April started cautiously. Investors are holding higher cash balances in response to geopolitical uncertainty. Credit spreads narrowed in the first half of April, before reversing somewhat towards the end of the month.
The second half of April was characterized by more volatility. The Strait of Hormuz remained largely closed, with Brent peaking at USD 113.5 per barrel at the end of the month. New geopolitical turmoil left its mark on risk appetite and liquidity. However, the Nordic high yield market held up relatively well through the turmoil.
The fund is still well exposed to Real Estate and Financials, which are attractive sectors to be exposed to. We have recently reduced our exposure to Banking in favor of Industrials and Technology, where we believe the compensation for credit risk is more attractive at current levels.
We also increased our position in SES SA, a BBB-rated European satellite company with one of the world’s largest satellite fleets. The company provides connectivity to over 130 countries and more than 2 billion people. The company had revenues of EUR 3.5 billion in 2025 and has a customer base dominated by creditworthy counterparties.
We will continue to exercise capital discipline and price risk correctly. The portfolio consists of solid companies on attractive terms, and the current interest rate provides a good buffer against further market turbulence.
At the end of the month, the fund had a current interest rate of 8.53%* and an effective interest rate of 10.25%*.
*Forcosts 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
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