Earnings Acceleration Stock Index (EASI)

Innovative, Transparent approach to growth stock Index

The Core Principle:   EASI Indexes are based on the investment principle that growth in earnings produces the largest investment returns………..

EASI Tactical Growth Strategy
The EASI Tactical Growth Index combines two critical dynamics of equity investing in the current challenging global stock market.  We believe that exceptional stock selection and the discipline of a tactical market overlay create a winning combination. The objective of the Index allows investors to remain invested in healthy companies when the opportunity is available, while rotating into investments such as short term fixed income assets as bear markets begin.  Simply put, when invested in equities, we believe capital should be in the greatest position for excellent returns, not just tracking the broader market.  And when the market metrics call for large loss avoidance, the discipline seeks to reduce that exposure completely.
First Component: Selecting the Strongest Growth Stocks
The first component, stock selection, is based on a careful process of identifying the historical characteristics of best performing stocks.  These are companies that consistently exhibited several characteristics leading to outperformance. First, they have accelerating earnings and sales.  Second, they exhibit strong upward price momentum.  These two factors are the foundation of the EASI Tactical Growth Strategy.  Using these factors as the cornerstone, with the addition of proprietary screens, the stage is regularly set for significant price increases.  The list of stocks making the index is limited to between 33-50 names meeting the requisite screens.  Each month, the stocks comprising the index is refreshed by dropping underperforming stocks and adding new names that fit the EASI profile of companies that have historically been the greatest winners.
Second Component: Tactical Market Overlay
It was famously said the #1 rule to investing is “Don’t lose”.  Rule #2 is “Never forget rule #1”.  That seems to be a simple concept, but rarely executed on.
The EASI Tactical Growth Index has a strict tactical algorithm that is applied to overlay the index value movement relative to its own performance.  It has the objective of rotating the index constituents to short term fixed-income instruments during periods of poor stock market performance. On a weekly basis, the EASI Tactical Growth Index calculates its own trend line over the past year. If the absolute momentum of the index is slowing down, the index rotates out of equities and into short-term fixed income instruments.  When the index turns positive and a new uptrend begins, the index constituents are reallocated from bonds back into growth stocks meeting the current requirements for inclusion.

Why Study the EASI Tactical Growth Strategy?
The EASI Tactical Growth Strategy automates the process of indexing in the most innovative growth companies in today’s stock market.  Only stocks with characteristics similar to some of the great performing companies will be included in the index.  While they do have the potential to deliver outperformance over time, they can also be more volatile with bigger moves both up and down. Hence, we believe that the addition of a tactical overlay can dampen some of that volatility, producing “smoother” index returns. But in some volatile market conditions a tactical overlay can create "whipsaws", till the index finds its direction to the upside or the downside.

Performance

Performance of EASI Tactical Growth Index, updated as of Jul 12, 2019

Index1 Year2 Year3 Year4 Year5 YearSince Inception
EASI Tactical Growth Index7.7%35.4%78.0%77.3%108.2%398.6%
S&P500® (SPX)9.9%28.3%48.8%55.9%69.8%226.7%
 Annualized Performance
EASI Tactical Growth Index7.7%16.4%21.2%15.4%15.8%19.9%
S&P500® (SPX)9.9%13.3%14.2%11.7%11.2%14.3%

Calendar year Performance of EASI Tactical Growth Index, updated as of Jul 12, 2019

IndexYTD20182017201620152014201320122011
EASI Tactical Growth Index9.3%6.3%36.7%17.4%8.2%10.7%53.1%22.0%1.2%
S&P500® (SPX)21.5%-4.4%21.8%12.0%1.4%13.7%32.4%16.0%2.1%

Disclosure:

The EASI Tactical Growth Index was launched on February 27, 2017. Index values between September 10, 2010 and February 27, 2017 have been calculated pursuant to a back-tested methodology (i.e. calculations of how the index might have performed over that time period had the index existed) with an initial index value level of 100. There are frequently material differences between back-tested performance and actual results. Index returns do not reflect payment of any sales charges or fees an investor may pay to purchase securities underlying the Index or investment funds that are intended to track the performance of the Index, the imposition of which would cause actual and back-tested performance to be lower than the performance shown. Past performance of the Index, whether actual or back-tested, is not an indication or guarantee of future results. All Index values have been calculated by Solactive AG (See additional disclaimer below).

The Standard & Poor’s 500 Stock Index (“S&P 500 Index") is an unmanaged index generally representative of the U.S. stock market. Index returns do not reflect fees, commissions or other expenses of investing. Investors may not make direct investment into any index.

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