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 holdings in Outotec and Cramo, and the underweights in Vitrolife and Castellum, were among the main contributors to the relative return.
Henrik Holmer, 2019-06-30
Fund manager comment
June was a strong month for the world's stock exchanges. Global economic data was mixed as usual, but still with a downside slant. The fierce rhetoric continued between the United States and Iran, and came to a head when Iran shot down an American drone, which was also the main reason why oil prices rose this month. World interest rates continued to decline and, by the end of June, a US 10-year bond yielded around 2 percent.
Catella Småbolagsfond was strong this month, rising 5.7 percent, while the fund's benchmark Carnegie Small Cap index rose 5.2 percent. The holdings in Outotec and Cramo, and the underweights in Vitrolife and Castellum, were among the main contributors to the relative return. Cramo is one of the Nordic region's leading leasing companies of plant and machinery, mainly for the construction sector. The company previously announced that it intended to separately list its modular space business, and this has now taken place with a listing of the new company Adapteo on the Stockholm exchange at the start of July. We are positive about the demerger since we believe it will reveal values in both companies. Another reason for Cramo's strong performance was that Loxam made a recommended bid Cramo's main Nordic competitor, Ramirent.
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.
