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Investments in Storskogen, Stillfront, Nibe and Lakers Group

After a relatively strong reporting season and the gradual reopening from the pandemic, inflation and long-term interest rates remain in the spotlight, with the key issue being how persistent inflation will be.

The market is worried about this and there have been some daily losses this month, with tech stocks in particular taking a hit, but the concerns still seem manageable. This is supported by continued high activity and investor appetite for both IPOs and primary corporate bond transactions.

The Nordic credit market continues to do well, with strong company reports and relatively stable credit margins. The focus on green investments continues and we see that our 21-point list is helping to highlight these issues, even in the high-yield segment. Overall, we are beginning to see an increasing difference in pricing, with less environmentally conscious companies having to pay significantly more than their sustainability-focused competitors. The price difference is largely because the market has become better at identifying and pricing sustainability risks.

Activity has been high in the primary market and the fund has invested in Storskogen, Stillfront, Nibe and Lakers Group. Storskogen is an investment company with good diversification, ambitious sustainability goals, moderate debt and clear aims to carry out an IPO and obtain an investment grade rating. The latter provides an opportunity for a possible price increase of Storskogen, which we find attractive. Lakers is also an exciting company that works with servicing and sales of water pumps. Lakers is experiencing intense demand and sees great opportunities to streamline the infrastructure for pumps and thus reduce electricity consumption, which accounts for about 10 percent of total consumption globally.

Given continued uncertainty associated with the pandemic, we maintain our conservative approach with a balanced and diversified portfolio and a focus on liquidity. We continue to look to sustainable companies, which we are convinced will contribute to the long-term return.

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