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Nordic Factoring fund AB (publ) reports a NAV rate for November of 105.4. That's an increase of 0.35 %. The fund has high liquidity and continues the work of identifying and investing in new projects to convert the excess liquidity.
The inflow during the month of October is approximately SEK 30 million, many thanks for that.
We are aiming for a return level of around 6 %.
The market and the economy
During November, the stock market in several parts of the world continued to develop somewhat positively. Electricity prices were low in October as a result of warmer weather, but have now increased sharply again in November. Much indicates a continued increase in the coming months as colder weather awaits. During November, the Swedish krona strengthened against the dollar but remained flat against most currencies, which may be a consequence of recovery and a little more stability in the stock market. The head of the FED signaled on the last day of the month that they will reduce the rate of interest rate increases and that this could already happen in December, which confirms the thesis that the inflation and interest rate peak is approaching.
High inflation, rising short-term interest rates and electricity prices continue to hit the economy hard and erode household purchasing power. The Riksbank raised the policy rate by 0.75 % during November. Inflation was lower than expected in the US and in Sweden but remained at a high level. It is likely that inflation will rise further in the short term, which indicates that key interest rates will also continue to rise. The global economic situation continues to affect the Swedish export industry and is not expected to improve in the short term. The economic institute's barometer indicator stopped somewhat in November and the household confidence indicator rose but remains at a very weak level where weakened purchasing power and increased costs have a heavy impact. A colder December will most likely drive up electricity prices and also inflation, which will have consequences for households and businesses, government subsidies will likely reduce the economic effect. Reduced purchasing power and expected increased unemployment in 2023 can reduce inflation and then also dampen or reverse the trend for higher key interest rates.
IFRS 9
The reserves in this fund are very low. The fund's entire exposure is in category 1 and the security is over 30,000 invoices pledged in favor of the fund. The invoices are rolled over in 30 to 90 days with credit insurance both with and without recourse. Furthermore, there is property insurance for an eventuality should false invoices appear.
Against the background of the aforementioned weaker economic outlook for the market, we have tightened and continued to tighten our routines for monitoring outstanding invoices.