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Catella Avkastningsfond

Investments in fund units are associated with risk. Past performance is no guarantee for 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.

Catella Avkastningsfond is a fixed income fund whose target is to achieve stable return at low risk.

The fund invests in Nordic corporate and government bonds, with emphasis on investment grade corporate bonds. The fund applies negative screening for sustainability criteria and consequently avoids long positions in companies that produce tobacco, alcohol, commercial games for money, pornography, coal, oil or weapons. Derivatives are used in management to protect fund capital. Over time, the fund's returns will co-vary with the Nordic bond market. Investments are based on fundamental analysis of individual companies and traditional macroanalysis. Composition of the fund reflects Catella's outlook on the conditions for generating return in relation to risk in respect of credit and interest rate risk.

The financial markets were driven by continued monetary and fiscal stimulus, societies that are opening up with a gradual recovery for the economy.
Thomas Elofsson, 2020-08-31

Fund manager comment

The fund's NAV rose by 0,4 % during August. The fund's holdings in corporate credits explains the increase. The fund's duration amounted to 2,4 years at month end. Only minor portfolio adjustments were made during the month.

The risk sentiment during the month was positive and was driven primarily by a sharp rise in technology related shares. The financial markets were driven by continued monetary and fiscal stimulus, societies that are opening up with a gradual recovery for the economy. Our opinion is that the risk for setback is large, but in the end, we expect central banks to win the battle.

During the month the US central bank signalled that the tolerance to higher inflation is high and that lower unemployment and stronger growth now is the main focus for the monetary policy. Given that monetary policy during the last decade has had difficulties in achieving the inflation target, one need to ask oneself if a higher inflation target has any practical meaning.

As long as central banks continue asset purchases and de facto buy more bonds than what are being issued, our picture is that corporate credits will continue to find themselves in a benign environment. The main threats in the near term is the geopolitical development with the US elections during the autumn, together with bubble tendencies in parts of the asset markets. In the longer term the economic development is decisive, and one should pay attention to that fiscal policy is not sustainable in the long term, but what is needed is both stronger growth and higher inflation. The crucial question for financial markets is then how central banks act if growth and inflation surprise on the upside.

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. 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.

Fact

Catella Avkastningsfond is an actively managed fixed-income fund which invests in corporate bonds with rating investment grade, high yield as well as non rated bonds. The fund may also invest in derivative instruments to, for example, protect the capital in the fund, and may use currency derivatives, such as through the purchase or sale of foreign currency on a forward basis, in order to hedge its holdings. It has a history dating back to 1999, with low risk, consistent returns and positive annual returns in every year. In short, existing investors in the fund have received good rewards for their risk.

The fund is suitable for investors seeking an actively managed fixed-income fund that invests in both the money market and the bond market.

The fund is permitted to use derivatives and to have a larger percentage of the fund invested in bonds and other debt instruments issued by individual central government and municipal authorities and within the EEA than other securities funds, in accordance with Chapter 5, Section 8 of the Swedish Securities Funds Act (SFS 2004:46).

Historical development

Fund manager

Sweden

Thomas Elofsson

Head of Portfolio Management, Fund manager, and acting CEO of the Company
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 Hållbart Beta 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.

Investments in funds are subject to risk. Past performance is no guarantee of future returns. The money invested in a fund can increase and decrease in value and there is no guarantee that you will get back the full amount invested. Read more here