iQ Global ETN

Introduction

The iQ Global Quality Companies ETN is a financial note listed on the Johannesburg Stock Exchange which allows easy access to leading global companies. This note is easily accessible to any investor looking for global investment exposure. By owning this actively managed exchange-traded note (ETN), you gain exposure to a well-diversified, portfolio without having to obtain tax clearance from the South African Reserve Bank (SARB).

iQ Global ETN Benefits

  • It is a cost-effective manner to gain exposure to 30 actively managed high-quality global companies;
  • The note is tax-efficient in that there is no CGT payable on any of the trading of the underlying instruments;
  • No foreign investment allowance required as it is locally listed;
  • Is a cost-effective way for local trusts to gain offshore exposure.
  • Can be purchased and sold via any stockbroking account;
  • Overcomes minimum investment amount hurdles;
  • The note is liquid; and
  • UBS provides a transparent price as a bid offer.
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Portfolio Construction

The iQ Global Quality Companies ETN comprises primarily of large multinational companies that demonstrate global leadership in their industry. These companies generally have steady growth rates, high returns on invested capital, dominate world market positions and strong balance sheets, reducing their financial risk.

  • Investment Universe: MSCI World Index
  • The ETN comprises of 30 companies, equally weighted and rebalanced quarterly, subject to maximum and minimum deviation thresholds.
  • The stock selection process focuses on a rules-based quantitative approach as the primary strategy.
  • Thereafter, a qualitative fundamental assessment of each company is carried out according to our quality investment framework before finalising a company’s inclusion into the ETN.
  • The top 30 ranking companies from the rules-based quantitative approach, successfully passing through the qualitative process are included in the ETN.

Top 10 Holdings

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