The fund posted a return of 0.24% in September and is up 2.39% so far this year.

Despite the fact that September was marked by geopolitical turmoil, Kraft Strategisk delivered a positive return. The Norwegian krone weakened against the USD during the month, which helped boost returns in an otherwise somewhat turbulent month. The fund has returned 2.39% so far this year.

Overall, the equity portfolio posted a slightly negative return for the month, measured in local currency. U.S. stocks were down about half a percent in September, while European stocks performed somewhat weaker and fell about two percent. The picture was nevertheless mixed. Technology stocks had another good month, and the Nasdaq 100 index rose by over three percent.

The fixed-income portfolio, like the market, was down for the month when measured in local currency. We also see this in the broad bond index, the S&P Global Developed Aggregate Ex-Coll Bond Index, which was down 2.56%.

The focus on interest rates in the financial markets continued throughout September, and both European and U.S. interest rates rose further—particularly long-term government bond yields. The market fears that rising inflation, driven in part by higher energy prices, could put pressure on central banks to keep interest rates higher for an extended period. At the same time, growing skepticism about certain countries’ ability to service their high levels of government debt has contributed to pushing up risk premiums on long-term government bonds.

For Norwegian investors, however, a weaker krone had a positive effect, particularly against the U.S. dollar and the Japanese yen. This helped boost returns and contributed to the fund, measured in Norwegian kroner, delivering a positive return in September.

Sincerely

Benedicte Johannessen