PRESENTATION
*FOR INSTITUTIONAL USE ONLY
1 I Why ERShares?
What is an Entrepreneurial Company?
Entrepreneurial companies are led by a main founder. From decades together founder-run Entrepreneurial companies have shaped the economy by investing in its people and in innovation leading to exceptional growth.
2 I The ERShares Difference
• ERShares scours the planet for the most entrepreneurial, strong growth companies and put it to market in one easy-to-invest fund.
• ERShares Entrepreneur Factor delivers strong performance across a variety of investment strategies without disrupting investors’ underlying risk profile metrics.
• We were among the first to introduce a thematic approach to investing, having started 15 years ago following research conducted at Harvard University.
• Our investment process is powered by latest artificial intelligence technology. We leverage the AI technology for asset screening, portfolio building and for our ongoing operations.
3 I Investment Process
ERShares Thematic Investment Process. Powered by AI We incorporate Artificial Intelligence (AI) Technologies into our daily operations. AI allows us to integrate superior selection criteria and monitor performance on a real-time basis.
4 I ERShares Advantages
Entrepreneur Factor: Proprietary Methodology
ERShares incorporates a bottom-up investment orientation, powered by artificial intelligence (AI), that stands above other investment factors such as: momentum, sector, growth, value, leverage, market cap (size) and geographic orientation. Moreover, with the aid of AI and Thematic Research, ERShares incorporates a macro-economic, top- down approach that integrates changing investment flows, innovation entry points, sector growth and other characteristics into a dynamic, global perspective model.
Source: Bloomberg L.P. Bloomberg database.
5 I ERShares Advantages
Disruptive Innovation
Entrepreneurs typically provide the difference between success and failure and wealth creation versus wealth destruction. Disruptive Innovation moves at a rapid pace and only the most capable leaders survive. At ERShares, we back the companies with the best entrepreneurial minds that invest in the right technology for a sustainable and better future.
Disrupted the life science industry
Disrupted the medical genetics industry
On its way to disrupt the Supercar industry
6 I ERShares Advantages
Global Investing – Intermarket Reversion
Over the past 50 years, US Markets have exceeded Non-US markets, for periods of approximately 4-5 years before reverting and having Non-US markets dominate for a comparable period. We are now completing a period of 12-year dominance by US Markets, which is about 2-3X longer than typical and this is long overdue for a correction.
Source: Internal Research
7 I ERShares Advantages
Entrepreneurial Companies and ESG
JOB GROWTH YEARLY
ER 30 Jobs
S&P without ER30
Our investment philosophy is steeped in the belief that Entrepreneurial leaders establish organizations with Environment, Social and Governance (ESG) benefits. They build high potential growth organizations with relatively modest impact on the environment while creating lots of jobs and strong organizational governance.
2 0 1 9 2 0 1 8 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 4 2 0 1 3 2 0 1 2
8 I ERShares Allocations
ERShares Strategies
9 I ERShares Performance
ERShares model performs well relative to the Market over an extended period of time
Entrepreneurs pivot in challenging situations as we saw in 2020
Source: eVestment
10 I ERShares Performance
ER30 Index has a long record of exceptional performance
Source: eVestment Period: Nov 2010- Oct 2020
Source: eVestment
11 I ERShares Products
Key reasons why investors should consider ERShares Funds
12 I ERShares Team
A Small Team for Better Collaboration
We firmly believe that smaller teams are more efficient and productive than larger teams. Each integrative member of the ERShares team is highly efficient, and well-connected.
7 COUNTRIES 8 BRIGHT MINDS
50% WOMEN
15 YEARS OF LEGACY
13 I Disclosures
Index performance does not represent actual fund or portfolio performance and such performance does not reflect the actual investment experience of any investor. An investor cannot invest directly in an index. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in a portfolio invested in accordance with an index. The ER30 Index performance is based on pre-inception index performance. The index was created based on objective, pre-defined rules. The pre-inception index begins on 06/30/2005 and goes until 11/07/2017. Beginning on 11/07/2017 the Index began being tracked by the ERShares Entrepreneur 30 ETF based on the Index’s live performance.
The pre-inception Index performance period is based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance and cannot account for all financial risk that may be affected the actual performance of the ER30 Index.
The Entrepreneur factor is a new influence that is contributing to the outperformance of publicly traded entrepreneurial companies. In a Bloomberg factor analysis, it is evident how a portfolio of entrepreneurial companies contains an entrepreneur factor which is more significant than all the other traditional factors such as growth or momentum. The index rules can be found under the Principal Investment Strategies section of the ERShares Entrepreneur 30 ETF Prospectus. The prospectus can be obtained by calling 1-833-368-7383 or visiting our website www.ershares.com. The companies are reviewed on a quarterly basis in order to ensure their adherence to the ER 30 Index rules. The ERShares Entrepreneur 30 ETF investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-833-3687-383 or by visiting our website www.ershares.com.Read it carefully before investing. Distributed by Foreside Fund Services, LLC The ERShares Entrepreneur 30 ETF risks can include and are not limited to: Absence of Prior Active Market Risk, Index Risk, Index Tracking Risk, Indexing and Passive Investment Risk, New ETF Provider, Common Stock Risk, Market Risk, Concentration Risk, American Depositary Receipts, Early Closing Risk, Exchange Trade Fund Risk. Alpha compares the risk-adjusted performance of a portfolio to a benchmark index. A positive alpha means the portfolio has outperformed the index on a risk- adjusted basis. Beta is a measure of the volatility of a portfolio in comparison to a benchmark index. Less than one means the portfolio is less volatile than the index, while greater than one indicates more volatility than the index. Standard deviation measures historical volatility. Higher Standard Deviation implies greater volatility. Sharpe Ratio measures risk-adjusted performance by dividing the portfolio’s excess returns (returns above a "risk-free" rate such as a Treasury bill) by the standard deviation of those returns. The higher the ratio, the better the portfolio’s return per unit of risk. The Up Capture ratio is the statistical measure of an investment manager’s performance in up-markets. The Down Capture ratio is the statistical measure of an investment manager’s performance in down-markets. Information Ratio is a ratio of portfolio returns above the returns of a benchmark compared to the volatility of those returns. The P/E (or Price/Earnings) ratio is the ratio of a company’s share price to its earnings per share. Earnings before interest, tax, depreciation and amortization (EBITDA) is a measure of a company's operating performance
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