Scandinavian Credit Fund I AB (publ) reports a NAV price for May of 92.53. This is a decrease of 8.54 %.<\/p>\n
The fund has not had any new lending during June, however, a boost has been implemented on already granted credits corresponding to approximately SEK 0.8 million.<\/p>\n
NAV-influencing factors for June are that the value of two of the fund's shareholdings has decreased significantly. Both companies have been negatively affected by increased interest rates and changed market conditions. The fund has had an intensified dialogue with the companies' management during the month and has noted both reduced income and increased operating expenses.<\/p>\n
The market and the economy<\/strong> The bond market's liquidity has essentially ceased, except for top-rated large companies. This deterioration primarily affects real estate companies. Real estate companies have sold properties from their portfolios and carried out new issues to deal with the deteriorating market conditions.<\/p>\n The interest rate increases have a lag effect and will gradually affect the real economy. The Fund sees increased risks for several counterparties, especially counterparties with retail sales and real estate exposures. The market for refinancing and corporate acquisitions continues to tighten, making it difficult to both divest and refinance properties.<\/p>\n IFRS 9<\/strong> Payment<\/strong> More information about the payout is communicated on the Fund's website: www.finserve.se\/fonder\/kredit-rantefonder\/scandinavian-credit-fund-i\/<\/p>\n As a result of the closure, the fund has established a separate page for FAQ<\/a> (frequently asked questions). Questions and answers are updated continuously and as new questions are received by the Fund and within 2-3 banking days.<\/p>\n
\nGlobal policy rates continue to rise as inflation is difficult to contain and there are several interest rate hikes coming in the coming months. The record-low Swedish krona is holding back inflation and leaving little room for the Riksbank to continue with interest rate hikes.
\nProperty companies' profitability problems due to higher financing and operating costs cannot be fully mitigated by rent increases. Vacancy rates are also increasing, mainly for office and retail properties.<\/p>\n
\nThe 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.<\/p>\n
\nThe Fund's Board of Directors decided in May 2023 to close and wind down the Fund's management after a longer period of net outflows and with approximately SEK 730 million in net outflows during the month of May. The Fund's management and handling of the portfolio assets will continue as before but with the goal of an orderly winding-up and payment of all portfolio assets pro-rata to the Fund's unitholders. The first payment is expected to be paid on a preliminary date of July 17, 2023 and amounts to an amount of SEK 250 million. The payment date depends on the Fund's issuing institution and Euroclear and its ability to administer the profit shares in connection with the payment. The payment will be paid pro rata to the Fund's unitholders.<\/p>\n