The Fund is actively managed and it invests primarily in a portfolio composed of bank deposits, money market instruments and debt securities denominated in EUR. The Fund may invest more than 35% of its assets in Greek Government Debt Securities and more than 50% of its assets in debt securities, money market instruments and bank deposits that bear Greek country risk. The investment portfolio of the Fund aims to a duration lower than three (3) years. The Fund is not allowed to invest in equity securities.

In the third quarter, bond markets traded in relatively narrow ranges with muted volatility. The steepening trend that appeared strong until May lost momentum, as investors awaited a clearer macro and policy direction. The ECB kept rates unchanged, noting that inflation had reached its target, while monitoring incoming data to assess growth and guide its policy stance.

The fund’s return for the quarter amounted to 0,97%. Τhe fund increased duration significantly, as we judged the steepening trend had likely peaked and identified value at the long end of the curve. Although bonds remained range-bound and price gains were limited, tighter credit spreads provided an important source of performance. Appetite for new issuance stayed strong, supported by demand from target-return funds, and we participated actively in the primary market, deploying inflows into selective opportunities.From a country allocation perspective, we maintained a cautious stance on France, where political uncertainty and social tensions are unlikely to improve fiscal dynamics. As a result, we added to our short exposure there. Our short in Italy was kept but reduced in relative terms, as inflows diluted its weight in the portfolio.