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.
Negative real interest rates and strong profit development for the companies provide a good breeding ground for another strong stock market year, but rising long-term interest rates, inflation and austerity from the central banks mean that we are cautious about the stock market.
Martin Nilsson, 2021-12-31
Fund manager comment
Catella Småbolagsfond's NAV increased by 3.72 percent in December, compared with the fund's benchmark index which was up 3.15 percent. The fund ended the year up 28.09 percent compared to the benchmark 37.14 percent. Alcadon, Attendo, Trelleborg and Hexpol were among the holdings that contributed most to the return during the month. Trelleborg's strong development was mainly due to two factors. The first was that the company during the beginning of the month, at its capital market day, presented new ambitious financial targets. The second incident was that there was speculation in the media that there were stakeholders who wanted to acquire Trelleborg's Wheel Systems division. The company later announced that there were external parties who had shown interest in the division, but that the discussions were at an early stage. Among the negative contributors, we find SOBI and Sagax, among others. The offer for SOBI was withdrawn on December 3, when the potential buyers only received just over 87 percent of the shares in the offer, which was conditional on an acceptance rate of more than 90 percent.
The year ended strongly, although developments were delayed until the market put the US Federal Reserve's December meeting into action. The message from the Fed regarding three interest rate increases in 2022 and reduced bond purchases from the Fed was no major surprise. Inflation remains high. Electricity and gas prices were a theme in December, especially in Europe. 2021 was a year that rewarded risk-taking. However, the OMX index has not moved significantly since the turn of the year. Negative real interest rates and strong profit development for the companies provide a good breeding ground for another strong stock market year, but rising long-term interest rates, inflation and austerity from the central banks mean that we are cautious about the stock market.
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.
