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Economic Investment OutlookJohn Pesce, Chief Executive Officer
Blake Rhodes, Fixed Income Specialist
About TCG
2
TCG Mission Statement:
We deliver long-term investment and benefit solutions that provide peace of mind.
Remember all investing involves risk and past performance is not a guarantee of future returns.
Recent Headlines
3Remember all investing involves risk and past performance is not a guarantee of future returns.
2017 Q1 Review
• Over-Arching Themes• Trump First 100 Days• “Repeal & Replace” Failure• Election Season in EU• Brexit Officially Triggered• One Rate Hike by Fed, Two More Expected
Remember all investing involves risk and past performance is not a guarantee of future returns. 4
2017 – What to Watch
• Key Factors• Tax & Regulation Reform• EU Elections• Brexit Negotiations• Federal Reserve Rate Hikes• Wage, Inflation, Corporate Earnings Growth
5Remember all investing involves risk and past performance is not a guarantee of future returns.
Who Controls Interest Rates?
• The Federal Reserve controls the short-term interest rate• The Fed sets the federal funds rate, which is the interest rate at which banks loan
funds to each other• The Fed keeps this rate in its stated range through open market operations and reserve
requirements• The portion of the yield curve most affected by the Fed is inside of 2 years
• The Market controls longer-term interest rates• Supply and demand of credit controls the market interest rates such as car loans,
mortgage rates, corporate debt, muni bonds, etc.• The more credit available to lend causes interest rates to decline• The higher the credit risk will cause interest rates to rise
6Remember all investing involves risk and past performance is not a guarantee of future returns.
“Trumponomics”
• ObamaCare repeal & replace vote• Scheduled vote on March 24th• Eventually pulled from consideration when sufficient votes not garnered• Calls into question ability of Trump & Republicans to accomplish reform
• Tax reform and infrastructure spend• Could be delayed by healthcare vote failure• Distrust in ability to create consensus in Congress
• Market moved on expectations, not reality post-election• Market has priced in some Trump reform• Uncertainty around future reforms could hurt equities and economics
• Fed would likely stop hiking rates if economics begin to fall, interest rates lower
7Remember all investing involves risk and past performance is not a guarantee of future returns.
French Elections
• On April 23rd, 2017, France will vote to elect a new leader• Candidate polling in 1st promises to leave the EU• Victory may end French participation in the EU
• Likely signal the end of the EU
• The European Central Bank has currently commenced to signal future rate hikes, but this would likely be further delayed
• Flight to safety: Delay in European Central Bank interest rate hikes would likely slow the pace of US Federal Reserve rate hikes and keep a “lid” on US rates as foreign investors move money to the US for safety
Remember all investing involves risk and past performance is not a guarantee of future returns. 8
• Donald Trump campaign: bring back jobs and enforce fair trade• China and Asia heavily dependent on exports• Rhetoric vs. Action• Brexit and EU uncertainty impacts trade agreements• Negative impacts to economic growth from trade wars would keep rates
lower for longer and slow the pace of the Federal Reserve rate hikes
Trade Wars
Remember all investing involves risk and past performance is not a guarantee of future returns. 9
2017—Earnings Improve
Source: BlackRock via MSCI and Thomson Reuters, 03/2017.Remember all investing involves risk and past performance is not a guarantee of future returns. 10
Current Yield Curve
• Since Great Recession, Fed gas raised rates three times
• December 2015, December 2016, and March 2017. • The Fed raises Target Funds Rate: from 0.0-0.25% to 0.25-0.50% and then to .50%-.75%, now rates
sit at .75% - 1%• This created immediate an rise in the very short-term portion of the yield curve each time• Considered “long overdue” by the market—long-term rates have not moved with short-term rates
• Since the election, yields rose significantly, then leveled off at year-end• Inflation concerns, faster rate hike path, and potential increased budget deficits are considered
contributing factors to rates moving• If growth and earnings outlook continues to improve, rates are likely to rise via market forces
quicker than Federal Reserve action• Uncertainty in equities = uncertainty in rates
Remember all investing involves risk and past performance is not a guarantee of future returns. 11
Interest Rate Movement
3/31/2017
3/31/2016
3/31/2015
3/31/2014
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Treasury Yield Curve
3/31/2017 3/31/2016 3/31/2015 3/31/2014
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 12
Interest Rates Range-Bound
• Interest rates have moved dramatically higher, then leveled off• Uncertainty around previous expectations of inflation & growth
1.7%
1.8%
1.9%
2.0%
2.1%
2.2%
2.3%
2.4%
2.5%
2.6%
2.7%
11/4 11/18 12/2 12/16 12/30 1/13 1/27 2/10 2/24 3/10 3/24
US 10 Year Treasury Yield – Post Election
10 Year
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 13
Global Interest Rate Movements
• Have moved higher, remain below levels seen in Q1 2016 • Many Remain negative
• Germany • Japan
• Future rates will be dependent upon many factors• Policy direction in the US• Central Bank actions• Election results in France and Italy in 2017 • Brexit negotiations• Global trade and growth• Some of this has been “priced-in” already, will in unwind?
