v3.26.1
DERIVATIVE INSTRUMENTS
3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS 4. DERIVATIVE INSTRUMENTS
In the normal course of business, the Fund may enter into derivative contracts to achieve certain risk management
objectives. The Fund may enter into derivative instruments to hedge against foreign currency exchange rate risk on a portion or
all of its non-U.S. dollar denominated investments. These instruments primarily include foreign currency forward contracts.
The Fund utilizes forward currency contracts to economically hedge the currency exposure associated with certain foreign-
denominated investments. These derivative contracts are not designated as hedging instruments for accounting purposes. The
use of foreign currency forward contracts does not eliminate fluctuations in the price of the underlying investments recognized
by the Fund. As a result of the use of derivative contracts, the Fund is exposed to the risk that counterparties will fail to fulfill
their contractual obligations. To mitigate such counterparty risk, the Fund enters into contracts with certain major financial
institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of
derivative instruments.
The tables below summarize the aggregate notional amount and fair value of the derivative instruments as of March 31,
2026 and December 31, 2025. The notional amount represents the absolute value amount of the foreign exchange contracts:
March 31, 2026
December 31, 2025
Assets
Liabilities
Assets
Liabilities
Notional
Fair Value
Notional
Fair Value
Notional
Fair Value
Notional
Fair Value
Derivative Investments
Foreign Currency Forward
Contracts (EUR)
4,548
$53
1,897
$(26)
$
5,049
$(103)
Foreign Currency Forward
Contracts (JPY)
¥1,752,396
326
¥213,605
(6)
¥1,329,690
759
¥
Foreign Currency Forward
Contracts (AUD)
A$5,527
53
A$2,647
(166)
A$
A$5,527
(216)
Foreign Currency Forward
Contracts (INR)
Rs137,430
61
Rs137,430
(67)
Rs
Rs
Foreign Currency Forward
Contracts (CAD)
C$
C$
C$
C$4,822
(40)
$493
$(265)
$759
$(359)
For the three months ended March 31, 2026, the Fund recognized $486 thousand of net realized gain and $(172) thousand
of net unrealized loss on foreign currency forward contracts. These amounts are included in net realized gain on derivative
contracts and net change in unrealized depreciation on derivative contracts, respectively, in the consolidated statements of
operations.