The objective of our absolute return process is to capture return during "up-market cycles", while limiting losses during "down-market cycles". As part of the process designed to mitigate the risk of holding the securities we buy, WBI employs a Dynamic Trailing Stop (DTS) process once stocks are purchased. This dynamic stop loss and goal setting process attempts to control the volatility of each invested position in our portfolios. If a security stays within its acceptable price channel, we will continue to hold it. If the security moves outside the acceptable price channel, a stop is triggered and WBI will sell the security. This results in a responsive process that actively adjusts portfolio allocations by causing them to become more fully invested or by raising cash to help to preserve capital, and is an example of what we mean by a risk-managed investment approach.
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Past performance does not guarantee future results.
The WBI Dynamic Trailing Stop (DTS) is not a stop loss order or stop limit order placed with a brokerage firm, but an internal process for monitoring price movements. While the DTS may be used to initiate WBI's process for selling a security, it does not assure that a particular execution price will be received.
Although a company may pay a dividend, prices of equity securities - including those that pay dividends - fluctuate. Investing on the basis of dividends alone may cause an investor to buy or sell certain securities when circumstances may or may not be favorable.
Because dollar cost averaging involves continuous periodic investment in securities regardless of fluctuating price levels of such securities, investors planning to pursue this strategy should consider their ability to continue purchases through periods of low price levels. Dollar cost averaging does not assure a profit, and does not protect against loss in declining markets.