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BK Investment Grade 8
Quarterly Report | 30th September 2026
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The final NAV and distribution of the BK Investment Grade 8 (USD / EURO) as of 30 September 2026 are:
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| USD Class |
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EURO Class |
NAV 108.89%
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NAV 114.28%
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Distribution 1.50%
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Distribution 1.50%
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Payments for the Euro and Dollar classes will be around October 22nd, 2026.
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BK Opportunities Fund-8 final net performances
as of 30th September 2026
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| Monthly1 |
1.0% |
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Monthly1 |
1.4% |
| Year-to-Date1 |
4.0% |
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Year-to-Date1 |
6.3% |
| Annual Return3 |
+8.7% |
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Annual Return3 |
+10.9% |
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19.0% |
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+27.9% |
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+33.3% |
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3 - Weighted average distribution of all classes.
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Fund and Market Performances as of 30th September 2026
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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 |
10.2% |
| High Tech Industries |
10.1% |
| Services: Business |
9.9% |
| Banking, Finance, Insurance & Real Estate |
8.5% |
| Hotel & Leisure |
5.2% |
| Chemicals, Plastics & Rubber |
5.2% |
| Construction & Building |
4.0% |
| Beverage, Food & Tabaco |
3.9% |
| Capital Equipment |
3.9% |
| Telecommunications |
3.3% |
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| Issuer |
% of Portfolio |
| Ineos |
1.3% |
| Liberty Global |
1.1% |
| Vmed O2 UK |
0.7% |
| 3I Group |
0.6% |
| Kantar Global |
0.5% |
| Altice NV |
0.4% |
| Froneri Lux Topco |
0.4% |
| Ion Platform |
0.4% |
| Skydance Corp |
0.4% |
| Mcafee Corp |
0.4% |
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Market Commentary & Portfolio Overview
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Q3 2026 ended the transatlantic split of Q2: both central banks are now hiking. Inflation reaccelerated on both sides as energy prices climbed, and the Fed joined the ECB with its first hike in three years. Growth held up better than feared, corporate earnings hit multi-year records, and leveraged finance finally saw M&A return in September. CLO markets kept running at a high pace as funding costs eased.
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The Economy: Twin Hikes
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The US economy grew at a 2.2% annualised rate in Q2, while euro area GDP rose 0.4%, double expectations, and the eurozone PMI reached a three-and-a-half-year high in September. Inflation is the common problem: US CPI rose to 3.7% in September, with a 9.1% jump in gasoline accounting for more than half the monthly increase, while euro area prices rose 3.8%. The ECB raised its deposit rate to 2.50% on 10 September, and on 16 September the Fed hiked by 25 bps, unanimously, for the first time in three years.
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Corporate Markets: Earnings Boom
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Profits surged on both sides. S&P 500 Q2 earnings grew 52.0%, driven by Big Tech, but the other 493 companies still grew 31.8%. In Europe, earnings rose 24.1%, the strongest since Q3 2022, mainly from energy, though growth ex-energy remained 11.5%–12%. The gap remains: US growth is tech-led, Europe’s is energy-led.
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Corporate Credit: Credit Under Preassure
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Lending conditions are tightening. Euro area banks tightened standards again in Q2 and expect further tightening in Q3. In the US, the syndicated market is winning back business from private credit: around $12bn of direct-lending deals were refinanced in the BSL market in Q3, the most since tracking began in 2022. Defaults remain low, but nearly a third of surveyed participants expect US loan default rates to reach or exceed 1.50%, from 0.87% today.
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Corporate Loans: M&A Awakens!
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September marked a turning point. After a slow start to Q3, US M&A-related loan issuance reached $39.9bn for the quarter, with September alone at $30.6bn, the highest since January 2022. Software fell to just 10% of new issuance. In Europe, a busy September pipeline raised expectations of record monthly volume, after loan spreads hit nine-year tights in June. Pricing is diverging: US B-plus deals carried an average spread of S+289 this quarter, about 20 bps wider than at end-2025.
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CLO Market: Lower Funding Costs
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US CLO issuance stayed high but cooled through the quarter, from $46.4bn in July to $41.1bn in September, the lowest since April. New-issue AAA tranches priced at an average of 122 bps, and tighter AAA spreads pulled managers toward refinancings over resets. Year-to-date issuance reached $361.1bn in the US and €94.9bn in Europe. The arbitrage remains the constraint: US issuance runs about 20% below last year, mainly due to weak collateral formation and harder BSL arbitrage. Middle-market CLOs had their best month of 2026 in September at $6.8bn.
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BK Investment Grade Fund 8: Portfolio Overview
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We have built a robust portfolio of BBB CLO tranches with USD (56%) and Euro (44%) positions. The portfolio is diversified by profile (the style of the CLO manager), vintage, and duration. We have participated in both new issues and the secondary markets, but have been more active in the latter over the year.
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The priority has been on selecting our reinvestments given current market conditions and a spread-tightening environment; we receive both interest (from coupon payments) and principal (from transactions being restructured, more precisely, called resets). 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, bringing the total distribution to 19.0% since inception. Payments are being wired on or around 22 Ocotber 2026.
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Since its inception, the USD portfolio has delivered 8.2% annually, and the Euro portfolio has delivered 10.9%, meeting our expectations. We believe the portfolio will continue to deliver strong performances as we maintain our trading discipline and strategy.
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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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