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.

During the fourth quarter, European bond markets exhibited relative weakness as investors gradually priced in the conclusion of the easing cycle and began to anticipate a potential pivot toward rate increases. While the prospect of a steepening trend remained a central point of market debate, price action was mixed; October remained largely flat, and although some steepening emerged over the following two months, the 2-30 spread failed to reclaim its previous highs. This movement was initially driven by weakness in the 30-year sector, but the short end of the curve reacted sharply to hawkish commentary from the ECB’s Isabel Schnabel, who suggested that the next move in rates might be upward. This shift at the short end helped restore a degree of balance to the curve, even as the ECB kept rates unchanged and noted that while inflation had reached its target, policy would remain data-dependent to monitor growth.

The fund’s return for the quarter amounted to 0,17%.Against this backdrop, the fund performed well in October but subsequently faced pressure as bond markets weakened and the steepening trend resumed. Short positions in France and Italy detracted from performance as peripheral spreads tightened, supported by a series of credit upgrades and a sense that the fiscal situation in France had stabilized. Furthermore, credit spreads offered only limited protection, failing to fully mitigate the losses incurred from the broader market moves.From a country allocation perspective, we maintain a cautious stance on France, where persistent political uncertainty and social tensions are expected to weigh on fiscal dynamics. With the 2027 Presidential elections likely to become a source of market tension as early as the latter half of 2026, we have maintained our short exposure to French sovereign debt.