Quarterly Report – September 2018

Author: 3K Investment Partners

During the 3rd quarter of 2018 the fund produced performance of We keep carrying a large cash position (approximately 14%) searching +1,68%, while its benchmark the General Total Return Index for opportunities to put our money to work. lost ‐8,56%. Half of our 40 positions, contributed positively in the portfolio. As far as our companies are concerned, Iktinos Marbles is our largest position. We note that 90% of its revenues are coming from exports. Our approach is based on the fundamentals of the companies. Hence, Despite the astonishing appreciation of its price, we believe that it we apply bottom‐up approach. Currently the average forecasted P/E still trades at attractive multiples (P/E<10 with expected increase in multiple is 10, based on the 2018 earnings. We believe that it is not a profitability in 2018 that exceeds 50%). demanding P/E, especially taking into account that the average increase in profitability for the companies that we held in the Our 2nd largest holding is Terna Energy, a producer portfolio exceeds 20%. active in , USA and Poland. This is another example of a growth company that trades at very attractive P/E multiples. In Iktinos Marbles was the security that contributed the most in fund’s addition to that, its free cash flow is strengthening and plans to performances du ring the quarter, followed by Terna Energy and return capital to shareholders twice within the current year. Motor Oil. We are searching for attractive opportunities with in all the spectrum 2 out of 4 of the worst contributors were banks (Eurobank and Alpha of Greek listed stocks. Bank). Greek Banks retreated a lot, due to speculation that an acceleration of NPL reduction could trim their capital. Currently, we hold only 2,3% of the portfolio in Eurobank, the only Greek bank in the fund’s portfolio.

Performances

Cumulative Performance Annual Performance

35 60 35 15 10 -15 -5 1Y 3Y 2016 2017

EUR 1Y 3Y 5Y EUR 2016 2017 Fund 15,24 60,61 - Fund 8,55 29,64 Benchmark -6,32 12,44 - Benchmark 4,52 27,05

Fund 100 % ASE (TR)

Mutual fund's Net Price evolution versus Benchmark

170

150

130

110

90

70

50

UCITS DO NOT HAVE GUARANTEED PERFORMANCE AND PAST RETURNS DO NOT ENSURE FUTURE ONES Quarterly Report – September 2018

Distribution by capitalization size Weight of the main holdings

< 50mln (13 companies) 12,79% Top 5 holdings 31,00% 100mln > 50mln (5 companies) 4,64%

500mln > 100mln (10 companies) 30,10% op 10 holdings 47,73%

1bn > 500mln (5 companies) 15,55% p 20 holdings 71,48% ≥ 1bn (6 companies) 22,67%

0,00% 10,00% 20,00% 30,00% 40,00% 0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 80,00%

Distribution of holding by sector Indicators

Fund: 16,20% Technology 1,50% 1‐year volatility Benchmark: 18,83% Real Estate 2,92% Retail 3,08% Number of lines 40 Banks 3,24% Average cap. of equities 475mln Chemicals 4,43% Median cap. of equities 140mln Insurance 5,35% Food & Beverages 6,52% Travel & Leisure 6,63% Basic Resources 7,14% Industrial Goods & Services 8,00% Oil & Gas 9,95% Utilities 10,38% Personal & Household goods 14,52% Construction and Materials 16,34% 0,00% 5,00% 10,00% 15,00% 20,00%

Main holdings Main contributions to performance in absolute terms

Name Sector Country Net asset % Name Contrib. Name Contrib. Iktinos Hellas Construction & Materials Greece 9,01% Iktinos Hellas 2,63% Eurobank SA ‐0,78%

Terna Energy SA Utilities Greece 6,42% Terna Energy 1,63% Jumbo SA ‐0,50% Jumbo SA Personal and household goods Greece 6,10% Motor Oil 1,16% Autohellas SA ‐0,23% Motor Oil SA Oil and Gas Greece 5,05% Flexopack SA 0,59% SA ‐0,23% Mytilineos Mining Greece 4,42% AS Company SA 0,49% Fourlis SA ‐0,22%

Main Characteristics Legal Form UCITS / Greek Mutual Fund Launch Date 26/5/2015

Unit Class Retail Recommended Investement Period Over 5 years ISIN Code GRF000135001 Custodian Bank of Piraeus Bloomberg Code 3KGKVDE GA Maximum Subscription Fee 2% Benchmark 100% ASE (TR) Exit Fee 0%, 3% for redemptions over 100.000 Eur NAV/AuM 8,01 € / 3,56 M € Management Fee 2% Unit NAV period Daily based on prices on market close Performance Fee 20% per annum on the potential positive difference between the performance of UCITS and the performance of the benchmark. In case unit price underperforms in relation to the performance of the benchmark for one or more years, the performance fee calculation will begin only after the accumulated underperformance is previously eliminated.

UCITS DO NOT HAVE GUARANTEED PERFORMANCE AND PAST RETURNS DO NOT ENSURE FUTURE ONES Quarterly Report – September 2018

Disclaimer

The elements contained in this document have been prepared solely for informational purposes. Under no circumstances should this document be considered as an investment advice or an offer ‐ incitement for investing in mutual funds managed by 3K Investment Partners M.F.M.C. For the disposal of units of UCITS in Greece, the provisions of Law 4099/2012 and the decisions of the Capital Market Commission, which have been delegated by virtue of this law, are in force and are applied. Investments may be suitable for professional or private investors only upon personal investment advice from a professional who has signed a written agreement with the investor concerned. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, expressed or implied, is given, regarding the accuracy, correctness and adequacy of the contents of this document.

Any information contained in this document is subject to change or update without notice. Neither 3K Investment Partners M.F.M.C., nor any of its officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and judgements of any kind expressed herein. No direct or indirect liability or obligation is accepted for losses that may be incurred by readers / investors / prospective investors from the use of this document or basing any decision on it. Investments involve risks; while investments in UCITS do not offer guaranteed performance and any past returns do not secure future ones. Please note that the value of your investments may increase or decrease and that past returns are not indicative of future performance and are never considered as such. This presentation and information contained herein may not be copied, reproduced, distributed or passed to any person at any time without prior written consent of 3K Investment Partners M.F.M.C. Any claims arising out of or relating to the terms and conditions of the "disclaimer" are subject to the applicable law.

The prospectus and the Key Investor Information document of the Mutual Fund are available (free of charge) in Greek and in English in the offices of 3K Investment Partners M.F.M.C., 25‐29 Karneadou Str, 106 75, Athens, Greece and on the website: www.3kip.gr.

Copyright © 2017 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or 3K Investment Partners M.F.M.C.; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor 3K Investment Partners M.F.M.C. are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.

Management Company: 3K Investment Partners M.F.M.C. – Address: 25‐29 Karneadou Str, 10675 Athens‐ General Commercial Registry Number: 1003501000 ‐ Ministry of National Economy decision: 38476/ Β 1288/13‐09‐1990 Custodian: ‐ Supervising Authority: Hellenic Capital Market Commission

UCITS DO NOT HAVE GUARANTEED PERFORMANCE AND PAST RETURNS DO NOT ENSURE FUTURE ONES