Scandinavian Credit Fund I

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.


About Scandinavian Credit Fund I

  • Scandinavian Credit Fund I (SCF I) started in January 2016
  • SCF I is an alternative investment fund with the ambition to provide a return of 6-8% per year, which it has achieved so far
  • The target for the fund's risk, expressed as standard deviation, is below 2% annually
  • SCF I must have a low covariation with other asset classes
  • Funds invested in the fund are lent to carefully selected companies as so-called secured direct loans
  • Investments are preceded by a solid credit process carried out by a team with long experience from lending operations
  • The fund is placed in risk class 2 of 7 (SRRI)
  • For current monthly figures, please refer to our monthly report below


This is how the fund generates returns

SCFI avkastning i 5 steg

Who can invest?

Risks

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.

Liquidity risk
Liquidity risk for a company is the risk that the company will not be able to meet its payment obligations at the due date, ie that the Fund lacks liquid funds to pay, for example, invoices or redemption amounts to Investors on time. The risk arises because the Fund finances itself by issuing Profit-sharing loans, which entail payment obligations to Investors.
The risk may increase if the Fund finds it difficult to raise capital. Liquidity risk may also arise in the Fund's Portfolio, if the assets the Fund has invested in would be difficult to sell or if the Fund finds it difficult to liquidate the Portfolio or if it takes longer than expected to liquidate positions and sell investments.
Liquidity risk means for a bond that it is not possible to sell the bond prematurely. Under normal market conditions, Marknadsgaranten offers a buying price for those who want to sell early. Although bonds in the form of profit-sharing loans have become more established in recent times, the secondary market is still limited. There is therefore a risk that the liquidity of the Profit Sharing Loans is low, and that they are traded at a price below the issue price.
Sometimes it can be difficult or impossible to sell Profit-sharing loans during the term and it is then illiquid. This may occur, for example, in the event of strong market movements, changes in liquidity, changes in regulations, hedging of positions, market disruptions, communication interruptions or other events which may lead to difficulties in trading at reasonable prices or due to the closure of the market or affected marketplaces. or that trade is subject to restrictions for a certain period of time.
Interest rate risk
Interest rate risk The value of the loan share is to a large extent dependent on a number of different factors. One of such factors is the market's general interest rate level, which is why investors in the fund's profit-sharing loans should understand that the development of returns can be adversely affected by changes in interest rates in the markets in which the fund and borrowers operate.
Return Investment Risk
Long-term return opportunities on the profit-sharing loans issued by the Fund are highly dependent on the Fund finding new lending items that require financing and which are also suitable based on the requirements set by the Fund.
Macroeconomic risk
A sharp downturn in the country's or region's economy can affect companies' ability to pay interest and can also result in loan repayments not being completed on time or failing completely. For the Fund, this means a risk that the invested capital will not remain intact or that the return on the invested capital will not be as high as expected or not fully realized. However, the AIF has made an analysis of other funds in other countries that have similar strategies that showed that the funds were not affected at all during, for example, the recent financial crisis.
marketing Risk
The fund's product is relatively new and unknown to smaller investors, so it may be difficult to reach out and attract sufficient investors.
Value development of investments
The fund offers short-term direct lending to small and medium-sized companies to achieve the target, which is a high risk-adjusted return with little or no correlation with other asset classes. Thus, there is no guarantee that the fund's investments will produce the expected return, or that the value of the invested capital is kept intact, and that there is no guarantee that invested capital can be recovered upon redemption. It should be emphasized that the fund will to a large extent invest in small and medium-sized companies that have good liquidity and financial position and who need extra capital for various projects. This means that the fund differs from the objects that private individuals usually have the opportunity to invest in, and also means that you as an investor get a spread of risk that is otherwise difficult to achieve as an individual investor.
Trading with Scandinavian Credit Fund In profit share loans
Investment in the company's profit-sharing loan should primarily be seen as an investment for the entire term of the bond. Profit-sharing loans are freely transferable with the restrictions that apply to the right. Profit share loans are listed on NGM Main Regulated under Nordic AIF Sweden segments where they are priced continuously.
The duration of the investment opportunity and volatility
Investment in the Fund's strategy is associated with risk, also in terms of its duration. However, the Fund estimates that the investment opportunity will remain as long as the banks' capital requirements are at least at the same high level as today. In addition, the Fund's investment strategy is relatively cyclically sensitive, provided that market conditions do not deteriorate significantly.
currency risks
The fund may make investments of a certain portion of the capital in currencies other than the Swedish krona. The fund intends to hedge the investments made in currencies other than the Swedish krona, which is why the risk is considered small.
Credit
The Fund's investment strategy involves a certain credit risk as there is always a risk that the loaned capital will not be repaid to the Fund at the end of the loan's term, which may affect the return. In the event of a significant deterioration in the fund's position, the fund may become unable to fulfill its obligations under the investment agreements concluded with the bondholders.
Föregående
Nästa
2023-02-23
2023-02-27
2023-03-01

Current subscription dates

LAST SUBSCRIPTION DATE
LAST DAY FOR CASH DEPOSITS
SUBSCRIPTION DATE
2023-02-08
2023-03-01
2023-03-10

Current withdrawal dates

REDEMPTION FORM TO US
Settlement
WHEN PAYMENT IS MADE

Please note that the fund is currently closed for deposits and withdrawals as previously stated. We will return with new dates when we reopen.

Fund Performance

MONTHLY NAV DEVELOPMENT AFTER FEES

Monthly reports

Financial Calendar

Press Releases

2023-02-01Scandinavian Credit Fund I AB (publ) - Publish NAV rate 100.17 for January 2023
2023-01-03Scandinavian Credit Fund I AB (publ) - Publish record date 2023 and NAV price 104.83 for December 2022
2022-12-15Scandinavian Credit Fund I AB (publ) – Announces temporary closure of trading in profit share certificates and revokes upcoming issue: Information and allocation, published on December 6, at 1 p.m.
2022-12-06Issue and issue information
2022-12-01Scandinavian Credit Fund I AB (publ) - Publish NAV rate 104.36 for November 2022
2022-11-09Issue and issue information
2022-11-02Scandinavian Credit Fund I AB (publ) - Publish NAV rate 104.23 for October 2022
2022-10-31Information regarding a holding in Scandinavian Credit Fund I AB (publ)
2022-10-07Issue and issue information
2022-10-03Scandinavian Credit Fund I AB (publ) - Publish NAV rate 104.64 for September 2022
2022-09-09Issue and issue information
2022-09-01Scandinavian Credit Fund I AB (publ) - Publish NAV rate 104.12 for August 2022
2022-08-31Scandinavian Credit Fund I AB (publ) - Publish Interim Report 2022
2022-08-05Issue and issue information
2022-08-01Scandinavian Credit Fund I AB (publ) - Publish NAV rate 103.84 for July 2022
2022-07-06Issue and issue information
2022-07-01Scandinavian Credit Fund I AB (publ) - Announces NAV price 103.04 for June 2022
2022-06-07Issue and issue information
2022-06-01Scandinavian Credit Fund I AB (publ) - Announces NAV price 102.69 for May 2022
Olderhttps://news.cision.com/se/scandinavian-credit-fund-i/

Document

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.

Management Concept

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.

Profit Sharing Interest

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: 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.

Traded Markets

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 Fee

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.

Redemptions

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.

Emma Westerberg

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