Europe’s Strategic Reset: Investing Beyond Borders, Benchmarks and Tradition

Euronext Strengthening Europe’s Capital Markets: Strategic Sectors, Climate Precision and Small-Cap Index Innovation • Investment in Strategic sectors in Europe, as a response to growing tensions with US and China. • Investment in climate strategy with approaches that go beyond PAB or CTB. This is now enabled thanks to new datapoints that measure the implied temperature rise. • Financing of smaller companies, supported by Euronext via the launch of the Euronext small caps index families. MarketVector Indexes Redefining International Indexing: From Country Labels to Economic Reality • Geopolitics, regulation, and shifting capital flows are eroding the usefulness of traditional country-based indexing, as recent geo-political developments show how political instability, sanctions, and regime risk can rapidly redefine investor exposure. Investors need exposure frameworks that reflect economic integration, regulatory regimes, and access constraints rather than where companies or assets are formally domiciled. • China illustrates why “how” exposure is structured now matters more than “where” it is listed, with Mainland China, Hong Kong, and Macau forming a single but complex economic ecosystem. • Emerging markets require greater nuance: Vietnam challenges frontier vs. emerging classifications, while revenue-based indexing helps distinguish domestic growth exposure from global macro and geopolitical risk. • Venezuela also highlights how frontier and emerging market shocks increasingly shape developed market outcomes, influencing energy prices, inflation paths, supply chains, and capital flows well beyond local markets. BNP Paribas Asset Management Innovating Fixed Income ETFs: Active Design, Thematic Precision and Risk-Aware Outcomes. • Innovation: Fixed Income space, thematic ETFs. • Active ETFs mixing a range of solutions, from systematic to fundamental approaches.