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 Net 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 biggest positive contribution came from the holding in Storebrand. NCC recovered and also contributed positively, as did the underweight in Nolato.
Henrik Holmer, 2018-08-31
Fund manager comment
The Stockholm exchange continued to rise in August, with small caps slightly underperforming large caps. Catella Småbolagsfond was up 1.93 % while its benchmark was up 2.50 %. Base metal prices remained weak and the main negative contributions came from commodity-related companies like Lundin Mining, SSAB and Outotec. The biggest positive contribution came from the holding in Storebrand. NCC recovered and also contributed positively, as did the underweight in Nolato.
The month was generally poor on news, except for some late interim reports. Macro data came in somewhat mixed but showed continued growth. An important event during the period was the progress at the US-Mexico negotiating table, as well as hopes for a speedy agreement with Canada. Our base scenario is that there will be new agreements and the risk of a full-scale trade war will therefore decrease. However, the tone between the US and China remains harsh and this is the most important nut to crack. There was intense focus on Sweden's elections, and now that we can see the results it is difficult to work out how the new government will be structured. However, this was expected even before the election.
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.
