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.
The fund benefited from being underweight in the real estate sector, which underperformed the market.
Henrik Holmer, 2019-04-30
Fund manager comment
The strong stock market has been driven by the central banks changing tack and not raising interest rates, and the market seems to be pricing in a trade deal between the US and China. The stock market is at high levels, while the economy has begun to slow down and there are still risks with trade relations and Brexit. We are therefore still cautiously positioned, but see continued potential in many of the stock exchange's smaller companies that are able to drive their own growth and agenda.
The stock market has begun 2019 with strength, recording gains every month so far. The fund was up 6.42 % in April, which was better than its CSRX benchmark, which gained 5.82 %. The fund benefited from being underweight in the real estate sector, which underperformed the market. The best holding was Lindab, which was up 26 % in April after issuing a reverse profit warning that showed strong growth in all areas. Other holdings that made positive contributions were Storebrand and Outotec. We lost out relative to the index on underweights in Evolution Gaming, Beijer Ref and Getinge.
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.