Remember all investing involves risk and past performance is not a guarantee of future returns. 14
Where is the Stock Market Relatively?
• US markets have been able to take advantage of the low IR environment whereas international markets have not done as well
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17
S&P 500 Index
-
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17
MSCI ACWI Excluding United States Index
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 15
Why does the Stock Market matter for Bonds?
Interest rates move in response to expectations for economic growth Expectations of higher economic growth increases likelihood of inflation Expectations of higher economic growth makes Fed hikes more likely
• As economic news improves, investors reach for growth• Divesting of bonds, further pushing prices lower and yields higher.
• Interest rates have moved on expectations, not necessarily concrete changes/improvements
• There still is much future uncertainty.
Remember all investing involves risk and past performance is not a guarantee of future returns. 16
Where are we economically?
• Tracking unemployment
-
100
200
300
400
500
600
700
Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
US Initial Jobless Claims SA
0%
2%
4%
6%
8%
10%
12%
Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
US Unemployment Rate (%)
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 17
Where are Rates Relatively?
• Tracking Rates
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
US Treasury Yield Curve Rate T Note Constant Maturity 2 Year
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
US Treasury Yield Curve Rate T Note Constant Maturity 10 Year
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 18
Fed Rate Hikes—Will 2017 finally be THE year?
• Fed Hiked once in 2015, after predicting multiple hikes
• Fed Hiked once in 2016, after predicting multiple hikes
• Fed Hikes ???? in 2017, after predicting multiple hikes
• The Case for Higher Rates• Unemployment rates near all time lows • Valuations creeping higher• Fed running out of excuses to keep rates below low• GDP Growth improving• Employment numbers strong• Inflation beginning to rise
• Should rates rise faster than expectations, could cause ripple effect in fixed income markets and will keep yields low
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 19
When will the Fed raise rates?
• Fed meeting in March hiked rates once
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Oct-16 Nov-16 Nov-16 Dec-16 Dec-16 Dec-16 Jan-17 Jan-17 Feb-17 Mar-17 Mar-17 Mar-17
Fed Funds Rate Forecast May 2017
No Hike 1 Hike
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 20
Probability of Rate Hike in December 2017
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17
Fed Funds Rate Forecast December 2017
No Hike 1 Hike 2 Hikes 3 Hikes
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 21
What do the Experts Say?
Source: Fidelity via Philadelphia Federal Reserve.Remember all investing involves risk and past performance is not a guarantee of future returns. 22
Short-Term Interest Rates Historically
• Investment Pool returns track short term Government Bonds
0%
1%
2%
3%
4%
5%
Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Short-Term Rates - Last 15 Years
Tex Pool Tex Pool Prime Texas Class 2 Year Treasury 3 Month Treasury
Source: Bloomberg Professional Services, LP.Remember all investing involves risk and past performance is not a guarantee of future returns. 23
What does this mean for your district’s investment strategy?
