Risk profile: Low
Management type: Flexible with VaR
Annual return target: 2-3% per annum*
Time horizon on the line: at least 2 years
Risk: average of the last 52 weekly VaR readings, maximum 3% with a time horizon of 1 month and 95% confidence interval

The management line aims to achieve a positive absolute return over a predefined time horizon and to outperform the rate of return of risk-free financial instruments, irrespective of Benchmark constraints and regardless of market movements; it also aims to limit any negative fluctuations in the portfolio.

In the portfolio choices, fundamental analysis and asset allocation criteria are used with the aim of building portfolios with the best expected return and risk characteristics, and with a high degree of diversification; more medium- and long-term strategic asset allocation choices are often flanked by more tactical positions.
Financial instruments such as ETFs, UCITS, bonds and shares are used in the portfolio.
The differentiated use of active and passive Funds is based on the following criteria:
actively managed Funds are chosen by selecting the best instruments per category, taking into account their management strategy, past performance, volatility, maximum losses, recovery time, all relative to different time horizons.
Passively managed and highly diversified Funds, i.e. ETFs, are mainly used to hedge traditional bond and equity asset classes.
With regard to the limited part of the portfolio dedicated to equity investments, a top-down fundamental analysis process is carried out in order to identify the most interesting investment themes, sectors or geographical areas, in which specific ETFs can be invested. Very rarely and with limited weights, individual stocks can also be included in portfolios, identifying companies with the best growth prospects in the medium term, solid balance sheets, good margins and both relative and absolute valuations, such as to allow the stock to appreciate over time.
Part of the portfolios may be invested in foreign currencies.

*The annual return targets of the investment lines are only forecasts and are not to be interpreted as minimum returns and/or guaranteed returns.