Catella Småbolagsfond is an actively managed fund whose objective is to deliver return that is higher than the average among the Swedish small cap companies included in the Carnegie Small Cap Net Return index.
To achieve that end, the fund invests in a concentrated portfolio of carefully selected Swedish small cap equities that the managers consider undervalued. The analysis process behind the fund's investments is based on Catella's fundamental analysis and broad expertise on Swedish companies. The fund applies negative screening for sustainability criteria and we consequently avoid long positions in companies that produce tobacco, alcohol, commercial games for money, pornography, coal, oil or weapons.
Stock markets recovered in April after two months of decline and small caps performed particularly well.
Fund manager comment
Stock markets recovered in April after two months of decline. Small caps performed particularly well and the Carnegie Small Cap Index was up 6.81 %. The fund was up a slightly lower 4.63 %. The fund suffered in relative terms from the holding in Mycronic falling after a very strong early year for the stock. There were also negative contributions from Mekonomen, which issued a profit warning, and Trelleborg. The biggest positive contributions came from Storebrand and the underweights in Getinge and Saab.
There were large numbers of interim reports this month, mainly from the somewhat larger companies. Earnings in many cases demonstrated continued strength, although share prices were sometimes tough on companies that delivered good results. This suggests a little scepticism about the resilience of the economy. Otherwise, there is intense focus on currency movements and rising US interest rates. Swedish exporters will benefit in the near term from the continued weakening of the Swedish krona.
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 1 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 Småbolagsfond invests in Swedish small caps and focuses on finding undervalued companies. Genuine stock picking, in other words.
The fund is intended for investors seeking exposure to Swedish small caps, with a higher expected return than the Swedish stock market indices and who have an investment horizon of at least five to seven years. The fund is permitted to use derivatives and the net asset value of the fund may fluctuate considerably.