Yield Curve
• Normal, upward-sloping yield curve-implies investors expect the economy to grow in the future
• Leads to higher inflation • Creates higher interest rates
Investors will not commit to purchasing longer-term securities without getting a higher interest
rate than those offered by shorter-term securities.
Remember all investing involves risk and past performance is not a guarantee of future returns. 25
Yield Curve
• Steepening Yield Curve—A steep positively sloped curve results from the Fed maintaining low short-term rates, but investors are expecting rates to rise
• Occurs towards the end of a recession • An indication that the economy is about to
turn around• Previously the yield curve has been steep
with longer term rates being higher than short term rates
Remember all investing involves risk and past performance is not a guarantee of future returns. 26
Yield Curve
• Flattening Yield Curve—spreads between short-term treasuries and long-term treasuries are narrowing
• Can be the transition stage from a steep yield curve to an inverted yield curve
• In this environment, traders will buy longer term treasuries, and short shorter term treasuries
Remember all investing involves risk and past performance is not a guarantee of future returns. 27
Yield Curve
• Inverted Yield Curve—the result of the Fed pushing short-term rates to very high levels; 2 year returns are greater than 10 year returns
• Indication that the economy is heading into a recession
• Typically happens when people become scared of the equity markets and invest in longer term government bonds for a flight of safety
Remember all investing involves risk and past performance is not a guarantee of future returns. 28
Investment Strategies
• Ladder—Portfolio is invested equally in bonds maturing periodically• As the bonds mature, money is reinvested to maintain the maturity ladder.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Remember all investing involves risk and past performance is not a guarantee of future returns. 29
Investment Strategies
• Bullet: Stagger purchase dates on bonds that all mature at the same time.• Use when you expect the yield curve to steepen • If rates rise in the intervening time, the investor will earn a higher rate than
if he or she invested the entire portfolio in the first year
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Remember all investing involves risk and past performance is not a guarantee of future returns. 30
Investment Strategies
• Barbell: Maturities are concentrated at two extreme maturities • Use when you expect a flat yield curve• Short term maturities can be reinvested locking in higher rates • Long term maturities will be locked in at the higher rate you got when initially
invested and offers protection from falling interest rates • The bet is that, over time, the difference between the two will narrow
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Remember all investing involves risk and past performance is not a guarantee of future returns. 31
Investment Strategies—Barbell
• Example: What If, Two Years Ago (2015)
• Need $20 Million in 3 Years• Can invest $20 Million at .25% in 1 Year Bonds, Or…• Use Barbell Strategy• 50% 5 Year Bonds = 1.40% | 50% 1 Year Bonds = .25% | Total = .83%
0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%2.0%
3M 6M 1Y 2Y 3Y 4Y 5Y
Treasury Yield Curve - Then
3/31/2015
Blue = BarbellYellow = Short-Term
Remember all investing involves risk and past performance is not a guarantee of future returns. 32
Investment Strategies—Barbell
• Example: What If, Two Years Ago (2015)
• 5 year bonds are now 3 year bonds, still paying rates of 1.40% vs current market of 1.57%
• Re-invest 1 year portion of the Barbell at higher rates in 2016 (1 year ago), .56%
• Barbell generated .83% 1st year, .98% 2nd year vs rolling short-term .25% 1st year, .56% 2nd year. Total difference on $20MM = $183,337 or .91%. This considers selling the 5 year bond at a slight loss
• Barbells are great for hedging your bets on rate movements: some is available short-term to reinvest next year, some is locked in at the “longer-term rates”
