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.
The objective of Catella Hedgefond is to achieve stable returns at low risk, regardless of market conditions.
The fund invests mainly in Nordic equities and 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, or weapons. Derivatives are used in management to protect fund capital and increase return opportunities. The fund is expected to have low co-variation with performance in the equity, credit and bond markets and may thus both raise the expected return and lower the expected risk in a traditional equity and fixed income portfolio. In structuring the portfolio, strong emphasis is placed on spreading risk and preventing any individual holding or sector from having excessive influence on fund performance. Investments are based on fundamental analysis of individual companies and traditional macroanalysis. The fund's target is to generate annual return of 3-5% with a standard deviation of 3%.
Catella Hedgefond rose 0.8% during the month, with the credit portfolio accounting for most of the return – partly driven by the higher than normal interest rate duration.
Fund manager comment
During the July reporting period, the Nordic stock exchange index fell by between 0.2% for Sweden and 1.9% for Finland. The reporting season can be said to have been mixed, with some estimate revision for the aggregate. Positive surprises were noted from companies such as Assa Abloy, Sobi and Epiroc, while Alfa Laval, Nordea, Sandvik and Kindred were disappointing. On the macro front, central banks signalled looser monetary policy going forward, which lowered market interest rates during the month. Leading indicators fell further in July, with the exception of some improvement in China.
Catella Hedgefond rose 0.8% during the month, with the credit portfolio accounting for most of the return – partly driven by the higher than normal interest rate duration described above. Equities accounted for a weakly positive return, and there were also some gains from derivative positions. Ovzon was a clear winner in terms of individual positions. During the spring, this company quickly took decisive steps to secure the launch of its own satellite in addition to the already established operations based on leased capacity. Ambea also contributed positively during the month when its share recovered following its rights issue in connection with the acquisition of Aleris. The main negative contributors were SSAB, Alligator, Axfood and Castellum It can be noted that Alligator fell 35% on the last day of the month after it was announced that its partner is ending cooperation on the ADC-1013 antibody.
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.
Catella Hedgefond fund's objective is to deliver consistent, positive returns regardless of stock market trends.
To make money in both market upturns and downturns, the fund managers invest in Nordic fixed-income securities and equities, and gain protection from downturns through derivatives. This means that timing is not an issue when investing in Catella Hedgefond, and low risk is a cornerstone of the fund. The fund is run by a total of four managers. The team's experience and knowledge generate the management performance.
The fund is traded daily, making your money normally available immediately. Over time, the fund has had a high risk-adjusted return. This is a fund for investors seeking a solid base for their savings.