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 combination of easing of Corona virus restrictions and massive fiscal and monetary stimulus, has improved the sentiment in the global financial markets.
Fund manager comment
The fund increased in the positive market environment by +2,9 % in June. The fund's exposure in corporate credits is the explanation for the positive development. The fund's duration decreased to 1,4 years at month end. The fund's credit exposure increased marginally during the month. Only marginal portfolio changes were done during the month.
The combination of easing of Corona virus restrictions and massive fiscal and monetary stimulus, has improved the sentiment in the global financial markets. Stronger equity and credit markets and unchanged interest rate levels show that stimulus is more important than economic data at the moment. Our opinion is that the risk of a setback is high, but that central banks in the end will win.
Fiscal policy in combination with asset purchases is probably a powerful combination, but not without associated risks. The high level of debt in the world economy is sensitive for higher rates which is something that the financial markets currently won't cope with. Given the rapidly increasing budget deficits this will lead to higher supply of government bonds which will increase quickly and would lead to higher rates. The demand for these bonds is likely low among investors given that the potential for returns is low. Thus far, central banks have de facto acquired more bonds than are being issued. The decisive question for market developments is if central banks will take a step back and decrease asset purchases, rather than economic developments in the near term.
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 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