EQUITY STRATEGY

TECHNOLOGY

Index constituents are selected due to having significant dealings in one of the 14 technologies the US Department of Defense (DoD) defines as dual-use, disruptive, emerging or critical to both national and economic security.

PATRIOT

The Index is composed of US large & mid cap companies that align with national modernisation priorities.

In response to rising geopolitical risk in the world today, the strategy features a stock selection methodology designed to reduce risk, by excluding companies that have a higher likelihood of being negatively impacted by geopolitics (i.e. economic sanctions, national industrial policy actions, national regulatory actions, and other economic and strategic competition actions taken by either the US or adversarial nations).

GEOSTRATEGIC RISK RATINGS (GRR)

J.H. WHITNEY’S* RISK MITIGATION APPROACH

A proprietary 10-factor model is employed to assess an entity’s vulnerability to geostrategic risk
This model uses publicly available company-reported and government data to measure thresholds, entanglement, or dependency across geopolitical borders
The model is scored 1 to 3, with 1 being the most risky (China, Russia, North Korea…) and 3 being the least risky (US, UK, Canada…)

THE 10 GRR COMPONENTS AND THEIR WEIGHT:

Governance (46%)

1. Country of Incorporation (11.5%)

2. Board Composition (11.5%)

3. Foreign Ownership (11.5%)

4. USG Exemption List (11.5%)

Commercial (27%)

5. Geographic Revenue (9%)

6. Joint Ventures (9%)

7. Strategic Alliances (9%)

Operational (27%)

8. Customers (9%)

9. Geographic Assets (9%)

10. Suppliers (9%)

The GRR score of a company is the weighted average of the above 10 GRR components

GRR SCALE

A higher GRR score usually indicates relatively lower vulnerability to geostrategic risk.

* J.H. Whitney is a geopolitical risk consulting firm whose proprietary geostrategic risk scoring methodology helps inform the equity portion of the Index.

Important Information

The methodology of and rules governing the index (the “Index Methodology” and the “Index”) are proprietary. None of the sponsor of the Index (the “Index Sponsor”), the index calculation agent (where such party is not also the Index Sponsor, the “Index Calculation Agent”) nor, where applicable, the index Investment Advisor (the “Index Investment Advisor”) guarantee that there will be no errors or omissions in computing or disseminating the Index.
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