Finding Alpha In Private Debt

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General Disclosures

The market commentary is for informational purposes only and should not be deemed as a solicitation to invest or increase investments in Bayntree Wealth Advisors (‘Bayntree’) products or affiliated products. The information contained herein is not intended to provide any investment advice or provide the basis for any investment decisions. Please consult a qualified professional before making decisions about your financial situation. Information and commentary provided by Bayntree are opinions and should not be construed as facts. There can be no guarantee that any of the described objectives can be achieved. Past performance is not a guarantee of future results. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness.

Diversification of asset class or investment style does not guarantee against loss or outperformance. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will be profitable. Any individual securities shown are not a recommendation to buy or sell. Any funds shown will have different investment objectives and strategies and are for illustration purposes only and is not a statement of equal comparisons. The price of any investment may rise or fall due to changes in the broad markets or changes in a company’s financial condition and may do so unpredictably. Bayntree does not make representations that any strategy will or is likely to achieve returns similar to those shown in this presentation. Please speak to an advisor before investing any strategy shown within. Indices are shown for informational purposes only; it is important to note that Bayntree’s strategies differ from the indices displayed and should not be used as a benchmark for comparison to account performance. While the indices chosen to represent broad market performance of each asset class, there are report limitations as to available indices and blends, which index can be selected, and how they are presented. Portfolios are sub-advised by Mulholland Wealth Advisors, LLC, (“Mulholland”) an unaffiliated investment advisor registered with the SEC. Such registration does not imply a certain level of skill or training and no inference to the contrary should be made. Please refer to Mulholland’s Form ADV Part 2A (“Brochure”) for more information. RiskFirst® is a registered trademark of Redwood Investment Management, LLC. (“Redwood”), which is an affiliate of Mulholland. Dynamic Risk Budgeted (DRB) and Engineered Risk Budgeted (ERB) portfolios are proprietary to Redwood.

Definitions and Indices

Federal Reserve (Fed) is the central bank of the United States that raises or lowers interest rates. Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy. Drawdown is a measure of peak to trough loss in a given period; a maximum drawdown is a measure of the maximum peak to trough percentage loss in a given period. S&P 500 Index is a stock market index based on the market capitalization of 500 leading companies publicly traded in the U.S. Stock market, as determined by Standard & Poor’s. 60/40 refers to 60% S&P 500 and 40% Bloomberg U.S. Aggregate Index. Bloomberg U.S. Aggregate Bond Index consists of investment-grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities, and asset-backed securities. It is often considered representative of the U.S. investment-grade fixed rate bond market. Nasdaq Composite is a market capitalization weighted index comprised of approximately 3,000 common equities listed on the NASDAQ stock exchange. Mega-Cap Companies are those with market values well above the rest of the market, with valuations of over $200 billion. Tech Bubble, also known as the dotcom or internet bubble, was a rapid rise in U.S. technology stock equity valuations fueled by investments in internet-based companies during the bull market in the late 1990s. During the dotcom bubble, the value of equity markets grew exponentially, with the technology-dominated Nasdaq index rising from under 1,000 to more than 5,000 between the years 1995 and 2000. In 2001 and through 2002 the bubble burst, with equities entering a bear m. “Big 7” refers to large mega cap companies consisting of Apple, Tesla, NVIDA, Microsoft, Alphabet, Meta, and Amazon. The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Citi World Gov’t Bond Index is a total-return index including sovereign bonds from developed and emerging markets. The Consumer Price Index (CPI) is used to measure the change in prices that consumers pay for goods and services over time. This data is aggregated by the U.S. Bureau of Labor Statistics. The Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. This contrasts with other measures, such as the Consumer Price Index (CPI), that measure price change from the purchaser’s perspective. Sellers’ and purchasers’ prices may differ due to government subsidies, sales and excise taxes, and distribution costs. Personal Consumption Expenditures (PCE) includes a measure of consumer spending on goods and services among households in the U.S. The PCE is used as a mechanism to gauge how much earned income of households is being spent on current consumption for various goods and services. U.S. 10-Year Real Yield is the difference between the U.S. 10-Year Treasury yield and the U.S. 10-Year breakeven rate, which is used as an estimate of the true yield of a bond after adjusting for inflation. Investment-Grade Bond is a bond with a credit rating of BBB- or higher by Standard & Poor’s or Baa3 or higher by Moody’s. It is judged by the rating agency as likely enough to meet payment obligations that banks are allowed to invest in it. 2008 Great Financial Crisis was a severe worldwide economic crisis that occurred in the early 21st century and is widely regarded as the most serious financial crisis since the Great Depression. The Morningstar LSTA US Leveraged Loan Index is a market-value weighted index designed to measure the performance of the US leveraged loan market. The Bloomberg US Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. The Cliffwater Direct Lending Index seeks to measure the unlevered, gross of fee performance of US middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of Business Development Companies that satisfy certain eligibility criteria. The CDLI Total Return Index includes three components: Income Return, Realized Gain/Loss, and Unrealized Gain/Loss. Private debt refers to loans that are usually provided by non-bank investors to borrowers. Private debt is an alternative form of financing that companies can use to raise capital for various purposes such as funding growth, expanding working capital, or financing real estate development. Tactical Risk-Off is allocation to cash or cash equivalents. Long IG Fixed-Income refers to risk position on investment graded fixed-income bonds. Long HY Fixed-Income refers to risk position on high-yield fixed-income bonds. Long Equity refers to risk position on equities. An investor cannot invest directly in an index. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. Investors cannot make direct investments into any index.

Bayntree Wealth Advisors, LLC (‘Bayntree’) is an SEC Registered Investment Advisor. Such registration does not imply a certain level of skill or training and no inference to the contrary should be made. Bayntree’s advisory fees and risks are fully detailed in its Form ADV Part 2A (Brochure”), which is available upon request. This material may not be published, broadcast, rewritten or redistributed in whole or part without express written permission. Bayntree and Redwood are not affiliated.