Outlook 2026

Hi everyone.

>> I called this meeting so we can discuss >> our outlook for 2026 >> and where we see opportunities.

>> Let's tackle the bubble trouble first.

There's a lot of concern about equity valuations being inflated and comparisons are being drawn with a.com bubble of 99,000.

>> In private markets, we see some cyclical decoupling from listed markets uh following the slowdown in fundraising, investment uh and exit activity and that

leads to attractive entry valuations and yield potential.

>> So let's talk about our options.

>> So let's talk about our options.

>> So we agreed that we think it's best to stay invested but with some caveats.

It's true equity valuations are expensive and some investors might want to bank some profit but we need to understand that sitting on our hands is not costless over time we need to outrun inflation to preserve the value of our

assets and it's all in the timing. We

could be waiting quite a long time for that correction and for the golden buying opportunity.

>> So what indicator are you watching such that we are still positive on equities.

But as we said before, the bond market is the canary in the coal mine, right?

Yields are under control because inflation is under control and central banks are actually cutting rates. So

while the bond market is stable, I think we can remain positive on equities and overall we still see low risk of US recession.

>> For private market investments, holding periods are longer, so we need to prepared for any scenario. Long-term

cycles are relevant in private markets.

We are now in the fourth year of a slowdown. That's longer than past

slowdown. That's longer than past slowdowns and it indicates that we are an interesting point in the cycle. We

like segments with balanced capital supply, defensive fundamentals and the less correlated opportunities.

>> So what are we doing to manage risk?

Well, at portfolio level, we continue to balance our long equity exposure with a long position in gold because it's a great hedge against rising government debt levels and the potential risk of inflation as we move through 2026. We

have very high level of stock specific risks because the indices have got so concentrated and here I'm concerned that to the extent that passive investors are exposed to the market they're actually ending up with very high level of

specific risk that maybe they don't understand and we need to manage that stock by stock.

>> Selectivity is key. Every new private market investment we test against different scenarios and diversification is also important within each asset class but also across private markets.

Where are you seeing opportunities then?

>> So actually we continue to see value in emerging market debt and then I think on the empty side everyone always goes on about the magnificent 7 but in reality Trump's policies in some senses have

created more businessfriendly uh policies outside the United States.

We've seen technological innovation coming out of China, a much more progrowth agenda in Europe and major shifts in corporate governance in various Asian countries. So I think in general actually geographical

diversification is a big opportunity both in bond markets and equity markets.

It's not just about the US. Remember

as active investors we don't have the luxury of talking in vague terms about risks on the horizon. We have to take a view.

>> In private equity we see attractive opportunities in small and mid buyouts, early stage venture capital and continuation investments. In private

continuation investments. In private debt, we like uncorrelated assetbacked and opportunistic strategies. In

infrastructure, we focus on renewable energy, especially in Europe and Asia.

And in real estate, we see a broad set of opportunities following the significant correction and early signs of a recovery.

>> For 2026, we see contained bond yields and strong earnings momentum.

>> Crucially, our investment processes are designed to recognize quickly when our views change or when we've got it wrong so that we may adapt our strategy. Look,

the waters are getting choppier, but we still see ways of navigating them to get to our destination. It's too soon to seek shelter from the storm.

Does anybody have any other questions?

>> Can you hear me?

>> Nothing from me.

>> Okay. Uh, thanks everybody.

>> Thanks a lot. And let's close the meeting. Thank you.

meeting. Thank you.

>> Okay.