TD Ameritrade Webinar - Navellier · PDF fileNAVELLIER.COM 800.887.8671 TD Ameritrade Webinar...

NAVELLIER.COM 800.887.8671

TD Ameritrade WebinarJanuary 22, 2015

For Financial Consultant One‐on‐One Use OnlyPlease see important disclosures at the end of the presentation

NCD‐15‐117

Firm Overview

2 For Financial Consultant One‐on‐One Use Only 775.785.2300 | navellier.com

Institutional manager managing growth stocks since 1987

Independent & employee owned

10 committed & experienced investment professionals trained in statisticallybased investment strategies

No portfolio management or research personnel turnover in the past 5 years

Our Commitment


“As a fundamental quant manager, we take the emotion out of buying and selling stocks.”

Louis Navellier

The Navellier Difference


The Process

Proprietary, quantitative research that identifies stocks with strong profitabilityand growth potential

Dynamic vs. static stock selection process keeps portfolios on track for superior, sustainable growth

Portfolios managed with the objective to outperform the index rather than imitate it

Disciplined sell strategy triggers sale of stocks that fail any step of the process

Adds value to multi-manager portfolios; low correlation to other growth managers

The Team

Stable, veteran portfolio management team in place since product’s inception

Institutional client service team provides exceptional, personal service

Focused Distribution & Quality Products

International Equity

International Growth

International Select

Emerging Markets

Retail$0.8 billion


Institutional$1.4 billion

ETFs

Libertas

US Equity Sector Plus

Global Allocation Plus

Specialty

Covered Call

High Dividend Income

Power Dividend

Retail$870 million

Institutional$1.4 billion

As of December 31, 2014

Domestic Equity

Large Cap Growth

Small‐to‐Mid Cap Growth

Mid Cap Growth

Client Idea #1: Accumulation


Team consistency: Same lead portfolio managers for entire 17-year history.

Performance consistency: Investment strategy designed to generate risk-adjusted outperformance.

Highly disciplined process: The investment process is based on a synergistic three step process: Quantitative, Fundamental, Portfolio Optimization

Reasons Why Clients Will Like This Strategy:

Tax efficiency: Process typically holds on to winning positions which result in long-term gains and spins off underperforming positions resulting in short-term losses

Navellier Large Cap Growth Portfolio

Experienced Large Cap Growth Team

Louis G. NavellierChief Investment Officer

Shawn PriceLead Portfolio Manager

Shawn Price

Louis G. Navellier

Michael Garaventa

Tim Hope

Pete Koelewyn

Lead PM

CIO

Research Analyst

Analyst

LCG Trader

25

30+

14

23

19

24

28

14

12

19

•Seasoned investment teamwith same lead PM since inception

Industry Experience

Firm Tenure

Investment Professional Functional Role Key Benefits of Team


For Financial Consultant One‐on‐One Use Only

Weekly Stock Selection Process

8

Initial Universe

Domestic equities & ADRs Database screening Russell 1000 Growth Index

Reward/Risk Analysis

High alpha Low standard deviation Superior reward/risk

Quantitative Fundamental Factor Analysis

Test fundamental variables Identify what is driving stock prices Create optimal mix

Portfolio Construction

Identifies negative correlation for diversification Optimizes stock weightings Sell discipline

2,000 Stocks

100 Stocks

60 Stocks

40‐50 Stocks

The number of securities in the initial universe varies depending on market conditions. For Financial Consultant One‐on‐One Use Only 775.785.2300 | navellier.com


Current Fundamental Mix

Large Cap Growth Fundamental Factor Model (November 30, 2014)

775.785.2300 | navellier.com

Cash Flow to Receivables

26%

Standardized EPS Estimates

23%Sales Change

20%

Price to Sales 18%

Free Cash Flow Growth

13%

9

Risk Management


We take several steps to lower the risk of our portfolios

Monitor volatility (i.e. standard deviation) of individual stocks

Examine stock specific risk and portfolio risk using Value at Risk analysis and risk basedattribution using the Northfield U.S. Equity Model

Optimization program punishes volatile stocks, and combines stocks to build a less volatile portfolio

Focus on fundamentally superior stocks relative to market benchmarks

Stringent sell discipline: sell stocks with deteriorating quantitative or fundamentalcriteria

10

Sell Discipline


Sell if a stock drops out of the top tier of reward/risk ratio rankings

Sell if a stock deteriorates in Navellier’s multi-factor fundamental model

Sell or trim during the optimization process if a stock has excess risk

Sell good stocks to buy better stocks

11

Portfolio Highlights Supplemental Information

Large Cap Growth Portfolio as of December 31, 2014

Source: FactSet. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Please read important disclosures at the end of the presentation. For Institutional Presentation One‐on‐One Use Only


Higher Earnings Growth(trailing year-over-year)

15.82%(median)

13.05%(median)

Greater Earnings Surprise(based on latest quarter)

4.27%(median)

3.53%(median)

Forecasted 2-Year P/E Ratios(forward two fiscal years)

16.75(median)

17.93(median)

Market Cap $24 Billion $8.8 Billion

Large CapGrowth Portfolio

Russell 1000Growth Index

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Client Idea #2: Protection


Liquidity: Navellier only employs an ETF universe that consists of highly liquid ETFs; this reduces trading costs for clients and helps performance by reducing spread risk..Diversification: Navellier’s fixed ETF universe for each strategy provides balanced portfolio diversification and prevents the portfolio from being overly concentrated in a particular sector.

