May was a good month for the fund. There was significant activity in the primary markets, where new issues were well received by investors, resulting in attractive financing terms for issuers. Activity in the secondary market was somewhat lower, reflecting the high activity in the primary market. We are now in the period when companies’ first-quarter 2026 earnings are being released, and the figures have been satisfactory so far.
Norges Bank raised the interest rate by 25 basis points in response to higher inflation and the prospect of stronger wage growth than previously anticipated. The conflict in the Middle East continues to create uncertainty regarding the economic outlook.
Intrum AB was among the month’s positive contributors. The company announced a share issue of SEK 7.5 billion, of which SEK 5 billion will be used to reduce net debt. The news was well received in the bond market and boosted the prices of the fund’s holdings. The offering strengthens the balance sheet and gives the company greater flexibility going forward.
The fund increased its position in the German real estate company Grand City Properties, which focuses on rental apartments. Otherwise, we made internal portfolio adjustments during the month.
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.
As of the end of the month, the fund has a current yield of 8.17%* and an effective yield of 10.29%*
*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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