PM Insights: Structured Outcome (May 2022)

Mike Loukas, CEO of TrueMark Investments, was joined by Jordan Waldrep, CIO of TrueMark Investments and Dave Donnelly, Portfolio Manager to the TrueShares Structured Outcome ETF suite. The team discussed the current opportunity to deploy capital into the market and utilizing the TrueShares Structured Outcome product suite as a tool to add equity exposure to your portfolio.

TrueShares Structured Outcome provides a way to invest in equities with a risk management function, rather than investing in an insurance policy (like a deep buffer). The product suite seeks to provide a 10% buffer and uncapped exposure to the upside with a specified participation range. Investors should remain cautious with a larger buffer if there is a desire to participate in the upside that can eventually occur. Structured Outcome creates an opportunity to tiptoe back into equities if you think we may be nearing the bottom. It can provide caution for the downside and opportunity for the upside, and the current market may create an optimal entry point for investors.

Past performance is not indicative of future results.

There can be no guarantee that the Funds will be successful in implementing the buffer protect options strategy. The TrueShares Structured Outcome ETFS have characteristics unlike many other traditional investment products and may not be suitable for all investors. You should only consider an investment in the Fund if you fully understand the inherent risks, which can be found in the prospectus. For more information, please visit truesharesetfs.com/products.

TrueShares Structured Outcome ETFS are designed to seek to achieve the investment strategy for investments made on the Initial Investment Day and held until the last day of the Investment Period. Investors purchasing shares in the fund after its 12-month investment period has begun or selling share prior to the end of the investment period, may experience very different results than the fund’s stated investment objective. These periods begin at either the fund’s inception date or at each subsequent “Initial Investment Day”. Following the initial investment period after fund inception, each subsequent investment period will begin each year on the first day of the month the fund was incepted (subsequent “Initial Investment Days”). Fund management will target a 10% downside buffer, with expectations that it will generally fall between 8-12%. The Fund is not designed to protect against declines of more than 8-12% in the level of the S&P 500 Price Index, and there can be no guarantee that the Fund will be successful in implementing the buffer protect options strategy to avoid the first 8-12% decline.

Investments involve risk, including potential loss of principal. The Fund is recently organized with no operating history for prospective investors to base their investment decision which may increase risks. The Fund employs a buffered strategy in an attempt to buffer against losses in the S&P 500 Price Index over the course of a 1-year period. There is no guarantee the Fund will be successful in this strategy, and investors may experience losses beyond targeted levels. In the event an investor purchases Shares after the date on which the options were entered into or sells Shares prior to the expiration of the options, the buffer that the Fund seeks to provide may not be available and there may be limited to no upside potential. The Fund does not provide principal protection and an investor may experience significant losses on its investment, including the loss of its entire investment.

The Fund invests in options, which involves leverage, meaning that a small investment in options could have a substantial impact on the performance of the Fund. The Fund may invest in FLEX Options issued and guaranteed for settlement by the OCC. The Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the FLEX Options contracts. Additionally, FLEX Options may be illiquid, and in such cases, the Fund may have difficulty closing out certain FLEX Options positions at desired times and prices. As the options the Fund invests in derive their performance from the S&P 500 Price Index, the Fund is subject to the equity market risk associated with the index. The ETF’s portfolio is more volatile than broad market averages.

Additional risks of investing include management, non-diversification, portfolio turnover and tax risks. Detailed information regarding the specific risks of the funds can be found in the prospectus. Individual investors should contact their financial advisor or broker dealer representative for more information on True-Shares ETFs.