EN 
SE 
Scandinavian Credit Fund I AB (publ) reports a NAV rate for March of 101.67. It's an increase of 0.67 (0.6634%), it's a very good month. Inflow for the month of March is SEK 22 million, thank you very much for that. New lending in March is approximately SEK 53 million.
We are pleased to announce that we have finally been paid in a lengthy process where a personal guarantee finally triggered the repayment when other collateral failed. That is the reason why NAV in March bounced up a little more than expected. It shows that our routines for recovering loaned funds work and that we have good partners who help us in these matters when needed.
The market
Back to fundamental factors that affect the markets.
The market is cynical and right now it sees the Ukraine war as a local conflict and not a geopolitical problem as the stock markets initially discounted. It is possibly quite short-term thought and the second wave of rising energy prices and food prices is completely dependent on how long the conflict in Ukraine lasts.
As usual, the market is ahead of the central banks when it comes to pricing in future interest rate increases, see graph below. It will be interesting to see if Ingves changes his foot to raises already this spring. All the facts speak for it except his past behavior. Above all, what risks a blow if action and rhetoric disappoint the market is the krona. It has recovered quite a bit from earlier this year but is quite vulnerable to negative news.
(source Bloomberg)
The fund has no direct or indirect exposure to Russia that we know of today. We continue to have a close dialogue with our borrowers about how they are affected by the current situation. After all, we have galloping inflation, war and covid in China to follow up. It looks good overall though.
Comparison
I can't help but make a comparison with a long Swedish bond fund since SCF I started. It is challenging to justify putting money into a government bond fund when there are other options like SCF I.
(source Bloomberg)
IFRS 9
IFRS 9 provisions for the month of March can be seen in the image below the yield history below.
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 21 %. Those who are observant note that there are 21 % in March and last month 25 % there are new lifts in companies under Riddargatan. It affects reservations and is found in the NAV rate.
In category 3, the exposure has decreased as a result of repaid debt as mentioned above. It gives a little extra to the NAV for the month of March.
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.