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 largest contribution came from the IT sector, through the holding in Hexagon and the underweight in Ericsson.
Fund manager comment
There was mixed macroeconomic data this month, but mostly negative. Tensions heightened between the United States and Iran after Iran was suspected of having fired on both an oil tanker and a US drone. Markets were nonetheless strong, partly because central banks are expected to continue supporting the stock market and partly because the month ended with positive talks between the US and China related to the trade war. Now it is up to companies to prove themselves as most deliver their reports for the second quarter in July.
Stock markets ticked upward again in June. The Stockholm exchange (SIXRX) gained 6.79 %, while the fund performed even better and was up 7.05 %. The largest contribution came from the IT sector, through the holding in Hexagon and the underweight in Ericsson. At the end of the month, it was announced that Hexagon's CEO has for a second time been cleared of insider trading, which was positively received by the market. Electrolux had a strong month, and the holding contributed positively. On the negative side was Novozymes, which was relatively weak on falling market confidence that the company will manage to improve its organic growth.
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.