An Introduction to the Delta Tactical Strategy and Investment Philosophy
One California Street, Suite 2800
San Francisco, CA 94111
415.249.6337
www.deltaim.com
Who We Are and What We Do
• Registered Investment Advisory firm
• Decades of institutional investment experience
• Custom investment programs to meet your
personal financial objectives
• Offer discipline and proven tactical strategies
• Tactical strategies provide strong downside
protection in bearish markets and participation in
up markets
Delta Investment Management, LLC
Why Invest With Delta
3
Delta Investment Management, LLC
• Committed to SAFETY and above average returns
• Pro-active downside risk management
• Transparency of process and holdings
• Personalized service
Tactical Philosophy
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Delta Investment Management, LLC
• We believe there are periods in market cycles to
be fully invested and there are other periods not to
be fully invested
.
• As such, we believe it is necessary to be
pro-active in managing money
.
• As active managers, we follow a market-tested,
proven investment discipline.
What Sets Delta Apart
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Delta Investment Management, LLC
NB. Performance is through 9/30/2012. All Tactical performance results are net of fees. S&P 500 performance includes dividends. Please see page 9 for important disclosures.
• Premier provider of tactical investment solutions: Delta
Tactical Sanctuary (DTS), Delta Tactical Good Harbor (DTGH),
and Delta Tactical Treasury Bond (DTTB)
• Strategies have outperformed the S&P 500 with less risk.
• Preservation of capital in bear markets and maximization of
growth in bull markets.
• History of outperformance with real money and audited records:
– Since 2005: DTGH +112%, DTS+101% vs. S&P 500 +39%
– Since 2007: DTTB +168%, DTGH + 96%, DTS +48% vs. S&P 500 +15%
Why Invest with Delta Now
Delta Investment Management, LLC
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•
Equity markets are becoming more volatile.
•
You need a disciplined plan to protect your wealth from
major market corrections.
•
You need a disciplined plan to capture positive,
compounded returns.
•
Asset allocation alone is not sufficient to protect your
wealth. Disciplined, market-tested pro-active
management with a SAFETY-FIRST approach is
required.
Client Services
Standard Wall Street Reporting
•
Monthly account statements sent directly to client from third party custodian: Charles
Schwab, TD Ameritrade, or FOLIOfn
•
Trade and transaction confirmations
•
1099 tax reporting
•
Online client access
•
Web-based reporting on positions, balances and ransactions
How client assets are protected
•
Client securities are segregated from broker-dealer securities, in compliance with the SEC’s customer protection rule.
This is a legal requirement for all broker-dealers.
•
The first $500,000 of coverage (including $100,000 on cash holdings) is provided by the Securities Investor
Protection Corporation (SIPC).
•
Custodians purchase an additional insurance policy through London Underwriters (with Lloyd’s of London
Syndicates as the Lead Underwriter).
•
SIPC insures the assets held in brokerage accounts if the brokerage firm fails. SIPC does not protect investors against
investment decline or loss.
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Delta Investment Management, LLC
Weekly Market Sentiment Indicator
Quarterly reports from Delta
Fee Structure
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Delta Investment Management, LLC
INVESTMENT FOCUS
CORE EQUITY
INVESTMENT SUITABILITY
$100,000 (minimum)
MANAGEMENT FEE
CAPITAL
2.00%
$100,000 - $1,000,000
1.75%
$1,000,000 - $2,000,000
Performance Disclosures
Delta Investment Management offers several investment strategies to clients. Our primary tactical strategies are Delta Tactical Sanctuary, Delta Tactical Good Harbor and Delta Tactical Treasury Bond. Delta Investment Management, LLC has engaged the services of sub advisors: Sanctuary LLC, Good Harbor Financial, LLC, and System Research LLC for the purpose of determining the purchase and sale of securities for the Delta Tactical Sanctuary strategy, the Delta Tactical Good Harbor strategy, and Delta Tactical Treasury Bond strategy, respectively. The performance information is provided by Sanctuary LLC, Good Harbor, LLC and System Research LLC. Separately managed accounts opened with Delta Investment Management as part of the Delta Tactical Sanctuary strategy are managed by Sanctuary Wealth Advisors. Separately managed accounts opened with Delta Investment Management as part of the Delta Tactical Good Harbor strategy are managed by Good Harbor Financial. Separately managed accounts opened with Delta Investment Management as part of the Delta Tactical Treasury Bond strategy are managed in accordance with signals provided by System Research.
The performance information provided is net performance of representative accounts in the strategies and is measured against the S&P 500 Total Return Index. Composite returns are presented net of foreign withholding tax on dividends, interest, and capital gains where applicable.
Sanctuary Wealth Advisors, Good Harbor Financial and System Research are registered investment advisers.
The U.S. Dollar is the currency used to express performance. Returns are presented net of management fees and include the reinvestment of all income. Performance was calculated using actual management fees. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding the policies for calculating and reporting returns is available upon request.
The investment management fee schedule is 2% on the first $100,000 to $1,000,000, 1.75% on the next $1,000,000, and 1.50% on accounts above $2,000,000.
Limitations: The actual performance experienced by any individual client may differ from the performance shown as a result of the client’s being subject to an alternative fee structure and various other factors. The performance results reflect investments for a limited period of time and therefore do not reflect performance in all economic or market cycles. While the performance was generated with investment philosophies and methodologies, future investments will be made under different economic and market conditions and may be in different positions and instruments.
It should not be assumed that clients will in the future experience returns, if any, comparable to those presented in this presentation. Individual account results may vary. Past performance is not indicative of future results. Investment losses are possible.
Index Data: The index data presented do not reflect the performance of instruments or strategies that the Delta tactical strategies pursue. The S&P 500 Total Return Index is a broad-based unmanaged index of 500 U.S. stocks that is intended to reflect the risk/return characteristics of the U.S. large-capitalization equity market. This data is included only to provide some indication of the performance of U.S. securities markets generally during the periods for which the performance data are presented. The index is unmanaged and diversified (across companies, industries and sectors) securities indices. Performance data for the index (which Delta Investment Management obtained from publicly-available sources) reflects reinvestment of income but does not reflect the deduction of any transaction or management fees or costs. Returns for the Delta tactical strategies are net of investment management fees.
End Notes
The contents of this presentation should not be construed as legal or tax advice and should not be acted upon without consulting appropriate legal and/or tax counsel. This information is intended for your use to arrive at a reasonable, fully-explained investment decision and does not represent the only possible investment or strategy, nor a representation of every material fact associated with an investment. This document is for information purposes only and is neither to be copied nor disseminated to anyone other than the original recipient. Delta Investment Management, Sanctuary Wealth Advisors, Good Harbor Financial and System Research, its managers, officers and employees shall have no liability for any mistakes or inaccuracies in this material.
This communication is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Past performance is not indicative of future success. You should rely on your monthly statements for an accurate record of your account activity. The information contained in this presentation is intended only for the confidential use of the designated recipient named above. This message may contain contractual and proprietary information and as such is privileged and confidential. If the reader of this message is not intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that you have received this document in error, and that any review,
dissemination, distribution or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone.
