Monthly report April 2021 – SCF I

The NAV rate for April was 102.06, an increase on the month of 0.44 ( 0.43 %) and a standard deviation of 0.89.

A somewhat weaker month. This is due to continued high liquidity in the portfolio, it sometimes takes a little longer than expected to put money to work. It is better to do the right thing than to be in a hurry.

We have inflows of around SEK 35 million, thank you for that.

New lending in April was approximately SEK 180 million.

We continue our work with extra frequent follow-up of our companies with regard to the Corona situation.

The market

We received new unemployment statistics from the US on Friday. It came in significantly weaker than expected. That is, fewer new jobs had been created in the United States in the past month. This despite the huge stimulus packages initiated by the administration in the US. It takes a while for the incentives to hit the labor market.

The market, which is doped up by liquidity, took the statistics positively with the interpretation that then more packages will arrive. I think it feels absurd to make that interpretation when massive stimulus has just been announced. What is more understandable, however, is that the inflation concerns that have characterized the market in recent times took a break. This led to a falling US dollar, lower interest rates and positive tone for risky assets.

Another theme right now is that the manufacturing industry has a component shortage both here at home and in the rest of the world. Shutdowns last year, the Suez debacle contribute to this, among other things. Furthermore, the industry is going for high pressure and could produce more if there was not a shortage of certain inputs.

It seems that GDP here at home and parts of the rest of the world will be back on the trend line in the latter part of 2021 or 2022. An absolutely fantastic recovery from last year. A grieving child, however, is Europe, which has problems, and especially the countries around the Mediterranean. We really have to hope that the vaccination gives the desired result soon.