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Crystal & BK Funds
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As we have entered 2025, we thank you for your trust and partnership with Crystal & BK Funds. This new year brings fresh opportunities, and we remain committed to delivering strong performance and innovative strategies.
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2024 stands as a continuation for the Crystal & BK Funds, building upon the success of previous years that garnered the prestigious Best CLO Fund award from CreditFlux for the fourth time, among other awards. This achievement reflects the unwavering commitment of our team of specialists and the strategic choices driven by thorough market analysis.
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2024 Annual Return
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BK Euro Composite2 |
15.2%
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16.7%
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1 — Index composed of the live BK Funds denominated in USD.
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2 — Index composed of the live BK Funds denominated in Euro.
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This performance underscores our commitment to strong returns and signifies our ability to navigate the market's complexities effectively.
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In 2024, the Eurozone experienced modest growth, buoyed by consumer spending and lower energy costs but hindered by inflation and weak industry. In contrast, the U.S. showed more substantial growth driven by robust labour markets and consumer demand. CLO issuance in 2024 recovered compared to 2023, driven by stabilizing loan markets and increased investor demand. Demand for CLOs remained robust. In early 2024, Mezzanine and equity tranches faced pressure from rising corporate defaults and downgrades. Later in the year, the default stabilised below the historical average.
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The CLO market in 2024 demonstrated resilience and adaptability amidst dynamic macroeconomic and financial conditions.
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The finalization of Basel III reforms prompted CLO investors to re-evaluate risk-weighted asset requirements, potentially impacting bank participation in CLO senior tranches. In Europe, the Sustainable Finance Disclosure Regulation (SFDR) increased the focus on ESG compliance within CLO structures. Advances in technology and data analytics enhanced CLO portfolio management. Both investors and managers leveraged predictive analytics to optimize asset selection and monitor performance.
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Opportunities and a new BK Fund
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Our perspective starting in 2025 is that persistent geopolitical tensions and uneven global economic recovery influenced investor sentiment and risk appetite. Still, credit quality fundamentals have improved, and policymakers and central banks prioritise market support. We see opportunities in the CLO market that we can monetise.
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We are confident that we are prepared to face those evolutions as a team. Our experienced team has encountered volatility that has shaped our fundamental investment approach. We are also developing an advanced AI system to assist with investment analysis.
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We are glad to announce that, in early Q2 2025, we will start a new BB fund, BK Opportunity Fund 9, to capitalise on the fundamental improvement.
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Your trust and support as our valued investors and partners have been essential to our progress. We are sincerely grateful for your confidence in our vision and expertise. As we look to the future, we are dedicated to refining our strategies to achieve outstanding results.
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Please get in touch with our team directly for fund updates or any questions you might have.
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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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