Complex systems analysis provides essential guidance in identifying meaningful indicators amidst market’s noise Risk Management Active hedging utilized to help guard against major cyclical draw-downs Multi-asset diversification: commodities, currencies, equities, credits Recognizes that indicators are probabilistic rather than predictive Absolute Return Portfolio

Interest Rates

Federal Reserve

What Does This Mean for the U.S. Dollar?

2. The dollar has tendency to fall, NOT rise, during rate hike cycles. Two Points 1. Administration has been explicit: it wants to reduce our trade deficit with other countries. 2. The dollar has tendency to fall, NOT rise, during rate hike cycles.

Example: Mexican Peso From January 2015 through January, the Mexican peso is down > 40%. PPP and other measures give fundamental estimates as much as 25%+ higher for MXN.

Rob Arnott (RA): Implications for Asset Allocation

Stylized Facts & Asset Allocation Implications: 3-5 Years (from summer ‘16) Historic divergence between domestic U.S. equities and international equities Extreme divergence between value and growth “Inflation protection” dramatically underpriced Local currency EM bonds shunned Trillions in international government bonds have negative yields These divergences represent significant opportunity both for asset allocators willing to take tactical risk over the intermediate-long term, as well as those willing to allocate to out-of-favor factors and strategies. We all know that in an ideal world, it makes sense to allocate to out-of-favor strategies before the tide turns. This is often much harder to do in practice. Now is the time to move.

Balanced Growth

Capital Preservation

Dislaimer This presentation contains general information. Past performance is not an indication of future results. Additional information including investment management fees and expenses is provided on Invariant’s Form ADV Part II. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to any securities listed.