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Monthly report March 2022 - NFF

The NAV rate in March was 101.69, which gives an increase for the month of 0.57 (0,5637%). It is a stable and good month, the fund rates according to plan.
The inflow for the month of March is SEK 23 million, thank you very much for that.

The market
Back to fundamental factors that affect the markets.

The market is cynical and right now it sees the Ukraine war as a local conflict and not a geopolitical problem that the stock exchanges initially discounted. It is possibly a fairly short-term idea and the second wave of rising energy prices and food prices is entirely dependent on how long the conflict in Ukraine lasts.

As usual, the market is ahead of the central banks when it comes to pricing in future interest rate increases, see graph below. It will be interesting to see if Ingves changes feet to raises already this spring. All the facts speak for themselves except his previous behavior. What above all risks a blow if action and rhetoric disappoints the market is the krona. It has recovered a lot from earlier this year but is quite vulnerable to negative news.

(source Bloomberg)

The fund has no direct or indirect exposure to Russia as we know it today. We continue to have a close dialogue with our borrowers about how they are affected by the current situation. We have galloping inflation, war and covid in China to follow up. However, it looks good as a whole.

Comparison

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.