A fund that has sustainability objectives should not simply opt out of certain companies, but instead should actively seek out those that have sustainability within their actual business concept. This is the principle of Catella Sverige Aktiv Hållbarhet.
Fund manager comment
Economic data and leading indicators from both the US and Europe continued to lend support to a strong underlying economy in December. The picture was more divided in China, where the purchasing managers index fell slightly but still indicates expansion, while retailing was slightly weaker than expected and fixed asset investment was in line with expectations. The Fed chose to raise interest rates by 0.25% and still guided for further gradual increases. Overall, we see a continued strong global economic climate, which is largely reflected in company valuations.
Catella Sverige Aktiv Hållbarhet fell 0.83% in December, compared with -1.26% for the Swedish market as a whole. The main positive contributors at sector level were industrials, consumer durables and finance, while commodities and groceries hampered the results. The strongest contributors at company level were Outotec, after receiving a number of major orders, and the underweight in H&M, with sales numbers far short of market expectations. On the negative side were Ericsson, Essity and Volvo.
The main positive contributors at sector level were industrials, consumer durables and finance, while commodities and groceries hampered the results.
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 Sverige Aktiv Hållbarhet offers a concentrated portfolio of carefully selected Swedish shares, which means the potential to obtain better returns than the index. The fund invests with a focus on large and medium-sized businesses.
The fund is permitted to use derivatives and the net asset value of the fund may fluctuate considerably. The fund is intended for investors seeking active management of Swedish equities and with an investment horizon of at least five to seven years.