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.
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 Aktiv Hållbarhet rose during the month by 1.4 percent. The fund's benchmark index was up 0.7 percent during the same period. The main positive contributors to the relative return were the holdings in the pharmaceutical company Astrazeneca, the investment company Kinnevik, the technology company Hexagon and the underweight in Evolution Gaming. After the end of the month, Hexagon announced that it had acquired Infor´'s EAM operations for approximately SEK 23.5 billion. The company's largest acquisition ever. Evolution Gaming is a company that offers products and services in commercial gaming operations. Commercial gaming is one of the areas in which the fund does not invest as this is excluded for sustainability reasons. Negative contributors to the relative return were the holding in SSAB and the underweight in Swedbank.
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 trend we have seen in the last six months towards higher inflation expectations and higher commodity prices took a break in May. Macro-indicators such as ISM and employment statistics in the US came in worse than expected and both the Fed and the ECB spoke of austerity. Despite this, US long-term interest rates fell, which was also one of the reasons why the rotation we saw at the beginning of the year, from growth equities to more cyclically sensitive value equities, calmed down in May.
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.