Exceed Defined Shield
Index Fund

Fund Overview

The Exceed Defined Shield Index Fund (“Shield Fund”) is a large cap-based fund seeking a specified degree of protection with a maximum gain component. The Shield Fund seeks to track, before fees and expenses, the performance of the Nasdaq Exceed Defined Protection Index (“The Index”). The Index tracks a basket of four rolling defined outcome investments, each of which seeks exposure to the S&P 500 with the following characteristics:

  • Seeks to limit losses of an investment to approximately the first 12.5% of S&P 500 losses on an annualized basis and no losses thereafter
  • Seeks annual upside participation to a maximum gain of 15%, even if annual S&P 500 performance surpasses that percentage

The index is calculated by IDC and disseminated by Nasdaq under the ticker symbol EXPROT.

Potential Advantages of the Index

The Index seeks defined exposure to the S&P 500 with the goal of providing investors with several potential benefits:

  • Significant protection from market downturns through our portfolio of defined outcome investments, each of which seeks to limit annual losses to 12.5%
  • Significantly reduced volatility relative to the S&P 500. The combination of sought protection from downturns and reduced volatility should result in superior risk adjusted returns when compared with the S&P 500.

About the Index’s Holdings

The Index is composed of two asset classes:

  • Investment Grade Fixed Income: The majority of index holdings consists of a diversified rolling basket of investment grade fixed income securities with < 3 year maturities. Approximately 95% – 99% of assets are initially invested in fixed income securities
  • Options: A small portion of index holdings consists of a rolling basket of cleared, exchange-based options linked to the S&P 500; approximately 1%-5% of assets are initially invested in options

Fund Management

About the Advisors
Exceed Investments is a privately held provider of market intelligence, indexing, and asset management services. The firm’s mission is to provide defined outcome equity solutions that allow investors to achieve their preferred risk/return exposure.

Joseph Halpern, CEO of Exceed Investments, serves as portfolio manager for the fund. Over a 20-year financial career, Mr. Halpern has structured, priced, and traded billions of dollars in structured products, exotic derivatives, and listed vanilla options in addition to managing trading groups, supervising risk management, and participating in executive-level strategic initiatives.

Prior to founding Exceed Investments, Mr. Halpern was a director at Lamco, the asset management division of Lehman Brothers Holdings Inc. where he headed the exotic derivatives commodities book, was chief negotiator on a number of global bank settlements and was a lead member of a task force on structured products. Mr. Halpern was also Director on the Equity Derivatives Trading desk of ING Financial Markets, SVP of Strategy and Risk for Kellogg Capital Group’s derivatives division, a partner at boutique investment bank Halpern Capital, and a derivatives trader at Letco Specialists, where he became the firm’s youngest partner.

Mr. Halpern earned a BS in finance and accounting from New York University – Leonard N. Stern School of Business.

About the Sub-Advisors
First Principles Capital Management, LLC provides fixed income investment management services for financial institutions, endowments and foundations, corporations, family offices and trusts, and individuals. FPCM manages $10.1 billion in customized separately managed accounts and sought commingled funds.

Mark G. Alexandridis, responsible for managing the fund’s fixed income allocation, is a Managing Director and Portfolio Manager at First Principles Capital Management. Mr Alexandridis has over 27 years experience in managing structured and credit related assets, including trading of securities and derivatives.  Mr. Alexandridis has responsibilities at FPCM for domestic credit and global sovereign portfolios and risk.

Prior to joining FPCM,  Mr. Alexandridis was a Managing Director at BNP Paribas, and a member of the Fixed Income Management Committee in the Americas. Mr. Alexandridis also held positions as Managing Director at General Re Financial Products (GRFP) and Managing Director at J.P. Morgan
where he held a variety of senior derivative trading positions involving trading and risk managing new derivative products.

Mr. Alexandridis earned a Bachelor of Science and an M.S. from Massachusetts Institute of Technology in Civil Engineering, as well as an M.S. from Carnegie Mellon University in Operations Research.

Investment Returns

at NAV (%)
as of 06/30/17
% from inception to 01/02/2015
SHARPE RATIO % from inception to 01/02/2015 GROSS / NET EXPENSE RATIO
EXCEED SHIELD FUND -100.00 0.00 0.00 0.00 0.00 N/A N/A N/A / N/A
EXCEED SHIELD FUND -100.00 0.00 0.00 0.00 0.00 N/A N/A N/A / N/A
EXPROT INDEX -100.00 -100.00 -100.00 -100.00 -100.00 N/A N/A N/A
S&P 500 Total Return Index -100.00 -100.00 -100.00 -100.00 -100.00 N/A N/A N/A

Updated on Dec 31, 2014 5:05 PM

The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares when redeemed may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month end performance, please call (844) 800-5092. Returns showing less than one year are cumulative. Shares redeemed within 90 days of purchase are subject to a 1.00% redemption fee. The Advisor has contractually agreed to waive its fee and/or reimburse Fund expenses as necessary to limit the Net Annual Fund Operating Expenses through at least April 1, 2017.


Sharpe Ratio is a measure of risk that uses standard deviation and excess return to determine reward per unit of risk. The greater a fund’s Sharpe ratio, the better its risk-adjusted performance has been.

Standard Deviation is a standard deviation of returns measures the average a return series deviates from its mean. It is often used as a measure of risk. When a fund has a high standard deviation, the predicted range of performance implies greater volatility.

Volatility is a statistical measure of risk, expressed as the standard deviation of returns from the same security. Commonly, the higher the volatility, the riskier the security.

The Nasdaq Exceed Structured Protection Index ("EXPROT Index") is designed to provide investment returns that are correlated with, but less volatile than, the S&P 500 Index. The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.