NCF-Fund 2/3 2007

Commentary for June 2007

The European Central Bank last week increased its key lending rate for the eighth time since late 2005 with President Jean-Claude Trichet judging that the euro region's fastest expansion since 2000 poses increased risks to price stability. Economists expect at least one more rate increase this year.

As long as we don't see any signs in terms of price stability (interest rates on hold), the NCFF will not add to the excisting positions. It might use interests and redemptions 1/7 to reduce loans.

Leverage aproximately 1,85 times.

Performance: -5,31

Current cash flow: 6,95

Modified duration: 7,83

Contact information:

Hedge Fund Services BVI
James Frett Building,
PO Box 761, Whickhams Cay 1
Road Town, Tortola,
British Virgin Islands.
Tel. +1 284 494 6046
Fax +1 284 494 6898

Nordic Cash Flow Fund, Ltd
Nemours Chambers, PO Box 3170
Road Town, Tortola, British Virgin Islands
Tel: +1 284 494-6046
Fax: +1 284 494-6898
Web: www.ncf-fund.com
E-mail: info@ncf-fund.com