Our asset allocation stance remains moderately constructive, consistent with a policy-supported expansion and broadening earnings backdrop. The macro environment continues to favor carry and selective risk-taking, and we take a slightly more active step into risk this month. Funding is rebalanced away from DM bonds and cash, while maintaining a disciplined implementation within a still moderately pro-risk framework.

In fixed income, we reinforce our preference for carry, increasing exposure to emerging market debt while reducing allocations to developed market bonds. Credit remains supported by solid fundamentals, stable technical and attractive carry, and continues to play a central role in portfolio construction. Sovereign exposure in developed markets is trimmed at the margin, consistent with stable yields and a reduced need for defensive duration. Overall, fixed income positioning remains focused on income generation rather than directional duration bets.

In equities, we increase exposure to Emerging Markets, reflecting improving relative momentum, more attractive valuations and a supportive global growth environment. Developed market equity exposure remains stable, preserving a pro-cyclical tilt aligned with the expansionary base case. The equity allocation remains a key driver of growth within the portfolio, complemented by carry-oriented exposures elsewhere.

In FX, we make no changes this month, maintaining existing positions as relative value signals remain stable. In commodities, we maintain an overweight in precious metals and industrial commodities. Within precious metals, we partially reduce the overweight and take profits following the recent rally in gold and silver. In contrast, we increase exposure to industrial metals, reflecting our more pro-cyclical growth outlook and improving demand dynamics.

_{^{This report has been prepared by Santander Asset Management (hereinafter “SAM”). SAM is the functional name of the asset management business conducted by the legal entity SAM Investment Holdings S.L. and its branches, subsidiaries and representative offices. This document contains economic forecasts and information gathered from several sources. The information contained in this document may have also been gathered from third parties. All these sources are believed to be reliable, although the accuracy, completeness or update of this information is not guaranteed, either implicitly or explicitly, and is subject to change without notice. Any opinions included in this document may not be considered as irrefutable and could differ or be, in any way, inconsistent or contrary to opinions expressed, either verbally or in writing, advices, or investment decisions taken by other areas of SAM. This report is not intended to be and should not be construed in relation to a specific investment objective. This report is published solely for informational purposes. This report does not constitute an investment advice, an offer or solicitation to purchase or sell assets, services, financial contracts or other type of contracts, or other investment products of any type (collectively, the “Financial Assets”), and should not be relied upon as the sole basis for evaluating or assessing Financial Assets. Likewise, the distribution of this report to a client, or to a third party, should not be regarded as a provision or an offer of investment advisory services. SAM makes no warranty in connection with any market forecasts or opinions, or with the Financial Assets mentioned in this report, including with regard to their current or future performance. The past or present performance of any markets or Financial Assets may not be an indicator of such markets or Financial Assets future performance. The Financial Assets described in this report may not be eligible for sale or distribution in certain jurisdictions or to certain categories or types of investors. Except as otherwise expressly provided for in the legal documents of a specific Financial Assets, the Investment Products are not, and will not be, insured or guaranteed by any governmental entity, including the Federal Deposit Insurance Corporation. They are not an obligation of, or guaranteed by, Santander, and may be subject to investment risks including, but not limited to, market and currency exchange risks, credit risk, issuer and counterparty risk, liquidity risk, and possible loss of the principal invested. In connection with the Financial Advisors, investors are recommended to consult their financial, legal, tax and other advisers as such investors deem necessary to determine whether the Financial Assets are suitable based on such investors particular circumstances and financial situation. Santander, their respective directors, officers, attorneys, employees or agents assume no liability of any type for any loss or damage relating to or arising out of the use or reliance of all or any part of this report. Past performance does not predict future returns. The returns may increase or decrease as a result of currency fluctuations relative to the respective investors’ domestic currency. Any reference to taxation should be understood as depending on the personal circumstances of each investor and which may change in the future. Costs incurred for purchasing, holding or selling Financial Assets may reduce returns and are not reflected in this report. This report may not be reproduced in whole or in part, or further distributed, published or referred to in any manner whatsoever to any person, nor may the information or opinions contained therein be referred to without, in each case, the prior written consent of SAM. Any third-party material (including logos, and trademarks), whether literary (articles/ studies/ reports, etc. or excerpts thereof) or artistic (photos/graphs/drawings, etc.), included in this report is registered in the name of its respective owner and only reproduced in accordance with honest industry and commercial practices.}}