Scandinavian Credit Fund I AB's return (annual Profit Share Rate) will be converted into new Profit Share Loans to Profit Share Loan holders. For each financial year, the Fund shall determine the Profit Share Rate for the management of the Investment Portfolio in accordance with generally accepted accounting principles.
Profit share interest accruing to the Profit Share Loan holders shall be made on the Interest Maturity Date by issuing additional Profit Share Loans. The profit share rate shall be rounded down to the nearest krona and rounded off at the custodian institution level.
On January 13, the rate will be reduced to 100.00 after booking the Profit Share Rate and the new nominal amount for the Profit Loan should be shown in the respective custody account on January 23.
Important! This means that during the period from January 13 until the custodian institution has issued the new Profit Sharing Loans, there appears to be a negative return on the deposit.
How can the Profit Share Rate and Value be calculated?
Example 1
Investment in the fund was made on 1 February 2017
Invested capital SEK 100,000 at NAV rate 100.43. It gives a nominal SEK 99,500 (100,000 / 1,0043 = 99,571, which is rounded to 99,500)
The value of the investment on 1 February 2017 was SEK 99,927 (99,500 * 1,0043).
The NAV rate on January 2, 2018 is 108.13 before the issue of Profit Share Interest.
The value of the investment on January 2, 2018 was SEK 107,589 (99,500 * 1,0813).
The return (Profit share interest) is paid to the investor in the form of new profit share loans, giving the total nominal amount SEK 107,589 *)
New NAV rate 10/1 2018 is 100.00 after the issue of Profit Share Interest
The value of the holding after the issue of new profit share loans will then be SEK 107,589 (107,589 * 1,0000)
Example 2
Investment in the fund was made on July 3, 2017
Invested capital SEK 100,000 at NAV price 104.08. It gives a nominal SEK 96,000 (100,000 / 1,0408 = 96,079, which is rounded to 96,000).
The value of the investment on July 3, 2017 was SEK 99,916 (96,000 * 1,0408)
The NAV rate on January 2, 2018 is 108.13 before the issue of Profit Share Interest.
The value of the investment on January 2, 2018 was SEK 103,804 (96,000 * 1.0813).
The return (Profit share interest) is paid to the investor in the form of new profit share loans, which gives the total nominal amount SEK 103,804 *)
New NAV rate 10/1 2018 is 100.00 after the issue of Profit Share Interest
The value of the holding after the issue of new Profit Shares will then be SEK 103,804 (103,804 * 1,0000)
*) As rounding of the Profit Share Rate occurs at the custodian level, the new nominal amount may vary from these examples.
Note that after the Swedish Financial Supervisory Authority's approval of the AIF Fund's addition to the prospectus in December 2017, the nominal amount has changed from SEK 100 to SEK 1.