National Security Emerging Markets Index ETF · NASDAQ:NSI
National Security Emerging Markets Index ETF — Investor Presentation (January 2024)
29 slides from National Security Emerging Markets Index ETF's investor presentation, January 2024
Slide 1: National Security Emerging Markets Index ETF
waccas National Security Emersins Markets Index ETF Tike SI (NES
Slide 2: NSI Basics
NSI BASICS The Objective The National Security Emerging Markets Index ETF (the “Fund”) seeks to track the results, before fees and expenses, of the Alerian National Security Emerging Markets Index (the “Index”). The Fund is wholly owned by National Security Index and is 100% independent of Wall Stre
Slide 3: NSI Moral Code
NSI MORAL CODE The National Security Governance Investing Process was founded on a set of moral principles: © ap Always support American Never damage U.S. national Human rights are inherent to servicemembers by denying capital security for financial gain. national security. to foreign companies that
Slide 4: Investing Process modeled on U.S. Intelligence Cycle
INVESTING PROCESS US. intelli The National Security Governance Investing Process behind NSI is modeled on the U.S. Intelligence Cycle. Direction: Constitute/ Reconstitue Index Planning & Direction Professional Open Source Intelligence tools and methods Intelligence Community 4 Integration: Collectio
Slide 5: The NSG Filter
THE NSG FILTER a 7 VettaFi BASELINE | e a | EMERGING, Alerian is part of VettaFi, a leading index provider The National Security Governance process filters MARKETS | s P iene 9 2 | z ae ks INDEX with over $18 billion in assets under benchmark. out companies that test positive for one of nine a 4 inv
Slide 6: NSG Screens
NSG SCREENS Sanctions Company subject to U.S. Government sanctions, designations, or executive orders Company or affiliate is on Office of Foreign Asset Control list or other entity list Defense Contractor or Supplier Supplier of defense-related items/services to the People’s Liberation Army or Russ
Slide 7: Index Performance
"01 July ww, INDEX PERFORMANCE The underlying Index has outperformed leading EM benchmarks since inception. 2023 is the inception date of the index. NATIONALSECURITYINDEX.COM Index vs. Benchmarks (Total Returns) 9.00 7.00 5.00 3.00. 0.00 (01 July 2022 - 29 December 2023)* 14.45% 10.77% 9.41% Source:
Slide 8: Index Breakdown
INDEX BREAKDOWN Sector Allocation s+ ° 8 € 2 5 2 z o 8 2 =) s Holdings are subject to change and do not constitute a recommendation to buy or sell a particular WWW.NATIONALSECURITYINDEX.COM Top 10 Holdings Ticker CCernpany Name Country Weight 2330 ‘Taiwan Semiconductor Merfactring Co Ld Tainan am ‘0
Slide 9: Examples of Excluded Companies
Examples of Excluded Companies Wall Street’s largest emerging markets indexes include national security threats and human rights violators. NSI decided to take action.
Slide 10: AECC Aviation Power
©) © © NSI Company Report + Manufactures engines for Chinese military and civilian aircraft. + Identified as Communist Chinese Military Company Subsidiary by U.S. Government.(? + On Commerce Department Military End-User List, meaning the U.S. Government restricts sensitive exports to AECC Aviation P
Slide 11: AviChina
© © © NSI Company Report + Engaged in research, development, manufacture, and sale of military and civilian aviation products. + AviChina identified as a Communist Chinese Military Company Subsidiary by U.S. Government.” + Parent Aviation Industry Corporation of China (AVIC) is one of the world’s la
Slide 12: China CSSC Holdings Ltd.
CHINA CSSC HOLDINGS LTD. NSI Company Report + Key component of China's offensive naval buildup. + China CSSC Holdings owns and operates Jiangnan Shipyard, where China’s new aircraft carriers are built.” + Identified as Communist Chinese Military Company Subsidiary by U.S. Government. + Parent China
Slide 13: ZTE designated a national security threat
NSI Company Report + The Federal Communications Commission designated ZTE “a national security threat.”(? + FCC banned ZTE equipment and services to protect U.S. communications networks and supply chains from unacceptable national security risks.‘? + Identified as Communist Chinese Military Company
Slide 14: Subsidiary of China's main nuclear weapons builder
NSI Company Report + Subsidiary of China's main nuclear weapons builder. + Identified as Communist Chinese Military Company Subsidiary by U.S. Government? + Parent China National Nuclear Corporation (CNNC) oversees China’s expanding nuclear weapons program.) + CNNC is one of two major producers of n
Slide 15: CGN Power Co.
