Owl Portfolio

Green Valley's globally diversified complete stock portfolio.¹

Created and managed by Eric Linser, CFA, Chief Investment Officer, the portfolio draws upon Eric's 20 years of experience in making investment strategy and asset allocation decisions affecting individual investors.

Strategy & Objective

With the creation of the Owl Portfolio, we look to usher in a new era for individual investors by providing them with a truly global, opportunistic stock portfolio.

It's a broad, yet focused, portfolio of stocks, large and small, in the US and internationally, that garners exposure to successful companies in specific countries and regions to capitalize on their growth potential.

The Owl Portfolio gives individual investors access to a much-wider array of stocks than they could otherwise typically afford all in one portfolio. The Portfolio seeks to position itself as the optimal stock model to exploit global secular trends.

Green Valley's Owl Portfolio is for individuals who want to invest in stocks for long term growth potential -- growth potential from traditional and not-so-traditional asset classes.

An investment in the Owl Portfolio offers:

• Global diversity
• Broad opportunities
• Flexibility to go anywhere
• Expertise on asset allocation and security selection.
• Transparency to measure our investment management skill and success.

Dynamic Diversification

The Owl Portfolio invests in a broad range of stocks, including a diversity of industries, size of companies and countries. By investing in the Owl Portfolio you have the potential to gain exposure around the world. The underlying diversity in the Portfolio’s composition may reduce volatility and increase the return potential for investors. We diversify not only for risk abatement but in our belief that we can beat the market.²

Simplicity

We take the hassle and guess work out of investing. You won’t have to research and buy several different stock mutual funds and then constantly monitor and adjust them, nor will you need to pay a broker or financial consultant high commissions to access our investment solutions. The Owl Portfolio puts everything a typical stock investor may need into a single portfolio.

Green Valley’s Owl Portfolio offers a highly diversified core holding of stocks to help you achieve your long-term financial goals.

Our Offerings – Owl, 4 Seasons, & Eagle Portfolios

The Owl Portfolio is a subset of Green Valley’s globally diversified 4 Seasons Portfolio investment strategy. The Eagle Portfolio is a low turnover, tax efficient core holding of US stocks for capital appreciation.Whereas the Owl focuses on individual stocks and exchange traded funds (ETFs) as growth vehicles, Green Valley Wealth Advisors also offers a full complement of separately managed investment opportunities using multiple asset classes -- US and foreign stocks along with taxable and tax-free debt instruments and money market securities for a high total investment return. We vary investments by type and market depending on changing market and economic trends as well as the varying needs of our clients – wealth conservation, growth or both.

Investment Process

Our analysis begins with an objective, permeating view of the future global economy. We then attempt to reverse engineer the market landscape most likely to accomplish that result.

The strategy invests in domestic companies as well as depositary receipts (US exchange listed foreign companies) and exchange traded funds (ETFs) of any market capitalization -- large, mid, small and micro capitalization companies -- in the US, other developed markets, emerging markets, and frontier markets.

We have geographic exposure to most areas around the globe -- Asia Pacific, Australia, Canada, Developed Europe, Emerging Europe, Emerging Asia, Japan, Latin America, Middle East/Africa, and, of course, the United States.

We limit the number of holdings to a maximum of 50 stocks, which are equal weighted. Equal-weighting means initially holding an equal dollar amount of each of the component companies. This technique requires regular rebalancing because as the value of stocks shift, there will be changes in each security’s individual weighting. We look to rebalance the portfolio minimally at least once a year, but it could be more frequently, say 2-3 times a year.

Asset Allocation

• Top-Down View – a forward-looking, global analysis of relative value opportunities
• Bottom-Up Analysis -- extensive quantitative and qualitative analysis of individual holdings
• Ongoing Monitoring -- disciplined risk management review process
  

Sell Discipline

We may sell a portfolio holding for the following reasons:

• If the security reaches our price target
• If the company has a deterioration of fundamentals, such as failing to meet key operating benchmarks or earnings estimates
• If we believe other securities are more attractive.

