Growth Strategy Fund

The Growth Strategy Fund aims to achieve capital growth with a diversified portfolio of Funds and ETFs that invest in a broad range of assets, including bonds and stocks.

The Fund is actively managed and aims to build a diversified portfolio spread across several industries and sectors.

The Investment Manager of the CC High Income Bond Funds – EUR and USD has the duty to ensure that the underlying investments of the funds are well diversified. According to the prospectus, the investment manager has to abide by a number of investment restrictions to safeguard the value of the assets

September 2026

Introduction
In September, financial markets navigated an increasingly challenging macroeconomic environment, characterised by persistent inflationary pressures, rising sovereign bond yields and mounting disruptions to global trade. The U.S. economy remained relatively resilient, although employment growth showed signs of moderation, while elevated energy costs continued to complicate the inflation outlook. In Europe, economic activity proved more resilient than anticipated, but persistent energy-related price pressures reinforced expectations of restrictive monetary policy. The most significant development was the sharp increase in developed-market sovereign yields, reflecting a combination of persistent inflation concerns, substantial government borrowing requirements and expectations of higher interest rates for longer. Meanwhile, geopolitical tensions intensified around the Strait of Hormuz and Bab el-Mandeb, two critical arteries of international commerce. Disruptions to energy shipments and maritime trade routes increased transportation and insurance costs, exacerbating supply-chain pressures and raising the prospect of renewed trade frictions and imported inflation. These developments further complicated the outlook for global growth and monetary policy. Despite these headwinds, equity markets demonstrated selective resilience, however, the growing divergence between equity market optimism and increasingly restrictive bond-market conditions highlighted an important vulnerability. The approaching U.S. midterm elections and the upcoming earning season are the main factors influencing the market participants’ approach to markets. While market sentiment still tilts toward optimism, the lack of significant volatility in recent months should keep investors focused going forward.

On the monetary policy front, the Federal Reserve delivered a widely anticipated 25-basis-point rate increase, acknowledging that inflation remains elevated. Updated Federal Open Market Committee (“FOMC”) projections indicated that a majority of policymakers envisage the possibility of further tightening before year-end. Persistent energy price pressures remain a key concern, particularly given the risk of higher inflation expectations and broader second-round effects. Meanwhile, substantial investment in artificial intelligence infrastructure could add to inflationary pressures through increased demand for energy, equipment and capital. In Europe, the European Central Bank (“ECB”) also raised its deposit rate by 25 basis points, while maintaining a cautious outlook amid continued geopolitical uncertainty. President Lagarde highlighted the Eurozone economy’s greater-than-expected resilience but warned that elevated energy costs and persistent global trade tensions continue to pose risks to growth and price stability. Overall, the monetary policy outlook remains challenging, with prolonged geopolitical tensions and elevated energy prices delaying inflation’s return to the 2% target, reinforcing expectations that interest rates may remain higher for longer.

September marked another positive month for global equities, with technology continuing to lead market performance. However, the sharp increase in developed-market sovereign bond yields emerged as a significant concern, highlighting a growing divergence between equity market optimism and fixed-income expectations. While equities remained supported by resilient earnings prospects and confidence that the Federal Reserve would avoid a prolonged tightening cycle, rising bond yields reflected persistent inflation concerns and expectations of structurally higher interest rates. This divergence is particularly relevant given the substantial financing requirements of the artificial intelligence infrastructure investment cycle, which are adding to global capital demand alongside elevated fiscal deficits and record sovereign debt levels. The resulting competition for capital could increasingly challenge equity valuations, particularly across technology companies where elevated multiples depend on sustained earnings growth and relatively stable discount rates. A prolonged increase in government bond yields could therefore undermine market confidence even in the absence of a deterioration in corporate fundamentals. Whether bond markets ultimately trigger a broader equity market reassessment remains uncertain. Nevertheless, rising sovereign yields represent an increasingly important risk to the sustainability of the current rally, reinforcing the importance of valuation discipline, diversification and prudent portfolio positioning.

Market Environment and Performance
In the Euro area, business surveys reinforced the improving outlook, with the S&P Eurozone Composite Purchasing Managers’ Index (“PMI”) rising to 53.1 in September from 52.0 in August, reaching its highest level in nearly three and half years. The latest reading pointed to a solid acceleration in private-sector activity, with both manufacturing and services recording stronger growth as the third quarter ended. Consumer price inflation edged higher to 3.8% in September from 3.2% in the previous month, exceeding market expectations. The rate reached its highest level since September 2023, driven largely by a surge in energy prices amid continued hostilities in the Middle East.

In the U.S., forward-looking indicators remained encouraging. The S&P Global U.S. Composite PMI rose to 58.4 in September from 56 in the previous month, matching the strongest expansion in private sector business activity in more than five years. Growth accelerated across both manufacturing and services, pointing to broad-based strength in the U.S. economy.

September was another positive month for global equities, with gains led by technology and supported by sustained confidence in the artificial intelligence investment cycle. Resilient earnings expectations and continued hyperscaler capital expenditure commitments reinforced the sector’s growth outlook, while communication services also outperformed, benefiting particularly from Meta Platforms’ strong performance and improving monetisation prospects. Energy was another notable outperformer, supported by elevated oil prices and persistent geopolitical tensions. From a regional perspective, emerging markets and the United States led performance. Emerging market equities benefited from improving risk appetite, attractive relative valuations and supportive currency dynamics, alongside continued strength in technology-related industries. In the United States, the S&P 500 gained 1.99%, supported by its significant exposure to technology and communication services. European equities underperformed, reflecting weaker economic momentum, greater sensitivity to elevated energy costs and comparatively limited exposure to the structural growth themes driving global markets. The Euro Stoxx 50 declined 2.35%, while Germany’s DAX fell 4.03%, highlighting the region’s more challenging macroeconomic backdrop.

Fund Performance
Performance for the month of September proved negative, noting a 0.53% loss for the CC Growth Strategy Fund.

Market and Investment Outlook
Looking ahead, the Manager expects global economic growth to remain moderate, supported by the relative resilience of the U.S. economy, although persistently elevated energy prices and increasingly restrictive financial conditions continue to weigh on the outlook. Europe remains more vulnerable to these pressures, reflecting its greater sensitivity to energy costs and weaker underlying growth dynamics. Monetary policy has become increasingly hawkish on both sides of the Atlantic, while the sharp rise in sovereign bond yields has potentially created headwinds for economic activity and equity valuations. Political uncertainty surrounding the upcoming U.S. midterm elections represents a further source of potential volatility, particularly given the implications of a possible Democratic sweep for fiscal and regulatory policy. Meanwhile, the approaching corporate earnings season will provide an important test of whether earnings momentum can continue to justify elevated market valuations. Against this backdrop, the Manager maintains a cautiously constructive outlook for equities, supported by resilient corporate fundamentals but tempered by rising macroeconomic and political risks. Portfolio positioning remains selective and valuation-disciplined, favouring high-quality, cash-generative businesses with sustainable growth prospects, while retaining flexibility to capitalise on market dislocations offering attractive long-term risk-adjusted returns.