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.
Increased concerns about a trade war and economic downturn led to a tough time for cyclical exposure
Fund manager comment
June was a weak trading month and the Carnegie Small Cap Index was down 0.03 %. The fund fell 3.16 %, weighed down mainly by the engineering and healthcare sectors. Increased concerns about a trade war and economic downturn led to a tough time for cyclical exposure, and the worst contributions came from our holdings in Outotec, SSAB and NCC. The best contributions came from MTG and the underweights in Tele2 and Billerud.
The period has been characterised by a tougher tone between the US and China, and the market has priced in a higher risk of a trade war, resulting in falling share prices. The weakest sectors were industrials and materials, while IT and consumables held ground. Responsiveness and flexibility have become even more important given the sudden changes in the geopolitical arena, which has also been reflected in the changes we made to the portfolio. We have not made any major changes during the month but reduced cyclical holdings slightly and increased cash levels.
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.