September was the first month since launch in which the market turned against credit in earnest. Long-dated government yields reached levels last seen two decades ago, high-yield spreads widened in both the US and Europe, and Swedish property credit sold off sharply. The fund returned +0.03% net (+0.11% gross), closed at a NAV per unit of 105.84 SEK, and has now returned +5.84% net since inception on 1 April - a sixth consecutive positive month.

On its own, a flat month is a modest figure. In context, it is the result the portfolio was built to deliver. Coupon income kept accruing, and because the book is overwhelmingly floating-rate, the rise in long-end yields had essentially no effect on our bond prices. Spread widening did reach the cash book, costing roughly 1% in mark-to-market, and that was offset by the hedging book. Real estate, the segment that fell hardest, makes up less than 5% of the portfolio. Many Swedish credit funds hold a quarter or more in property bonds, and for them double-digit falls in some of the sector's largest issuers showed up directly in returns. For us, the effect was negligible.

The fund holds a yield to maturity of approximately 11%, with a running yield in the region of 10%. Around 30% of assets sit in cash and very low-risk liquid instruments, the portfolio carries almost no interest-rate sensitivity, and the hedging programme remains in place. Holdings are spread across 53 issuers, the largest single position at 3.6% of the cash book. We built that liquidity over the summer by turning down tightly priced paper, at some cost in forgone carry, so that a month like September would find us able to buy rather than forced to sell.

With spreads moving wider, we are becoming somewhat more positive on credit and are looking to add some duration alongside the hedging book. We intend to deploy gradually, since widening of this kind tends to come in stages. Our focus is on new issues from established Nordic borrowers who now need to pay a real premium to refinance, secondary paper sold by funds that need liquidity rather than by holders worried about the credit, and floating-rate structures where higher base rates add directly to the yield. Real estate remains underweight. Lower prices are only an opportunity if the issuer's balance sheet can carry its debt at today's rates, so we will look at the sector one issuer at a time and will not rebuild the weight simply because prices have fallen.

‍

Always Opportunities is an absolute-return credit fund focused on the Nordic corporate bond market. The strategy is designed to preserve capital and generate returns across market cycles, ready to act as a buyer when uncertainty pushes prices below fair value. To keep returns anchored in credit selection rather than broader market direction, we systematically hedge what we do not need to take a view on: currency, interest rates, and market beta.

‍

The fund is structured as a Swedish AIF, regulated by Finansinspektionen, with monthly subscriptions. SRI risk classification: 3 out of 7.

‍

Our full September monthly report is available for download above

‍

Marketing communication. Past performance is no guarantee of future results. The value of an investment can rise and fall, and invested capital may not be recovered.

‍