EFTA Document EFTA01363046

ARVEST laArairtgliti 1. Ltg Collateral Yield Enhancement Strategy (CYES) Investor Update — As of 12/31/2017 FIRM OVERVIEW . $12 billion AUM investment manager founded in April 2008. Vetted and approved by numerous investment consulting firms, ide:Wident klA O'atforms, and large broker-dealers. Experienced team of 15 investment professionals with deep trading, portfolio management, marketing, operational and technology backgrounds. sr No Initial capital required  No change to existing weightings  No liquidation of holdings  Maintain flexibility to change positions • Demonstrated success through the global financial crisis and other significant market events. • Robust infrastructure that efficiently integrates proprietary systems and processes with third-party custodians. • Full service solutions delivered with an emphasis on education, transparency and access. CONSISTENT CONSERVATIVE COMPLEMENT TAX RETURNS RISK PORTFOLIO ADVANTAGED Delver steady cash Construct and manage low correlation of 60% long term/40% Omen over time, market to limit losses and returns enhances short term capital gams cycles and events drawdovens Portfoto pPC Section 1256) SIMPLE LIQUID & OPEN CENTRALLY SETUP TRANSPARENT COMMUNICATION CLEARED Separately managed Exchange fisted securities, Emphasis on information All positions centrally account opened at held and viewable at sharing and education cleared and guaranteed existwg custodian existing custodian with dial,' and advisors by the OCC CYES IS an overlay that seeks to exploit the volatility risk premium and time decay properties of option premium by actively managing a portfolio of short-dated index option spreads on the S&P503 index (SPX). CYES sells options to generate premium while purchasing further out of the money options to contain risk. In a disciplined manner the strategy will seek to mitigate exposure to market directional or gap risk by defensively adjusting positions in response to a large move or reducing exposure ahead of specific market events. Consistent Returns Conservative Risk Monthly Return Distribution Utr• (April 2008-current) • Returned +3.34%during financial crisis (Sept 08-Feb 09) Only one drawdown exceeding 3% in 9 years (recovered in 2 months) sot offe ••••••• ^85% of months between . Positive returns In 7 of 9 years Only 5 months exceeding a 1% loss; only 1 month exceeding a 2% MSS fee -0.5% and +1.0% 104 . - 70% of months positive Low correlation to S&P500 of 0.09 Iw Best month: +3.51% Worst month: -2.83% Best year: +3.62% Worst year: -0.68% 7,9 # ,st Best trailing 12-month: +7.71% Worst trailing 12-month: -1.22% s . or. 7.4, or. / or e _we sise 7077 tele 7015 h',11 013 iAl2 1011 1•0 Nn .1.4 :"tv N.," oi.t. a.d st.,. t,,,. OM% .0.37% 0.29% 0.30% 0.29% 009% 014% 021% 0.06% -033% -031% 0.01% 0.71% 0.92% 9.39% 0.47% -0.17% 0.14% 026% 4711% .030% 041% 0.25% 0.24% .004% -0.13% 0.64% 0.97% 0.12% 0.24% 027% 030% 033% am ciasit 4.12% 0.67% -0 35% 035% 036% 1.54% 156% -0.23% -0.25% 043% 0.11% 0.12% 0.06% 9.07% 002% 0.27% .0.59% 0.05% -0.66% .0.61% 1.14% 41.13% 0.16% -013% 0.15% I 491% 030% .002% -0.13% 0.30% 0.00% 012% 0.27% 0.11% 035% 0.10% 0064 -0.61% 2.11% 1.17% 013% .0.01% 000% 027% j OAP% 034% 029% 033% 0.55% 030% 024% ON% 022% I 0.15% 0.14% -040% 42.6% -0 -146% 046% '."090% ... 036% - 034% 0.36% I 041% 0.59% 2.64% . 215% 2.22% . 3.62% 2.86% .0.29% 0.12% .0.67% -0.14% 4.67% 029% 4.36% tea% 030% 0.15% OSP% 042% -0.03% 006% 0.4 4/97% 306% j 6.00% • Comprose vs.^. ere cow Wed !rewire wows war.e Weans ergs acw•-ii one riveted -el al *Owl irowelone unhand Panda, Pa - ••••P • Compaloht Craintled Csfainbx•wintlw OA KORAN% Gan' awnimni•ele-nieStaVoratiOnl• Ira c • "Past performance 6 not an Indicator of future results. Please see cholalmen on The following pions' ,./.kalpv 3,:a tany,n,n AnanIt7 'yak 2420 Mu. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0052893 SONY GM_00199077 EFTA01363046