ABOUT HTAA, LLC

Hull Tactical Asset Allocation, LLC (HTAA, LLC) is an SEC registered investment advisor that was founded in 2013 by Blair Hull. HTAA, LLC is an independent, privately owned firm focused on quantitative asset management and long-term capital management. HTAA, LLC serves as an advisor to ETFs, and utilizes advanced algorithms and macro and technical indicators to anticipate future market returns. The strategies are stress tested with over 20 years of historical data and evolved from tactical allocation models developed and traded by Hull Investments, LLC.

Management Team Members:
Blair Hull

Blair Hull is the Founder of Hull Tactical Asset Allocation, LLC, and has served as Managing Partner since its formation in 2013.

Prior to launching Hull Tactical Funds, Blair Hull founded Hull Trading Company and served as the firm’s Chairman and Chief Executive Officer from 1985-1999. A global leader in the application of computer technology to listed derivatives trading, Hull's company leveraged technological innovations and quantitative models to become one of the world's premier market-making firms, trading on 28 exchanges in nine countries. At its peak, Hull Trading Company moved nearly a quarter of the entire daily market volume on some markets, executed over 7% of the index options traded in the United States, 3% of the equity options, and 1% of all shares traded daily on the New York Stock Exchange.*

Following the sale of Hull Trading Company to Goldman Sachs, Hull went on to found Ketchum Trading, LLC in 2010, a privately held, proprietary trading firm in Chicago, Illinois.

Throughout his career in trading, Blair Hull’s multi-disciplinary approach has been responsible for the design and implementation of a steady stream of systematic innovations that have combined trading expertise with state-of-the-art technology and quantitative modeling.

Petra Bakosova

Petra Bakosova is a financial engineer with background in algorithmic trading across multiple asset classes, mathematical modeling and risk management. Petra holds a Master of Science in Financial Mathematics degree from the University of Chicago.

* (SOURCE: Fishman, Ted (2009). "Wall Street's 25 Smartest Players". [Worth Magazine].

PARTNERS

PARTNERS

ETC has carved out a niche as a portal to launch new, custom exchange-traded funds efficiently and cost-effectively through a complete turnkey solution. ETC is a private-label ETF advisor with passive and active exemptive relief from the SEC to launch both domestic and international equity exchange traded funds under the Investment Company Act of 1940.

ETC's ETF-in-a-Box(tm) Solution is a turnkey platform that provides time-sensitive and cost-effective methods to bring an exchange-traded fund to market. Seasoned ETF professionals have the operational and regulatory experience plus the industry contacts needed to navigate the complexities of launching and managing an ETF. ETC has developed strategic relationships with other ETF service providers to assist ETC's sub-advisors in navigating the exchange-traded fund launch process with the guidance necessary to maintain regulatory compliance.

BBH is a privately held financial institution that has been a thought leader and solutions provider for nearly 200 years. We serve the most discerning and sophisticated individuals and institutions across three business lines: Private Banking, Investment Management, and Investor Services, which provides cross-border custody, accounting, administration, and execution services to the world’s leading asset gatherers in close to 100 markets.

The firm has $4 trillion in assets under custody and administration (as of December 31, 2014), including $274 billion of ETF assets (as of December 31, 2014). BBH works in consultation across a broad range of asset managers to introduce a variety of ETFs across the globe, assisting with product strategy, development and launch implementation, and providing industry expertise, product knowledge, technology and flexibility to deliver comprehensive ETF solutions.

BBH operates in seventeen global locations, including New York, Boston, Beijing, Charlotte, Chicago, Denver, Dublin, Grand Cayman, Hong Kong, Jersey City, Krakow, London, Luxembourg, Philadelphia, Tokyo, Wilmington, and Zürich. For more information about Brown Brothers Harriman, visit www.bbh.com.

SEI is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth.

Cantor Fitzgerald, a leading global financial services group at the forefront of financial and technological innovation has been a proven and resilient leader for over 65 years. Cantor is a preeminent investment bank serving more than 7,000 institutional clients around the world, recognized for its strengths in fixed income and equity capital markets, investment banking, prime brokerage, and commercial real estate finance and for its global distribution platform. Cantor Fitzgerald & Co. is one of 22 primary dealers authorized to trade U.S. government securities with The Federal Reserve Bank of New York. Cantor Fitzgerald’s 1,600 employees serve clients through over 35 locations, including major financial centers around the world in the Americas, Europe, Asia/Pacific, and the Middle East. For more information please visit www.cantor.com.

