The investment objective of the Sub-Fund is to invest its assets primarily in equity securities and other equivalent securities of companies admitted to an Official Listing or dealt in, on a Regulated Market in developed countries of Europe, USA and Asia.

In the third quarter, global equities gained, spurred—among other factors—by new stimulus measures in China. U.S. economic data pointed to some cooling, raising concerns about potential economic strain. Markets responded by pricing in substantial monetary easing, and in September, the Fed implemented a 50 basis-point cut, initiating its first rate reduction cycle in 14 months. Eurozone equities also advanced in Q3, with renewed interest driven by expectations of lower interest rates. The ECB held rates steady in July but cut by 25 basis points in September. Weak activity data indicated a slowdown, further fueling expectations.

Most developed markets realized gains in the third quarter of the year in local currency terms despite bouts of increased volatility. The Fund maintained a cautious level of total investment at the beginning of the third quarter which it gradually increased steadily over the quarter. Towards the end of the third quarter the Fund had increased its total investment level to a more neutral level. In the US, the Fund maintained a lower total investment level. Overall, US equities gained over the quarter, but performance was mixed across the various sectors. Not all sectors performed as well. Energy was an outlier as it posted negative returns. Moreover, there was a rotation towards sectors that had not performed well since the beginning of the year, such as utilities and real estate, while previous investor darling information technology sector lagged. Shifting expectations regarding the path of US interest rates had a significant impact on investor sentiment and the subsequent divergent performance among the various sectors. The Fund maintained its larger exposure to the Energy sector which did not benefit the Fund’s performance. The Fund increased its exposure to certain segments within the Information Technology and Communication Services sectors. After the middle of the quarter, the Fund further increased its exposure to the US mainly by increasing its exposure to interest rate sensitive sectors. In Europe, the Fund maintained its overall exposure relatively stable and maintained a relatively cautious stance throughout the third quarter. The Fund reduced and eventually, towards the end of the quarter, sold out completely its position in a pharmaceutical stock that had been in the epicenter of fight against obesity. The Fund, also, liquidated its position in a budget airline after a surprise negative earnings announcement spurred a significant correction in the stock. The Fund completely sold out of its stake in a German bank after the surprise announcement that it could be an acquisition target by a rival Italian bank sparked a rally in its stock price. Lastly, towards the end of the quarter the Fund increased somewhat its exposure to luxury stocks to capitalize on the stimulus measures announced in China. In Japan, the Fund increased its exposure to the stock market after the middle of the third quarter. The third quarter was an exceptionally volatile one for the Japanese stock market which, in euro terms, managed to finish the quarter with gains. Nonetheless, these gains were due more to the appreciation of the yen versus the euro, as in local currency terms, the Japanese equity market realized substantial losses. The BoJ’s decision to raise interest rates for the first time in 17 years was a significant factor that contributed to the increased volatility. The Fund increased its total exposure to the Japanese stock market after the middle of the quarter. The Fund also increased its exposure to the Japanese financials sector, which is expected to benefit from the change in BoJ’s monetary policy.