CGN POWER CO. © © O@®@ NSI Company Report + Key part of China's nuclear weapons complex. + U.S. Nuclear Regulatory Commission blocked CGN Power from accessing radioactive materials and deuterium, a hydrogen isotope used to boost nuclear weapons.'””) + Builds power plants to support China’s operation
Slide 16: Dongfeng Motor Group
NSI Company Report + Dongfeng Motor Group manufactures light tactical vehicles, truck-mounted artillery systems, protected support vehicles, and other armored platforms for the People’s Liberation Army. + Identified as Communist Chinese Military Company Subsidiary by U.S. Government.(? + Launched Do
Slide 17: Zhejiang Dahua Technology Co. Ltd.
ZHEJIANG DAHUA TECHNOLOGY CoO. LTD. © © ®& NSI Company Report + Surveillance technology company engaged in human rights violations. + Commerce Department added Dahua to Entity List for involvement in human rights violations and abuses in the implementation of China’s campaign of repression, mass arb
Slide 18: Daqo New Energy Corp.
QB NSI Company Report + Parent company of human rights abuser Xinjiang Daqo New Energy. + Department of Homeland Security added Xinjiang Daqo New Energy to Uyghur Forced Labor Prevention Act list of entities in Xinjiang region that use forced labor.'? + Commerce Department added Xinjiang Daqo New En
Slide 19: Hoshine Silicon Industry Co. Ltd.
HOSHINE SILICON INDUSTRY CO. LTD. NSI Company Report + Homeland Security Department added Hoshine to Uyghur Forced Labor Prevention Act Entity List.‘ + U.S, Customs and Border Protection (CBP) identified two indicators of forced labor in Hoshine’s production process: 1) intimidation and threats, and
Slide 20: Parent of Xinjiang GCL New Energy
NSI Company Report + Parent company of human rights violator Xinjiang GCL New Energy Materials Technology. + Department of Homeland Security added Xinjiang GCL to Uyghur Forced Labor Prevention Act Entity List.!? + U.S. Government's End-User Review Committee determined that Xinjiang GCL is participa
Slide 21: State-controlled company operating in disputed waters
NSI Company Report + State-controlled company with history of operating in disputed waters. + Identified as Communist Chinese Military Company Subsidiary by U.S. Government.” + Parent China National Offshore Oil Corporation (CNOOC) is a Chinese Military-Industrial Complex Company under Treasury Depa
Slide 22: NSG Investing May Mitigate Risk
NSG INVESTING MAY MITIGATE RISK Mitigate IDIOSYNCRATIC RISK in an investment portfolio by excluding companies that may be sanctioned or de-listed by the U.S. Government. Mitigate COMPLIANCE RISK by reducing the number of index constituents that refuse to follow Public Company Accounting Oversight Bo
Slide 23: NSI Management Team
stin Bernier ‘0 & Chief Investment Officer Investment Committee Chair Experience * AlUSource lfivestment Managemen¥ Co-Founder Morgan Stanley, Portfolio Manager and Alternative Investments. Director U.S. House Armed Services Committee Policy Staff, Military Legislative Assistant National Defense Uni
Slide 24: NSI Management Team
” NSI MANAGEMENT TEAM Chris Caron Government Affairs & Public Policy U.S. House of Representatives, Military Legislative Assistant, Legislative Director, Appropriations & Rules Associate Acorn Growth Companies, Strategic Partner U.S. Army 82nd Airborne Division, 505th Parachute Infantry Regiment Arm
Slide 25: About National Security Index
ABOUT NATIONAL SECURITY INDEX Our mission is to help American investors access foreign markets without compromising U.S. national security and human rights interests. We pioneered a National Security Governance (NSG) Investing Process to filter out bad actors - companies that put our troops and valu
Slide 26: Endnotes
wan Y8§ ENDNOTES AECC Aviation Power Co. Ltd. (600893-CN) 1. US. Department of State, “Communist Chinese Military Companies Listed Under &.0. 13959 Have More Than 1,100 Subsidiaries, https://2017-202 1 state.gov/communist-chinese-military-companies-listed-under-e-0-13959-have-more-than-1 100-subsidi
Slide 27: Endnotes
ENDNOTES Dongteng Motor Group Co., Ltd. (489-HK) 1. US. Department of State, “Communist Chinese Military Companies Listed Under €. https://2017-2021.state.gov/communist-chinese-military-companies-\'sted-under- index.html 2. OE Data Integration Network, U.S. Army Training and Doctrine Command, “Dongf
Slide 28: Important Risk Information
IMPORTANT RISK INFORMATION Investors should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus and summary prospectus contain this and other information about the Fund and should be read carefully before investing. The prospectus may be o
Slide 29: National Security Emerging Markets Index ETF
wa sca National Security Emersing Markets Index ETF “7 INDEX MCKER: NS! Uy
National Security Emerging Markets Index ETF — Investor Presentation (January 2024) on 6ix