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Published: 2023-06-29 00:00:00 ET

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EX-99.1 2 sghq3-23form8xkxex991.htm EX-99.1 Document

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

SGH REPORTS THIRD QUARTER FISCAL 2023 FINANCIAL RESULTS

Strong Operating Results and Record Cash and Equivalents

Milpitas, Calif. – June 29, 2023 – SMART Global Holdings, Inc. (“SGH” or the “Company”) (NASDAQ: SGH) today reported financial results for the third quarter of fiscal 2023.

Third Quarter Fiscal 2023 Highlights

•Net sales of $383 million, down 17.1% versus the year-ago quarter

•GAAP gross margin of 25.7%, up 100 basis points versus the year-ago quarter

•Non-GAAP gross margin of 28.0%, up 230 basis points versus the year-ago quarter

•GAAP EPS of $(0.50) versus $0.44 in the year-ago quarter

•Non-GAAP EPS of $0.66 versus $0.87 in the year-ago quarter

•Record cash and cash equivalents of $401 million

•Announced agreement to sell an 81% interest in SMART Modular Technologies do Brasil – Indústria e Comércio de Componentes Ltda. (“SMART Brazil”)

“The team achieved strong results for the third quarter in what remains a challenging global economic environment. Non-GAAP gross margin increased to 28.0%, an improvement of 230 basis points from the same period last year, and achieved non-GAAP earnings of $0.66 per share. In addition, we exited the third quarter with a strong balance sheet, including record cash and cash equivalents of $401 million,” commented the Company’s CEO Mark Adams. “With the announced agreement to sell an 81% interest in SMART Brazil on June 13, we are continuing our transformation to a high-performance, high-availability enterprise solutions company, and believe we are positioned to benefit from emerging trends in AI, machine learning and data analytics,” indicated Adams.

Quarterly Financial Results


	GAAP (1)						Non-GAAP (2)
(in millions, except per share amounts)	Q3 FY23		Q2 FY23		Q3 FY22		Q3 FY23		Q2 FY23		Q3 FY22
Net sales	$	383.3	$	429.2	$	462.5	$	383.3	$	429.2	$	462.5
Gross profit	98.6		110.4		114.5		107.2		123.9		118.9
Operating income (loss)	(8.8)		(7.2)		35.3		36.3		51.4		54.3
Net income (loss) attributable to SGH	(24.5)		(27.2)		24.1		33.1		37.6		45.9
Diluted earnings (loss) per share	$	(0.50)	$	(0.55)	$	0.44	$	0.66	$	0.76	$	0.87

(1)GAAP represents U.S. Generally Accepted Accounting Principles.

(2)Non-GAAP represents GAAP excluding the impact of certain activities. Further information regarding the Company’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures is included within this press release.

Business Outlook

As of June 29, 2023, SGH is providing the following financial outlook for its fourth quarter of fiscal 2023:

GAAP

Outlook

Adjustments

Non-GAAP

Outlook

Net sales

$375 million +/- $25 million

—

$375 million +/- $25 million

Gross margin

26% +/- 1%

(A)

28% +/- 1%

Operating expenses

$87 million +/- $2 million

($16) million

(B)(C)

$71 million +/- $2 million

Diluted earnings (loss) per share

$0.02 +/- $0.15

$0.43

(A)(B)(C)(D)

$0.45 +/- $0.15

Diluted shares

54.5 million

(2) million

52.5 million


Non-GAAP adjustments (in millions)
(A) Share-based compensation and amortization of acquisition-related intangibles included in cost of sales	$	8
(B) Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A	13
(C) Other adjustments included in operating expenses	3
(D) Estimated income tax effects	(3)
	$	21

Third Quarter Fiscal 2023 Earnings Conference Call and Webcast Details

SGH will hold a conference call and webcast to discuss the third quarter of fiscal 2023 results and related matters today, June 29, 2023, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Interested parties may access the call by dialing +1-833-470-1428 in the U.S. or +1-929-526-1599 from international locations, using the access code 177936. The earnings presentation and a live webcast of the conference call can be accessed from the Company’s investor relations website (https://ir.smartm.com/investors/default.aspx) where they will remain available for approximately one year.

