Forte Bondasjon was up 0.27 per cent in September and is up 3.83 per cent so far this year.

September was a month with somewhat more movement in fixed income markets than we saw in August.

Norges Bank held its monetary policy meeting on 17 September, where the key policy rate was reduced from 4.25 to 4.00 per cent. This was a continuation of a round of easing that started in June, when the bank lowered the interest rate from 4.50 to 4.25 per cent, and thus marked another step towards a gradual normalisation of monetary policy.

Norges Bank emphasised that inflation is still above target and that the outlook is uncertain, while pointing out that growth in 2025 has been somewhat stronger than previously projected. The Bank emphasised that a cautious approach is still necessary, and that the new, but higher, policy rate path implies a gradual decline over time if economic developments are broadly in line with expectations.

In the interest rate markets, the decision led to minor adjustments in the yield curve. Short-term interest rates fell somewhat immediately after the meeting, while long-term interest rates rose somewhat. Credit spreads remained stable.

Forte Bond maintains a balanced distribution between fixed- and floating-rate bonds, which contributes to good robustness to different interest rate developments. The exposure to different credit segments is broad, which reduces the risk of individual events and makes the Fund well adapted to a market where future developments are still uncertain.

The Fund is well positioned to handle both a scenario in which interest rate cuts come sooner than expected and one in which inflation proves more resilient and keeps the policy rate high for longer.

Kind regards, Stein Svalestad