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.
We have made an investment in technical consulting company Sweco, which benefits from sustainability trends on many levels. Global urbanisation and the environmental challenges we face are leading to increased demand for more sustainable solutions in infrastructure, water, energy and transport, which are the core of Sweco’s business
Fund manager comment
The market continued to slide in August, weighed down by increased tensions in the trade war, the turmoil surrounding Brexit and political unrest in Italy, which together reduced investors' risk appetite. The worst performers were industrials, IT and the financial sector, while groceries and real estate held their ground. The market fell 1.2% this month, while Catella Sverige Aktiv Hållbarhet lost 1.5%. The worst contributions came from the investments in Nibe and Husqvarna, and the fund had too little invested in HM, which did well on the stock market. Countering this, there were positive contributions from the investments in Novo Nordisk, real estate company Balder and grocery company Essity, which went against the flow and rose in a falling market.
We have made an investment in technical consulting company Sweco, which benefits from sustainability trends on many levels. Global urbanisation and the environmental challenges we face are leading to increased demand for more sustainable solutions in infrastructure, water, energy and transport, which are the core of Sweco's business. We still have a cautious view of the market after this year's strong gains. However, we have chosen to reduce some of the fund's deviations at the sector level. This means that since the start of the second half of the year we have increased the holdings in real estate companies and engineering, where we had the greatest deviation, while we have reduced our large overweight in consumer durables.
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.