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 Småbolagsfond is an actively managed fund whose objective is to deliver return that is higher than the average among the Swedish small cap companies included in the Carnegie Small Cap Return index.
To achieve that end, the fund invests in a concentrated portfolio of carefully selected Swedish small cap equities that the managers consider undervalued. The analysis process behind the fund's investments is based on Catella's fundamental analysis and broad expertise on Swedish companies. 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.
SSAB held a capital markets day and presented new strategic targets. High-strength steel and premium products will together account for 50 percent of SSAB’s shipments in 2022. Furthermore, SSAB aims to be the first steel company in the world to be able to offer fossil-free steel in 2026. We are very upbeat by this
Martin Nilsson, 2019-12-31
Fund manager comment
World stock markets ended a very strong year for exchanges with continued gains in December. Swedish small caps performed better than large companies. In our view, falling interest rates were the main reason for the year’s strong showing, which mainly benefitted the real estate sector and relatively high-valued growth stocks. At the start of 2020, tensions between the US and Iran have intensified greatly, and it is currently impossible to know whether this conflict will continue to escalate. Although we are upbeat about the stock market for the long term, heightened geopolitical concerns tend to mean that market participants trim back their risk, especially after such a strong equity market performance as in 2019.
Catella Småbolagsfond rose 5.0 percent in December, which was in line with the fund’s benchmark index. The main positive contributors this month were the holdings in Mycronic, Nyfosa and SSAB. Real estate company Nyfosa made a large acquisition of a total of 79 properties from Randviken Fastigheter AB, which was well received by the stock market. SSAB held a capital markets day and presented new strategic targets. High-strength steel and premium products will together account for 50 percent of SSAB’s shipments in 2022. Furthermore, SSAB aims to be the first steel company in the world to be able to offer fossil-free steel in 2026. We are very upbeat by this. The holdings in Camurus, Hansa Biopharma and Nordic Waterproofing were weaker this month.
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 Småbolagsfond invests in Swedish small caps and focuses on finding undervalued companies. Genuine stock picking, in other words.
The fund is intended for investors seeking exposure to Swedish small caps, with a higher expected return than the Swedish stock market indices and who have an investment horizon of at least five to seven years. The fund is permitted to use derivatives and the net asset value of the fund may fluctuate considerably.
