SCFI - Monthly Commentary December 2022
Scandinavian Credit Fund I AB (publ) reports a NAV rate for December of 104.83. That's an increase of 0.45 %. We end the year with
As an investor in Scandinavian Credit Fund I (SCFI), you get the opportunity for a high risk-adjusted return with little or no correlation to stock, bond and commodity markets by conducting senior secured direct lending to companies and other forms of association, primarily in Scandinavia. The average annual return has been 5,94% as of 31/21/2021 for the investor who was involved from the start in January 2016, which does not imply any guarantee of future returns.
We assess the overall risk level as "low to medium"; higher than short-interest investments but clearly lower than, for example, high-yield and equity funds. The main risk is liquidity risk if many investors want to sell at the same time because the direct loans that the fund invests in are unlisted. We assess credit risk as the second biggest risk, linked mainly to whether we have not taken enough collateral and pledges or if the value of these deteriorates over the term of the loan.
Anyone who has a custodian account or VP account via Bank or Fund Commissioner can invest in Profit Sharing Loans, as these are listed on NGM (Nordic Growth Market).
Profit-sharing loans can also be a type of asset in a custodian insurance (equity or pension insurance) or investment savings account (ISK). When investing via custodian insurance or ISK, it should be contacted beforehand with your Försäkringbolaget or your Bank / Fund Commissioner if possible.
Anyone who has a custodian account or VP account via Bank or Fund Commissioner can invest in Profit Sharing Loans, as these are listed on NGM (Nordic Growth Market).
Profit-share loans can also be an asset class in a custodian insurance (occupational pension or equity insurance). When investing through custody insurance, you should contact your insurance company before investing to ensure that this is possible.
Anyone who manages discretionary management assignments can invest in Profit Sharing Loans, as these are listed on NGM (Nordic Growth Market).
Professional investors can invest in Profit Sharing Loans if current legislation and management mandates allow. Contact Kreditfonden for more information.
The overall level of risk is assessed as “low to medium”; higher than short-term investments but clearly lower than, for example, high-yield and equity funds. The main risk is liquidity risk if many investors want to sell at the same time because the direct loans in which the fund invests are unlisted. We consider credit risk to be the second largest risk, mainly linked to if we have not taken out enough collateral and pledges or if the value of these deteriorates over the term of the loan. The average annual credit loss level has been 0.55% of the portfolio value from the start in January 2016 to December 2021.
The funds invested in Scandinavian Credit Fund 1 AB can both increase and decrease in value and it is not certain that those who invest in Scandinavian Credit Fund 1 AB will get back the entire invested capital. Below we list the risks associated with an investment in the fund. Before an investment so should the information brochure and the prospectus read in its entirety.
2023-02-23 | 2023-02-27 | 2023-03-01 |
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2023-02-08 | 2023-03-01 | 2023-03-10 |
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Please note that the fund is currently closed for deposits and withdrawals as previously stated. We will return with new dates when we reopen.
Scandinavian Credit Fund I AB (publ) reports a NAV rate for December of 104.83. That's an increase of 0.45 %. We end the year with
Scandinavian Credit Fund I AB (publ) reports a NAV rate for November of 104.36. That's an increase of 0.12 %. We pace one
Scandinavian Credit fund I AB (publ) reports a NAV rate for October of 104.23. That's down -0.39 %. We pace one
Scandinavian Credit Fund I AB (publ) reports a NAV rate for September of 104.64. That's up 0.50 %. We are still working on it
Scandinavian Credit Fund I AB (publ) reports a NAV rate for August of 104.12 This is an increase of 0.27%. New subscriptions in August were approx
Scandinavian Credit Fund I AB (publ) reports a NAV rate for July of 103.84. That's an increase of 0.78 (0.78%) – the contribution from our
2023-08-31
2023-02-24
2022-08-31
2022-02-25
2022-02-25
2021-08-31
2021-04-29
2021-02-21
2020-08-31
2020-04-29
2020-02-21
2019-08-30
2019-04-26
2019-02-28
2018-08-31
Scandinavian Credit Fund I AB (publ) - Interim Report 2018
2018-04-27
2018-02-28
2017-08-31
Scandinavian Credit Fund I AB (publ) - Interim Report 2017
2017-04-28
Scandinavian Credit Fund I AB (publ) - Annual Report 2016
2017-03-28
Scandinavian Credit Fund I AB (publ) - Year-end Report 2016
2016-09-19
Scandinavian Credit Fund I AB (publ) - publishes interim report 2016
Before investing in Scandinavian Credit Fund I AB, it is important that you read the written material about the fund in order to make an informed decision which means that you understand the risks that exist with the fund and that you understand how the fund works. Therefore, you should carefully read the information brochure, the basic fact sheet as well as the prospectus and its additions. You will find all relevant documents here.