Safeguards

• Independent custodian of your account
• Segregated account – held in your name only, not commingled with other monies such as a mutual fund
• No leverage, no margin loans, no derivatives, no short selling risk
• Liquidity of holdings and daily pricing
• Transparency of investments in your account

Ongoing Communication

Communication is the crux of every relationship. We believe that open lines of communication result in a more complete understanding of your unique situation.

Cost & Tax Efficiency

The impact of fees and taxes is often overlooked by investors choosing a mutual fund, but they can easily turn winning funds into losers. It may be easy to ignore that impact during periods of stable and strong market returns; in a low and challenging return environment, however, eliminating unnecessary costs and risks can make a difference. In such a scenario, constructing a tax-efficient, low-cost, and risk-managed portfolio like the Owl Portfolio becomes essential.

Tax efficiency is achieved through continual portfolio rebalancing. We select the most tax-favored share lots in selling appreciated stocks and (when appropriate) selling stocks trading below cost to realize losses.

What Makes Us Unique

Old play books aren’t working anymore; we’re seeing a need for far more nimble approaches. We understand that one must stay abreast of global market developments and demonstrate value and performance results to help investors protect and growth their wealth. Green Valley Wealth provides global insights not found in traditional sources.

We believe it is more critical than ever for increased rigor around portfolio construction and monitoring, and providing investment strategies to help clients seize tactical opportunities.

In the past you could take a 'set it and forget it' approach, but we're in a period now where we must be more adept, and adapt to the changing environment.

Applying such fleeting opportunities to individual client portfolios calls for more than market savvy, however. An understanding of the client's holdings with respect to their tax and estate implications, and their impact on the client's lifestyle aspirations and long-term legacy plans, is needed before effective tactical strikes can be made.

We're committed to combining solid investment management with proper wealth planning. In an environment of rapid change, the view that investments or estate and wealth-transfer plans or the liability side or the tax situation are separate issues can lead to costly mistakes.

We attempt to present to clients what it is we do in a straightforward way. We offer you honest analyses of your investment situation. Give us the opportunity to show you how we can do better for you.

Our in-house globally diversified Owl and 4 Seasons Portfolio solutions start at $250,000, which are custodied at Fidelity Investments. Call us today to get started (415-568-2150). Feel free to ask for me.

Eric Linser, CFA
Chief Investment Officer

1. Notes on risk: This Portfolio may not be suitable for all types of investors. An investment in the Portfolio (or any investment) is subject to risk, including the possible loss of principal amount invested. Other Portfolio risks include asset allocation risk, foreign securities and currency risk, emerging markets risk, small-cap, mid-cap and large-cap risk, trading risk, and turnover risk that can increase Portfolio expenses and may decrease Portfolio performance. The Portfolio is also subject to possible risks, which can result in higher volatility, associated with the underlying securities that comprise this multi-asset class approach. Brokerage costs will reduce returns (if costs are not wrapped in the overall fee structure). Past performance is no guarantee of future returns. Stocks remain risky, regardless of how long they are held, and there are long periods in which they can underperform safer investments. Investments in bonds are subject to interest rate, credit, and inflation risk. While U.S. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. There are additional risks when investing outside the United States, including the possibility that returns will be hurt by a decline in the value of foreign currencies or by unfavorable developments in a particular country or region.
2. Diversification does not ensure a profit or protection against loss, and may not be appropriate for all investors. The Portfolio is intended for long-term investors and is not meant to be a complete investment program. Investors should consult a tax/legal advisor before making any tax-related investment decisions. Again, prior performance doesn't guarantee future results.
   
3. Owl, Eagle and 4 Seasons Portfolios are monikers of Green Valley Wealth Advisors, LLC. On other advisory platforms Green Valley acts as a Subadvisor / 3^rd party RIA and thus Green Valley doesn’t act in a fiduciary capacity. Green Valley acts a fiduciary for accounts over $250,000 where there is an advisory agreement directly between the client and us, and where client assets are custodied with Fidelity Investments, allowing us to be much more proactive in working with clients and offering more robust asset class diversification.

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