0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%2.0%
3M 6M 1Y 2Y 3Y 4Y 5Y
Treasury Yield Curve - Now
3/31/2017 3/31/2016 3/31/2015
Blue = BarbellYellow = Short-Term
Remember all investing involves risk and past performance is not a guarantee of future returns. 33
0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%2.0%
3M 6M 1Y 2Y 3Y 4Y 5Y
Treasury Yield Curve - Then
3/31/2014
Investment Strategies—Ladder
• Example: What If, Three Years Ago (2014)
• Need $10 Million in 3 Years, but concerned rates will rise• Buy 1 Year bond = .14%, Or… • Ladder maturities, 33% 1 Year & 33% 2 Year & 33% 3 Year = .49%
Blue = BarbellYellow = Short-Term
Remember all investing involves risk and past performance is not a guarantee of future returns. 34
Investment Strategies – Ladder
• Example: What If, Three Years Ago (2014)
• After 3 Years, rates have risen• By rolling your 1 Year Bond, you made .14% 1st year, .25% 2nd year, and .56% 3rd year• Your Ladder paid .49% 1st year, .53% 2nd year, and .68% 3rd year, Total Difference on $10 Million =
$75,701• Even with Rising Rates, Stretching Maturities and “Rolling Down the Curve” can Increase Yield
Blue = LadderYellow = Short-Term
0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%2.0%
3M 6M 1Y 2Y 3Y 4Y 5Y
Treasury Yield Curve - Now
3/31/2017 3/31/2016 3/31/2015
Remember all investing involves risk and past performance is not a guarantee of future returns. 35
Yield- The REAL Story
Nominal 04/19/2017
Real 04/19/2017
Nominal 04/19/2016
Real 04/19/2016
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3M 2Y 5Y 8Y 11Y 14Y 17Y 20Y 23Y 26Y 29Y
Treasuries | Nominal vs Real Yields
Nominal 04/19/2017 Real 04/19/2017 Nominal 04/19/2016 Real 04/19/2016
Remember all investing involves risk and past performance is not a guarantee of future returns. 36
Protecting Yourself — Stress Test
• Recommend 200 bps stress test over 2 year period
Remember all investing involves risk and past performance is not a guarantee of future returns. 37
Yields and Currency
Remember all investing involves risk and past performance is not a guarantee of future returns.
75
80
85
90
95
100
105
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16
US 2 Year Treasury vs US Dollar
US 2 Year Treasury US Dollar Index
38
Understanding Risk
Remember all investing involves risk and past performance is not a guarantee of future returns. 39
Interest Rate Risk
Downgrade Risk
Reinvestment Risk
Default Risk
Liquidity Risk
Political Risk
40
Measuring the Risk of Inaction
• Current interest rate environment is a significant, and costly, problem for taxpayers and districts
• Not meeting Inflation IS losing money
Average Annual Inflation Rate of 3.19%.
Rate 3 Years 5 Years 7 Years
2.00% $ 9,933,069.88 $ 9,888,698.85 $ 9,844,526.03
1.00% $ 9,643,775.61 $ 9,413,370.69 $ 9,188,470.51
0.50% $ 9,501,259.08 $ 9,182,662.05 $ 8,874,748.24
0.25% $ 9,430,530.40 $ 9,069,016.64 $ 8,721,361.30
Does $10,000,000 equal $10,000,000?
This graph can be found at: http://www.usinflationcalculator.com/inflation/current-inflation-rates/Rates are for calendar years 2007-2017
0%
1%
2%
3%
4%
5%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Inflation Rates Graph
Remember all investing involves risk and past performance is not a guarantee of future returns. Hypothetical projection to show the effects of inflation (2.18%) on low interest growth.
The Cost of Waiting—$10M Investment
• Bond Investor—1.50% per year for 5 years• Cash Investor—0.45% for 2 years, 1.75% years 3-5
Hypothetical example to show the effects of waiting to invest. Remember all investing involves risk and past performance is not a guarantee of future returns. 41
Actually have to earn 2.20% in years 3 to 5 to
cross over
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
1 2 3 4 5 TOTAL
Inco
me
Years
Interest Income by Year
Bond Investor Cash Investor
Investment Risks
• Credit Risk
• Mitigated by the control of the PFIA
• US Treasuries, agencies, AAA, AA, A
Maturity
• Controlled by local policy
Investment Pools
• Allow investments as low as A under the A-1 Credit Rating
42
Do you consider your school bonds risky investments?
