Choice of equity benchmark (see below)

At the end of 2025, the United States accounted for more than 64% of the MSCI World All Countries Index (MSCI ACWI), while the country accounted for 26% of global gross domestic product. Emerging countries accounted for only 11% of the MSCI ACWI, even though they contributed 41% to global GDP. This anomaly should be corrected as the financial markets in these countries develop.

The US stock market is dominated by tech giants. At the end of 2025, the magnificent seven (Nvidia, Microsoft, Apple, Amazon, Alphabet, Tesla, and Meta) accounted for nearly 35% of the S&P 500 and nearly 22% of the global index. This is a concentration risk that should not be overlooked, despite the merits of these stocks.

Europe accounted for 15% of the global index and 18% of GDP. Within Europe, eurozone equities accounted for around half of the 15%, or +/- 7.5%. This is the weighting of the euro in the MSCI ACWI, which shows how significant the currency risk of this index is relative to the euro.

To take all these factors into account, our strategic equity allocation is based on 50% of the weightings of the regions in the MSCI ACWI and 50% in global GDP, with a bias of 2.5x the weighting of the (small) eurozone.