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.
An actively managed fund that offers corporate bonds issued in the Nordic region. The fund is able to perform in both rising and falling interest-rate markets.
Catella Corporate Bond Flex is a fund whose objective is to deliver competitive risk-adjusted return. The fund invests in Nordic corporate bonds, both investment grade and high yield, and government bonds. 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. Derivatives are used in management to protect fund capital. Over time, the fund's returns will co-vary with the Nordic corporate bond market. 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. 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 initiated vaccinations and the announced fiscal and monetary stimulus packages have however signalled that there is hope of normality within reach which led to positive development in risky assets during the month and long-term interest rates continued up.
Stefan Wigstrand, 2020-12-31
Fund manager comment
The fund rose by +0,49 % in December. The fund's investments in investment grade and high yield bonds continued to develop well during the period. Only smaller changes were done during the month. During the period the duration in the fund was changed to 0,8 years.
During the month of December, we could observe an increased spread of the virus with larger restrictions of mobility in society as a consequence. The initiated vaccinations and the announced fiscal and monetary stimulus packages have however signalled that there is hope of normality within reach which led to positive development in risky assets during the month and long-term interest rates continued up. The main threats in the near term is of course the spread of the virus but in the longer term the economic development and the unsustainable fiscal policy are decisive. As long as the confidence in central banks is high, this is not a problem, but without higher growth as well as higher inflation in order to solve the world economy's unsustainable debt levels this will prove to critical for the world's financial markets.
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 Nordic Corporate Bond Flex is an actively managed alternative fixed-income fund that is able to perform in both rising and falling interest-rate markets. The fund has a flexible toolkit, which means that it can easily allocate between different fixed-income asset classes.
Unlike traditional fixed-income funds, Catella Corporate Bond Flex has the potential to parry rising interest rates.
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.
The fund is suitable for investors seeking a higher risk and the potential for higher returns than traditional fixed-income savings.
Catella Nordic Corporate Bond Flex is a daily-traded alternative UCITS fixed-income fund registered in Luxembourg. Minimum investment: 100SEK/€10
