The Sub - Fund invests mainly in bonds and money market & derivative instruments implementing modern and high-equipped techniques in portfolio management. The fund benchmarks against the weighted average of the basic European Central Bank rate plus 250 basis points, while keeping its volatility at low level, close to 5% on an annual basis.

The fund’s return for the quarter amounted to 1,35%. US equities continued their upward momentum during the quarter, with AI-related stocks firmly in the spotlight as investors remained enthusiastic about the sector’s long-term growth potential. European equities, by contrast, traded largely within a range, reflecting lingering uncertainty around growth prospects and monetary policy. Greek equities extended their rally into August, supported by resilient earnings and improving sentiment, before pausing towards the end of September. In fixed income, the steepening trend that had dominated earlier in the year lost momentum, with core bonds holding relatively stable. Credit markets, however, performed strongly, supported by ongoing investor demand and tightening spreads.

The fund’s performance was underpinned by three main factors: strong contributions from AI-related positions, a significant allocation to Greek equities, and further gains from credit exposure. Our long EUR versus USD position had little impact, as the exchange rate moved in a narrow band throughout the quarter. In portfolio management, we remained active in the primary market, selectively adding new issues to capture additional carry and yield opportunities. We also extended the fund’s duration by increasing exposure at the long end, reflecting our view that the steepening trend had largely run its course. At the same time, we initiated a short position in France, seeking to benefit from growing concerns over fiscal sustainability and the potential implications for spreads. Looking ahead, we remain constructive on credit, given continued demand and healthy issuance dynamics, though we acknowledge that valuations have tightened. Equity markets, particularly in Greece, still present attractive opportunities, but we are mindful of potential volatility as markets digest the trajectory of monetary policy and geopolitical risks. We will continue to manage duration dynamically, while keeping a selective approach in both primary and secondary markets to sustain performance going into the next quarter.