EN 
SE 
Finserve Nordic AB, which manages the fund Scandinavian Credit Fund I AB (publ), (hereinafter referred to as the Fund), together with the Fund, has decided to completely cancel the loan and request that the Vinstandelslån be redeemed early and that the Fund's operations be wound down. The background to this decision is that the Fund, since it was reopened for deposits and withdrawals on May 12, 2023, has suffered net outflows of SEK 729 million, which makes it impossible to manage the Fund in a satisfactory manner and in the best interests of the shareholders. In order to ensure equal treatment of all unit owners, the fund has no other option but to wind down the business.
The fund was launched in 2016 as an alternative for investors to gain exposure to direct loans with Nordic companies as borrowers. The strategy consistently delivered according to set return targets in the years leading up to the outbreak of the pandemic, in addition to a low market risk and low correlation (covariance) to traditional asset classes such as stocks and bonds. During the pandemic, the market for the Fund's investment strategy became more difficult.
Since the outbreak of covid-19, the fund has had a net outflow of close to two billion kroner, which is a significant part of the fund's managed capital, which before the pandemic amounted to around kroner 5 billion. The fund closed in December 2022 for deposits and withdrawals as a result of requested early redemption received during November and December. The closure was done to free up liquidity to meet the withdrawals. These exceeded both the Fund's current liquidity buffer and historical outflows, which led to the closure. The fact that a lack of liquidity affects the fund in the event of large withdrawals has to do with the fact that the fund's capital is tied up in corporate loans with longer maturities than required to meet the short-term large withdrawals.
During the period of the Fund's liquidation, all investors in the Fund will be treated equally. This means that future payouts will be pro rata, in other words, payouts will take place as the Fund receives liquidity from the underlying loans and upon payout, each shareholder will receive their percentage share, corresponding to what is owned in the Fund. The liquidation and the basic requirement for equal treatment of all investors means that all forms submitted for subscription or early redemption will be left without action.
Payments will be made in accordance with the conditions applicable when the Fund requests early redemption. NAV is continuously set during the liquidation period, just as usual, and will be published on the manager's website (www.finserve.se).
The time it will take to liquidate the Fund depends on the maturity structure of the underlying loans. Currently, the average maturity is approximately two years.
In connection with the liquidation, the Fund will request that the Fund be delisted from NGM Main Regulated and follow the stock exchange's decision.
The fund will continuously update the information about the liquidation with questions and answers and other information on Finserve's website (https://finserve.se/vanliga-fragor-om-stangning-av-scandinavian-credit-fund-i/)
For further information, please contact:
Andreas Konstantino, CEO, Scandinavian Credit Fund I AB (publ) Mail: andreas.konstantino@finserve.se
For press contacts, please contact:
Jonathan Furelid, Press Contact, Finserve Nordic AB and Scandinavian Credit Fund I AB (publ)
Mobile: + 46 79 3238447
Email: jonathan.furelid@finserve.se