ETFs (Exchange Traded Funds) Based Investment Portfolio Management

Why Should you invest in ETFs?  PERFORMANCE  LOW EXPENSES  TAX EFFICIENCY  TRADING FLEXIBILITY  DIVERSIFICATION  TRANSPARENCY

PERFORMANCE  Close to 100% of portfolio managers and traditional do NOT reach their benchmark (index)

Source: Sharpe, “Arithmetic of Active Management”, Financial Analyst Journal, Jan-Feb, Waring, Whitney, Pirone and Castille, “Optimizing Manager Structure and Budgeting Manager Risk,” Journal of Portfolio Management 25, Spring Benchmark = Mgr. Avg. +5.5% -5.5% Before fees and costs Benchmark Mgr. Avg. = -1% -6.5% +4.5% “Good” Managers “Bad” Managers After fees and costs A model of active manager returns “Properly measured, the average actively managed dollar must under-perform the average passively managed dollar, net of costs” “Properly measured, the average actively managed dollar must under-perform the average passively managed dollar, net of costs” Bill Sharpe, The Arithmetic of Active Management Bill Sharpe, The Arithmetic of Active Management Core-002

LOW EXPENSES AAAAverage active fund category: 1.52% AAAAverage ETF: 0.29%

TAX EFFICIENCY  For various technical reasons, the tax comparison is always at the advantage of the ETFs.  The advantage is depending on the local tax law relevant for the investor.

TRADING FLEXIBILITY  One share = One market  Buy and sell continuously during markets hours  Limit orders  Stop orders  Short orders  Options

ETFs: Ideal Diversification Tool  Diversification at each ETF level  Diversification at the portfolio level  Asset class allocation  Regional allocation  Country diversification  Sector diversification  Company profile selection

TRANSPARENCY TTTTransparency at the ETF level EEEEasy and transparent access to the portfolio individually for each investor

How is TrackBull managing ETFs Portfolios?  Individual analysis and advice  Bank or Broker account  Country of operations  Investment structure  Currency choice  Asset Allocation

INVESTMENT HOLDING STRUCTURE IIIIndividual CCCCompany

Bank or Broker account CCCCosts matters OOOOverall relationship matters too NNNNew or existing account

Countries of Operation  USA  Switzerland

The currency choice US $ Based Investor Investment: Bond ETF iShares Lehman 7-10 Year Treasury SELLBUY Profit % Profit 31/12/ /07/ %$10.58$82.32$71.74

The currency choice EUR Based Investor Investment: Bond ETF iShares Lehman 7-10 Year Treasury SELLBUY Profit % Profit 31/01/ /07/ %$10.58$82.32$ EUR= $1.3621$ % € € € in 2.5 years only 32.33%Difference

Asset Allocation IIIInitial assets allocation: Assets type first. OOOOngoing technical analysis. FFFFundamental analysis, then only. CCCChoice among ETFs tracking the same index: Volume, Spread, Expense ratio, Tracking error, specific details. CCCCorrelation analysis.

TrackBull: management styles A Cash, Bonds, Bonds funds or Fixed income ETFs all in investor’s reference currency B A program plus same investment instruments but in other currencies but in other currencies C A and B programs plus REITs, REIT's ETFs, utilities ETFs and dividend yielding value stocks utilities ETFs and dividend yielding value stocks ETFs ETFs D A, B and C programs plus all other ETFs Sectors/Countries/Companies Profiles/Assets Rotation Sectors/Countries/Companies Profiles/Assets Rotation

TrackBull commitment  Registered Investment Adviser (SEC in the USA).  Private company, highest confidentiality level.  Focusing on one niche: ETFs.  Totally independent: Our customers are our sole and only dedication.