Tommy DWA TL Webinar Oct
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Transcript of Tommy DWA TL Webinar Oct
1
Dorsey, Wright &Associates
DWATechnical Leaders Indexes Presentation
Call will Start at 12:30 pm EDT
The best way to hear this call isthrough your computer
To ask a Question,use the Chat or Q&A Function
A replay of this call along with a copyof the slides will be e-mailed to you
in a couple of days.
Tammy DeRosierExecutive Vice President
John LewisVice President,
Portfolio Manager
Tom DorseyPresident, Founder
Dorsey, Wright &Associates
DWATechnical Leaders Indexes Presentation
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Then …. 2008
Now …. 2013
6Copyright © 1995-2013Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Current D.A.L.I. Process
Determine Allocation toeach Asset Class throughRelative Strength Analysis
DomesticEquity Intl. Equity Commodity Fixed Income Currency Cash
1990s
2000s
2010 - 2013
76%
4%
84%
16%
51%
10%
2%
33%
5%
2%
4%
0%
4%
6%
0%
0%
3%
0%
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® ForFinancial Professional Use Only. Not For Use With The Public.
Domestic Equities: Back at the Top
Percent of Time Asset Class Was Ranked in the #1 Spot of D.A.L.I.
197919801981198219831984198519861987
Russell 2000 Index(RUT)
37.98%33.79%-1.51%20.67%26.29%-9.60%27.96%3.95%
-10.80%
S&P 500 Index(SPX)
12.31%25.77%-9.73%14.76%17.27%1.40%
26.33%14.62%2.03%
The performance numbers above are pure price returns, not inclusive of dividends,fees, or other expenses.Past performance not indicative of future results. Potential
for profits accompanied by possibly of loss.
Small Caps vs. Large CapsEarly 1980’s
Russell 2000 Index (RUT)Vs.
S&P 500 Index (SPX)
Russell 2000 (RUT) favored fromJanuary 1979 to December 1984
S&P 500 (SPX) favored fromDecember 1984 to July 1988
PowerShares DWA Small CapMomentum Portfolio (DWAS)
DWAS vs. SPX
Small Caps….Still Gaining Strength
201120122013
PowerShares DWASmall Cap
MomentumPortfolio (DWAS)
-1.03%12.77%39.37%
* Thru 9/30/13
S&P 500 Index(SPX)
0.00%13.41%17.91%
The performance numbers above are pure price returns, not inclusive ofdividends, fees, or other expenses.Past performance not indicative of future
results. Potential for profits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® ForFinancial Professional Use Only. Not For Use With The Public.
PowerShares DWA Small CapMomentum Portfolio (DWAS)
The performance numbers above are pure price returns, not inclusive of dividends, fees, or other expenses.Past performance not indicative of future results. Potentialfor profits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
InceptionDate
7/19/12
Return Data thru 9/30/13
PowerShares DWA Small Cap Technical Leaders Index (DWAS)iShares Russell 2000 Index (IWM)
YTD2013
39.37%26.28%
3 Yr Roll
84.00%57.75%
5 Yr Roll
100.31%56.59%
AUM a/o 10/11/13: $435 million
SWYKR
SPX
7/21/11to9/17/13
44.34%61.23%
26.86%
DWA Relative Strength
The performance numbers above are pure price returns, not inclusive of dividends, fees, or other expenses.Past performance not indicative of future results. Potentialfor profits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Universe of Over 1500Names
Relative Strength ArmWrestling Match
The Technical Leaders Index
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Ranked Strongest toWeakest
Top 10 Holdings (100 Total)
MomentumETFs
PDP DWAS
PIE PIZ
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
PowerShares – DWAFamily of Momentum ETFs
US Equity Exposure• PowerShares DWA
MomentumPortfolio (PDP)
• PowerShares DWASmall CapMomentumPortfolio (DWAS)
Int’l Equity Exposure• PowerShares DWA
Developed MarketsMomentum Portfolio(PIZ)
• PowerShares DWAEmerging MarketsMomentum Portfolio(PIE)
The Power of Relative Strength
InceptionDate
12/28/07
Return Data thru 9/30/13PowerShares DWA Emerging Markets Technical Leaders Index (PIE)Vanguard MSCI Emerging Markets ETF (VWO)
YTD2013-2.64%-9.68%
3 Yr Roll
3.37%-11.53%
5 Yr Roll
32.41%16.04%
InceptionDate
12/28/07
Return Data thru 9/30/13
PowerShares DWA Developed Markets Technical Leaders (PIZ)iShares MSCI EAFE Index (EFA)
YTD2013
24.38%12.24%
3 Yr Roll
24.69%16.21%
5 Yr Roll
53.63%13.36%
