Scandinavian Credit Fund I AB (publ) reports a NAV rate for July of 83.08. It is down by 10.21 %. Adjusted for the payment of SEK 250 million, the decline was 0.20%.
The fund has had no new lending during June, however, a lift has been carried out on already granted credits corresponding to approximately SEK 2.6 million.
The payment of SEK 250 million affected NAV by 10.01%. In other respects, the provisions increased slightly for a loan and some mortgaged properties.
The market and the economy
As expected, the key interest rate was raised in both the EU and the US in July. Inflation is starting to slow down in the US and has now fallen to 3%. In Europe, inflation remains high, 5.3% in July. The Swedish krona has weakened further over the past month, limiting the Riksbank's scope.
The real estate companies' problems with refinancing outstanding bonds are and will be a strain on the financial markets for the next two years. The limited availability of risk capital will act as a hindrance to the sector in the future.
European producer prices have fallen back to 2021 levels. This indicates a weaker economy but also that inflation is coming down. Energy prices will be a decisive factor for inflation during the autumn. It was during August last year that prices reached record levels. However, the gas stocks are well filled this year, which should lead to a calmer development this year. The shut-down German nuclear power plants pose another challenge.
The contraction of consumer space is significant due to the higher interest rate situation and inflation. This will lead to lower demand and thus a weaker economy. Which should mean that the interest rate hike phase is over.
The risks in the markets continue to increase and the fund has increased the reserves during the month. The fund especially sees pressure on interest-sensitive companies. The fund assesses that the market trend continues to be negative, which increases the risk and thus also the reserves.
Payments are made via Euroclear as repayment of capital. No withholding tax is therefore deducted. Taxation of the shares is done according to current capital gains taxation.
Payment is made when the fund has accumulated enough cash for the payment to be meaningful. This is because the payments are associated with administrative work and costs.
The record date for payments will in future take place five working days before the last working day of the month. Payment is made on the last working day of the month. Which is also the record day for NAVet.
The payment is paid pro rata to the Fund's shareholders. More information about the payment is communicated on the Fund's website: www.finserve.se/fonder/kredit-rantefonder/scandinavian-credit-fund-i/
As a result of the closure, the fund has established a separate page for FAQ (frequently asked questions). Questions and answers are updated continuously and as new questions are received by the Fund within 2-3 banking days.