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.
When we now sum up the first half of 2021, it has been strong both in terms of economic development and in the financial markets.
Fund manager comment
Catella Småbolagsfond decreased by 2.2 percent during the month. The fund's benchmark index was down 0.03 percent during the same period. The main holdings during the month were the real estate company Nyfosa, Indutrade and the underweights in the companies Creades and Sinch. Indutrade is an international industrial group that acquires and develops companies that are often characterized by high technical know-how. Indutrade, together with other so-called serial acquirers such as Addtech and Lifco have for a long time developed strongly on the stock exchange. Negative contributors to the relative return were Enad Global 7 and the industrial company Haldex and the steel company SSAB.
When we now sum up the first half of 2021, it has been strong both in terms of economic development and in the financial markets. However, the strong recovery has created bottlenecks in the system. This has led to rising costs for many inputs and a lack of components. Despite this and the fact that inflation figures in the US have recently been higher than expected, inflation unrest in the world has at least deceived in the short term. As a result, US long-term interest rates have fallen from the spring peak.
During June, global stock markets continued to rise. The Nordic region was no exception and the Danish stock market developed best, rising by 4.9 per cent. As we now approach the reporting season for the second quarter, it has been a strong quarter for many companies. However, as usual, there are clouds of unrest, this time mainly in the form of cost inflation and production disruptions.
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.