COTwo Advisors Reports Decrease in NAV and Total Assets for Period Ending May 31, 2026

COtwo Advisors Physical European Carbon Allowance Trust reported its financial results for the period ending May 31, 2026, revealing a net asset value (NAV) per share of $18.40, a decrease from $19.20 at the end of the previous reporting period on November 30, 2025. The Trust's total assets were valued at $1.84 million, down from $1.92 million in the prior period. The Trust's investments in European Union Carbon Emission Allowances (EUAs) accounted for the majority of its assets, valued at $1.83 million, compared to $1.90 million previously. The Trust's cash and cash equivalents also decreased to $13,754 from $20,497.

In terms of operational performance, the Trust reported a net investment loss of $3,174 for the three months ended May 31, 2026, and a total loss of $6,723 for the six-month period. The Trust generated interest income of $137 for the quarter and $308 for the half-year, but these figures were overshadowed by the unrealized loss of $73,331 on its investments in EUAs during the six-month period. The net increase in net assets resulting from operations was $218,747 for the quarter, contrasting with a decrease of $80,054 for the six months.

The Trust has not engaged in any share creations or redemptions during the reported periods, maintaining a consistent share count of 100,000. The lack of trading activity reflects a cautious approach amid market volatility, particularly influenced by external factors such as geopolitical tensions and regulatory uncertainties surrounding the EU ETS framework. The Trust's management noted that the market for EUAs has been affected by various factors, including speculative trading and changes in weather patterns impacting energy demand.

Looking ahead, the Trust's management anticipates continued volatility in EUA prices, driven by ongoing geopolitical developments, economic conditions within the EU, and the upcoming legislative revisions to the EU ETS expected in Q3 2026. The management believes that these factors will significantly influence the Trust's operations and the performance of its shares. The Trust remains focused on its investment objective of reflecting the performance of EUAs while managing operational expenses, primarily through the Sponsor's management fee, which is set at 0.79% of the daily net asset value.