Disclaimer
THIS PRESENTATION IS NEITHER ADVICE NOR A RECOMMENDATION TO ENTER INTO ANY TRANSACTION. THIS PRESENTATION IS NOT AN OFFER TO BUY OR SELL, NOR A SOLICITATION OF AN OFFER TO BUY OR SELL, ANY SECURITY OR OTHER FINANCIAL INSTRUMENT. THIS PRESENTATION IS BASED ON INFORMATION OBTAINED FROM SOURCES THAT TRUTH INVESTMENTS, L.L.C. CONSIDERS TO BE RELIABLE; HOWEVER, TRUTH INVESTMENTS, L.L.C. MAKES NO REPRESENTATION AS TO, AND ACCEPTS NO RESPONSIBILITY OR LIABILITY FOR, THE ACCURACY OR COMPLETENESS OF THE INFORMATION. ALL PROJECTIONS , VALUATIONS, AND STATISTICAL ANALYSES ARE PROVIDED TO ASSIST THE RECIPIENT IN THE EVALUATION OF THE MATTERS DESCRIBED HEREIN. SUCH PROJECTIONS, VALUATIONS AND ANALYSES MAY BE BASED ON SUBJECTIVE ASSESSMENTS AND ASSUMPTIONS AND MAY USE ALTERNATIVE METHODOLOGIES THAT PRODUCE DIFFERENT RESULTS; ACCORDINGLY, SUCH PROJECTIONS, VALUATIONS AND STATISTICAL ANALYSES SHOULD NOT BE VIEWED AS FACTS AND SHOULD NOT BE RELIED UPON AS AN ACCURATE PREDICTION OF FUTURE EVENTS.
TRUTH INVESTMENTS, L.L.C. IS NOT AND DOES NOT PURPORT TO BE AN ADVISOR AS TO LEGAL, TAXATION, ACCOUNTING, OR REGULATORY MATTERS IN ANY JURISDICTION. THE RECIPIENT SHOULD INDEPENDENTLY EVALUATE AND JUDGE THE MATTERS REFERRED TO HEREIN.
IN REVIEWING THIS PRESENTATION, IT SHOULD BE UNDERSTOOD THAT THE PAST PERFORMANCE RESULTS OF ANY INDICES OR ANY ASSET CLASS SET FORTH HEREIN ARE NOT NECESSARILY INDICATIVE OF ANY FUTURE RESULTS THAT MAY BE ACHIEVED IN CONNECTION WITH ANY TRANSACTION. ANY PERSONS SUBSCRIBING FOR OR MAINTAINING AN INVESTMENT MUST BE ABLE TO BEAR THE RISKS INVOLVED AND MUST MEET THE SUITABILITY REQUIREMENTS RELATING TO SUCH INVESTMENT. SOME OR ALL ALTERNATIVE INVESTMENT PROGRAMS MAY NOT BE SUITABLE FOR CERTAIN INVESTORS.
THIS PRESENTATION AND ITS CONTENTS ARE PROPRIETARY INFORMATION OF TRUTH INVESTMENTS, L.L.C. AND MAY NOT BE REPRODUCED OR OTHERWISE DISSEMINATED IN WHOLE OR IN PART WITHOUT TRUTH INVESTMENTS, L.L.C.S WRITTEN CONSENT. TRUTH INVESTMENTS, L.L.C.
Table of Contents
Our
Organization
The company was founded by Joseif Pinkston in 2008. Prior to Truth Investments, Joseif worked as a portfolio manager for the State Board of Administration; plan sponsor for the Florida Retirement System.
Joseif Pinkston President & CIO
Lead Portfolio Manager
What We Do
Portfolio Management
Stocks Bonds & Fixed Income Financial market education Investment planning
Investment Advice
Product Strategies
Product
Discretionary Assets
Asset Class
Alternative 64%
US Equity
Global Equity Fixed Income Blend Plus Fixed Income Blend
$33,729
$34,484 $42,125 $32,916
Absolute Return
Total AUM
$255,543
$398,798
AUM represents assets under management at the firm level. Discretionary assets include all accounts managed by Truth Investments, including accounts held by employees.
How it Works
Scottrade is our custodian bank/broker Fund your account by transferring money from your personal bank to Scottrade or writing Scottrade a check.
US Equity Global Equity Fixed Income Blend Fixed Income Preserve Absolute Return
Open Account
Choose Product
Standard
Gains are taxed and losses deducted each year. Most flexible in terms of withdrawing money Not taxed until retirement and in some cases never If money is withdrawn prior to retirement, there might be tax penalties. Not taxed until college/educational purpose and in some cases never If money is withdrawn prior to education, there might be tax penalties. Owner and employee retirement accounts are not taxed until retirement and in some cases never. If money is withdrawn prior to retirement, there might be tax Clients are not limited to the account types shown here. Talk to one of our advisors or a separate tax consultant for more detailed penalties. information.
