Risk profile: Medium
Management type: Flexible with VaR
Annual return target: 3-6% per annum*
Time horizon on the line: at least 2 years
Risk: average of the last 52 weekly VaR readings, maximum 6% with a time horizon of 1 month and 95% confidence interval

The line aims to consistently outperform the rate of return on risk-free financial instruments. The objective is pursued through the use of financial instruments known as ETFs (exchange-traded Funds), which are passively managed, highly diversified Funds that replicate the performance of specific asset classes, indices, or baskets of securities.

The portfolio consists of two components, one typically represented by very broad indices with the objective of obtaining a return in harmony with market performance (beta). The second component of the portfolio consists of more specialised investments designed to generate an additional return (alpha). These are ETFs that provide exposure to asset classes/themes/sectors/geographical areas deemed attractive in terms of risk/return profile on a strategic or tactical basis.

The selection of ETFs to be included in the portfolio is carried out following a "Top Down" approach starting with the analysis of macroeconomic in order to identify the most interesting asset classes, geographical areas, investment themes or sectors. This process is accompanied by an instrument-specific analysis in terms of costs (TER) and ability to replicate the benchmark index (tracking error) in order to identify the most efficient instrument.

The investment is carried out with a focus on quantitative monitoring of risk indicators. There are no restrictions on the composition of the portfolio in terms of asset class.

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