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 fund was positioned this month for Swedish interest rates higher than German rates.
Thomas Elofsson, 2018-06-30
Fund manager comment
The net asset value of the fund rose 0.21% in June. The fund was positioned this month for Swedish interest rates higher than German rates. We retain our belief that the world continues to grow and that inflation will be somewhat higher this year, which will lead central banks to pursue less expansionary monetary policy. Interest rates rose initially during the month and the fund's interest rate risk increased somewhat, which contributed positively to the fund's return. Corporate bonds contributed to the fund’s return this month as credit spreads narrowed slightly.
Our belief is that the environment of stable growth and reduced deflationary risks will continue during 2018. We predict that world central banks will move in pace with continued key interest rate hikes from the US Federal Reserve. We also expect less expansionary monetary policy in Europe. The so-called portfolio channel of rising asset prices has supported economic growth ever since the last recession in 2009. There are two major questions that may be answered in 2018: will low inflation persist despite lower unemployment, and how will asset markets react to less expansionary monetary policy?
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 was also nominated for Best UCITS Fund in Europe 2013 by Eurohedge, the financial world's Oscars. 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