Retirement
Education
Business
Products
Risk
Low US Equity Global Equity Fixed Income Blend Fixed Income Blend Plus Absolute Return High US Equity Global Equity Fixed Income Blend Fixed Income Blend Plus Absolute Return
Expected Return
Low High
Risk can be defined in a number of ways. In its simplest definition, risk is thought of to be the likelihood of a complete l oss. At Truth Investments, we assume that this risk of loss exists regardless of the type of investment. Therefore, we are also concerned with other factors that are more manageable. We will ask ourselves three questions before investing: 1) What is the variability or ch oppiness of actual returns over any given time period? 2) What is the probability of a loss? 3) What is the probability of a complete loss? When determining risk, we weigh these three factors equally using a mixture of judgment and mathematics on a one -year and longterm basis. Risk can range from low, to moderate, to high. Equities are more risky than fixed income. Typically, investors should expect higher returns as justification for accepting higher risk. Conversely, low returns are usually associated with low ri sk. However, this rule of thumb is not always the case and results may vary.
US Fixed Income
Barclays US Treasury 1-3 Year*
Russell 3000
9.6% 16.3%
0.3% 0.2%
2012
2011
2010 2009 2008 2007 2006 2005 2004 2003
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1.0%
17.3% 28.4% -37.3% 5.1% 15.7% 6.1% 11.9% 31.1%
0.7%
1.1% -1.9% 2.9% 2.8% -0.2% -1.5% -1.2% 0.3%
2.00% 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% -1.50%
*Prior to April 2012, the benchmark represents the Barclays Capital US Treasury 1-3 Year (SHY) exchange traded fund; not the official index return. The returns are not significantly different.
Dec-88 Dec-89 Dec-90 Dec-91 Dec-92 Dec-93 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12
Monthly Returns
Dec-88 Dec-89 Dec-90 Dec-91 Dec-92 Dec-93 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12
Monthly Returns
Investment Scenarios
$50 per month payment earning $0 Initial Investment 2% Annual Return
$250 per month payment earning $5,000 15% Initial Investment Annual Return
$250 per month payment earning $5,000 15% Initial Investment Annual Return
$50 per month payment earning $5,000 8% Initial Investment Annual Return
$250 per month payment earning $10,000 15% Initial Investment Annual Return
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Returns are not guaranteed. Additional scenarios can be tested on our website at http://www.investinthetruth.com/Savings%20Calculator.html.
You own a separate account. Account funds can normally be raised relatively easily in taxable accounts.
Upon request to Truth Investments, securities in your account are sold immediately. It takes 3-4 business days for trades to settle and money to be ready for withdraw*.
Help accessing your money is available online or at your closest Scottrade office.
Scottrade has the largest branch network in the country among online brokers. Money is typically raised via bank transfers or requesting checks. Scottrade offices do not carry cash.
* Best practice is to discuss funding/defunding needs with us at least 3 months in advance; particularly if invested in a Fixed Income or Absolute Return product. Certain securities have maturity dates that decrease liquidity. If such securities are sold prior to maturity,
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What to Expect
Performance Reports Newsletters describing market activity and our outlook on the global economy
Transaction summaries mailed or emailed from Scottrade Annual tax documents mailed from Scottrade
Some account types are non-taxable. Check account value Set up deposits/withdrawals Download tax reports
Investment planning does not include income tax, estate, or insurance planning.
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Our Mission
Investing in people by investing for people
We aim to play a significant role in the Greater Good. We do not aim to maximize profit for ourselves. Through sound investing, we aim to bring hope where there is doubt.
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Appendix
Absolute Return
Description Name Risk Level Benchmark Index Annual Expense1 Load/Other Fees Average Annual Turnover 2 Average Number of Holdings Assets Under Management Inception Date Report Date As Of: Historical Returns (Gross) 2010 Composite Com m ents
1. 0.5%base rate + 20%of capital gains, subject to a high-water mark
Top Holdings Absolute Return High None 0.5% + 20% Gains None 0% 1-20 $255,543 1-Nov-09 31-Dec-12 Various Total Country Exposure Weight (%) 100.00 100.00 Various Margin Balance Total Weight (%) 100.00 0.00 100.00
2011 12.09%
2012 69.88%
138.56%
2. Turnover is a measurement of trading activity. It is calculated by taking the lesser of buys and sells divided by the average market value of the model portfolio. Historical returns are calculated from the product of monthly returns in the period. The composite represents returns of all portfolios exclude fees but include trading costs. Holdings, sector, and country exposure represent the model portfolio.
