Why is the new strategy only available as a pure equity strategy (100% equity allocation)?

The minimum investment is the same as for the Global Portfolio and the Sustainable Portfolio.

The Megatrends Portfolio asset management strategy invests exclusively in ETFs.

The Global Portfolio and Sustainable Portfolio strategies follow our scientifically grounded market approach, and your risk is deliberately diversified very broadly across regions, countries, sectors and companies.

By contrast, the Megatrends Portfolio strategy does not rely on a portfolio broadly diversified across regions, countries, sectors and companies, but instead invests specifically in only very particular themes. At present, there are virtually no thematic ETFs in other asset classes. In addition, the bond asset class, due to its fixed interest, is not suited to demonstrating the performance potential pursued with thematic investments.

1. quirion first evaluates which themes are investable via ETFs, i.e. it reviews the theme universe available on the market.
2. In the next step, quirion identifies megatrends by collecting and consolidating the various assessments from futures- and opinion-research institutes, auditing firms, as well as governmental and non-governmental institutions. Only the megatrends with the largest overlaps in the research pool are determined by quirion as relevant megatrends.
3. In the next step, quirion assesses
   a. the influence of megatrends on the investable themes
   b. the influence of themes on one another

and thereby determines the relevance of each theme.

In a final step, the investment committee decides on the allocation of the strategy, i.e. with what weighting the specific themes are represented in the model portfolio and which securities are purchased. In its orientation, the Megatrends Portfolio differs significantly from the broad-market strategies Global Portfolio and Sustainable Portfolio.

Megatrends are long-term, overarching changes in the economy and society. According to the common definitions, megatrends have the following important characteristics:

• Duration – half-life of at least 50 years
• Ubiquity – affects all areas of life
• Globality – worldwide phenomena
• Complexity – multi-layered and multi-dimensional

Based on our analysis, there is broad consensus among futures and opinion research institutes, auditing firms as well as governmental and non-governmental institutions on the following six megatrends:

• Urbanisation
• Sustainability
• Demographic change
• Individualisation
• Globalisation
• Connectivity

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The Megatrends portfolio is a new asset management strategy from quirion. It invests in themes that are expected to benefit from identified megatrends over the medium to long term. The precise allocation of the individual themes is determined by the quirion investment committee.