Remember all investing involves risk and past performance is not a guarantee of future returns.
Duty of Best Execution
• Due Diligence• Bloomberg, MarketAxxes & TMCBonds Pricing Sources
• Documentation • Competitive pricing log• Post-Trade review of pricing quality
• Multiple broker/dealers• Industry consolidation• Pricing is fluid
Remember all investing involves risk and past performance is not a guarantee of future returns. 43
Duty of Best Execution
In the context of fixed-income securities, the TCG’s intent is to ensure that all customer transactions are executed at prices that are “as favorable as possible under prevailing market conditions.” Below are the steps followed by TCG and integrated broker-dealer firm.
Step 1: Pre-Trade Price Discovery
Uses a combination of institutional sources and alternative trading systems, including Bloomberg, MarketAxess, and TMCBonds for seeking pre-trade pricing information from counterparty dealers. All three systems offer competing markets, and thus, have dealers competing for the same securities often at different prices. Using the pre-trade pricing information from electronic sources combined with market intelligence obtained direct from dealers using Bloomberg IMs or through direct conversations, Representatives select the best price. In many cases, Representatives may negotiate directly with a particular counterparty that has shown an appetite for certain issues, in these instances the Representative may execute a trade direct (broker-to-broker), but only after validating the price using Bloomberg, MarketAxess and/or TMCBonds.
Remember all investing involves risk and past performance is not a guarantee of future returns. 44
Duty of Best Execution
Step 2: Post-Trade Review
The SEC and FINRA both require “regular and rigorous reviews” of execution quality or order-by-order trade reviews. The reviews include an assessment of bond prices using both market and trade data obtained through multiple sources:
• Bloomberg’s ALLQ and BVAL function, • MarketAxess, Trade Evaluation Prices by IDC and SPSE, Market Axess Trade Analytics;• TMCBonds
Bloomberg’s ALLQ function, MarketAxess, and TMCBonds provide traders with live indications of interest. Bloomberg’s Valuation Service or “BVAL” provides independent price valuations for fixed-income securities by comparing bond characteristics and direct trade observations to estimate a bond’s price. BVAL will also rate the quantity and quality of the data used on a scale from 1 to 10. The higher the score, the more reliable the price. BVAL is used in price discovery and post-trade review—which is intended to either support execution quality or identify trades with outlying prices.
Remember all investing involves risk and past performance is not a guarantee of future returns. 45
Bloomberg ALLQ Price Discovery
Remember all investing involves risk and past performance is not a guarantee of future returns. 46
Market Axess Live Auctions
Remember all investing involves risk and past performance is not a guarantee of future returns. 47
Muni Bond Pre-Trade Price Discovery
Remember all investing involves risk and past performance is not a guarantee of future returns. 48
Market Axess Pre-Trade Analytics
Remember all investing involves risk and past performance is not a guarantee of future returns. 49
Market Axess - Agencies - Dealer Inventories
Remember all investing involves risk and past performance is not a guarantee of future returns. 50
Market Axess - Agencies - Active Bid/Offer List
Remember all investing involves risk and past performance is not a guarantee of future returns. 51
Market Axess—Muni Bid/Offer List & Dealer Inventories
Remember all investing involves risk and past performance is not a guarantee of future returns. 52
Market Axess—Trade Confirmation and Best Execution
Remember all investing involves risk and past performance is not a guarantee of future returns. 53
Money Market Reform & PFIA
HB 1003IntroducedAuthored: Capriglione
Remember all investing involves risk and past performance is not a guarantee of future returns. 54
DOL Fiduciary Rule – Advising or Selling
• Advice in your best interest• Fiduciaries are legally required to recommend investments that are in the
client's best interest, not their own
Remember all investing involves risk and past performance is not a guarantee of future returns. 55
Important Disclosures
TCG Advisors is a registered investment advisor regulated by the U.S. Securities and Exchange Commission (SEC) andregistered municipal advisor, subject to the Rules and Regulations of the Investment Advisor Act of 1940 and the rulesof the Municipal Securities Rulemaking Board (MSRB), and is a part of TCG Group Holdings, LLP. Registration does notimply a certain level of skill or training. TCG Advisors’ parent company, TCG Group Holdings, LLP, owns and operatesseveral other entities which provide various services to employers across the U. S. Those affiliates (wholly‐ownedsubsidiaries of TCG Group Holdings, LLP) sometimes provide services to TCG Advisors’ Clients. These affiliates areTotal Compensation Group Consulting, LP; TCG Administrators, LP (f/k/a JEM Resource Partners, LP); TCG Benefits(f/k/a The Paragon Group, LP; Paragon National, LP; and Paragon Benefits, LP, collectively). The business activities ofthese companies are discussed in its ADV Part 2A. TCG Advisors is located in Austin, Texas, and a copy of its FormADV Part 2 is available upon request.
