Nordic Factoring Fund månadsrapport – maj2023

Nordic Factoring Fund monthly report – May 2023

Nordic Factoring fund AB (publ) reports a NAV rate for May of 102.04. That's an increase of 0.28 %.

During the beginning of 2023, the fund has set up new credits for financing invoices of approx. SEK 320m and is positive about the portfolio's future returns. NAV was negatively affected during the month as a result of a one-off currency effect when the fund had to reschedule currency contracts. The portfolio's underlying return has increased and the fund also sees the possibility of better interest rates going forward, which could have further positive effects for the NAV going forward.

Against the background of the weaker economic outlook for the market, the fund has tightened and continued to expand its procedures and the fund focuses its lending towards stable counterparties with good balance sheets to ensure good risk and return levels. The fund's structure for liquidity is well adapted to the market as 90 % of financed invoices have maturities of 30-90 days and can then handle liquidity and capital flows significantly better. The fund continuously receives more requests for new financing and the business volume can increase if the fund receives capital.

The fund sees very good prospects in the market and has 0 % defaulters in 2023, which demonstrates how stable the fund generates high risk-adjusted returns. In addition to the good credit quality, there is credit insurance that covers the entire portfolio against losses.

The reserves in this fund are very low. The fund's entire exposure is in category 1 and the security is over 30,000 invoices pledged in favor of the fund. The invoices are rolled over in 30 to 90 days with credit insurance both with and without recourse. Furthermore, there is property insurance for an eventuality should false invoices appear.

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