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, fossil fules or weapons.
Catella small companies were down - 5.9% in September, which was better than the fund's benchmark index, Carnegie Small Companies Index, -8.3%.
Fund manager comment
Catella small companies were down - 5.9% in September, which was better than the fund's benchmark index, Carnegie Small Companies Index, -8.3%. Small companies returned clearly worse than large companies during the month, -8.3% (Carnegie's small company index) vs -3.9% (OMX index). The shares in the fund that contributed the most to the return for the month were SOBI (public bid), Zalaris and Fenix Outdoor. The shares in the portfolio that made the largest negative contribution were Mycronic, Inwido and Tele2.
The Stockholm Stock Exchange (SIXRX) ended at -6.2% in September, thus breaking the ten-month-long suite of positive monthly returns. It is noteworthy that, since the sharp decline in March 2020 by -13.3%, the Stockholm Stock Exchange has only had two negative months, one of which was October 2020 (-5.9%). The stock market initially sold off in September due to concerns about lending in the Chinese real estate sector. The turmoil intensified and gained more fuel towards the end of the month due to inflation in the West, rising long-term interest rates in the US, declining central bank stimulus and weaker macroeconomic indicators. The Federal Reserve's meeting in the middle of the month indicated a faster tapering of bond purchases (tapering) than expected and the first interest rate hike may come at the end of 2022.
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 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.