This presentation is not authorized for use as an offer of sale or a solicitation of an offer to purchase investments. Thispresentation is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or arecommendation for any security, or as an offer to provide advisory or other services in any jurisdiction in which suchoffer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.
Past performance may not be indicative of any future results. No current or prospective client should assume that thefuture performance of any investment or investment strategy referenced directly or indirectly in this presentation willperform in the same manner in the future. Different types of investments and investment strategies involve varyingdegrees of risk—all investing involves risk—and may experience positive or negative growth. Nothing in thispresentation should be construed as guaranteeing any investment performance.
56Remember all investing involves risk and past performance is not a guarantee of future returns.
Important Disclosures (continued)
57
An investment in the plans discussed will involve a significant degree of risk, and there can be no assurance that theinvestment objectives will be achieved or that an investment therein will be profitable. Investors will experienceindividual returns that vary materially from those illustrated in this presentation depending on various factors, includingbut not limited to, the timing of their investment, the level of fees, and the effects of additions and withdrawals from theircapital accounts. Past performance is not necessarily indicative of the future performance or the profitability of aninvestment in a plan. This presentation includes forward-looking statements. All statements that are not historical factsare forward-looking statements, including any statements that relate to future market conditions, results, operations,strategies or other future conditions or developments and any statements regarding objectives, opportunities,positioning or prospects. Forward-looking statements are necessarily based upon speculation, expectations, estimatesand assumptions that are inherently unreliable and subject to significant business, economic and competitiveuncertainties and contingencies. Forward-looking statements are not a promise or guaranty about future events.
Remember all investing involves risk and past performance is not a guarantee of future returns.
Important Disclosures (continued)
58
Any discussion of liquid or illiquid investments is qualified by the fact that the liquidity of an investment depends largelyon market conditions, which change from time to time. An investment that is currently liquid could prove to becompletely or substantially illiquid at any time in the future. No assurances can be given regarding the time at which itmay be possible or reasonably practical to sell any investment, regardless of the degree of liquidity or illiquiditycurrently associated with the investment. Any statements about the likely timing for the future disposition or maturity ofany investment or group of investments are forward-looking statements that are inherently unreliable and should not berelied upon for any purpose.
The projections or other information generated herein regarding the likelihood of various investment outcomes arehypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Hypotheticalperformance results have many inherent limitations. No representation is being made that any account will or is likely toachieve profits or losses similar to those shown. There are frequently substantial differences between hypotheticalperformance results and the actual results subsequently achieved by any particular trading program.
Remember all investing involves risk and past performance is not a guarantee of future returns.
Thank You
900 South Capital of Texas Highway, Suite 350Austin, Texas 78746
512.600.5200
www.tcgservices.com
John [email protected]
Blake [email protected]
Remember all investing involves risk and past performance is not a guarantee of future returns. 59