AUM a/o 10/11/13: $447 million
InceptionDate
7/19/12
Return Data thru 9/30/13
PowerShares DWA Small Cap Technical Leaders Index (DWAS)iShares Russell 2000 Index (IWM)
YTD2013
39.37%26.28%
3 Yr Roll
84.00%57.75%
5 Yr Roll
100.31%56.59%
AUM a/o 10/11/13: $435 million
AUM a/o 9/30/13: $349 million
The performance numbers above are pure price returns, not inclusive of dividends, fees, or other expenses.Past performance not indicative of future results. Potentialfor profits accompanied by possibly of loss. 14
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Return Data thru 9/30/13PowerShares DWA Technical Leaders (PDP)S&P 500 Index (SPX)iShares Russell 1000 Index (IWB)
YTD 201321.10%17.91%18.95%
1 Yr Roll22.72%16.72%18.46%
3 Yr Roll60.97%47.35%49.09%
5 Yr Roll74.10%44.17%48.13%
AUM a/o 10/11/13: $982 million
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
As of 10/4/13
As of 10/4/13
Q3 2013 Changes to the PDP
Apple (AAPL):Added Back to PDP in September 2013 Re-balance
AAPL Monthly Momentum
Apple Computer (AAPL)
Returns from 12/31/12 to9/30/13
Apple Computer (AAPL)
PowerShares DWA MomentumPortfolio (PDP)
-10.41%
21.10%
The performance numbers above are pure price returns, notinclusive of dividends, fees, or other expenses.Past performance not
indicative of future results. Potential for profits accompanied bypossibly of loss.
Copyright © 1995-2013 Dorsey, Wright &Associates, LLC.® For Financial Professional
Use Only. Not For Use With The Public.
17
Apple S-Curve:Technically “Back in the Game”
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
PDP Sector Breakdown
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Trend Charts
PowerShares DWA US MomentumPortfolio (PDP)
SPDR S&P 500 ETF Trust(SPY)
Spot the Differences Game
PDP vs. SPX Sector WeightingsSource: www.alletf.com
The performance numbers above are pure price returns, not inclusive of dividends, fees, or other expenses.Past performance not indicative of future results. Potentialfor profits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
PIE:Increasing China Exposure This Quarter
iShares FTSE Xinhua China Index(FXI)
vs.iShares Emerging Mkts ETF (EEM)
November 23, 2009
Copyright © 1995-2013 Dorsey, Wright &Associates, LLC.® For Financial Professional
Use Only. Not For Use With The Public.
France 2013 Q3 PIZ Weighting: 5.5%
iShares MSCI France (EWQ) v.iShares MSCI EAFE (EFA) RS Chart
France 2013 Q4 PIZ Weighting: 8.14%
PowerShares DWA DevelopedMarkets Momentum Portfolio (PIZ)
The performance numbers above are pure price returns, not inclusive of dividends, fees, orother expenses. Pastperformance not indicative of future results. Potential for profits
accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® ForFinancial Professional Use Only. Not For Use With The Public.
Sept. 30th 2008 - Sept. 30th 2013ETF
iShares MSCI EAFE Index (EFA)
PowerShares DWA Developed MarketsTechnical Leaders (PIZ)
Return
13.36%
53.63%
The performance numbers above are pure price returns, not inclusive of dividends, fees, or other expenses.Past performance not indicative of future results. Potentialfor profits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Strategy:Combine Beta With Tactical
Scalability & Tactical Within the PIZ
iShares MSCI EAFE Index(EFA) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
PowerShares DWADeveloped Markets Tech
Leaders (PIZ)0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Portfolio Return 13.36% 17.39% 21.41% 25.44% 29.47% 33.50% 37.52% 41.55% 45.58% 49.60% 53.63%
Anything above MoneyMarket will be purchased
in the portfolio
#1 Slot will receive 50% of theallocation, the remaining 50% will
be allocated equally to all the fundsranked Higher Than Money Market.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Strategy:Tactical Sleeve Exposure
Put PDP, PIE,PIZ, DWAS &Money Market Into a
Matrix
The performance numbers above are pure price returns, not inclusive of dividends, fees, or other expenses.Past performance not indicative of future results. PotentialSee the finalfor profits accompanied by possibly of loss. Prior to Model’s inception date, April 11th 2013, the returns shown are hypothetical back tested returns.