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements concerning or regarding future events and the future financial and operating performance of SGH; statements regarding the extent and timing or and expectations regarding SGH’s future revenues and expenses and customer demand; statements regarding SGH’s business strategies, investments and growth drivers in SGH’s industries and markets, and statements regarding the business and financial outlook for the next fiscal quarter described under “Business Outlook” above.

These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “could,” and other words of similar meaning. Forward-looking statements provide SGH’s current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of SGH’s control, including but not limited to, issues, delays, or complications in integrating the operations of Stratus Technologies; global business and economic conditions and growth trends in technology industries, SGH’s customer markets and various geographic regions; uncertainties in the geopolitical environment; the rapidly evolving nature of the COVID-19 pandemic; disruptions in SGH’s operations or supply chain as a result of the COVID-19 pandemic or otherwise; the ability to manage SGH’s cost structure, including SGH’s success in implementing restructuring or other plans intended to improve SGH’s operating efficiency; workforce reductions; uncertainties in the global macro-economic environment; changes in demand for SGH’s segments; changes in trade regulations or adverse developments in international trade relations and agreements; changes in currency exchange rates; availability of our cash and cash equivalents; overall information technology spending; appropriations for government spending; the success of SGH’s strategic initiatives including additional investments in new products and additional capacity; acquisitions of companies or technologies, the

failure to successfully integrate and operate them or customers’ negative reactions to them, including any resulting impairment of goodwill or gain (loss) on extinguishment of debt; limitations on, or changes in the availability of, supply of materials and components; fluctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; production or manufacturing difficulties; competitive factors; technological changes; future cash flows of the Penguin Edge business; difficulties with, or delays in, the introduction of new products; slowing or contraction of growth in the memory market in Brazil or in the LED market; reduction in, or termination of, incentives for local manufacturing in Brazil; changes to applicable tax regimes or rates; prices for the end products of SGH’s customers; strikes or labor disputes; deterioration in or loss of relations with any of SGH’s limited number of key vendors; the inability to maintain or expand government business; and the continuing availability of borrowings under term loans and revolving lines of credit and our ability to raise capital through debt or equity financings. These and other risks, uncertainties and factors are described in greater detail under the sections titled “Risk Factors,” “Critical Accounting Estimates,” “Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk,” and “Liquidity and Capital Resources” contained in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and the Company’s other filings with the U.S. Securities and Exchange Commission. In addition, such risks, uncertainties and factors as outlined above and in such filings do not constitute all risks, uncertainties and factors that could cause actual results of SGH to be materially different from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that the Company makes in this press release speak only as of the date of this press release. Except as required by law, SGH does not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made.

Statement Regarding Use of Non-GAAP Financial Measures

SGH management uses non-GAAP measures to supplement SGH’s financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. These non-GAAP measures exclude certain items, such as share-based compensation expense, amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships, trademarks/trade names and backlog acquired in connection with business combinations), acquisition-related inventory adjustments, acquisition-related expenses, restructure charges and integration expenses, impairment of goodwill, changes in the fair value of contingent consideration, (gains) losses from changes in currency exchange rates, amortization of debt discount and other costs, gain (loss) on extinguishment of debt, other infrequent or unusual items and related tax effects and other tax adjustments. While amortization of acquisition-related intangible assets is excluded, the revenues from acquired companies is reflected in the Company’s non-GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense, income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition-related inventory adjustments, acquisition-related expenses, restructure charges and integration expenses, impairment of goodwill, changes in the fair value of contingent consideration, gain (loss) on extinguishment of debt and other infrequent or unusual items.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about SGH’s financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the “Reconciliation of GAAP to Non-GAAP Measures” tables below.

About SMART Global Holdings – SGH

At SGH, our companies are united by a drive to raise the bar, execute with discipline and focus on what’s next for the technologies that support and advance the world. Across computing, memory and LED lighting solutions, we build long-term strategic partnerships with our customers.

Backed by a proven leadership team, we operate with excellence around the globe while unlocking new avenues of growth for our business and industry.

Learn more about us at SGHcorp.com.

