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 broader Stockholm equity market benchmark continued to rise during the month of September and had the strongest performance in the Nordics.
Martin Nilsson, 2020-09-30
Fund manager comment
Catella Småbolagsfond rose +6,0 percent during the month. The fund's benchmark index was up +6,2 percent during the same period. The main positive contributors to the relative performance was the holdings in real estate companies Kungsleden and Nyfosa as well as the underweight in industrial company Beijer Ref and tech company Sinch. Negative contributors to the relative performance during the month were holdings in Metso Outotec and mining company Lundin Mining.
The broader Stockholm equity market benchmark continued to rise during the month of September and had the strongest performance in the Nordics. Swedish small cap companies performed better than large caps. During the month we have seen takeovers, A3 by Bredband2, Ahlstrom-Munksjö from a group of investors, including Bain Capital Private Equity and Ahlstrom Capital Qy and an increased bid for IT-consultant HiQ from Triton. Moreover, we have seen a number of positive earnings guidance from companies such as Husqvarna, Hennes & Mauritz and elevator company Kone.
In Europe the spread of Covid-19 has accelerated, and many countries have implemented new restrictions. It is obvious that these restrictions are not as harsh as previously. It can't be excluded that in case things get worse in Europe, we may see a more restrictive approach.
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.
