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.
There was a concern among investors that companies would give cautious forward-looking comments, but when these failed to materialise and the reports will overall slightly better than expected, share price reactions were generally positive.
Fund manager comment
The stock exchange has quickly recovered December's losses and is heading for new highs. We have taken a more cautious stance after the upturn, with a higher proportion of cash and cash equivalents and increased investments in the health sector, and we have continued to reduce investments in industrials. We have also sold down our investments in the banking sector, which have been under pressure from media reports of involvement in money laundering and a higher valuation in relation to other banks in Europe. Furthermore, we see challenges in the sector to improve profitability and growth in a strained housing market, and with price pressure on lending margins and a poorer outlook for interest rate hikes in Sweden.
Stock markets continued to rise in February but at a slightly slower pace than in the previous month. The focus has been on the quarterly corporate reports that continued to flow in. There was a concern among investors that companies would give cautious forward-looking comments, but when these failed to materialise and the reports will overall slightly better than expected, share price reactions were generally positive. Positive results from companies that had been under pressure were particularly well received. One example is Electrolux, which saw a rising share price when its report revealed turning trends in raw materials and prices. The upward share price gained even more momentum when the company announced a spin-off of Professional Services. The fund has a proportionally high stake in Electrolux and benefited from the price increase. Nibe delivered a report that met high expectations and gave positive comments on future growth potential. However, the holding in Attendo fell, partly due to negative press in Finland, but mainly due to the company's negative margin outlook for the coming two years, revealed in connection with the quarterly report.
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.