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Products

Dual Direction

Reduce Your Portfolio Risk at a Comfortable Level

While there’s never full control over the outcome of your investments, our dual direction strategy is a product that should make you feel comfortable and confident in your decisions. Dual direction targets moderate growth regardless of the stock market direction. As the name suggests it intends to deliver returns if the market moves higher or lower.

Put simply, this plan is for those looking to protect their portfolio from the adverse effects of an S&P 500 market decline.

Targeted Payouts with Market Decline Protection

Because this portfolio strategy endeavors to take advantage of products with maturity dates, the investor receives a targeted payout in 18 to 36 months. Therefore, we believe this strategy is ideal for savvy investors with the patience and comfort level to cope with market fluctuations.

Performance


Dual Direction

as of 10/31/2019MTDYTD1 Year3 Year5 YearITD
Dual Direction Net*
0.04%6.20%3.79%--2.15%
Benchmark0.30%8.86%11.53%---


ZEGA Financial claims compliance with the Global Investment Performance Standards (GIPS). To receive a full list of composite descriptions of ZEGA Financial and/or a presentation that complies with the GIPS standards, contact Jay Pestrichelli at 1-800-380-9342, ext 101 or jay.pestrichelli@zegafinancial.com.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s portfolio.

ZEGA’S Dual Direction Equity Growth COMPOSITE includes all institutional and retail portfolios that invest in long market straddles and strangles funded by a hedged income component. The holdings include long S&P 500 calls and puts at or near the money at the time entry. The cost of these long options is supplemented by an income strategy that carries its own hedged protection. The strategy is designed to provide positive returns in both bearish and bullish markets as it captures a portion of the percentage move over its designed hold period.  This composite includes all portfolios that were at least 70% dedicated to this strategy. The benchmark is the Barclays US Aggregate Bond Index.

These results should not be viewed as indicative of the advisor’s skill. The prior performance figures indicated herein represent portfolio performance for only a short time period, and may not be indicative of the returns or volatility each portfolio will generate over a long time period. The performance presented should also be viewed in the context of the broad market and general economic conditions prevailing during the periods covered by the performance information. The actual results for the comparable periods would also have varied from the presented results based upon the timing of contributions and withdrawals from individual client accounts. The performance figures contained herein should be viewed in the context of the various risk/return profiles and asset allocation methodologies utilized by the asset allocation strategists in developing their model portfolios, and should be accompanied or preceded by the model.

Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment’s volatility. Employee accounts do not pay advisory fees, so the returns illustrated for the strategy are higher than they would be if employee accounts paid similar fees.