Stockholm (HedgeNordic) – HedgeNordic is pleased to introduce the newest addition to the Nordic Hedge Index (NHX). Catella Credit Opportunity, a fixed-income fund with a focus on corporate bonds issued in the Nordics, has been added to the NHX.
Catella Credit Opportunity, already the fourth member of the NHX managed by Stockholm-based asset manager Catella Fonder, was launched in late November 2014 and is managed by Thomas Elofsson (pictured) and Stefan Wigstrand. Both portfolio managers joined Catella in September 2016 from Skandia. Prior to joining Catella, Elofsson had served as head of investment strategy within Skandia Investment Management (SIM), deputy CEO and a member of the senior management team at SIM. Meanwhile, Wigstrand had worked as senior portfolio manager within Skandia Investment Management. Elofsson and Wigstrand also manage Catella Nordic Corporate Bond Flex, another fixed-income fund under the umbrella of Catella included in the NHX.
Catella Credit Opportunity is an absolute return special fund with a broad investment mandate allowing investments across the entire fixed-income spectrum. The fund uses derivatives to protect fund capital against interest-rate and credit risks, as well as increase return opportunities. Catella Credit Opportunity represents a further development of Catella Nordic Corporate Bond Flex, with the former having a broader management mandate, having the ability to take on more risks and having greater potential to make use of derivatives for protection.
The fixed-income fund targets an annual return in the range of 3 to 5 percent with a standard deviation of 5 percent over time. Catella Credit Opportunity has successfully met its target return so far, with the fund delivering an average annual return of 3.2 percent since inception (earning a cumulative return of 11.8 percent since November 2014). A large portion of the total return has been generated after Elofsson and Wigstrand took over management of the fund; the fund returned 6.5 percent in 2017 alone.