LU0385660161

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.

The Sub-Fund is suitable for investors with short & medium term horizon who seek to combine returns above money market rates, low volatility and immediate liquidity.

The second quarter of 2026 was characterized by heightened volatility in European fixed income markets, as geopolitical developments dominated investor sentiment. The ongoing conflict in the Middle East remained the primary driver of market movements, with sharp fluctuations in oil prices leading investors to repeatedly reassess the inflation outlook and the expected path of ECB monetary policy. At various points during the quarter, markets priced in as many as three additional ECB rate hikes before the ECB ultimately raised rates in June.

Against this backdrop, we actively managed the portfolio’s duration and sovereign exposures while maintaining the constructive duration stance established towards the end of the first quarter through our long position in 5-year German futures. We remained convinced that a resolution to the geopolitical crisis would ultimately be found and that the ECB would not need to tighten monetary policy to the extent implied by market pricing. As a result, we maintained the portfolio's duration at the maximum level permitted by the fund's investment guidelines (3 years). We also remained active in the primary bond market, reinvesting proceeds from called and maturing securities into selected new issues offering attractive relative value. This enabled us to preserve the portfolio's carry while further enhancing diversification across issuers and sectors. Towards the end of the quarter, the cessation of hostilities and growing optimism over a durable peace agreement led to a sharp decline in oil prices, which returned to pre-crisis levels. As inflation concerns receded, European government bond markets rallied strongly. We took advantage of this move to selectively realize gains and initiated a short position in the 30-year German Bund future (BUXL), reflecting our view that improving economic conditions in Europe could lead to a steeper yield curve, with longer-dated government bonds likely to underperform intermediate maturities._x000B_ The portfolio remains focused on generating attractive risk-adjusted returns through active duration management, disciplined issuer selection and selective participation in primary market opportunities.