SMART Global Holdings, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended						Nine Months Ended
	May 26, 2023		February 24, 2023		May 27, 2022		May 26, 2023		May 27, 2022
Net sales:
Memory Solutions	$	148,370	$	151,136	$	265,850	$	491,473	$	765,332
Intelligent Platform Solutions	170,854		222,451		95,345		604,276		296,256
LED Solutions	64,106		55,587		101,345		182,233		320,067
Total net sales	383,330		429,174		462,540		1,277,982		1,381,655
Cost of sales	284,687		318,793		348,077		950,548		1,032,278
Gross profit	98,643		110,381		114,463		327,434		349,377

Operating expenses:
Research and development	22,235		26,665		20,298		72,956		56,749
Selling, general and administrative	70,596		62,771		58,483		204,389		164,147
Impairment of goodwill	—		17,558		—		17,558		—
Change in fair value of contingent consideration	14,800		6,400		124		24,900		41,324
Other operating (income) expense	(186)		4,154		249		6,009		249
Total operating expenses	107,445		117,548		79,154		325,812		262,469
Operating income (loss)	(8,802)		(7,167)		35,309		1,622		86,908

Non-operating (income) expense:
Interest expense, net	8,059		8,006		5,110		24,102		14,678
Other non-operating (income) expense	514		13,329		550		13,183		3,570
Total non-operating (income) expense	8,573		21,335		5,660		37,285		18,248
Income (loss) before taxes	(17,375)		(28,502)		29,649		(35,663)		68,660

Income tax provision (benefit)	6,702		(1,716)		5,154		9,876		20,495
Net income (loss)	(24,077)		(26,786)		24,495		(45,539)		48,165
Net income attributable to noncontrolling interest	378		433		382		1,143		1,567
Net income (loss) attributable to SGH	$	(24,455)	$	(27,219)	$	24,113	$	(46,682)	$	46,598

Earnings (loss) per share:
Basic	$	(0.50)	$	(0.55)	$	0.48	$	(0.95)	$	0.94
Diluted	$	(0.50)	$	(0.55)	$	0.44	$	(0.95)	$	0.84

Shares used in per share calculations:
Basic	49,380		49,116		50,095		49,152		49,543
Diluted	49,380		49,116		54,998		49,152		55,756

SMART Global Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(In thousands)

(Unaudited)


	Three Months Ended									Nine Months Ended
	May 26, 2023			February 24, 2023			May 27, 2022			May 26, 2023			May 27, 2022
GAAP gross profit	$	98,643		$	110,381		$	114,463		$	327,434		$	349,377
Share-based compensation expense	1,655			1,369			1,724			4,732			5,103
Amortization of acquisition-related intangibles	6,704			6,615			2,696			19,785			8,374
Flow-through of inventory step up	—			—			—			2,599			—
Cost of sales-related restructure	211			5,552			—			5,763			—
Non-GAAP gross profit	$	107,213		$	123,917		$	118,883		$	360,313		$	362,854

GAAP gross margin	25.7		%	25.7		%	24.7		%	25.6		%	25.3		%
Effect of adjustments	2.3		%	3.2		%	1.0		%	2.6		%	1.0		%
Non-GAAP gross margin	28.0		%	28.9		%	25.7		%	28.2		%	26.3		%

GAAP operating expenses	$	107,445		$	117,548		$	79,154		$	325,812		$	262,469
Share-based compensation expense	(8,376)			(9,026)			(8,823)			(26,106)			(25,192)
Amortization of acquisition-related intangibles	(4,905)			(4,200)			(3,247)			(13,497)			(9,741)
Acquisition and integration expenses	(8,637)			(2,824)			(2,181)			(18,193)			(3,470)
Impairment of goodwill	—			(17,558)			—			(17,558)			—
Change in fair value of contingent consideration	(14,800)			(6,400)			(124)			(24,900)			(41,324)
Restructure charge	186			(4,154)			(249)			(6,009)			(249)
Other	—			(900)			81			(1,800)			(496)
Non-GAAP operating expenses	$	70,913		$	72,486		$	64,611		$	217,749		$	181,997

GAAP operating income (loss)	$	(8,802)		$	(7,167)		$	35,309		$	1,622		$	86,908
Share-based compensation expense	10,031			10,395			10,547			30,838			30,295
Amortization of acquisition-related intangibles	11,609			10,815			5,943			33,282			18,115
Flow-through of inventory step up	—			—			—			2,599			—
Cost of sales-related restructure	211			5,552			—			5,763			—
Acquisition and integration expenses	8,637			2,824			2,181			18,193			3,470
Impairment of goodwill	—			17,558			—			17,558			—
Change in fair value of contingent consideration	14,800			6,400			124			24,900			41,324
Restructure charge	(186)			4,154			249			6,009			249
Other	—			900			(81)			1,800			496
Non-GAAP operating income	$	36,300		$	51,431		$	54,272		$	142,564		$	180,857

