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SE 
Scandinavian Credit Fund I AB (publ) reports a NAV rate for February of 101.00. It is an increase of 0.48 (0.477%), it is a good month considering that we only have 28 days in February. Inflow for the month of February is SEK 12 million, thank you very much for that.
New lending in February is approx. SEK 48 million.
The market
The Ukraine conflict rules everything and your guess is as good as mine where this will end. What is certain, however, is that the central banks will wait with increases at this stage. The rising energy and food prices will have a dampening effect on growth and this suggests that they are waiting in Europe, the Fed will increase in March by 25 interest points.
Stock markets are falling heavily today as I write this and credit spreads are falling apart.
The fund's holdings have no direct exposure to Eastern Europe, in the same way as with covid, we will follow all borrowers extra closely.
IFRS 9
We include the provisions for IFRS 9 this month so you can see what the risk on the holdings looks like.. We will show this summary every month from February. LTV shows how large the loan is in relation to the value of the collateral. That is, in category 2, it gives excess values on current valuation with 25%. During February, we received new external valuations on a holding which means an upward adjustment of its value, however, we have made a large general reservation for the uncertain macro situation in which we find ourselves and moved two loans from category 1 to category 2. The net of these will have largely zero impact on the NAV rate.
ESG
Finserve Nordic, which is the fund's AIF manager, has in 2020 joined the company to the PRI network, Principles for Responsible investment. The network is independent but supported by the UN and encourages investors to invest responsibly by following the principles developed by the network.
Finserve Nordic believes that the integration of sustainability risks is an important part of the funds' investment processes. Sustainability risks are defined as environmental, social or corporate governance-related circumstances that could have a significant negative impact on the value of investments.
Social aspects include e.g. human rights, labor rights and equal treatment. Environmental aspects are e.g. the companies' impact on the environment and climate. Corporate governance aspects are e.g. anti-corruption, shareholders' rights and business ethics
All funds under Finserve's management follow the responsible investment process formalized in Finserve's Sustainability Risk Integration Policy. The policy is available on the company's website https://finserve.se/viktig-information/. Each fund's sustainability policy is available on the funds' websites.
We can announce that based on today's sustainability requirements for funds, Scandinavian Credit Fund I is to be considered a "light green" fund, which is very good. In Sweden, about 30% of all funds have a rating corresponding to light green or better.
When you do your analysis of the fund, you should primarily look at the credit risk and the liquidity risk in the fund. Are you comfortable with the credit risk that the fund's holdings generate? Furthermore, the assets are illiquid and it can take some time to get your investment back if many people want to withdraw deposited funds at the same time. The fund has a low market risk and has a low correlation with other asset classes.
We emphasize that we are not stressed by non-loaned funds, but continue to work based on our models for credit assessment, all to ensure a good diversification of the portfolio in relation to the credit risk we take.
If you need to sell your holdings, do it in the primary market, where you will get the best price.
The official NAV rate is published on the first banking day of each month, what is shown during the month on NGM is not, I want to emphasize not always the official NAV rate, as fund units may have been traded in the secondary market at a different rate than the official NAV.