Monthly report April 2022 - NFF

The NAV rate in April was 102.23, which gives an increase for the month of 0.54 (0.531 %). It is a stable and good month, the fund rates according to plan.

The inflow for the month of April is SEK 21 million, thank you very much for that.

The market

Inflation unrest, central banks and covid in China are what are affecting risky assets and the bond markets right now. The war in Ukraine is lurking in the background like an extra cloud of unrest.

Fed members are vying to be the most hawkish member right now, sending growth stocks straight down into the basement. The Fed put that previously existed is gone, now it is inflation fighting that applies to 100% and Nasdaq has gone lousy so far this year.

The Riksbank made a U-turn and I'm glad that, however, their interest rate path is probably a little too low, I think they need to raise a little faster and a little more, but well done to change.

Below you can see that the market has moved up the interest rate paths since last month and that the US will start easing monetary policy in about 18 months. That is, the Fed raises too much too fast.

Covid in China risks upsetting it for world trade, again hoping that the bottlenecks that have arisen will dissolve as soon as possible.

There is nothing today that indicates that 2022 will be a quiet year in the financial markets.

(source Bloomberg)

I can not help but make a comparison with a long Swedish bond fund since NFF started. It is challenging to motivate investing in a government bond fund when there are other alternatives such as the NFF.

The provisions in this fund are very small, which is why we do not make a special table for this.

Everything is in category 1 and the fund's collateral is over 30,000 invoices that are pledged in favor of the fund. These are rolled out in 30 to 90 days with credit insurance both with and without recourse. Furthermore, there is a wealth insurance for a contingency if false invoices should appear.

We are looking forward to the opportunity for growth for factoring in 2022, our partner is getting more and more assignments and that is positive. A little smolk in the cup is that competition increases and thus pricing hardens, I think that we land closer to 6 % 2022 than 7 % which became the case in 2021.



In 2020, Finserve Nordic, which is the fund's AIF manager, joined the company to the PRI network, Principles for Responsible Investment. The network is independent but supported by the UN and encourages investors to make responsible investments by following the principles developed by the network.

Finserve Nordic believes that the integration of sustainability risks is an important part of the funds' investment processes. Sustainability risks are defined as environmental, social, or corporate governance-related circumstances that could have a significant negative impact on the value of investments.

Social aspects include e.g. human rights, labor rights and equal treatment. Environmental aspects are e.g. the companies' impact on the environment and climate. Corporate governance aspects are e.g. anti-corruption, shareholder rights and business ethics

All funds under Finserve's management follow the responsible investment process that is formalized in Finserve's Policy for Integrating Sustainability Risks. The policy is available on the company's website https: // finserve.se/vikten-information/. Each fund's sustainability policy is available on the funds' websites

When you make your analysis of the fund, you should mainly look at the credit risk and liquidity risk in the fund. Are you comfortable with the credit risk generated by the fund's holdings? Furthermore, the assets are illiquid and it can take some time to get their investment back if many want to withdraw invested funds at the same time. The fund has a low market risk and has a low correlation with other asset classes.

We emphasize that we are not stressed by non-lending funds, but continue to work based on our models for credit assessment, all to ensure a good diversification of the portfolio in relation to the credit risk we take. If you need to sell your holdings, do so in the primary market where you get the best price. The official NAV exchange rate is published on the first banking day each month, what is shown during the month on NGM is not, I do not want to emphasize the official NAV exchange rate, as fund units in the secondary market may have been converted to a different exchange rate than official NAV.

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Emma Westerberg

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