Investment Process
The investment objects are approved by an investment committee after a well-developed credit process. The Fund strives to consistently engage with borrowers whose expected return is attractive in relation to the credit risk that the commitment entails. The individual commitments are weighed against each other in order to achieve an efficiently balanced credit risk for the fund as a whole. The investment objects have a low correlation with other markets and the risk in the fund should primarily be driven by credit risk and return for the fund as a whole.
Direct lending to companies
The fund's lending objects are primarily found throughout Scandinavia and are aimed at companies that are in some form of expansion, investment, refinancing, restructuring, generational financing, seasonal or other needs.
Fund shares
The Fund may, on a selective basis, invest funds in fund units in similar funds without geographical limitation.
Derivative
The fund has the opportunity to use derivative instruments, partly to reduce such undesirable risks and partly to obtain exposures that are deemed attractive to the fund and its risk profile.
Interest-bearing instruments
The fund can invest liquidity in bonds.
Deposits to bank
The fund may place liquidity with credit institutions after a credit check.
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.
Example: Investment in the fund took place on 1 February 2017
Invested capital SEK 100,000 at NAV rate 100.43. This gives a nominal value of SEK 99,571 (100,000 / 1.0043 = 99,571)
The value of the investment on 1 February 2017 was SEK 99,999 (99,571 * 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 2 January 2018 was SEK 107,666 (99,571 * 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 107,666 *)
New NAV rate 10/1 2018 is 100.00 after the issue of Profit Share Interest
Value of the holding after the issuance of the new Profit Share Loan will then be SEK 107,666 (107,666 * 1.0000)
*) As rounding of the Profit share interest takes place at the custodian institution 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.
The main activity of the Fund is to provide loan capital to small and medium-sized companies with funds that influence the offer through this prospectus. The fund's lending objects are primarily found in Scandinavia. The fund may also invest on a selective basis in fund units in similar funds or through co-financing with national or international partners without geographical limitation. Through this, the fund intends to create an investment that has lower risk than equities and better return potential than traditional fixed income investments.
Management fees are paid partly in the form of a fixed remuneration and partly in the form of a profit-sharing remuneration.
The fixed compensation amounts to 1.6 percent per year. The compensation is taken out of the portfolio monthly in arrears.
Profit sharing amounts to 20 percent of the fund's increase in value in addition to the average return on 3-month treasury bills after the "high watermark". High watermark means that the fund only pays a performance-based fee after any underperformance from previous periods has been compensated. The performance fee is calculated monthly and taken out of the portfolio at the end of each calendar month. The variable compensation is charged after deductions for the management fee and permitted costs.
Commissions, clearing fees and other transaction costs attributable to the Fund's investments are paid on an ongoing basis by the Fund.
Sales and redemption of profit share loans are made on the first banking day of each month.
Registration must be done on a special form that you can find under Documents above. (Subscription can take place 4 banking days before each change of month, February to December, not January)
You can also subscribe with BankID via mangold.se/emission/teckning
The minimum amount for subscription is SEK 100,000.
Redemption must be received by Skandinaviska Kreditfonden AB no later than 15 banking days before the turn of the month when redemption must take place and must be done on a special form which you will find under Documents above.
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Investing in mutual funds always involves a risk. The value of your investment can go up and down depending on factors affecting the market including interest rates. Historical returns are not an indicator of future returns. Investors may lose parts or the entire amount invested. For more information on risks, read more in the funds' KIID and prospectus.
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