Postbank

The Sub-Fund aims to achieve a medium/long-term capital growth by providing a moderate, balanced investment exposure to various asset classes with a US focus including equities, bonds, property, commodities and cash. The Sub-Fund will invest its assets primarily in units of UCITS and/or other UCIs. Also the Sub-Fund may invest up to 50% of its net assets, directly in bank deposits and money market instruments. Selection of the underlying funds is based on a quantitative and qualitative analysis on a frequent ongoing basis in order to contribute positively in the funds' objective. Liquidities, financial derivative and structured financial instruments, securities lending and repurchase agreements may be used in order to reduce the impact of market changes or changes in currency exchange rates on Sub-Fund's performance.

The defining events of the fourth quarter were the US elections and the strength of the USD. The strength of the US economy combined with concerns about the inflationary implications of the incoming US administration’s agenda (trade tariffs, tax cuts) let to a rise in Treasury yields. US equities benefited from expectations for pro-growth policies and lower regulation. During the quarter ending 31/12, most major equity markets rallied in Euro terms. MSCI US gained the most with +10.42%, MSCI AC World gained +6.45%, MSCI Japan returned +3.67% and MSCI Europe -3.01% in Euro terms. In the bond markets, ICE BofAML US Broad Market gained +4.47%, ICE BofAML Global Broad Market gained +2.02% and ICE BofAML EUR Broad Index gained +0.07% in Euro terms. The Dollar appreciated against the Euro gaining +7.77% during the same period, with the ECB Ref. set at 1.0389 on 31/12.

(LF) Fund of Funds - Balanced Blend US had an average equity exposure of 49.66%, ranging between 48.5% and 50.9%. Average effective allocation in North American equities was 48.0%, 1.1% in Europe and 0.1% in Japan, while approximately 0.5% was the equity exposure in all other regions. The average exposure in bonds was 42.97%, ranging between 41.6% and 45.2% with an average effective duration of 5.1 years, while 7.4% was allocated in sovereign, and 35.6% in corporate bonds. During the period, the sub-fund had an average cash exposure of 7.36%.