EQUITY & FIXED INCOME FUND - May '25

The Equity & Fixed Income Fund began its operations in September 2023, initially focusing on U.S. stock and bond markets. As of October 2024, the fund expanded its geographical focus to include other developed markets, enhancing its flexibility and diversification strategy. The fund follows an active management approach, with a primary goal of generating steady returns through value investing in developed markets. By investing in a mix of equities, fixed-income assets, and cash, the fund aims to balance risk and reward while ensuring steady capital appreciation.

The fund targets a 75:20:5 allocation between equity, fixed-income assets, and cash, striving to maximize returns while ensuring stability through interest-bearing securities. Its performance is benchmarked against the Vanguard LifeStrategy® 80% Equity UCITS ETF - (EUR) Accumulating (VNGA80), with a focus on outperforming this benchmark over time. The fund’s investments are concentrated in developed markets, particularly the U.S., Europe, and Japan, while maintaining flexibility to invest in emerging markets when opportunities align with the fund's risk-return profile. An ESG-based selection criterion is applied, with companies required to have a minimum "Long-term company ESG Score" of 55 to ensure alignment with sustainability standards.

Since its inception in September 2023, the fund has shown strong performance, achieving a total growth of 21.16% as of October 2024, significantly outperforming the benchmark's 16.44% return. This performance has been driven by a diversified portfolio with notable positions in sectors such as Consumer Discretionary, Financials, and Information Technology. The fund's strategy of overweighting certain assets and making active stock-picking decisions has proven successful, with top performers like Crédit Agricole SA (+39.42%) and Intesa SanPaolo Spa (+19.76%) leading the way. Despite macroeconomic uncertainties, such as the impact of geopolitical tensions and global trade policies, the fund has maintained stability and resilience, reflecting the success of its risk management approach.