Scandinavian Credit Fund I

Scandinavian Credit Fund I (SCFI) is an Article 8 fund, in accordance with (SFDR), within Direct Lending with the objective of offering a high risk-adjusted return with an average annual return of 5.94% since inception in 2016

An investment also contributes to societal benefit as the investment philosophy is based on making it easier for small and medium-sized companies to expand and develop through direct loans.

Sign up directly with Mangold

Direct loans as an asset class

The goal of Scandinavian Credit Fund I (SCF I) is to offer a high risk-adjusted return with low correlation to the stock, bond and commodity market through senior secured direct lending to mainly companies in Scandinavia. The fund's average annual return since inception in 2016 to Q1 2022 is 5.94%. Historical returns are no guarantee of future returns and an investment in the fund is associated with a direct risk of losing part or all of the invested amount.

The fund's official risk level is 2 ("low risk") according to the generally accepted SRRI risk scale, which is a seven-scale risk model and is shown, among other things, in the fund's fact sheet (KIID). The fund's risk level is based on how the value of the profit-sharing loans varied over a five-year period and measures the fund's historical volatility. The underlying risk in the fund mainly consists of liquidity risk and credit risk which are directly associated with the fund's investment strategy of direct lending to unlisted companies and are to be regarded as illiquid assets. A stressed market climate combined with unpredictable events can lead to a deterioration in liquidity and an inability to meet larger redemptions. Direct lending also entails a direct credit risk where the value of the fund's claim, despite pledged collateral and pledges, can deteriorate over the term of the loan, which can affect the fund's return. The IFRS9 regulations are applied to all of the fund's direct loan commitments. Since 2016, the fund has had an average annual credit loss of 0.55% of the portfolio value as of December 2021. Scandinavian Credit Fund I is an Article 8 fund in accordance with the Disclosure Regulation (SFDR) and thus also takes sustainability risks into account in the fund's investment decisions.

Go to website

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
  • The target for the fund's risk, expressed as standard deviation, is below 2% annually
  • SCF I must have a low co-variation 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 extensive experience from lending operations
  • The fund is placed in risk class 2 out of 7 (SRRI)
  • Average annual return 5,94% per 2021-12-31 (incl. annual interest-on-interest effect if you have been invested since the start)

Management concept

Investment process

The investment objects are approved by an investment committee after a well-developed credit process. The fund strives to consistently enter into engagements with borrowers whose expected return is attractive in relation to the credit risk involved in the engagement. The individual commitments are balanced against each other in order to achieve an effectively 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 must 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 units

The fund can, on a selective basis, place funds in fund shares in similar funds without geographical restriction.

Derivative

The fund has the option of using derivative instruments, partly to reduce risks that are undesirable, partly to obtain exposures that are deemed attractive for the fund and its risk profile.

Interest-bearing instruments

The fund can invest liquidity in bonds.

Deposit to bank

The fund can place liquidity with credit institutions after a credit check.

How the Fund Generates Returns

Who can invest

Private individuals

Anyone who has a deposit or VP account via a bank or fund commission agent can invest in Vinstandelslån, as these are listed on NGM (Nordic Growth Market).
Profit share loans can also be an asset type in a deposit insurance (capital insurance or pension insurance) or investment savings account (ISK). When investing via deposit insurance or ISK, contact should be made beforehand with your insurance company or your bank/fund commissioner if possible.

Business

Anyone who has a deposit or VP account via a bank or fund commission agent can invest in Vinstandelslån, as these are listed on NGM (Nordic Growth Market).
Profit share loans can also be an asset type in a deposit insurance (occupational pension or endowment insurance). When investing via deposit insurance, contact should be made with your insurance company before investing to ensure that it is possible.

Discretionary asset management

Anyone who manages discretionary asset management can invest in Vinstandelslån, as these are listed on NGM (Nordic Growth Market).

Professional investors

Professional investors can invest in Profit Share Loans if current legislation and management mandates allow it. Contact Kreditfonden for more information.

RISKS

All investments are associated with risks and historical returns are no guarantee of future returns. The funds invested in Scandinavian Credit Fund I AB can increase as well as decrease in value, and it is not certain that the person who invests in Scandinavian Credit Fund I AB will recover all of the 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 be read in its entirety.

Liquidity

Liquidity risk for a company is the risk that the company cannot fulfill its payment obligations at the due date, i.e. that the Fund lacks liquidity to pay, for example, invoices or redemption amounts to Investors on time. The risk arises because the Fund finances itself by issuing Profit Share Loans, which entail payment obligations towards the Investors.

The risk may increase if the Fund finds it difficult to raise capital. Liquidity risk can also arise in the Fund's Portfolio, if the assets the Fund has invested in would be difficult to dispose of 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 early. Under normal market conditions, the Market Guarantor offers a purchase price for those who want to sell early. Although bonds in the form of Dividend Loans have become more established recently, the secondary market is still limited. There is therefore a risk that the liquidity of the Profit Share 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 Share Loans during the term and it is then illiquid. This can, for example, occur in the event of strong market movements, changes in liquidity, changes in regulations, hedging ("hedging") of positions, market disruptions, communication interruptions or other events which may lead to difficulties in trading at reasonable rates or due to the market place concerned being closed, or that trade is subject to restrictions for a certain period.

