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 main positive contributors during the month were the holdings in Indutrade, Xvivo Perfusion, Mycronic and Lindab.
Fund manager comment
The strong start to the stock market year continued in February. The increased risk appetite is primarily a result of the US central bank's more restrained stance, a better dialogue between the US and China in the ongoing trade war and a reporting season for the fourth quarter that was in line with market expectations.
Catella Småbolagsfond rose 4.7 percent in February compared with 4.4 percent for its benchmark, the Carnegie Small Cap Index. The main positive contributors during the month were the holdings in Indutrade, Xvivo Perfusion, Mycronic and Lindab. These all reported results for the fourth quarter that far exceeded market expectations. Indutrade reported strong organic growth and order intake, and a margin that was significantly stronger than market expectations. The company also said that 2019 began with high stable demand. Balder, Cavotec och Midsona were among the weaker holdings this month.
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.