Dynamic Brands: The Investment Portfolio Filled with Key Blue Chip Brands We Have Strong Emotional Connections With.

The Focus is Important Secular Growth Themes Across a Diverse Group of Consumption Categories.

Brands Matter.

Third Party Validation on the Power of Investing in Brands:

Interbrand is the leading Brand Consultancy (Owned by Omnicom, a Top 5 Global Advertising Agency).

Ranking Brands Since 2000 and Highlighting, their Top 100 Global Brands vs the Major Stock Indices

Adding a Dedicated Allocation to Top Global Brands Adds Significant Diversification.

Why? They Generally Live in Sectors & Industries NOT Well Represented in Indices.

Adding Significantly More Exposure to Consumer Staples (Defensives) Can Add Even More Portfolio Value.

A High Tracking Error Approach: 55% of HSUTX in Top 10 Brands

Top 10 Brands and Their Weight Versus the S&P 500 & Large Cap Growth Indexes

Dynamic Brands YTD as of November 9, 2024

Why Might Leading Brands Be Superior Performers Over Time?

Answer: Household Consumption & Business Investment Drives Every Major Economy.

It’s a $50+ Trillion Opportunity for Investors.

Companies Operating in Enormous Markets Simply Have Better Growth Opportunities.

Investing in Mega Brands Has Never Been Easier via Dynamic Brands HSUTX

Holdings as of 11/19/24 (Listed by Size of Position)

Blue Chip, Mega Brands, Drive the Core of the Portfolio.

Currently 92% of the Total Holdings (Varies Over Time)

The Fund Invests in Key Consumption Industries via Brand Leaders

Innovator Brands & Emerging Consumption Categories

Dynamic Brands Historical Performance (Various Periods).

Our team took over HSUTX on 10/17/2017. Since 2017, we have experienced 3 stock market bear markets (down 20%+ in 2018 from peak, 2020 for early Covid, and 2022 with historic Fed tightening), multiple bouts of extreme volatility and uncertainty, a bout of 40+ year high inflation, rapidly rising and volatile interest rates, bank failures, and wars in Ukraine & Israel. That’s a lot of turmoil and uncertainty for markets to digest. From 2017 to the peak of the market in late 2021, the fund annualized at 23%, well above the normal average. In today’s “new normal” economic and rate regime, more normal equity returns should be expected and leading brands should continue to add value to a portfolio.

Bull Market Period: 10/17/2017 (Brands inception) to Market Peak, November 2021

Bear Market of 2022 - Rates/Inflation Rose at Historic Pace. Quality & Growth Stocks Were Sold.

Great Brands Performed Incredibly Well at the Fundamental Level - The Market Didn’t Care in 2022.

Our Team Took Advantage of the Weakness to Build Much Bigger Positions While On Sale.

Since the October 2022 Low to 11/9/2024: High Quality, Highly Relevant Brands Outperform

Dynamic Brands Looks Very Different than the Broad Market - By Design;

Making HSUTX a Great Compliment to SPY & the R1 Growth Index

FUN FACT: 25% of HSUTX Holdings aren’t in SPY or the R1 Growth Index.

Virtually EVERY Portfolio is UNDERWEIGHT Consumer Discretionary Stocks.

Why is that a Bad Idea?

On a Calendar Return Basis Since 1989, Consumer Discretionary Has the Best Beat Rate Versus All Sectors Versus the S&P 500

Consumption is Global so HSUTX has a Global Footprint

We Focus on Tracking “Lifetime Consumer Spending” Through the Brands that Dominate Our Lives.

Great Chart From Ritholtz Wealth Management & Ben Carlson Highlighting Aggregate Household Spending

Growth in Net Worth, Highly Correlated to Spending Capacity, Has Grown Across Income Cohorts

Current Consumption Exposures as of November 2024

Projected Upside to 12 Month Targets as of November 2024

Current Style Box Exposures as of November 2024

Average Weighted Market Cap vs the S&P 500

Sector Positioning as of November 2024:

Anchored to High Quality Style Factors Always