August was a quiet month due to holidays in Europe, but a high level of activity is expected in the investment grade market throughout the autumn. The fund has participated in issues such as SEB, BBVA and Heimstaden Bostad. In addition, the fund has made some minor portfolio adjustments and realised some gains in Balder, Heimstaden and Arbejdernes Landsbank as a result of a strong property market.
The portfolio has achieved the desired breadth and diversification across different sectors. The focus going forward will be to maintain the effective interest rate, while increasing the interest rate duration.
The effective interest rate in Kraft Investment Grade (class A) is 7.12 % (before management costs). The effective interest rate may change from day to day and is therefore no guarantee of the return in the period for which it is calculated. The price-weighted coupon (interest coupon adjusted for the price of the bond) in Kraft Investment Grade is 6.16 % (before management costs).
