MYRIAD DYNAMIC ASSET ALLOCATION ETF
A DYNAMIC MACRO APPROACH TO 60/40
MDAA Investment Approach
- Concentrated global macro portfolio with four key decisions driving fund exposure
- Focus both on economic outlook and company analysis / industry themes
- Combine research-intensive long-term analysis with shorter-term tactical views
- Focused investment approach – not 1000+ positions like many global 60-40 funds
MDAA Investment Approach by Asset Class
Global Equities
- Generate alpha by varying equity exposure from 0 to 100% based on top-down analysis
- Directional view on equities is driven by economic outlook and earnings outlook
- Top-down earnings forecast for main indices & 12-month target price drives exposure
- Focus on sectors and themes that we believe will outperform– we invest in single stocks as part of themes rather than bottom-up stock selection
- Significant focus on country allocation: US vs non-US, Emerging Market vs Developed Market and Asia vs Europe vs Americas
- Long Side is both single stocks and low fee ETFs for index exposure – typically 50-75 positions
Global Fixed Income
- MDAA primarily invests in sovereign fixed income via the fixed income futures market
- Short term rates: detailed analysis of central bank policy – positioned often in SOFR* futures
- Directional interest rate exposure across the curve 2 to 30 year
- Relative interest rate views across global markets - central bank divergence
- MDAA invests in fixed income via securities/ETF when bearish equities and see cap gains in FI
Global FX
- First focus is broad dollar outlook – US economic and rate outlook relative to rest of world
- Foreign Exchange exposure via FX futures, forwards, foreign equities
- We view gold as a foreign currency and invest in gold via ETFs as part of FX strategy
Credit & Options
- Credit exposure if we believe a recession is coming (short) or if credit offers excess returns over equities on the long side - both rare so not often exposed to credit
- Equity index options used for hedging the long portfolio or taking directional exposure
*The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.
Leadership Team
Carl Huttenlocher
CEO and Chief Investment Officer
Carl Huttenlocher is the CEO and Chief Investment Officer for Myriad Asset Management which manages the Myriad Dynamic Asset Allocation ETF (NYSE ticker: MDAA). Prior to launching MDAA Carl managed the Myriad Opportunities Fund which was an Asia focused multi strategy hedge fund. Prior to founding Myriad in 2011, Carl managed the Highbridge Asia Opportunities Fund from 2005 to 2011 which was also an Asia focused multi strategy hedge fund. Earlier in his hedge fund career Carl worked at Long Term Capital Management and Citadel Investment Group. Carl is on the global board of directors for Room to Read, a charity focused on literacy and gender equality in education in the developing world. Carl has a BS in Mathematics from MIT.
Jonathan Stern
Head of Research
Jonathan Stern is Head of Research at Myriad Asset Management focused on global equities and economic modeling. Prior to Myriad, Jon’s primary role was at York Capital, where he spent over thirteen years in public equities, with coverage across materials, industrials, energy and power. He also worked at Millennium in a similar role after leaving York. Prior to York, Jon worked at Bear Stearns, which he first joined as a Financial Analyst on the Mergers & Acquisitions team, then as an Associate within Bear Stearns Merchant Banking focusing on private equity investments. Jon graduated from Yale University, cum laude, with a BA in Economics and holds an MBA degree as a Palmer Scholar from the Wharton School at the University of Pennsylvania.
Eric Chang
Chief Operating Officer
Eric Chang is the Chief Operating Officer of Myriad Asset Management. Prior to joining Myriad in 2022, Eric launched and served as COO of StillBrook Capital, a boutique greater China equity fund. Prior, Eric was with Highbridge Capital a JP Morgan subsidiary for over 12 years serving as the Senior Vice President responsible for building out and overseeing the Asia operations and other non-investment functions. Before Highbridge, Eric held various roles at AQR Capital and Amaranth Group. Eric earned a degree in Business Administration with honors from the University at Albany, SUNY.
IMPORTANT INFORMATION
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the Fund. You may obtain a prospectus and, if available, a summary prospectus by downloading the prospectus or calling Myriad Asset Management at +1 (561) 823-0896. Please read the prospectus or summary prospectus carefully before investing.
All investments are subject to risks, including the possible loss of principal. Additional information regarding the risks of an investment is available in the prospectus.
There are risks involved with investing in ETFs, including the loss of the principal amount that you invest.
ETF shares are bought and sold throughout the trading day at their market price, not their NAV, on the exchange on which they are listed. ETF shares may trade in the market at a premium or discount to their NAV. A financial intermediary (such as a broker) may charge a commission to execute a transaction in ETF shares, and an investor also may incur the cost of the spread between the price at which a dealer will buy ETF shares and the somewhat higher price at which a dealer will sell ETF shares.
ETF shares are not individually redeemable from an ETF. Only market makers or Authorized Participants may trade directly with an ETF, typically in large blocks of shares, as disclosed in each Fund’s prospectus.
The Fund is recently organized with no operating history. Active management by the Adviser in selecting and maintaining a portfolio of securities that will achieve the Fund’s investment objective could cause the Fund to underperform compared to other funds having similar investment objectives. Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Investing in derivatives is a specialized activity that involves special risks that subject the fund to significant loss potential, including when used as leverage, and may result in greater fluctuation in fund value. International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different financial and accounting standards. The fund may have portfolio turnover, which may cause an adverse cost impact. There are risks associated with fixed-income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer term securities. Credit risk is the risk that the value of debt instruments may decline if the borrower or the issuer thereof defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. A rise in interest rates may result in a price decline of fixed-income instruments held by the fund, negatively impacting its performance and NAV. Falling rates may result in the fund investing in lower yielding debt instruments, lowering the fund’s income and yield. These risks may be heightened for longer maturity and duration securities. The fund’s use of leverage allows for investment exposure in excess of net assets, thereby magnifying volatility of returns and risk of loss.
Performance data quoted represents past performance; past performance does not guarantee future results. Investment return and value of the Fund shares will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted.
Myriad Asset Management Advisors LLC is the Fund’s investment adviser. The Fund is distributed by PINE Distributors, LLC which is not affiliated with Myriad Asset Management Advisors LLC. Learn more about PINE Distributors LLC at FINRA's BrokerCheck.
MRIAD-4838547-09/25