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BK Investment Grade 8
Quarterly Report | 30th September 2025
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The final NAV and distribution of the BK Investment Grade 8 (USD / EURO) as of 30 September 2025 is:
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| USD Class |
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EURO Class |
NAV 110.15%
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NAV 110.59%
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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 around October 24th 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 September 2025
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| Monthly1 |
+0.7% |
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Monthly1 |
+0.7% |
| Year-to-Date1 |
+6.2% |
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Year-to-Date1 |
+7.3% |
| Annual Return3 |
+11.2% |
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Annual Return3 |
+12.2% |
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13.0% |
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+23.2% |
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+23.6% |
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3 - Weighted average distribution of all classes.
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Fund and Market Performances as of 30th September 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 |
10.1% |
| Services: Business |
9.1% |
| High Tech Industries |
8.8% |
| Banking, Finance, Insurance & Real Estate |
7.2% |
| Chemicals, Plastics & Rubber |
5.4% |
| Telecommunications |
4.5% |
| Construction & Building |
4.5% |
| Hotel & Leisure |
4.3% |
| Beverage, Food & Tabaco |
4.1% |
| Capital Equipment |
3.8% |
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| Issuer |
% of Portfolio |
| Ineos |
1.4% |
| Liberty Global |
1.2% |
| Vmed O2 UK |
0.9% |
| Altice NV |
0.8% |
| 3I Group |
0.6% |
| Kantar Global |
0.5% |
| Lorca Jvco |
0.5% |
| Ion Platform |
0.5% |
| Sigma Holding |
0.4% |
| IVC Acquisition |
0.4% |
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Market Commentary & Portfolio Overview
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Despite the ongoing hunt for "cockroaches"—minor credit issues, such as auto-loan delinquencies—the global leveraged credit market in Q3 2025 remained remarkably stable, contrasting sharply with equity market volatility. Europe's market demonstrated resilience with manageable 2.4% loan default rates. Simultaneously, the US leveraged loan sector saw a boom of refinancing and repricing, keeping the LSTA default rate low (1.47% / 4.32% including distressed exchanges), with robust CLO demand successfully reinforcing the market's structural resilience.
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The Economy: Transatlantic Dichotomy
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The global economic picture presented a dichotomy: while the US projected robust GDP growth of nearly 3.9%, the Federal Reserve defensively cut its rate by 25 basis points due to concerns over labor market weakness, maintaining that inflation risks remain elevated. Conversely, the Euro Area continued its gradual expansion and modest GDP stabilization as the European Central Bank (ECB) successfully utilized its current interest rate levels to steer inflation down toward the 2% target, affirming underlying resilience and signaling a more sustainable path toward expected monetary policy easing.
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Corporate Markets: Different Optimisms
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The US stock market surged to record highs (Nasdaq +11.2%) driven by AI and resilient corporate earnings. This contrasted with the Euro Area’s gradual expansion, where the ECB successfully steered inflation towards the 2% target, setting the stage for potential monetary easing. Globally, the quarter was characterized by softening overall earnings and revenue growth, yet saw a defining feature emerge: a significant IPO market rebound, especially in Europe, which highlighted a strong return of "flight to quality" investor confidence in new, high-quality listings.
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Corporate Loans: Dynamic Market
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A dramatic revival was fueled primarily by opportunistic borrower activity across continents. The US leveraged loan market staged a near-record rebound in primary issuance, overwhelmingly driven by repricings and refinancings as borrowers aggressively cut interest costs and tightened new-issue spreads to post-crisis lows. This buoyant sentiment reflected the further revival of the Euro corporate loan market, where refinancing deals also dominated, allowing borrowers to capitalize on falling interest rates and tighter margins amid intensified competition between public and private debt, ensuring that overall credit fundamentals remained resilient.
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CLO Market: Global Strength
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The global CLO market maintained a robust and critical supporting role for leveraged finance in the last quarter, driven by sustained, strong investor demand for floating-rate assets and senior debt tranches. This appetite kept liability spreads tight, particularly in the US, making it economical for managers to create new vehicles and instrumental in absorbing the heavy supply of corporate refinancings and repricings. The US leveraged loan default rate (LSTA) was reported at 1.47%, rising to 4.32% when distressed exchanges were included. Concurrently, the Euro CLO market demonstrated stability, underpinned by resilient credit quality and active management that minimized exposure to low-rated assets, even as the European leveraged loan default rate was reported at 2.4% on a trailing 12-month basis.
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BK Investment Grade Fund 8: Portfolio Overview
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We have built a robust portfolio of 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 recent months.
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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 the payment of the coupon) 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 maximize 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 13.0% since inception. Payments are being wired on or around 24th October 2025.
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Since its inception, the USD portfolio has delivered 10.3% annually, and the Euro portfolio has delivered 11.1%, materially exceeding 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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