slide for important disclosures regarding hypothetical returns.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Global Technical Leaders Portfolio
50.00%
16.66%
16.66%
16.66%
DWAS
PDP
PIE
PIZ
Year2001
2002
2003
2004
2005
2006
2007
TechnicalLeaders
Portfolio3.33%
-3.50%
46.17%
12.93%
24.18%
37.21%
35.80%
S&P500-13.05%
-23.37%
26.38%
8.99%
3.00%
13.62%
3.53%
#ofPortfolioChanges
0
2
3
1
1
0
0
2008
2009
2010
2011
-19.84%37.38%
34.29%
-13.84%
-38.49%23.45%
12.78%
0.00%
8
4
104
4
22012 9.59%
thru 09/30/13 25.06%Cumulative
564.35%Return
13.41%
17.91%
27.34%
Seasonally Weak PeriodMay 1st – October 31st Portfolio
PDP 30%
70%
SPLV 70%
30%
Seasonally Strong PeriodNovember 1st – April 30th Portfolio
PDP 70%
30%
SPLV 30%
70%
Seasonality Switching withMomentum & Low Volatility
PowerShares DWA Technical Leaders (PDP) andPowerShares S&P Low Volatility (SPLV)
Seasonally Adjusted (PDPSPLVSEAS)
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
5 Year Rolling Returns(10/14/08 – 10/14/08)
SPX:PDPSPLV: (50/50)
PDPSPLVSEAS:
+ 71.36 %+ 88.73 %+ 101.87 %
27
SPX
PDP
SPLV
PDPSPLV
PDPSPLVSEAS
Seasonally StongNov '12 - Apr '13
13.13%
15.83%
14.48%
15.24%
15.43%
PowerShares DWA Technical Leaders (PDP) andPowerShares S&P Low Volatility (SPLV)
Seasonally Adjusted (PDPSPLVSEAS)
Seasonally WeakMay '13 -
Oct. 14th '13
7.05%
6.39%
-1.55%
2.38%
0.83%
YTD thru 10/14/13:
PDPSPLVSEAS: + 15.41 %PDPSPLV: + 17.72 %
SPX: + 19.19 %PDP: + 20.99 %SPLV: + 14.45 %
The performance numbers above are pure price returns, notinclusive of dividends, fees, or other expenses.Past
performance not indicative of future results. Potential forprofits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright &
Associates, LLC.® For Financial Professional UseOnly. Not For Use With The Public.
5 Year Rolling Returns(10/14/08 – 10/14/13)
28
SeasonallyStrong
Nov '12 - Apr '13
Seasonally WeakMay '13 -
Oct. 14th '13
VWO
PIE
EELV
PIEEELV
PIEEELVSEAS
-3.06%
-10.22%
-3.01%
-6.79%
-5.17%
5.45%
20.30%
9.20%
14.76%
16.97%
VWO:PIEEELV:
(50/50)
PIEEELVSEAS:
YTDVWO: - 4.74 %
+ 45.92 %+ 76.62 %+ 84.84 %
PIEEELVSEAS: 4.26 %
PIEEELVSEAS Trend Chart
The performance numbers above are pure price returns, not inclusive ofdividends, fees, or other expenses.Past performance not indicative offuture results. Potential for profits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® ForFinancial Professional Use Only. Not For Use With The Public.