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Global Equity
Description Name Risk Level Benchmark Index Annual Expense Ratio Load/Other Fees Average Annual Turnover 1 Number of Holdings Assets Under Management Inception Date Report Date As Of: Global Equity Moderately High MSCI ACWI IMI 1.5% None 6% 20 $34,484 1-Aug-12 31-Dec-12 CASH SIRIUS XM RADIO INC PRIMERO MNG CORP ALCATEL-LUCENT MAXIM POWER CORP REPLIGEN CORP INDOSAT PBK PT SMITHFIELD FOODS C&J ENERGY SVCS INC APPLE INC Total Historical Returns (Gross) Aug2012-Dec2012 Composite Benchmark 8.40% 8.76% Technology Cash Health Care Consumer Discretionary Basic Materials Consumer Goods Utilities Energy Financials Total Com m ents
1. Turnover is a measurement of trading activity. It is calculated by taking the lesser of buys and sells divided by the average market value of the model portfolio. Historical returns are calculated from the product of monthly returns in the period. The composite represents returns of all portfolios exclude fees but include trading costs. Holdings, sector, and country exposure represent the model portfolio.
Top 10 Holdings Weight 14.6% 11.3% 7.5% 6.5% 5.6% 5.5% 5.4% 5.2% 5.1% 4.9% 71.7%
Country Exposure Weight United States Canada Cash France Indonesia United Kingdom China Israel Brazil Norw ay Total Sector Exposure Weight 21.5% 14.6% 11.4% 11.3% 11.2% 10.1% 9.5% 9.3% 1.0% 100.0% 36.6% 16.9% 14.6% 6.5% 5.4% 5.3% 4.9% 4.5% 3.9% 1.4% 100.0%
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US Equity
Description Name Risk Level Benchmark Index Annual Expense Ratio Load/Other Fees Average Annual Turnover 1 Average Number of Holdings Assets Under Management Inception Date Report Date As Of: Historical Returns (Gross) Apr2010-Dec2010 Composite Benchmark Com m ents
1. Turnover is a measurement of trading activity. It is calculated by taking the lesser of buys and sells divided by the average market value of the model portfolio. Historical returns are calculated from the product of monthly returns in the period. The composite represents returns of all portfolios exclude fees but include trading costs. Holdings and sector exposure represent the model portfolio.
Top 5 Holdings US Equity Core Moderately High Russell 3000 1.0% None 51% 10 $33,729 1-Apr-10 31-Dec-12 SIRIUS XM RADIO INC COVANCE INC HUNTINGTON BANC SMITHFIELD FOODS NUANCE COM Total Weight 23.0% 11.7% 9.1% 8.7% 8.1% 60.7%
Sector Exposure Weight Consumer Discretionary Energy Technology Health Care Consumer Goods Financials Basic Materials Cash Total 23.0% 18.0% 17.9% 11.7% 9.5% 9.1% 8.0% 2.8% 100.0%
11.83% 5.16%
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Description Name Risk Level Benchmark Index Annual Expense Load/Other Fees Average Expected Turnover 1 Average Number of Holdings Assets Under Management Inception Date Report Date As Of: Fixed Income Blend Plus Moderately Low Barclays U.S. Aggregate 0.35% None 21% 1-10 $42,125 26-Dec-12 31-Dec-12
Top 5 Holdings Weight PEABODY ENERGY HEWLETT PACKARD CO WESTERN ALLIANCE AES CORP PRUDENTIAL FINL 30.9% 16.0% 15.4% 14.9% 11.6% 88.8%
Sector Exposure Weight Corporate Bonds Preferred Stock Cash Total Country Exposure Weight United States Cash Total 98.9% 1.1% 100.0% 88.3% 10.6% 1.1% 100.0%
Com m ents
1. Turnover is a measurement of trading activity. It is calculated by taking the lesser of buys and sells divided by the average market value of the model portfolio. Historical returns are calculated from the product of monthly returns in the period. The composite represents returns of all portfolios exclude fees but include trading costs. Holdings, sector, and country exposure represent the model portfolio.
