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The AMC is linked to a reference portfolio strategy which is managed by Investcorp-Tages. The reference portfolio strategy aims to provide investors with protection during periods of market stress through a dedicated tail risk strategy.

This strategic move underscores Investcorp-Tages' commitment to delivering innovative investment solutions to investors. Investcorp-Tages is active across the hedge fund spectrum, including internally managed strategies, external hedge fund investments and hedge fund seeding.

Since 2018, Investcorp-Tages has managed a defensive tail hedging strategy primarily for institutional clients. The reference portfolio is constructed to deliver asymmetric returns during sharp equity drawdowns, combining three core components:

• Long exposure to VIX futures, aimed at creating direct volatility upside during periods of market dislocation.

• Put delta replication on the S&P 500 and EuroStoxx 50, intended to simulate the behaviour of long-dated out-of-the-money puts while maintaining cost efficiency and dynamic adaptability.

• Tactical rebalancing and risk management aimed at optimizing carry while preserving convexity in times of crisis.

The launch of this AMC reflects growing institutional demand for systematic downside protection and portfolio hedging solutions that are both cost-conscious and responsive to today's volatile macroeconomic backdrop.

Salvatore Cordaro, co-CEO of Investcorp-Tages said: "This launch represents a significant step forward in our offerings to provide investors with an innovative solution that is both flexible and responsive to market dynamics. The actively managed certificate is designed to be a resilience-building addition to portfolio allocations, helping investors better manage risk in uncertain times."

Structured by UBS as an Actively Managed Certificate, and subject to issuer risks, the solution offers investors the transparency, liquidity, and operational simplicity of a structured product while benefiting from institutional-grade active portfolio management.

Berouz Fatemi, CIO of the Investcorp-Tages Paladin strategy said "In today's environment of elevated geopolitical risk, persistent inflation uncertainty, and shifting monetary policy, traditional portfolios are increasingly vulnerable to tail events. Our new tail risk strategy is designed to serve as a dynamic hedge, helping investors preserve capital and reduce drawdowns during extreme market corrections."

James Medeiros, President of Investcorp-Tages, said: "We are delighted to launch the AMC and support the growth of our quantitative investment strategies business. This product is unique in its ability to combine the transparency and flexibility of certificates with active portfolio management, providing a tailored solution that address the real challenges faced by investors today."