The fund posted a return of -0.33% in July and is up 5.54% over the past 12 months.

Credit spreads narrowed marginally over the course of the month for Nordic investment-grade bonds.

Long-term government bond yields rose throughout the month, driven by increased inflation expectations resulting from the ongoing turmoil in the Middle East. The movement was widespread across the major markets, with rising 10-year yields in the U.S., Germany, Norway, and Sweden. However, Japan drew the most attention, where long-term yields reached their highest level in decades. The backdrop there is high government spending and public debt of around 200% of GDP, which, combined with persistent inflation, creates uncertainty about how much the central bank can actually tighten monetary policy.

The portfolio remained largely unchanged throughout July, and we made only a few minor adjustments to existing positions.

We will continue to exercise capital discipline and price risk appropriately.

As of the end of the month, the fund has a current yield of 6.21%* and an effective yield of 6.75%.*

*Before costs 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