Many thanks for another year with your best investors.
The NAV rate in December was 106.79, which gives an increase for the month of 0.55 (0.52%). It is a good month, the fund is planning according to plan. NFF thus gives an annual return of 6,79%, which I am very pleased with.
The fund exceeds its target by about 75 points and it is great in this type of fund. The risk-adjusted return is fantastic in the fund and I am very pleased with the result and the team behind the fund. For the long-term investor who does not need immediate liquidity, NFF is a very good basic investment in the portfolio.
We continue our work with extra frequent follow-up of our companies with regard to the Corona situation and the time after which we are in now.
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.
Below you see a graph of the factoring fund since the start and it has returned just over 6% per year since the start if you have reinvested the dividend since the start. Completely in line with the fund's objectives.
Below you can see the fund's distribution by industry and the share in the portfolio in these.
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.
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.