Advisors stand the greatest risk of losing a client if their client’s portfolio is significantly de-valued during a major market correction.

You understand the stock market is prone to violent corrections. This is how much the stock market pulls back (drawdown).

 


10-20% all the time, 30%+ a lot.

You want your clients to be happy that you helped them through a cycle of market ups and downs. You want to be that Advisor. It is important to understand: You can’t make market pullbacks go away with traditional asset allocation. 

60/40 has outlived its usefulness. It is dead.
— Professor Burton Malkiel tells CNBC
 

The Old Way

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The Better Way

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Collaboration

Focus more on asset allocation and less on market timing.

We realize that you wear many hats as a Financial Advisor: You focus on asset allocation. You need to perform and your managers need to perform. Moreover, you need to manage expectations, relationships and all within stringent compliance standards. It’s a lot.

We aim to reduce a bit of that burden.

You understand the importance of non-correlation in a portfolio, and the value of liquid alternatives. Our goal is to help make your client portfolio’s more resilient so that your business becomes more stable, self-repeating, and focused on relationship.  

While your portfolios may be more complex than a traditional portfolio (60% equity, 40% bonds), the following illustration shows the obvious benefits of adding a non-correlated solution. We have included our flagship Auspice Diversified Program (ADP) for the example below.

  • Drawdown improves (drops) by 50%

  • By adding ADP at 25%, The portfolio pulls back 17% versus 34%

  • Annualized Return increases by 20%

  • Volatility drops by 28%

  • Sharpe increases by 67%

  • Correlation is -0.25

Your client’s want to know “what if”. What will happen to my portfolio when the market corrects? You have an advantage of showing them a reputable and well accepted solution.

We provide the same service to you and your clients that we do to our globally respected institutional clients and product distributors.  We are a resource to you. 

Let's have a conversation about that.

TERM
June 2007 through October 2014

60/40 PORTFOLIO
The 60/40 Portfolio is 60% S&P, 40 % Barclays US Aggregate Bond Index, rebalanced annually.

THE BARCLAYS CAPITAL AGGREGATE BOND INDEX
The Barclays Capital Aggregate Bond Index is a market capitalization-weighted index, meaning the securities in the index are weighted according to the market size of each bond type. Most U.S. traded investment grade bonds are represented. Municipal bonds, and Treasury Inflation-Protected Securities are excluded, due to tax treatment issues. The index includes Treasury securities, Government agency bonds, Mortgage-backed bonds, Corporate bonds, and a small amount of foreign bonds traded in U.S. The Barclays Capital Aggregate Bond Index is a long term index. The average maturity as of December 31, 2009 was 4.57 years.

S&P 500
An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

 


 

Auspice Building Blocks

The Auspice Building Blocks are a suite of strategies that deliver returns with a low correlation to traditional return sources and to each other. By combining multiple building blocks, often based on a foundation of momentum, we can create a truly diversified portfolio that improves returns and lowers volatility.

Momentum Strategies

Capture the tendency of markets to continue in the direction that they are currently moving. It is a behavior that has been documented across markets for hundreds of years. It is the core source of returns in our strategies and it forms the solid foundation upon which our funds and indices are built.

Mean Reversion Strategies

Capture the tendency for markets to reverse when prices move too far, too fast, from a mean level. 

 

 

Short Term Strategies

Identify patterns and trends on shorter time frames where prices show a statistically significant tendency to move in a predictable way following the establishment of the pattern.

Term Structure Strategies

Capture returns that are driven by price differentials in the shape of the forward curve.

 


Results

Performance when you need it most.

Historically, the Auspice Diversified Program has added value at critical times of market correction or volatility expansion in addition to times of equity performance. The world is getting more volatile and our goal is to continue to add this value.

Historical Results:

DISCLAIMER
Futures trading is speculative and is not suitable for all customers. Past performance may not be indicative of future results and there is no assurance that any of the fund’s investment objectives will be met. An investor could lose all or a substantial portion of their investment.

For U.S. Investors, any reference to the Auspice Diversified Strategy or Program, “ADP”, is only available to Qualified Eligible Persons “QEP’s” as defined by CFTC Regulation 4.7.

Barclay BTOP50 CTA Index
The Barclay BTOP50 CTA Index seeks to replicate the overall composition of the managed futures industry with regard to trading style and overall market exposure. The BTOP50 employs a top-down approach in selecting its constituents. The largest investable trading advisor programs, as measured by assets under management, are selected for inclusion in the BTOP50.

S&P 500
An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

 



Client Support

We realize there is inherent stigma for clients regarding alternative strategies. 

Despite, the long-standing use by HNW, Family Offices, and institutions, this remains a challenge for the Advisor. Let us help:

Our goal is to supply you with the knowledge to be able to communicate and educate your clients on strategies that help their portfolio.  We aim to eliminate the jargon and provide material that is simple and direct. Moreover, we are available to you. If you would like to include us in a call, or in person, we are able to accommodate.

Click to learn more about why now is the time to invest in Auspice Diversified Program

 

FundServ Codes

Auspice Diversified Trust is available through FundServ and is registered through a number of investment dealers. Accredited Investor rules apply.

Below are the Fundserv codes and investment options.

  • Auspice Diversified Trust Class A: ACA718 - Minimum $10K
  • Auspice Diversified Trust Class F: ACA728 - Minimum $10K
  • Auspice Diversified Trust Class I: ACA738 - Minimum $5 mm (single ticket)
  • Auspice Diversified Trust Class G: ACA748 - Minimum $10 mm (aggregate)
  • Auspice Diversified Trust Class S: ACA758 - Minimum $10 mm (aggregate)


Delivery Mechanisms

At Auspice, we believe in using the right delivery mechanisms to meet the client’s needs. We were the first CTA to launch an ETF (2008) and have continued to expand our delivery suite:

  • Funds: LP, Canadian Mutual Fund Trust (OM), Onshore, Offshore
  • ETFs: through partner firms 
  • Indexes: we publish our eBeta Indices 3rd party via NYSE
  • 40 Act Mutual Funds: US investors through partner firms
  • Separately Managed Accounts