As a leading independent fund manager in the Nordics, Catella offers actively managed Mutual Funds with a Nordic investment focus to private and institutional investors. Catella also offers Systematic Funds with low correlation to other asset classes and high risk-adjusted return to institutional investors.
Actively managed Mutual Funds with a Nordic investment focus
Within Mutual Funds, Catella offers actively managed equity, fixed income and hedge funds with focus on Nordic assets. At present, Catella manages ten funds with various strategies. The goal is offer attractive, longterm alternatives to private and institutional investors, regardless of market conditions and aligned with the investor’s needs. Products designed to generate positive returns regardless of market conditions are a strong element of the offering.
Global provider in systematic funds
Catella enjoys a strong position in the Systematic Funds niche. Institutional investors from all over the world are choosing to invest in these globally competitive products. Systematic funds are managed with the support of statistical models, where “big data” from all over the world are compiled and form the basis of strategies with historically profitable outcomes. The funds invest globally in liquid securities in the currency, fixed income and equity markets and have a scalable business model with large-volume capacity.
The relative independence of the equity market and other asset classes enhance risk-adjusted return in client portfolios. As one of the pioneers in smart beta strategies, Catella generates added value via Systematic Funds through exposure to the equity market independently of companies’ market capitalization – and thus offers a clear alternative to passively managed index mandates.
Focus in 2018
Catella is maintaining its focus on strengthening relationships with existing clients and resellers, while expanding direct sales in Mutual Funds to institutional clients in Sweden and abroad.
The somewhat more unsettled equity and fixed income market in early 2018 may trigger higher interest in Mutual Funds as well as absolute return alternatives like Systematic Macro. All of these offer returns that are less dependent upon the general equity markets and bond trends.
The new EU directive MiFID 2 entered into force on 3 January 2018. The legislation increases transparency in sales to customers and is aimed at creating more equitable terms in the financial markets. Catella and the entire industry prepared during the autumn of 2017 ahead of the new regulations and client reactions were limited during the initial months of 2018. A large share of Catella’s sales in the business area are made directly to institutions and are not affected by these changes to the same extent.
Digital platforms for direct sales of funds are becoming more common, as is the use of internet banking solutions. Catella is therefore focusing on enhancing visibility and augmenting our personalised service by creating clarity and security in the digital environment as well. The investment podcasts and monthly newsletters offered by Mutual Funds in these channels are examples of this.
The development towards an increasing element of digital distribution strategies is making it more important than ever for Catella to offer well-positioned and distinctive products. The business area is also continuing to develop more niched funds that can constitute interesting alternatives and add to the existing product palette.