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Top 5 Holdings Fixed Income Blend Low Barclays US Treasury 1-3 Yr. 0.25% None 21% 1-10 $32,916 8-Dec-09 31-Dec-12 GOLDMAN SACHS GENWORTH FINL INC ROYAL BK SCOTLAND HEWLETT PACKARD CO GEORGIA PWR CO Weight
Sector Exposure Weight 77.2% 21.7% 1.1% 100.0% Preferred Stock Cash Total Country Exposure Weight United States United Kingdom Cash Total 83.5% 15.4% 1.1% 100.0% *BE 30.9% Corporate Bonds 4.7507152013 16.0% 15.4% 14.9% 11.6% 88.8%
1.37% 1.10%
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$0 $0 $0 $0 $0
In addition to management fees, Scottrade charges $7 per trade for most order types.
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All fees are paid quarterly as a percentage of account value. Capital gains are subject to a high-water mark.
Biographies
Joseif Pinkston, RIA - President & CIO is a Registered Investment Advisor. He obtained a Masters of Business Administration with a concentration in Finance from Florida State University. Joseif started his career as an international equity investment analyst at the State Board of Administration (SBA), helping to manage the Florida Retirement System (FRS); one of the largest pension funds in the United States. After two years, he was promoted to portfolio manager where he helped operate a $100 million internally managed portfolio. In addition, Joseif and his colleagues were responsible for overseeing roughly $70 billion in global assets that were managed by over 40 external equity managers. It was in this job capacity that Joseif gained valuable insights into the management styles of some of the worlds most successful money managers. Communicating with and analyzing the styles of these managers, along with education and extensive research, gave Joseif the knowledge to develop his own style. Joseif worked at the SBA from July 2002 until April 2012 before starting Truth Investments. In addition to his duties as President of Truth Investments, Joseif teaches finance courses online. Bryan Pinkston, PE - Vice President is a Professional Engineer. He obtained a Master's degree in Robotic Engineering from the FAMU/FSU College of Engineering. Bryan has worked as a research analyst since the firms April 2012 inception. Remington Noble - Managing Director obtained a Masters of Business Administration with a concentration in Finance from Florida A&M University. Prior to Truth Investments, Remington operated an asset management firm called Noble Capital Management (Atlanta, GA), in which he rose money for clients to purchase QSR franchises. From July 2008 to June 2010, Remington worked as an analyst for Citigroup (New York, NY) in terms of equity swaps and non-agency mortgage trading. From May 2006 to April 2008, Remington garnered knowledge and experience through eclectic internships at the SBA (Tallahassee, FL), J.P. Morgan (New York, NY), and the State of Florida Office of Insurance Regulation (Tallahassee, FL). Remington joined Truth Investments in May 2012 in a marketing, trading, and research capacity. 22
Disclosures
TRUTH INVESTMENTS, L.L.C IS REGISTERED AS AN INVESTMENT ADVISER WITH THE FLORIDA OFFICE OF FINANCIAL REGULATION (OFR). THE OFR DIVISION OF SECURITIES PROTECTS THE INVESTING PUBLIC FROM UNLAWFUL SECURITIES ACTIVITIES THROUGH REGULATING THE SALE OF SECURITIES IN, TO OR FROM FLORIDA. REGULATED ENTITIES INCLUDE FIRMS (SECURITIES DEALERS, ISSUERS AND INVESTMENT ADVISERS), BRANCH OFFICES AND INDIVIDUALS AFFILIATED WITH THESE FIRMS. THE DIVISION PARTICIPATES IN TWO NATIONAL DATABASES OF DEALERS, INVESTMENT ADVISERS AND THEIR EMPLOYEES CALLED THE CENTRAL REGISTRATION DEPOSITORY (CRD) AND INVESTMENT ADVISER REGISTRATION DEPOSITORY (IARD). THESE DATABASES ALLOW OFR TO TRACK REGISTRANTS AND APPLICANTS AND SHARE INFORMATION WITH OTHER STATES, THE U.S. SECURITIES AND EXCHANGE COMMISSION (SEC) AND THE FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA). THE PUBLIC CAN SEARCH MUCH OF THIS INFORMATION THROUGH THE BROKER CHECK SYSTEM OR THE INVESTMENT ADVISER PUBLIC DISCLOSURE SYSTEM.
FEES AND EXPENSES WHICH MAY BE SUBSTANTIAL REGARDLESS OF ANY POSITIVE RETURN WILL OFFSET PERFORMANCE RETURNS. SOME ACCOUNTS MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION. THIS SUMMARY IS NOT AN EXAUSTIVE LIST OF THE RISKS AND OTHER IMPORTANT DISCLOSURES INVOLVED IN INVESTING AND IS SUBJECT TO ADDITIONAL INFORMATION CONTAINED IN PRODUCT-SPECIFIC DOCUMENTS AND CLIENT AGREEMENTS, WHICH SHOULD BE REVIEWED CAREFULLY.
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