Interest

The value of the profit share loan is largely dependent on a number of different factors. One such factor is the market's general interest level, which is why investors in the fund's profit-sharing loans should understand that the development of the yield can be negatively affected by changes in interest levels in the markets where the fund and the borrowers operate.

Reinvestment

Long-term return opportunities on the profit-sharing loans issued by the fund are highly dependent on the fund finding new lending objects that require financing and which are also suitable based on the requirements set by the fund.

Macroeconomic

A sharp downturn in the country's or region's economy can affect the companies' ability to pay interest and can also lead to repayment of the loan not being completed on time or not being paid at all. For the fund, this means the 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 will not occur at all. However, the AIF fund has commissioned an analysis of other funds in other countries that have similar strategies, which showed that the funds were not affected at all during, for example, the latest financial crisis.

Marketing

The fund's product is relatively new and unknown to smaller investors, which is why it may be difficult to reach out and attract a sufficient number of investors.

The value development of the investments

The fund offers short-term direct lending to small and medium-sized companies in order to achieve the goal of a high risk-adjusted return with low or no correlation with other asset classes. The return on its investments that the fund wants to achieve is thus directly dependent on the repayment ability of the loan objects. There is thus no guarantee that the fund's investments will yield the expected return, or that the value of the invested capital will be kept intact, which is why there is also no guarantee that invested capital can be recovered upon redemption. It should be emphasized that the fund will largely invest in small and medium-sized companies that have good liquidity and financial standing and that 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 risk diversification that is otherwise difficult to achieve as an individual investor.

Trade with Scandinavian Credit Fund I

Investment in the company's profit-sharing loan must primarily be seen as an investment for the entire term of the bond. The profit-sharing loans are freely transferable with the restrictions imposed by applicable law. The profit-sharing loans are listed on NGM Main Regulated under the Nordic AIF Sweden segment, where they are priced continuously.

The duration and volatility of the investment opportunity

Investment in the fund's strategy is associated with risk, also in terms of its duration. However, the fund assesses 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 insensitive to economic conditions, provided that market conditions do not deteriorate significantly.

Currency

The fund may make investments of a certain part of the capital in currencies other than the Swedish krona. The fund intends to currency hedge the investments made in currencies other than the Swedish krona, which is why the risk is considered to be small.

Credit

The fund's investment strategy involves some 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 can affect the return. In the event of a sharp deterioration in the fund's position, the fund may be unable to fulfill its obligations according to the investment agreements entered into with the bondholders.

Fund development

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

Subscription and redemption

Subscription

  • LAST DAY FOR SUBSCRIPTION FORM
  • LAST DAY FOR PAYMENT
  • SETTELMENT DAY

REDEMPTION

  • LAST DAY FOR REDEMPTION FORM
  • SETTLEMENT DAY
  • PAYOUT DAY

Subscription

  • LAST DAY FOR SUBSCRIPTION FORM
  • LAST DAY FOR PAYMENT
  • SETTELMENT DAY

REDEMPTION

  • LAST DAY FOR REDEMPTION FORM
  • SETTLEMENT DAY
  • PAYOUT DAY
  • Current period

    Subscription

    • LAST DAY FOR SUBSCRIPTION FORM
    • LAST DAY FOR PAYMENT
    • SETTELMENT DAY

    REDEMPTION

    • LAST DAY FOR REDEMPTION FORM
    • SETTLEMENT DAY
    • PAYOUT DAY
  • Next period

    Subscription

    • LAST DAY FOR SUBSCRIPTION FORM
    • LAST DAY FOR PAYMENT
    • SETTELMENT DAY

    REDEMPTION

    • LAST DAY FOR REDEMPTION FORM
    • SETTLEMENT DAY
    • PAYOUT DAY
  • SCFI Interim Report 2023

  • SCFI Annual Report 2022

  • SCFI Interim report 2022

  • SCFI Annual Report 2021

  • 2023

    • SCFI Interim Report 2023

    • SCFI Annual Report 2022

  • 2022

    • SCFI Interim report 2022

    • SCFI Annual Report 2021

Press releases

Documents

Before investing in Scandinavian Credit Fund I AB, it is important that you read the written material about the fund in order to make a well-founded 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 and the prospectus and its supplements. You will find all relevant documents here.

Traded markets

The fund's main activity is to provide loan capital to small and medium-sized companies with funds that influence through the offer through this prospectus. The fund's lending objects are found primarily in Scandinavia. The fund can also invest on a selective basis in fund shares in similar funds or through co-financing together with national or international partners without geographical limitation. Through this, the fund intends to create an investment that has lower risk than shares and better potential for returns than traditional fixed income investments.

Management fee

Management fee is paid partly in the form of a fixed remuneration, 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.

Brokerage, clearing fees and other transaction costs attributable to the fund's investments are paid on an ongoing basis by the fund.

Subscription and redemption

Sales and redemption of profit sharing loans take place on the first banking day of each month.
Registration must be done on a special form. (Subscription can take place 4 banking days before each change of month, February to December, not January)
Subscription can also be done with BankID via mangold.se
The minimum amount for subscription is SEK 100,000.
Redemption must be available to Scandinavian Credit Fund I 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.