Narval Europa

HISTORIC class A FUND – Data as at close of business 06/30/2026. Source: Miraltabank.
From 23/12/2022: Change in Class A management fees (1.20%/9% success) and change in benchmark index to MSCI Europe.
From 02/11/2020: Class A data valid until 23/12/22 with management fee of 1.60%, and benchmark Stoxx600 TR.
Before 02/11/2020: Class A data valid until 02/11/20 with management fee of 1.10% and Stoxx600 TR benchmark”

June has been a turning point. The Federal Reserve and the ECB have simultaneously tightened their monetary policy, against a geopolitical backdrop that continues topull in both directions. Kevin Warsh debuted as Federal Reserve Chairman on June 17 with a hawkish message: he maintained rates in the 3.50-3.75% range but ruledout cuts for the remainder of the year, with a large part of the committee anticipating at least one additional hike. In Europe, the ECB had already toughened its stanceon June 11 with a first 25-basis-point rate hike since September 2023, bringing the deposit facility to 2.25% and anticipating another hike in July. On the geopolitical front, the June 28 Iranian missile strikes on bases in Kuwait and Bahrain have partially revived the risk premium, despite the Bürgenstock negotiations.

In this context,the Class A portfolio posted a return of -3.56% in June, compared to +3.02% for the benchmark index. We gradually reduced our exposure throughout the month downto 70% levels, with an average exposure of 80% and a beta of 0.81. In sector terms, we increased our weight in infrastructure and industrials, while reducing ourposition in metals and renewables. The main performance detractors were materials and metals, contrasting with the boost from financials, payment systems, andchips.