Kraft High Yield yielded a return of 2.49% in January and is up 12.35% over the past 12 months.

Kraft High Yield has had a strong start to the year, despite a still demanding and unpredictable macroeconomic and geopolitical backdrop. The market has been characterized by increased volatility, but at the same time good risk appetite and satisfactory liquidity in the high-yield segment. Credit spreads have largely remained stable, despite historically tight levels.

In absolute terms, the return potential continues to be attractive, supported by high base rates and solid ongoing coupons. Activity in both the primary and secondary markets has been good, but the fund has managed its capital in a disciplined and selective manner. We have mainly prioritized existing positions and refrained from participating in issues where the risk-adjusted return is not considered sufficiently attractive. During January, the fund increased its exposure to CPI Property Group and Ardagh Group, in addition to some minor adjustments to the portfolio.

The portfolio is composed with a clear focus on capital preservation, liquidity and correct pricing of credit risk. For 2026, the ambition is to remain selective and disciplined in an increasingly unpredictable capital market.

At the end of the month, the fund had a current interest rate of 7.52%* and an effective interest rate of 10.01%*.

*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