For quite some time, institutional equity and fixed income investors have known that US capital markets have been losing market shares to overseas competitors. The US corporate bond market continues to face challenges from Latin American, Eurobond, Far East, and Australian bond markets. US equity markets continue to have declines in foreign initial public offerings, suggesting that they have also become less attractive. Our global strategies take advantage of international equity and sovereign debt markets by utilizing our global "top-down" view of and "bottom-up" approach to debt and equity analysis. These strategies are customized solutions to match each client's objectives, risk tolerance, liquidity requirements, and marginal tax rates for total-return optimization. They may be structured as either a stand-alone portfolio or as an overlay to a fixed income portfolio already managed by SAC. For further information, please read our Disclosure Statements.

Global ETF Strategy

OBJECTIVES

• Seeks to maximize a client's total return through above-average growth and moderate dividend appreciation
• Allows investors to diversify their portfolios in a 'fund of funds' strategy that invests solely in exchange-traded funds (ETFs)
• By opening up the equity universe of ETFs globally, clients may diversify their portfolios by gaining exposure to global equities, fixed income, forex, and commodities not represented in the US markets
• Provides a moderate degree of liquidity with an asset allocation heavily weighted with large, capitalized, exchange-traded funds

INVESTMENT PHILOSOPHY

• Utilizes a disciplined Investment Selection Committee comprised of senior portfolio managers and research analysts
• Asset allocation is driven by a two-tier approach: a 'top-down' view of global markets followed by SAC's qualitative and quantitative 'bottom-up' approach
• Top-down macroeconomic and quantitative analysis is applied along with a client's objectives in 'globally' pinpointing those sectors and indices that provide the best investment opportunities
• Bottom-up individual security selection is utilized by senior portfolio managers based on relative value, credit-worthiness, and potential price and income appreciation of a particular sector and index in the context of our top-down view
• Portfolios are then adjusted accordingly within the constraints of individual client's requirements

INVESTMENT PROCESS

• The strategy will employ active management that is designed chiefly to manage growth and income according to a client's liabilities and commitments
• We diversify across sector, style, country, commodity, fixed income, and forex to systematically identify and provide market segments that exhibit positive strength, and to underweight ETFs that represent negative strength in the market place
• We seek to provide our clients with a moderate degree of liquidity while producing an income stream
• We customize and separately manage each portfolio so we can meet a client's individual goals, risk tolerance, and liquidity and tax requirements
• Bottom-up individual ETF selection is utilized by portfolio managers based on relative value, credit-worthiness, and the potential price and income appreciation of a particular fund