SMART Global Holdings, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended						Nine Months Ended
	May 26, 2023		February 24, 2023		May 27, 2022		May 26, 2023		May 27, 2022
GAAP net income (loss) attributable to SGH	$	(24,455)	$	(27,219)	$	24,113	$	(46,682)	$	46,598
Share-based compensation expense	10,031		10,395		10,547		30,838		30,295
Amortization of acquisition-related intangibles	11,609		10,815		5,943		33,282		18,115
Flow-through of inventory step up	—		—		—		2,599		—
Cost of sales-related restructure	211		5,552		—		5,763		—
Acquisition and integration expenses	8,637		2,824		2,181		18,193		3,470
Impairment of goodwill	—		17,558		—		17,558		—
Change in fair value of contingent consideration	14,800		6,400		124		24,900		41,324
Restructure charge	(186)		4,154		249		6,009		249
Amortization of debt discount and other costs	937		1,048		2,705		3,054		7,211
Loss on extinguishment of debt	—		16,691		—		15,924		653
Foreign currency (gains) losses	590		281		641		1,113		3,516
Other	—		900		(81)		1,800		496
Income tax effects	10,900		(11,753)		(513)		(4,153)		(2,139)
Non-GAAP net income attributable to SGH	$	33,074	$	37,646	$	45,909	$	110,198	$	149,788

Weighted-average shares outstanding - Diluted:
GAAP weighted-average shares outstanding	49,380		49,116		54,998		49,152		55,756
Adjustment for dilutive securities and capped calls	754		726		(2,063)		770		(2,468)
Non-GAAP weighted-average shares outstanding	50,134		49,842		52,935		49,922		53,288

Diluted earnings (loss) per share:
GAAP diluted earnings (loss) per share	$	(0.50)	$	(0.55)	$	0.44	$	(0.95)	$	0.84
Effect of adjustments	1.16		1.31		0.43		3.16		1.97
Non-GAAP diluted earnings per share	$	0.66	$	0.76	$	0.87	$	2.21	$	2.81

Net income (loss) attributable to SGH	$	(24,455)	$	(27,219)	$	24,113	$	(46,682)	$	46,598
Interest expense, net	8,059		8,006		5,110		24,102		14,678
Income tax provision (benefit)	6,702		(1,716)		5,154		9,876		20,495
Depreciation expense and amortization of intangible assets	21,300		19,931		16,571		61,020		48,461
Share-based compensation expense	10,031		10,395		10,547		30,838		30,295
Flow-through of inventory step up	—		—		—		2,599		—
Cost of sales-related restructure	211		5,552		—		5,763		—
Acquisition and integration expenses	8,637		2,824		2,181		18,193		3,470
Impairment of goodwill	—		17,558		—		17,558		—
Change in fair value of contingent consideration	14,800		6,400		124		24,900		41,324
Restructure charge	(186)		4,154		249		6,009		249
Loss on extinguishment of debt	—		16,691		—		15,924		653
Other	—		900		(81)		1,800		496
Adjusted EBITDA	$	45,099	$	63,476	$	63,968	$	171,900	$	206,719

The non-GAAP adjustment for income tax effects for the three months ended May 26, 2023 includes a reduction in taxes of $4.0 million, or $0.08 per diluted share, for the retroactive effect of a revision in the amount of U.S. net operating losses expected to be utilized in 2023.

SMART Global Holdings, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)


As of	May 26, 2023		August 26, 2022
Assets
Cash and cash equivalents	$	401,275	$	363,065
Accounts receivable, net	243,571		410,323
Inventories	226,051		323,084
Other current assets	68,014		55,393
Total current assets	938,911		1,151,865
Property and equipment, net	177,751		153,935
Operating lease right-of-use assets	77,789		77,399
Intangible assets, net	171,415		77,812
Goodwill	183,089		74,009
Other noncurrent assets	42,233		37,044
Total assets	$	1,591,188	$	1,572,064

