Q-Brands - Investment Strategy (2024)

INVESTMENT STRATEGY

We focus on companies which have a distinct intangible brand value in their respective markets, that aim to deliver clients with long-term capital growth benefiting from the global economic expansion and the organic rise in demand for quality brands due to the rapid growth of the world population.

The sectors Q Brands invests in consist of: Consumer, Technology and Healthcare. We only invest in Brands listed in developed markets, with a minimum $5 billion market cap which helps to ensure a safety net of being highly liquid on a daily basis.

We ensure to remove non-sustainable or non-ethical businesses.

SECTORS

CONSUMER

Consumer goods have long been the bedrock of branded companies, think Amazon, Coca-Cola, Mercedes and Nike. With some of the world’s most recognisable brands falling under the consumer goods category they are seen as staples to society. As economies and individual’s disposable income grow, these brands are often the societal indicators they demand to acquire first. In good times and bad these brands are seen as steadfast and reliable due to their extraordinary brand value with a high global reach.

TECHNOLOGY

Technology brands have been the shining light across markets through the 21st century with Brands emerging overnight to become goliaths across the globe, brands such as: Apple, Facebook, Google & Netflix. These brands are at the forefront of the ‘fourth industrial revolution’ and rapidly develop into the industries of tomorrow.

HEALTHCARE

Healthcare brands have never been more in demand. With a fast growing and aging population the needs of the world increasingly require the assistance of Healthcare, Large Pharma and Biotech to develop effective and reliable solutions to age old issues like Cancer or Altzheimer as well as to new threats like a global pandemic.

Download Top 10 investments in the sector in 2020

INVESTMENT PROCESS & RISK MANAGEMENT

The Q.Brands Palm-Tree Strategy is implemented on a robust successfully stress tested State of the Art Technology Platform, powered by Guided Artificial Intelligence (G-AI) and Machine Learning (ML). It was developed during the last 10 years, gathering a number of parameters beyond human brain capabilities with 24/7 market monitoring. The portfolio construction is resulting from a strict disciplined process based on THREE PILLARS:

INVESTMENT UNIVERSE FILTERING

We filter the universe of recognised large cap global brands in our three selected sectors (consumer, healthcare, technology) applying our proprietary Q-Score ranking.

CORE PORTFOLIO CONSTRUCTION

Based on Guided Artificial Intelligence and Machine Learning factor investing, the final core portfolio is reduced to the top 50 ranked stocks.

Q BRANDS OVERLAY

The algorithm finally determines the level of equity overlay (α enhancement) or cash level (reduction of risks or β) to optimise the expected risk adjusted returns of the fund. In volatile markets the portfolio can be protected at any time by reducing the equity exposure and investing the liquidity in US Treasury Bills. In adverse and exceptional circ*mstances it may be composed of up to 100% Cash/TBills.

The investment process described here is a brief summary of the Investment Strategy and Investment Policy documented in the Prospectus, Supplements and Addendum to the Prospectus of the Fund. This section should be read in conjunction with the general description of the ICAV, contained in the Prospectus”

ESG

Environmental, Social and Corporate Governance ( ESG) factors is at the core of our values in the creation and management of the MontLake Q. BRANDS PREMIERE PALM-TREE ALPHA EQUITY UCITS FUND (“Q. Brands Fund”).

The aim of the Investment Manager of Q. Brands Fund was to deliver an investment product targeting investors for which the notion of “Peace of Mind” is a core element of their values. To achieve this, we built a robust and disciplined investment process selecting high quality companies with strong ESG ratings.

The investment Universe of the fund is the result of a screening integrating factors that are essential to sustainability concerns excluding sectors such as Airlines, Oil exploration, Weapon / Defence, Tobacco…

We filter out any stocks with a MSCI ESG rating of less than “B” resulting in an investment universe strongly biased towards companies reaching superior ESG ratings.

Rigorous Integration and Implementation of ESG criteria in our Investment Process

100% of the stocks short listed in the Q Brands Portfolio have a MSCI ESG rating above or equal to “BB

PHILANTHROPY

We aim at providing an investment solution to our clients we have worked with over the years and to new investors with high aspirations, willing to put their capital at work with beneficial impact for both their wealth and the global community.

Our team and community deeply care about social responsibility and therefore support worthwhile charitable and philanthropic endeavours, and actively serve on various bords to help further. At the investors’ decision, a portion of our performance fees will be transferred to registered charitable institutions of their choice.