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
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?
The net asset value of the fund rose 0.15% in December. We strive to maintain a balanced portfolio and made only minor changes to its composition. This month’s return was generated mainly from current interest income from the credit book. Interest rate risk was reduced somewhat this month to -0.3 compared to -0.1 at the start of the period.
Interest rate risk was reduced somewhat this month to -0.3 compared to -0.1 at the start of the period.
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. Category 4 does not mean that the fund is risk free. The fund may over time move towards the left or right of the scale. This is because the indicator is based on historical data which is not a guarantee of future risk and reward. For information about the risk classification of each fund, please refer to the fund’s key investor information document.
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.