i.Avoid significant losses
Losses have consequences beyond a negative return: they lead investors into well-researched, suboptimal decisions. It is a recurring theme that investors sell at unfavourable moments in a crisis, miss the subsequent recovery, and burden their long-term returns.
ii.Keep the upside
Staying invested is indispensable for realising the long-term market premium. Reconciling this with elevated risk in times of crisis is a challenge for the industry — existing approaches often reduce upside participation. The QI Guard concept preserves participation.
iii.Use AI against losses
AI models can systematically combine a large number of data sources to identify stressed market conditions and help avert potential losses. AI offers new possibilities to capture complex, non-linear relationships — and with them, ways to manage the cost of protection systematically.
The QI Guard mechanism: deep learning, implemented with liquid derivatives.
QI Investment developed the QI Guard mechanism, which uses an in-house trained deep-learning model to predict phases of potential losses. Protection is then implemented through cost-efficient, liquid derivatives — integrating a large number of data sources known to have predictive value for market stress periods.
i.Deep-learning model
Our in-house trained deep-learning model processes multiple alternative data sources to identify early warning signals of market stress. This allows protection premiums to be saved in calm market phases, in order to hold stronger protection in a risky market environment.
ii.Implementation through liquid derivatives
Long-standing experience with derivative instruments has allowed us to develop strategies for hedging losses. The implementation balances the level of protection with the cost of carrying it.
iii.In the fund
Inside the QI Global Guarded Equity, the mechanism takes a concrete form: an annual base put per index, struck around 90%, complemented by quarterly signal-driven puts. Risk management, not a guarantee — details on the fund page.
iv.Academic collaboration
Our approach combines financial market theory with practical market experience and current technology. We work with universities and practitioners to bring AI into investment practice — particularly in avoiding emotionally driven investment decisions.
Behavioural finance, taken seriously.
Losses trigger chain reactions. For institutional investors they often mean heightened reporting obligations towards authorities and end-investors; private investors frequently make emotional selling decisions that harm long-term returns. Our research therefore concentrates on the behavioural and risk metrics that academic literature has identified as essential for long-term investment success.
i.Drawdown management
Historical studies suggest that limiting maximum drawdowns can significantly improve investor behaviour and long-term outcomes: large losses often go hand in hand with emotional decisions that weigh on performance.
ii.Upside participation
The importance of long-term investing is emphasised throughout modern financial theory. Academic studies show that missing the best market phases can significantly impair long-term returns.
iii.Risk-adjusted returns
Risk-adjusted return metrics are essential for judging a strategy. QI Investment examines how systematic approaches affect them — and how they can be improved over the long term.
The Equity Guard runs inside the QI Global Guarded Equity, a Luxembourg UCITS registered for distribution in Luxembourg, Germany and Austria.
See the mechanism in the fund — terms, register and documents.
QI Global Guarded Equity The Guard reduces risk, it does not eliminate itMarketing communication. No offer or investment advice; subscriptions only on the basis of the prospectus, PRIIPs KID and latest report. The Guard mechanism is a risk-management technique and no guarantee against losses; an investment involves risks, including the possible loss of capital. Artwork on this page is original and generated — not photographed.
Investment advice according to section 2 para. 2 no. 4 German Wertpapierinstitutsgesetz (WpIG) and investment brokerage according to section 2 para. 2 no. 3 WpIG shall be made on behalf of, in the name of, for the account and under the liability of the responsible legal entity BN & Partners Capital AG, Steinstraße 33, 50374 Erftstadt, according to section 3 para. 2 WpIG. BN & Partners Capital AG has a corresponding license from the German Federal Financial Supervisory Authority (BaFin) in accordance with section 15 WpIG for the prenamed financial services.