Monthly report March 2021 - NFF

The NAV rate in March was 101.66, which gives an increase for the month of 0.57 (0.56 %). It is a good month, we now rate around 0.55 per month, which all else being equal would give an annual forecast of about 6.50 %. Influx of SEK 32 million, thank you very much for that.

New lending in February was approximately SEK 50 million.

We introduce quarterly liquidity in the redemption fund on 2021-07-01, we retain monthly opportunities for investments. We continue our work with extra frequent follow-up of our companies with regard to the Corona situation.

The market
Last week, the ISM service index came out in the US and it was super strong. Activity in the US is on the way back with news. With a stimulus package of USD 4.1 trillion, fiscal policy pumps out a rarely seen stimulus in the US economy and this is shown in the statistics. It is a mixture of direct grants and infrastructure investments that are implemented. This, together with a lack of consumption from the citizens of the USA in the past year and ultra-light monetary policy, guarantees a strong recovery, especially in the second half of 2021. We can also look forward to this as it will spill over onto global growth.

ISM Service Index

This is priced in stock prices in the United States. What may not be priced in but which is a risk on the downside are higher corporate taxes, higher interest rates as a result of inflation that will bite and not be a temporary increase as the Fed believes and that interest rates will rise as a result. We will see what the effects of this will be on risky assets, however, we can state that we live in an interesting stage of the global economy where everything possible can happen and happen.

Covid-19 and vaccination
In the graph below, you can clearly see what happens to new cases of infection when a country has more than 50 percent of the population vaccinated. The curve in Israel is very clear where they are down on almost no new cases. It is also very clear in the UK that the high vaccination rate is clearly visible in new cases of Covid-19, so the faster the vaccine rolls out, the faster we can return to the "new normal". What do I want to say with these graphs? Well, vaccination is so important to be able to return to an open society where we do not have to be limited and be looked at skewed if we happen to go too close to someone at ICA. When I see these graphs, I become optimistic, let's hope that we in Sweden can also reach this vaccination level before the summer.
Covid Mars 2021

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