Postbank

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.

Credit spreads steadily tightened throughout most of the quarter before widening slightly toward the end of December. Credit performance was the primary driver of the fund's success, with our strategic allocation to short-term T2s, FRNs, and positions in Central and Eastern European issuers—mainly banks—delivering strong results.Government bond prices exhibited notable volatility during the quarter. After declining in October, prices spiked in November before returning to their initial levels by year-end. The steepening trend persisted, presenting opportunities for active portfolio adjustments.

The fund achieved a return of 1.98% for the last quarter of the year. We capitalized on the November price spike by selling all positions in long-dated GGBs (34s and 54s) and some longer-dated credit holdings. As prices fell to more attractive levels in late December, we increased our allocations to five- and ten-year German bonds. Simultaneously, we reduced our short position in thirty-year German bonds, locking in partial profits from our steepening trade.Additionally, we continue to hold short positions in France versus Germany, reflecting concerns about fiscal imbalances in France. We also maintain a short position in Italy, as Italy’s spread has been strongly correlated with Greece's, providing a natural hedge for our exposure to Greek spreads.