Kraft Corporate Bonds yielded a return of 2.27% in April and are up 13.55% over the past 12 months.

April was a month characterized by two distinct phases. The first half was constructive, with improved sentiment, falling credit spreads and good liquidity across the Nordic region and Europe. Towards the end of the month, however, the picture changed. Geopolitical unrest in the Middle East intensified, the Strait of Hormuz remained largely closed and Brent crude oil peaked at USD 113.5 per barrel at the end of the month. This triggered clear risk aversion in the secondary market and pushed credit spreads outwards again in the final phase of the month. Inflation in the eurozone rose to 3%, increasing uncertainty about the ECB’s future monetary policy.

The primary market in the Nordic region has seen relatively good activity throughout the month. Nevertheless, the market is now more selective, with a focus on the most creditworthy companies. This is a natural market reaction to geopolitical unrest. Investors are holding more cash than usual in response to the geopolitical turmoil and first quarter reporting.

The real estate portfolio remains the fund’s largest sector exposure and was a positive contributor to the month’s return. The fund acquired SoftBank and Stellantis, two solid companies that pay good current interest to the fund.

We maintain our selective approach with an emphasis on quality and liquidity, to optimize risk-adjusted returns and safeguard unitholders’ capital.

At the end of the month, the fund had a current interest rate of 9.62%* and an effective interest rate of 11.56%*.

*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