Taking it International:Momentum & Low Volatility
PowerShares DWA Emerging Mkts Technical Leaders (PIE) &PowerShares S&P Emerging Markets Low Volatility (EELV)
Symbol on DWA: PIEEELVSEAS
Monthly Momentum
29
SeasonallyStrong Nov '12 -
Apr '13
Seasonally WeakMay '13 -
Oct. 14th '13
EFA
PIZ
IDLV
PIZIDLV
PIZIDLVSEAS
15.61%
12.95%
14.20%
13.60%
13.32%
4.39%
12.47%
-3.08%
4.55%
1.58%
5 Year Rolling Returns(10/14/08 – 10/14/13
)
EFA:PIZIDLV:
(50/50)
PIZIDLVSEAS:
YTDEFA: 13.72%
+ 34.48 %+ 60.93 %+ 63.45 %
PIZIDLVSEAS: 12.04%
PowerShares DWA Developed Mkts Technical Leaders (PIZ) &PowerShares S&P Developed Markets Low Volatility (IDLV)
Symbol on DWA: PIZIDLVSEAS
World Positive Trend Chart (PTWORLD)
The performance numbers above are pure price returns, not inclusive of dividends,fees, or other expenses.Past performance not indicative of future results. Potential
for profits accompanied by possibly of loss.
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial
Professional Use Only. Not For Use With The Public.
3030
Portfolio(PDP)3/1/07
TechnicalLeaders
ETFs
EmergingMarkets
MomentumPortfolio(PIE)
12/28/07
DevelopedMarkets
MomentumPortfolio(PIZ)
12/28/07
Small CapMomentum
Portfolio(DWAS)7/19/12
Question & Answer
PowerSharesDWA
Momentum
Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
800.983.0903
Dorsey, Wright & Associates:
www.dorseywright.com804 .320.8511
Invesco PowerShares:
www.invescopowershares.com
The hypothetical returns of strategies discussed use the returns of other indices. The hypothetical returns have been developed and tested by Dorsey, Wright & Associates ("DWA"), but havenot been verified by any third party and are unaudited. The performance of the strategy was achieved by means of retroactive application of a model designed with hindsight. For thehypothetical strategy, returns do not present actual trading or reflect the impact that material economic and market factors might have had on the advisor's decision-making under actualcircumstances. The volatility of the strategy may be different than the volatility of the S&P 500 index. DWA does not endorse the selections or percentages for the model testing which is atthe sole discretion of the advisor.
Actual performance of an account following this strategy may differ from the performance of the hypothetical portfolio for the following reasons: the Account may not be fully invested at alltimes; not all stocks / ETFs / mutual funds in the Account may be weighted equally at all times due to appreciation or depreciation in value; or in managing the Accounts, and the advisormay make modifications to the Strategy that is outlined in the testing criteria.
The returns of the strategies do not include dividends for stocks or ETFs but do account for distributions in mutual funds. Returns of the strategies do not include any fees or transaction costs.Past performance, hypothetical or actual, does not guarantee future results. In all securities trading there is a potential for loss as well as profit. It should not be assumed that recommendationsmade in the future will be profitable or will equal the performance as shown. Investors should have long-term financial objectives.
The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on anyrecommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basisfor their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to bereliable (“information providers”). However, such information has not been verified by Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA and the informationproviders make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. DWA and the informationprovider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of theuse of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statementsnonfactual in nature constitute only current opinions, which are subject to change without notice. Neither the information nor any opinion expressed shall constitute an offer to sell or asolicitation or an offer to buy any securities, commodities or exchange traded products. This document does not purport to be complete description of the securities or commodities, markets ordevelopments to which reference is made.
Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. You should consider this strategy’s investment objectives, risks, charges andexpenses before investing. The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs.
Each investor should carefully consider the investment objectives, risks and expenses of any Exchange-Traded Fund ("ETF") prior to investing. Before investing in an ETF investors should obtainand carefully read the relevant prospectus and documents the issuer has filed with the SEC. ETF's may result in the layering of fees as ETF's impose their own advisory and other fees. To obtainmore complete information about the product the documents are publicly available for free via EDGAR on the SEC website (http://www.sec.gov).
The Dorsey Wright SmallCap Technical Leaders Index is calculated by Dow Jones, the marketing name and a licensed trademark of CME Group Index Services LLC (“CME Indexes”). “DowJones Indexes” is a service mark of Dow Jones Trademark Holdings LLC (“Dow Jones”).
Products based on the Dorsey Wright SmallCap Technical Leaders IndexSM, are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones and their respective affiliates make norepresentation regarding the advisability of investing in such product(s).
31Copyright © 1995-2013 Dorsey, Wright & Associates, LLC.® For Financial Professional Use Only. Not For Use With The Public.
Disclosures