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BK Investment Grade 8
Quarterly Report | 30th June 2025
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The final NAV and distribution of the BK Investment Grade 8 (USD / EURO) as of 30 June 2025 is:
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EURO Class |
NAV 109.59%
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NAV 108.56%
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Distribution 1.50%
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Distribution 1.50%
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Payments for the Euro and Dollar class will be on July 30th 2025.
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As part of our ongoing efforts to enhance communication with investors, the Crystal Fund newsletter—previously distributed exclusively by email—is now also available in PDF format. You can access the latest edition here.
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BK Opportunities Fund-8 final net performances
as of 30th June 2025
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| Monthly1 |
+0.7% |
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Monthly1 |
+1.0% |
| Year-to-Date1 |
+4.3% |
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Year-to-Date1 |
+3.9% |
| Annual Return3 |
+11.8% |
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Annual Return3 |
+11.6% |
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11.5% |
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+21.1% |
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+20.1% |
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3 - Weighted average distribution of all classes.
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Fund and Market Performances as of 30th June 2025
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USD
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EUR
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Monthly Performances
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USD Performances
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EUR Performances
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Look through Fund's Statistics
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| Industry |
% of Portfolio |
| Healthcare & Pharmaceuticals |
11.9% |
| High Tech Industries |
9.5% |
| Services: Business |
9.4% |
| Banking, Finance, Insurance & Real Estate |
7.6% |
| Construction & Building |
5.6% |
| Chemicals, Plastics & Rubber |
5.2% |
| Telecommunications |
5.0% |
| Hotel, Gaming & Leisure |
4.9% |
| Services: Consumer |
3.9% |
| Capital Equipment |
3.8% |
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| Issuer |
% of Portfolio |
| Liberty Global |
1.4% |
| Ineos |
1.3% |
| Vmed O2 UK |
1.1% |
| Ion Platform |
0.8% |
| Altice NV |
0.7% |
| Lorca Jvco |
0.6% |
| 3I Group |
0.6% |
| Kantar Global |
0.6% |
| Asurion Group |
0.6% |
| IVC Acquisition |
0.5% |
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Market Commentary & Portfolio Overview
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The U.S. economy saw May 2025 inflation at 2.4%, moderating despite
a Q1 GDP contraction of -0.5%, partly due to tariffs. The Federal Reserve held rates at 4.25%-4.50% in June, maintaining a cautious, data-dependent stance, with potential cuts later, mindful of tariff-induced inflation.
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The Eurozone economy shows a gradual recovery; May 2025 inflation is 1.9% (below target), and Q1 GDP grew by 0.6%. The ECB proactively cut its Deposit Facility Rate to 2.0% in June, confident in inflation convergence and supporting growth.
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The Economy: Transatlantic Divide
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The U.S. economy, while showing some recent GDP contraction, maintains inflation levels slightly above target, prompting the Federal Reserve to remain cautious on rate cuts amidst tariff uncertainties. Conversely, the Eurozone is experiencing a more consistent, albeit modest, GDP recovery with inflation now at the ECB's target, allowing its central bank to begin easing monetary policy.
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Corporate Markets: Corporate Markets: Optimism
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The US and Eurozone stock markets are currently in a positive phase. In the US, major indices like the S&P 500, Dow Jones, and NASDAQ Composite are near highs, driven by strong corporate earnings and hopes for Federal Reserve rate cuts. Similarly, Eurozone equities, including the EURO STOXX 50, DAX, and CAC 40, show upward momentum, fueled by corporate optimism and fiscal support despite trade tensions.
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Corporate Loans: Growth
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The corporate leveraged loan markets in both the US and Eurozone are experiencing a notable resurgence. In the US, the leveraged loan market, which expanded by over 7% in the last 12 months to reach $1.5 trillion, is seeing significant activity driven by refinancing and repricing, with new issuances for mergers and acquisitions also contributing. These loans are primarily used by companies with existing debt or lower credit ratings for M&A, balance sheet recapitalization, debt refinancing, and general corporate purposes.
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Similarly, the Eurozone leveraged loan market has tripled in size since 2014 to €311 billion, nearly matching the high-yield bond market. This growth is fueled by attractive yields, a benign default outlook for 2025, and a strong appetite from institutional investors like CLOs. European companies utilize these senior secured loans for general corporate, capital expenditure, and acquisition financing, benefiting from their floating-rate structure, which offers resilience to interest rate changes. Both markets have seen a trend towards "covenant-lite" loans, indicating looser underwriting standards.
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CLO Market: Robust Issuance and Investor Demand
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The US and Eurozone Collateralized Loan Obligation (CLO) markets are both experiencing robust activity. In the US, CLO issuance is nearing record levels in the first half of 2025, largely driven by refinancings and resets of existing corporate leveraged loans, reflecting strong investor demand. The Eurozone CLO market is also performing strongly, with significant new issue volumes and active refinancing, fueled by attractive yields and the floating-rate nature of underlying loans, which offers resilience. Both regions see CLOs as a key component of their leveraged finance ecosystems.
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BK Investment Grade Fund 8: Performances
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We have built a robust portfolio of CLO tranches with USD (56%) and Euro (44%) positions.
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The portfolio is diversified by profile (the style of the CLO manager), vintage, and duration.
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We have participated in both new issues and secondary markets, but have been more active in secondary markets over the recent months.
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The priority has been on being selecting on our reinvestments with current market conditions and spread-tightening environment, we receive both interest (from the payment of the coupon) but also principal (from transactions being restructured, more precisely called reset). If a portion is kept for distribution, most of these proceeds are reinvested as we identify opportunities that fit our target return for BK Investment Grade-8. The objective is to maximise the expected returns while maintaining the same resistance levels. The portfolio is designed to benefit from a market softening but also resist more conservative scenarios. The fund distributes 1.5% for each USD and Euro class this quarter, resulting in a total distribution of 11.5% since inception. Payments are
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being wired on or around 23rd July 2025.
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Since its inception, the USD portfolio has delivered 11.8% annually, and the Euro portfolio
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has delivered 11.6%, materially exceeding our expectations. We believe the portfolio will
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continue to deliver strong performances as we maintain our trading discipline and
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Fund’s Summary
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| Currency |
USD and EUR |
| Fund’s Inception |
June 2023 |
| Distribution |
Quarterly |
| Investment Manager |
Oristan Ireland DAC |
| Administrator |
Apex Funds Services |
| Custodian |
CIBC Bank & Trust |
| Counsel |
Dillon Eustace |
| Auditor |
Deloitte |
| Bloomberg Page |
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BKIG8AU KY <Eqty> (USD KY Feeder)
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BKIG8AE KY <Eqty> (EUR KY Feeder)
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BK8A1US LX <Eqty> (USD LX feeder)
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BK8A1EU LX <Eqty> (EUR LX Feeder)
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Portfolio Manager
Olivier Gozlan
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This is not for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to law or regulation. The information contained herein is for information only and does not constitute an offer regarding any product. The document has been prepared by Oristan Ireland DAC and the data have not been audited nor verified. Past performance cannot indicate future performance. There is no assurance that the investment objective will be achieved and investment results may vary.
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