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Catella Credit Opportunity

An actively managed fixed-income fund with a focus on corporate bonds issued in the Nordic countries. With its broad mandate, the fund has a bigger toolbox to better adapt to different market scenarios. The fund invests across the entire fixed-income capital spectrum.

Fund manager comment

The net asset value of the fund rose 0.08% in March. Market interest rates continued downward this month, which negatively impacted the fund since it has been positioned for rising interest rates. The credit book performed well during the period and we made a number of minor changes to the composition of the portfolio. The fund's hedging in equity and credit indexes gave a marginal contribution during the period.

Our belief is that the environment of stable growth and reduced deflationary risks will continue during early 2018. We predict that central banks will increasingly move in pace with continued interest rate hikes from the US Federal Reserve and less expansionary monetary policy in Europe. The so-called "portfolio channel" with rising asset prices has supported economic growth ever since the last recession in 2009. There are two major questions that may be answered in 2018: will low inflation persist despite lower unemployment, and how will asset markets react to less expansionary monetary policy?

Our belief is that the environment of stable growth and reduced deflationary risks will continue during early 2018.
Stefan Wigstrand, 2018-03-31

Fund facts

Risk Indicator

The risk and reward indicator illustrates the link between risk and potential returns from an investment in the Fund. The indicator is based on how the fund's value has changed over the past five years or the highest permitted risk for the fund. Category 1 does not imply that the fund is risk-free. Over time, the Fund’s risk indicator may change both upwards and downwards. This is because the indicator is based on historical data for the Fund’s model portfolio, which is not a guarantee of future risk/reward.

Fact

Catella Credit Opportunity is designed to meet a challenging interest-rate environment and to be better able to adapt to different market scenarios.

The fund is an absolute return special fund and has a focus on fixed-income securities. The fund has a broad investment mandate, which allows investments across the entire fixed-income capital spectrum. At least 50 percent of the fund's assets are invested in Nordic holdings.

The fund invests predominantly in owned bonds, convertible debentures, preference shares and cash management. The fund's independence of any benchmark allows for business-based and flexible decisions. The fund uses derivatives both opportunistically and to protect its capital against the two primary risks, interest-rate risk and credit risk.

The fund is a further development of the successful and award-winning Catella Nordic Corporate Bond Flex fund. The new fund has an even broader management mandate and takes more risk in its investments, but also has greater potential to make use of derivatives for protection.

Historical development

Fund manager

Sweden

Thomas Elofsson

Head of Portfolio Management and Fund manager
Direct: +46 8 614 25 62
Sweden

Stefan Wigstrand

Fund manager
Direct: +46 8 614 25 58

Risk information

Investments in fund units are associated with risk. Past performance is no guarantee of future returns. The money invested in a fund can increase and decrease in value and it is not certain that you will get back the full amount invested. No consideration is given to inflation. The Catella Balanserad, Catella Credit Opportunity and Catella Hedgefond funds are special funds under the Swedish Alternative Investment Fund Managers Act (SFS 2013:561) (AIFM). Catella Sverige Aktiv Hållbarhet and Catella Småbolagsfond may use derivatives, and the value of the funds may vary significantly over time. The value of Catella Sverige Index may vary significantly over time. Catella Avkastningsfond may use derivatives and may have a larger proportion of the fund invested in bonds and other debt instruments issued by individual national and local authorities and within the EEA than other investment funds, in accordance with Chapter 5, Article 8 of the Swedish Investment Funds Act (SFS 2004:46). Catella Nordic Long Short Equity and Catella Nordic Corporate Bond Flex may use derivatives and may have a greater proportion of the funds invested in bonds and other debt instruments issued by individual national and local authorities and within the EEA than other investment funds. For more details, complete prospectuses, key investor information, and annual and half-yearly reports, please refer to our website at catella.se/fonder or phone +46 8 614 25 00.

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