Disclosures

Warren Financial Disclosures

The information in this presentation and any accompanying attachments are confidential and privileged. They are intended for the sole use of those to whom it is directly given by Warren Financial. You are advised that any disclosure, copying, distribution, or the taking of any action in reliance upon this communication is strictly prohibited.
Nothing in this publication is intended to constitute legal, tax, or investment advice. There is no guarantee that any claims made will come to pass. The information contained herein has been obtained from sources believed to be reliable, but Warren Financial does not warrant the accuracy of the information. Consult a financial, tax, or legal professional for specific information related to your own situation. Any tax advice contained in this presentation (including any attachments) is not intended for and cannot be used, for the purpose of (i) avoiding penalties imposed by the Internal Revenue Code or (ii) promoting, marketing, or recommending any transaction or matter addressed herein. Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of sale of fund shares. Current and future performance may be lower or higher than the performance data quoted. Performance data reflect the reinvestment of all dividends and capital gain distributions. The investment return and principal value of shares will vary with changes in market conditions.
The information in Warren Financial marketing material is not an offer or solicitation to buy or sell securities, securities derivatives, futures products, or any type of trading or investment advice, recommendation or strategy. Investing involves the risk that you may sustain a loss equal or greater than your entire investment, therefore, an investor should not invest or put money at risk that the investor can not afford to lose. Option trading may not be appropriate for all investors.
 

 

CALCULATION DISCLOSURES
The Net Asset Value or “NAV” is the value of one share of a fund as calculated by the administrator (for WSEF, currently Alter Domus). The price used to calculate returns is determined by using the dividend adjusted close information provided by public sources such as yahoo finance, and TD Ameritrade. Returns do not reflect brokerage commissions that may be payable on secondary market transactions, and do not include taxes.. If brokerage commissions and/or taxes were included, returns would be lower. Investment returns reflect all the costs of running a fund including audit, legal, management, marketing, and accounting costs.
WSEF: Monthly returns based on changes in the NAV as reported by administrator Alter Domus and confirmed by annual audit via Eisner Amper. 
Returns calculation: Compound daily changes roll up to monthly change. Annual calc: For a full year: (EndNAV/BeginNav)^(1/(#days/365) -1. For part year (not annualized): Compound daily change. Multi-year calculation: (EndNAV/BeginNav)^(1/(#days/365) -1.
All calculations utilize dividends reinvested and after fees/costs. Any benchmarks are calculated the same way.
Some benchmarks consist of low cost SPY, AGG or other ETFs. SPY and AGG and all other ETFs are adjusted to include dividends. All ETFs have some fees and their returns are calculated after the fee. A benchmark can never be completely equal in composition or risk to any investment return, however, we observe some strategies and benchmarks in the industry (seen on statements from opposing advisory firms). One particular strategy used in the industry and sometimes taught in school (possibly CFA school) is to shotgun assets across the globe trying to obtain a lower risk via diversification. We put together a low cost basket of ETFs to approximate this strategy and refer to the basket as the “Academic Portfolio”, or the “Globally Diversified Portfolio”. The basket returns are calculated:
  • We calculated the Academic Portfolio consisting of low cost ETFs all adjusted to include dividends 20%SPY, 25%AGG, 10%GSG, 25%VEA, 10%BIK(2008-2012), 10%IEMG(2013-current), 5%IWM, and 5%EMB after costs. The Academic portfolio is not equivalent or comparable to the SP500 or the WF portfolios because it is not comprised of the same components, specifically, the Academic portfolio includes bonds, small caps, emerging markets, commodities, etc which are not part of the SP500 nor part of the WF portfolio. 
  • All public ETF returns calculated using adjusted closes incl div after fee as reported by TD Ameritrade and/or Yahoo Finance. Taxes are not considered in the calculations.
  • All WF Portfolios were selected that have substantially similar investment policies, objectives, and strategies to each other (roughly our risk category “C”). WF portfolios represent equity not bonds. The SP500 (often represented by SPY w dividends) is equity, not bonds.
  • Warren Financial results based on after-fee calculations representing the real return to the client after costs
 
 
RISK FACTORS
It is not possible to list and describe all the risk factors that an investor incurs when investing. For a more complete description of risks relevant to the Warren Safer-Equity Fund, refer to the Warren Safer-Equity Fund investment memorandum, section on “Certain Risk Factors”. These factors include but are not limited to the following kinds of risks. The following risks apply to all investments, not just WSEF investments: Economic and Market Risks, Recession, General Investment Risk Factors, Suspensions of trading, lack of liquidity, risk of price movements, Competition, Inadvertent concentration, leverage, hedging and arbitrage, short selling, derivatives, options, futures, volatility of financial markets, lack of control over portfolio companies, competitive market, non-United States investment risks, Management risks, Dependence on the General Partner (when applicable), Discretion of the General Partner (when applicable) and Investment Manager, other activities of the General Partner (when applicable), Conflicts of Interest, fund limited partners do not participate in management, Regulatory review and Audit, Fund Structure Risk, Lack of Operating history, Withdrawal and transferability of interests, no participation by investors, Institutional risk, Portfolio turnover, Valuation risk, business and regulatory risks, Control positions, material non-public information, changes in investment strategy, General Partner’s (when applicable) return, Lack of registration, Securities laws, Investment Company Act, Contingency reserves, Statutory liability of Limited Partner, Soft dollar arrangements, possible adverse tax consequences, and no separate legal counsel.
 
 
FORWARD LOOKING STATEMENTS
Certain statements contained in the Warren Safer Equity Fund (Big Dividend Hedge Strategy) Memorandum (PPM), including without limitation, statements containing the words “believes,” “anticipates,” “intends,” “expects,” and words of similar import constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Certain of these factors are discussed in more detail elsewhere in the fund PPM, including without limitation under “Description of the Fund,” “Certain Risk Factors” and “Investment Objective and Strategies.” Given these
uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The General Partner, the Investment Manager and the Fund disclaim any obligation to update any such factors or to announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
Regarding the Warren Safer-Equity Fund, always refer to the full and complete Private Placement Document for full risk factors and disclosures.