The Value of Tactical

Colin Barber

Director, Strategic Partnerships, Ocean Park Asset Management

1. What is the history of tactical management at your firm?

In 1987, our founders, David Wright, JD and Kenneth L. Sleeper, PhD, MBA, developed what we believe to be a differentiated approach to portfolio risk management. Two years later, in 1989, they founded Ocean Park Asset Management with the main goal of attempting to limit the effects of sustained market declines on client accounts. It’s always been a strong belief of the firm that tactical investment management is incredibly important to client portfolios. Our firm’s aim is to grow client wealth by participating opportunistically in global investment uptrends, using a tactical discipline to help limit downside risk.

2. What does Ocean Park mean by tactical management?

When we say tactical management, we refer to an investment process that is quantitative and disciplined. Our process attempts to react to market volatility and does not rely on predictions nor emotions. Our Investment Management Team meets every day to review buy and sell signals, and our investment process is focused on three phases: participating in global uptrends, portfolio construction, and selling according to a Trailing Stop Discipline.

3. How do investors benefit from your form of tactical management?

Investors can feel pain from both the depth and duration of a drawdown. Our Trailing Stop Discipline is designed to limit further potential losses from any position that is in a downtrend.  We believe that shorter and shallower drawdowns lead to a better investor experience, and that investors who partner with us can benefit from Ocean Park’s tactical, rules-based investment process.

4. Describe the benefits of diversifying manager style.

Traditional diversification is accomplished by combining various positions in a portfolio that are not perfectly correlated with each other. We believe that investors can also benefit from diversifying their portfolio using ETFs that use various investment styles. Our rules-based investment process is differentiated from traditional long-only ETFs. We believe that, along with traditional diversification, investors can benefit from combining various investment styles in their portfolio as well.

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At Ocean Park Asset Management, we believe our defined process results in differentiated outcomes. Connect with us at 844-727-1813, or visit the Contact Us page on our website oceanparkam.com to set up a meeting.

DISCLOSURES:

Advisory services are offered through Ocean Park Asset Management, LLC, a registered investment adviser (“RIA”) regulated by the U.S. Securities and Exchange Commission (“SEC”). The advisory services are only offered in jurisdictions where the RIA is appropriately registered. The use of the term “ registered” does not imply any particular level of skill or training and does not imply any approval by the SEC. For information pertaining to the registration status of Ocean Park Asset Management, LLC, please call 1-844-727-1813 or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov).

Definitions:

Trailing Stop Discipline (“Discipline”). This proprietary Discipline has the objective of limiting the magnitude for portfolio drawdowns. The Discipline is based on a manual process that defines sell levels/signals for security holdings in decline, as measured by its price falling below the recent high of its lower band. These are not market orders. Ocean Park utilizes this Discipline directly in the management of non-affiliated holdings. Ocean Park invests in its affiliated Mutual Funds

(“Funds”) and the Discipline is applied at the underlying funds level of each Fund, not on the Funds themselves. Certain strategies that contain exclusively affiliated holdings will only apply at the underlying holding level of the affiliated funds. Please see our Form ADV Part 2A for information on conflicts of interest that exist as a result of Ocean Park investing in affiliated Funds.