Vident Investment Advisory, LLC (VIA) provides asset management and sub-advisory services for index-based assets. Our experience includes decades in portfolio management and trading roles for the largest index fund and ETF fund management companies. Our extensive experience and innovation for a variety of ETF sponsors has made ETF management our specialty. We endeavor to utilize our unique experience and state of the art technology to fulfill client objectives and exceed expectations. www.videntinvestmentadvisory.com

A subsidiary of NYSE Euronext, NYSE Arca is the leading Exchange for ETFs, with more ETF listings and assets than any exchange globally. NYSE Arca is the second largest electronic communication network in terms of shares traded.

FREQUENTLY ASKED QUESTIONS

FREQUENTLY ASKED QUESTIONS

What is an exchange-traded fund (ETF)?
An exchange-traded fund (ETF) is a basket of securities whose shares are traded on an exchange. ETFs are bought and sold by a broker.
How does ETF and Mutual Fund trading differ?
Mutual funds are bought and sold directly from the mutual fund company at the current day’s closing price, the NAV (Net Asset Value) calculated for the fund at the end of the day. ETFs are traded throughout the day at the current market price, like a stock, and may cost more or less than NAV, which is calculated throughout the day. In mutual funds, transaction fees may include sales loads (or sales charges) or redemption fees. These are paid directly by investors. ETF transactions may include brokerage commissions (There may be fees to open and maintain a brokerage account), which are paid directly by investors.
How do I buy and sell ETFs?
ETFs are listed with ticker symbols in the same way as individual stocks. They can be bought or sold throughout the day by a full service or discount broker. A brokerage commission to buy or sell will usually apply.
What is the minimum-sized ETF purchase?
Investors can purchase as little as one share although the brokerage firm may have higher account minimums.
What is an Actively Managed ETF?
An actively managed ETF may or may not have a benchmark index, and managers may change sector allocations, market-time trades or deviate from the index as they see fit. This produces investment returns that will not perfectly mirror the underlying index.
What is Tactical Asset Allocation?
Tactical asset allocation (TAA) is a dynamic investment strategy that actively adjusts a portfolio's asset allocation. The goal of a TAA strategy is to improve the risk-adjusted returns of passive management investing.
What is the Hull Tactical Asset Allocation ETF (HTUS)?
The Hull Tactical Asset Allocation Fund is an actively managed ETF. Guided by our proprietary, patent-pending, quantitative trading model, we take long and short positions in ETFs that seek to track the performance of the S&P 500, as well as leveraged ETFs or inverse ETFs that seek to deliver multiples, or the inverse, of the performance of the S&P 500 as well as futures. Our goal for our investors is simple: to achieve long-term growth from investments in the U.S. equity and Treasury markets, independent of market direction, while outperforming the S&P 500 with lower volatility.
What is the maximum long position and max short position of the fund?
Maximum long is 200% invested and maximum short is -100% invested, using 10% increments.
What is the average expected leverage?
We expect the fund on average to be long 60% S&P 500 and 40% treasury bills.
How would HTUS compliment an existing portfolio?
HTUS is an alternative ETF strategy. Incorporating alternative investments into a traditional portfolio may help you to reduce overall volatility while increasing portfolio diversification. Seventy-seven percent of advisors state that diversification is still the top driver of investment in alternative strategies. Sixty percent of advisors allocate between 6% and 20% to alternatives, while a large portion of institutions (18%) allocate more than 40% to alternatives.
Source: ETF Trends - How an Alternative ETF Strategy Fits in Investment Portfolios, 10/30/2014
How often is the model revised?
The target position is updated daily and the parameters are expected to be refitted every 20 days using 12 years of data. The model selects the indicators that best predict the next 6 months return of the S&P 500.
What controls are built around the model?
There are a number of automated controls: Overall position limits are enforced. Each variable has its own contribution limit. The execution is optimized to reduce excess trading. In addition to the automated controls, there is daily oversight on the signals produced and trader discretion is permitted.
What is the benchmark upon which you measure success of the fund strategy?
HTUS is an actively managed ETF that looks to outperform a 60/40 strategy of 60% S&P 500 and 40% 3 month Treasury Bills.
How does portfolio turnover impact returns and tax consequences for ETFs?
The sale of securities by a fund manager may trigger capital gains distributions to shareholders. Therefore, funds that experience higher portfolio turnover are generally less tax efficient than those that buy and hold securities for longer periods. Index strategies generally have lower portfolio turnover than actively managed strategies.