August was a good month for the fund. Activity picked up significantly toward the end of the month, with strong activity in the primary market contributing to falling credit spreads in both the Nordic region and Europe.
Geopolitical turmoil continues to shape the world. Oil prices fluctuated significantly throughout August, first falling on expectations of a resolution regarding the Strait of Hormuz, then rising again as the agreement fell through. At the same time, benchmark interest rates have risen across markets, creating opportunities. Volatility in commodity prices and a renewed focus on government debt servicing are keeping both interest rate and inflation risks elevated.
We will continue to exercise capital discipline and focus on companies that deliver results across business cycles, with steady cash flows and predictable debt service. So far this year, real estate and investment companies have contributed the most to returns.
During the month, we increased our position in Virgin Media. In addition, we have made some portfolio adjustments to our existing positions.
As of the end of the month, the fund has a current yield of 7.81%* and an effective yield of 11.18%.*
*Before costs related to management. Will be subject to change from day to day, and is therefore no guarantee of the return in the period for which it is calculated.
Sincerely
Øivind Thorstensen & Simen Aarsland Øgreid
A good risk-adjusted return for you as a customer and investor.
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