Liabilities and Equity
Accounts payable and accrued expenses	$	210,125	$	413,354
Current debt	32,253		12,025
Acquisition-related contingent consideration	45,700		—
Other current liabilities	96,227		90,161
Total current liabilities	384,305		515,540
Long-term debt	782,258		591,389
Noncurrent operating lease liabilities	73,421		71,754
Other noncurrent liabilities	27,038		14,835
Total liabilities	1,267,022		1,193,518

Commitments and contingencies

SMART Global Holdings shareholders’ equity:
Ordinary shares	1,655		1,586
Additional paid-in capital	432,185		448,112
Retained earnings	223,301		251,344
Treasury shares	(124,659)		(107,776)
Accumulated other comprehensive income (loss)	(214,385)		(221,655)
Total SGH shareholders’ equity	318,097		371,611
Noncontrolling interest in subsidiary	6,069		6,935
Total equity	324,166		378,546
Total liabilities and equity	$	1,591,188	$	1,572,064

SMART Global Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Three Months Ended						Nine Months Ended
	May 26, 2023		February 24, 2023		May 27, 2022		May 26, 2023		May 27, 2022
Cash flows from operating activities:
Net income (loss)	$	(24,077)	$	(26,786)	$	24,495	$	(45,539)	$	48,165
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation expense and amortization of intangible assets	21,300		19,931		16,571		61,020		48,461
Amortization of debt discount and issuance costs	937		1,048		2,706		3,054		7,476
Share-based compensation expense	10,031		10,395		10,547		30,838		30,295
Impairment of goodwill	—		17,558		—		17,558		—
Change in fair value of contingent consideration	14,800		6,400		124		24,900		41,324
(Gain) loss on extinguishment of debt	—		16,691		—		15,924		653
Other	(811)		3,705		(48)		3,213		640
Changes in operating assets and liabilities:
Accounts receivable	(13,746)		78,529		34,089		194,478		(41,490)
Inventories	67,952		119,491		(26,531)		104,561		(116)
Other assets	15,391		(1,525)		(8,375)		8,667		2,070
Accounts payable and accrued expenses and other liabilities	(49,907)		(145,951)		(18,032)		(278,888)		(54,174)
Payment of acquisition-related contingent consideration	—		—		—		(73,724)		—
Deferred income taxes, net	(832)		1,049		1,168		1,526		721
Net cash provided by operating activities	41,038		100,535		36,714		67,588		84,025

Cash flows from investing activities:
Capital expenditures and deposits on equipment	(13,260)		(12,613)		(9,156)		(37,522)		(29,298)
Acquisition of business, net of cash acquired	—		(2,800)		—		(213,073)		—
Other	434		2,060		(54)		773		(746)
Net cash used for investing activities	(12,826)		(13,353)		(9,210)		(249,822)		(30,044)

Cash flows from financing activities:
Proceeds from debt	—		—		—		295,287		270,775
Proceeds from issuance of ordinary shares	4,180		308		4,389		8,430		11,849
Proceeds from borrowing under line of credit	—		—		—		—		84,000
Payment of acquisition-related contingent consideration	—		—		—		(28,100)		—
Payments to acquire ordinary shares	(660)		(11,564)		(13,905)		(16,883)		(16,800)
Payment of premium in connection with convertible note exchange	—		(14,141)		—		(14,141)		—
Repayments of debt	(8,153)		(4,507)		—		(17,149)		(125,000)
Net cash paid for settlement and purchase of Capped Calls	—		(4,304)		—		(4,304)		—
Distribution to noncontrolling interest	—		(2,009)		—		(2,009)		(3,773)
Repayments of borrowings under line of credit	—		—		—		—		(109,000)
Other	(1)		(3,414)		—		(3,417)		(3,841)
Net cash provided by (used for) financing activities	(4,634)		(39,631)		(9,516)		217,714		108,210

Effect of changes in currency exchange rates on cash and cash equivalents	813		1,712		3,570		2,730		2,149
Net increase in cash and cash equivalents	24,391		49,263		21,558		38,210		164,340
Cash and cash equivalents at beginning of period	376,884		327,621		365,768		363,065		222,986
Cash and cash equivalents at end of period	$	401,275	$	376,884	$	387,326	$	401,275	$	387,326


Investor Contact:			PR Contact:
Suzanne Schmidt			Valerie Sassani
Investor Relations			VP of Marketing and Communications
+1-510-360-8596			+1-510-941-8921
ir@sghcorp.com			pr@sghcorp.com

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.