LU0273968288

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.

This Sub-Fund is suitable for investors with a medium term horizon, who are seeking capital appreciation and are prepared to accept a low residual risk to their capital with generally lower volatility than that of high duration bond or equity funds.

The second quarter of 2026 was characterized by elevated volatility across global financial markets as geopolitical tensions, shifting monetary policy expectations and rapid sector rotations created a challenging environment for investors. In fixed income markets, concerns over persistent inflation and higher energy prices led investors to price in additional ECB rate hikes before sentiment reversed following the easing of tensions in the Middle East.

The fund’s return for the quarter amounted to 2,40%.Within the portfolio, our equity allocation contributed positively despite the heightened volatility. Technology stocks experienced significant price swings as investor enthusiasm surrounding artificial intelligence continued to drive sharp rotations within the sector. Our equity positioning benefited from these developments and provided a positive contribution to overall performance. On the fixed income side, we maintained an above-average duration throughout the quarter, primarily through our sizeable position in 5-year German Bobl futures, while remaining active in both the secondary and primary bond markets. In addition to participating in several Greek corporate bond issues, we selectively invested in a number of attractive European primary market transactions, allowing us to enhance portfolio carry while maintaining a high-quality credit profile.Commodity exposures also played an important role during the quarter. Elevated oil prices supported performance for much of the period amid concerns over supply disruptions in the Middle East. However, as geopolitical tensions eased and oil prices retreated towards quarter-end, part of these gains were reversed, moderating the overall contribution from commodities.Following the strong rally in long-dated government bonds towards the end of the quarter, we reduced overall duration by initiating a short position in 30-year German Bund futures (BUXL). This positioning reflects our view that improving economic conditions in Europe could lead to a steeper yield curve, with long-term yields likely to normalize relative to intermediate maturities.The portfolio remains broadly diversified across asset classes, with an emphasis on active asset allocation and disciplined risk management to capitalize on opportunities while navigating an evolving macroeconomic environment.