Low costs/fees: The ETF universe offers efficiency and low expense ratios.

Reasons Why Clients Will Like These Strategies:

Transparency: Navellier’s ETF managed accounts allow investors to see exactly what they own at all times.

Navellier ETF Portfolios: Libertas 30 & U.S. Equity Sector Plus

Risk management overlay: Navellier utilizes a sine wave overlay that works to adapt to market conditions to help prevent whip-saws that can often happen in the market. It provides a robust system designed to allow our portfolio managers to raise cash or hide in fixed income during extended market downturns..


Identifying Trends and Patterns in Various Market SectorsSector leadership is fleeting! Navellier analysis seeks to optimize portfolios. Through continuously evolving market cycles, analysis designed to optimize portfolios using innovative market rotation calculations can add alpha by characterizing and identifying trends.

Source: Bloomberg. U.S. Global Investors. Please read important disclosures at the end of presentation. Illustration is for discussion purposes only. Past performance does not guarantee future results. Results presented include reinvestment of all dividends and other earnings. Sector returns do not reflect deduction for fees, expenses, or taxes. For Financial Consultant One‐on‐One Use Only.

Client Idea #3: Income


Income generation: Navellier uses covered calls on blue chip companies. The goal is to generate 5% to 8% income from writing the calls and 2% to 3% in dividends.

Conservative growth: The client is invested in blue chip companies which tend to be companies that have strong fundamentals. This is a more conservative approach to gain exposure to the stock market while meeting income needs.

Risk management: Navellier can choose to keep up to 50% of the portfolio in cash if the stock market becomes too volatile, in effect jumping out at times when the risk is not worth the reward.

Reasons Why Clients Will Like This Strategy:

Navellier Covered Call Strategy

Experienced Covered Call Team


Louis G. NavellierChief Investment Officer

Michael J. BorgenPortfolio Manager

Industry Experience

FirmTenure

Investment Professional Functional Role Key Benefits of Team

Michael J. Borgen Lead PM 20 20 Investment team has worked together for an average of 15 years.Hold regular meetings to discuss exploitable anomalies and enhancementsMonitor liquidity, corporate actions, and pricing

Louis G. Navellier Co-PM/CIO 30+ 28

Pete Koelewyn Trader 19 19

Covered Call Primary Drivers


Income Strategy:

Capital Preservation

Wide Moat

Marquee Companies

Tactically Strategic

Income Generation

Longer Date Contracts (6 – 9 Months)

Slightly Out of the Money

Robust Dividend Yields

Growth Development

Stock Selection

Rolling of Contracts (Up & Down)

Broadly Diversified Across Sectors


Income Generation (as of 12/31/14)

Dividend Payers Approximately 70% of the portfolio currently has a Dividend Yield greater

than the 10 year Treasury.

Approximately 75% of the portfolio currently has a Dividend Yield greater than 2%.

Current Dividend Yield: 2.53%

Option Selection

6 – 9 Months

Slightly Out of the Money

Source of Data: Factset

SUPPLEMENTAL INFORMATION

For Financial Consultant One‐on‐One Use Only. Investment in equity strategies involves substantial risk and has the18 potential for partial or complete loss of funds invested. 775.785.2300 | navellier.com


Mutual Funds Sub‐Advised by Navellier

American IndependenceNavellier sub-advises the American Independence International Alpha Strategies Fund, which is offered nationally through intermediaries including broker-dealers, financial planners, and institutions by American Independence. Please contact American Independence at (866) 410-2006. You may also download a prospectus and fact sheet from the American Independence website.

FolioMetrixNavellier is also a sub-advisor on one of the FolioMetrix funds. This fund is sub-advised by Navellier and offered nationally through intermediaries including broker-dealers, financial planners, and institutions by Capital Investment Group, Inc., Member FINRA/SIPC, 17 Glenwood Ave, Raleigh, NC, 27603. Please contact FolioMetrix at (888) 952-4807. You may also download a prospectus and fact sheet from the website at www.riskxfunds.com/fund.htm#872.

Touchstone InvestmentsNavellier’s Large Cap Growth portfolio is available through a sub-advisory relationship with Touchstone Investments. The Touchstone Large Cap Growth Fund is sub-advised by Navellier and offered nationally through intermediaries including broker-dealers, financial planners, and institutions by Touchstone Securities, Inc. Please contact Touchstone Investments at (800) 543-0407. You may also download a prospectus and fact sheet from the website at Touchstone Investments.

For Financial Consultant One‐on‐One Use Only. Investment in equity strategies involves substantial risk and has the19 potential for partial or complete loss of funds invested. 775.785.2300 | navellier.com

Supplemental Information

Territory Map/Contact Information


800.887.8671 [email protected]

775.785.2300 | navellier.comFor Financial Consultant One‐on‐One Use Only

Disclosures

Although information in this presentation has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier's judgment as of the date the presentation was created and are subject to change without notice. This presentation is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. This presentation does not constitute an offer of securities. Any decision to purchase securities mentioned in this research must take into account existing public information on such security or any registered prospectus.

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