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.
Sustainability is the objective of the Catella Sverige Aktiv Hållbarhet fund, which actively seeks to identify companies where sustainability is embedded in the business concept.
Turnover is higher in active management than in traditional equity funds and the fund aims to deliver return that exceeds its benchmark over time. Investments are selected for the fund through a combination of financial and sustainability analysis. The investment process is based on the conviction that there is a connection between a sustainable business model and persistent profitability and growth over the long term, and that this is often underestimated by the market. Having a sustainable business model involves providing products and services that offer solutions to global environment, social and corporate governance challenges. The fund’s choice of companies is also limited by negative criteria, meaning that the fund does not invest in companies that violate any of the ten principles of the UN Global Compact. The fund is also permitted to invest in derivatives as an aspect of the investment strategy.
The future prospects for most companies are positive, which is also reflected in strong macro data.
Fund manager comment
The stock markets continued to rise during the month of April, where there was a large difference between the development for small companies which was up 7.8% and the stock market as a whole, SIXRX, which was up 3.72%. The fund, which has an exposure to the larger companies on the stock exchange, did not keep up with the small company race and was up 1.48%. The fund does not invest in commercial gaming operations for sustainability reasons, which means that we do not own Evolution Gaming. This share has risen over 100% so far this year and is now one of the stock exchange's largest companies. As the share now weighs so much in the index and was up just over 30% in April, the fund lost 0.72% relative to not owning Evolution Gaming. The best relative contributors were the holdings in Nibe, Mycronic and the underweight in Assa Abloy.
During the month, a large number of companies presented their reports for the first quarter. In general, it has been a very strong reporting season. However, in many cases the price reactions have not reflected the strength of the reports. The future prospects for most companies are positive, which is also reflected in strong macro data. Many companies continue to choose to highlight rising raw material costs such as steel and production disruptions due to the lack of semiconductors and other components as potential clouds of unrest in the future.
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 Sverige Aktiv Hållbarhet offers a concentrated portfolio of carefully selected Swedish shares, which means the potential to obtain better returns than the index. The fund invests with a focus on large and medium-sized businesses.
The fund is permitted to use derivatives and the net asset value of the fund may fluctuate considerably. The fund is intended for investors seeking active management of Swedish equities and with an investment horizon of at least five to seven years.