WE ADD BACK RISK ON STRONG EPS MOMENTUM

WE ADD BACK RISK ON STRONG EPS MOMENTUM Daniel von Ahlen / Robert Taylor / Sadeem Al Gaaod

MULTI ASSET Equities are well placed to outperform ASSET ALLOCATION We rotate back into DM equities by as global earnings revisions improve, capex estimates cutting our credit exposure. Within alternatives we rotate continue to rise and services PMIs rebound, while risk into industrial and precious metals by cutting exposure to sentiment remains short of excessive levels. CTAs and Energies. As a result, our 12m portfolio beta increases to 1.13 from 0.97. We upgrade Industrial Metals to positive: copper inventories are falling, backwardation is strengthening DM Equities and our supply-demand proxy points to a deficit, while EM Equities Chinese activity begins to recover. Global HY Corp. Global IG Corp. We upgrade Precious Metals to positive as US real yields could consolidate and both PBoC purchases EM Sov. Credit

and Western ETF demand strengthen. EM Local Ccy Debt DM Govvies Alternatives Cash

(15%) (10%) (5%) - 5% 10% U/W → O/W Percentage Points, Diff

Dotted Lines = Previous Allocation

DM Equities asset allocation EM Equities asset allocation Japan Spain Mexico

Italy Brazil France India Germany Taiwan UK South Korea US China (4%) (2%) - 2% 4% U/W → O/W Percentage Points, (3%) (2%) (1%) - 1% 2% 3% 4% Diff U/W → O/W Percentage Points, Diff Alternatives asset allocation 12m rolling model portfolio beta vs benchmark

(3%) (2%) (1%) - 1% 2% 3% 4% U/W → O/W Percentage Points, Diff

ASSET ALLOCATION 3 to 6-month view. Previous ratings in brackets. Monetary policy outlook changes in bold. Rationale on next page.

Equities Govt Bonds FX vs. USD Monetary policy Developed Markets US +1 (0) 0 (-1) First hike in September, four more next year (one each quarter) UK +1 (0) +1 0 No hikes this year, cuts next year Japan +1 (0) 0 0 Hawkish, next hikes in Sep and Jan Australia 0 (-1) One more hike likely this year Canada 0 (-1) BoC likely to stay on hold this year Switzerland 0 (-1) Return to NIRP unlikely Euro Area 0 (-1) One more “recalibration” hike likely in September Germany +1 (0) 0 France +1 (0) 0 Italy +1 0 Spain +1 0 Emerging Markets China +1 (0) 0 +1 RMB management, easing bias India 0 +1 -1 Rates on hold but inflation risks loom Brazil 0 +2 +1 (0) Rates cut to 13% by yearend Mexico +1 (0) +1 +1 (-1) Easing cycle paused but not over South Korea 0 0 Two hikes in H2/2026 Taiwan +1 0 Neutral – FX management

Alternative Assets Credit Energy Commodities 0 Global HY Corp. +1 Industrial Metals +1 (0) Global IG Corp. 0 Precious Metals +1 (0) EM Sovereign 0 Managed Futures +1

Key to recommendations +2 = strongly positive +1 = positive 0 = neutral -1 = negative -2 = strongly negative

Recommendations based on expectations of normalized local-currency total returns. FX returns include carry. Model portfolio available here.

Asset Allocation | July 2026 2