Why is there incorrect value in my repository?

Why does it say course 103 in my depot, when the actual rate is 105.88 or why did my depot last month's course…?

The alternative investment fund Scandinavian Credit Fund I AB (publ) is a "hybrid" between a traditional securities or special fund and a listed security. This means that the fund can be traded in two ways. Partly directly with the fund on a monthly basis, what is referred to as the Primary Market or above the stock exchange via a Market Maker (the Liquidity Guarantee), what is referred to below as the Secondary Market.

primary-secondaryprimary market

In the primary market, the seller trades directly with the fund and sales are always made at the rate (NAV) the fund has at the next month-end.

A sale in the primary market shall be made by: Application form early redemption of profit share loans is sent directly to the fund 15 business days before the next monthly change and the proceeds from the sale are available to the seller 7 business days after the same monthly change.

If you always want to get the right value for your investment in the fund, you should sell your profit share loans in the primary market directly with the fund.

Application form for early redemption of profit share loans can be obtained through the link below or through your financial advisor.
Anmälningssedel_SCF__förtidainlösen.pdf


Secondary market

In the secondary market, the seller trades over the stock exchange (NGM / NDX) (renamed Main Regulated since 2020-05-04) through a Market Maker (Liquidity Guarantee) and trading takes place directly at the rate set in the market.

Here, the rate may vary depending on how many profit share loans are on sale at each time. The secondary market is primarily for smaller volumes and for those who cannot wait until the next month-end and sell in the primary market. Thus, the secondary market need not reflect the Fund's correct NAV rate, but may deviate.
Why does it say course 103 in my depot, when the actual rate is 105.88…?

What happened at the end of November was that there were several sales of profit-sharing loans in the secondary market and the price was reduced to 103.

Since this fund can be traded in two ways, there are different ways to find the current value of the fund. The easiest way for a custodian is to automatically retrieve the value from the stock exchange, ie. from the secondary market, where the rate may vary over time.

This is the reason why it can now be stated in custody accounts that the fund's rate is 103 instead of the actual rate the fund has as of December 1, which is 105.88.

The Fund's official course (NAV) can be found at fund development / or the Fund's AIFM Finserve
The table below is taken from creditfonden.se according to the above link.

 

At present, we do not have a quick solution for the right value to be seen at the custodian institutions that retrieve the value from the secondary market, but we will work to find a solution that sets the fund's right value in the long term.
Why did my custodian last month have the fund's course…?

This does not affect as many customers, but the reason is that some custodian institutions update the value of their clients' deposits on the last banking day of the month and the fund's rate is set on the first banking day of the month.

This means that this will be a month's delay on the course in these depots.

Scandinavian Credit Fund I AB (publ) is a unique fund with its investment orientation with secured direct loans to small and medium-sized companies as well as one of the first funds that are traded on the stock exchange on a monthly basis. In order for the AIF Fund to be able to offer this investment opportunity to individuals and companies, the Fund must have a primary market monthly and a secondary market over the stock exchange in accordance with the regulations for Alternative Investment Funds.

We would like to point out that one should always trade with the fund in the primary market in order to obtain the fair value of profit share loans.

Our wish is that this has given answers to questions about the value stated in the deposit, as well as guidance on where to find the current value of the fund and how best-selling loans are sold.

 

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