Catella Nordic Tiger is a fund that aims to exploit opportunities in Nordic growth stocks with significant revenue exposure to emerging markets. It invests in highly liquid Nordic stocks where a minimum of 20% of revenues come from emerging markets. The fund uses a long only strategy and aims to outperform the Nordic equity market index with a tracking error between 4-8%. Backtesting results have been impressive with the portfolio outperforming the index.
Catella Nordic Tiger Fund taps Nordic-Emerging Markets growth
1. Catella Nordic Tiger
The Best of Both Worlds
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2. Catella Fondförvaltning AB
Catella is the leading multi-boutique
asset manager serving investors a
gateway into the Nordic investment
landscape.
• Catella AB, strong capitalized owner, OMX Nasdaq
listed (First North).
• 50 employees in Stockholm and Malmö.
• Providing asset management for
• Institutions, High Net Worth Individuals and Retail
through distributors.
• Strategies: Long Only, Alternativ, Allocation
• Funds available through distributors like Folksam,
Sparbanken Finn, Sparbanken Gripen, UBS, Skandia,
Swedbank, Storebrand, MaxM, Länsförsäkringar,,
SEB, Avanza and Nordnet.
• Sponsor of Swedish Tennis
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3. Why Catella Nordic Tiger
“The Nordic way, safe and sound”
Get emerging markets exposure through a mature, % revenue
sales toward
Estimated
growth toward
regulated market with great fundamentals. emerging emerging
markets markets 1-2 yrs
Emerging markets are driving global growth today.
62% 5-12%
Asia is on its way to uncovering the power of a rapidly
awaking consumer market
45% 10-15%
Nordic companies have a large and increasing
exposure towards emerging markets. 40% 2-5%
Catella has a thorough knowledge of and a proven
40% 5-10%
track record in the Nordic equity space.
Portfolio outperforming index significantly when 38% 15-20%
back testing.
Source: Societe General, Emerging markets
attraction report
“You are in a great position. Your country´s finance has no
problems and you have a strong export that gains on
globalization.” Jim O’Neill, Chief economist Goldman
Sachs. Source: Dagens Industri 2010-09-10
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4. Executive summary
Fund objective
Catella Nordic Tiger aims to exploit compelling opportunities in
Nordic growth stocks with a large revenue exposure against
emerging markets
Highly liquid Nordic stocks with a significant revenues exposure
in emerging markets.
Long only fund
The fund’s target is to outperform the Nordic equity market
Tracking Error target: 4-8% p.a.
UCITS III, Daily traded, Luxembourg domiciled
Experienced team
Back testing results are impressive
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5. Investment Philosophy
We believe that promising stocks requires hard work, not
guesswork
Emerging Markets will be leading the global growth for the
foreseeable future.
Investors should expect a return better than market index
through active management.
Our experience, our combination of fund managers and our
non-committee style position taking are the key offerings to
our investors
All portfolio managers should be close to the market, all
trading are done directly by the portfolio managers.
We also believe in the use of derivatives for risk control
and as a complement for enhanced return.
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6. Investment Process Catella Nordic Tiger
The fund is investing in Nordic equities with significant revenue exposure towards
emerging markets.
The average revenue sales exposure of the companies in the investment
universe should normally be above 45%. All companies in portfolio has a
minimum of 20% revenues in emerging markets.
Emerging market definition: Countries included in the Dow Jones emerging
markets classification.
Investment universe reviewed on a quarterly basis.
Alpha is generated from bottom up stock picking and top down allocation.
Significant bet size and concentrated portfolio, average of 30-45 lines.
Trend analysis of fundamental data, macro and equity markets.
A top down view governs the choice of preferred sectors and region exposure.
The bottom up analysis dictates preferred shares within the universe.
Derivatives are actively used to control risk or balance the cash, but also as a
complement to the stock portfolio.
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7. Invest in Catella Nordic Tiger
Investors with risk appetite seeking
Nordic exposure
Emerging markets exposure
Growth
Concentrated portfolio
High return, high risk
Nordic markets: Mature, regulated and secure
market venues with sound fundamentals.
We will offer you the best of both worlds
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8. The team
Industry Years with the firm Years managing
experience Nordic equities
Primary Portfolio manager: Ola 11 7 11
Mårtensson
Pehr Blomquist 23 10 16
Henrik Holmer 5 5 2
Klas Nisbeth 5 4 1
The team have solid experience of managing Nordic equities and European equities under relative, absolute and allocation
mandates. The team is today managing 1.6 Billon SEK
Mr Mårtensson has been portfolio manager at Catella since 2003. He has previous been working for
SEB Asset Management as Quantitative Analyst and for Sungard as developer. He has a Master of
Science in Engineering Physics from Lund University and is a CFA chart holder.
Mr. Blomquist has been portfolio manager at Catella since 2004. He has previous been CIO at Catella
Sponsor Stiftelseförvaltning and portfolio Manger and Partner at IBP, Selective Capital and GSAM
(today Goldman Sachs). He has Bachelor of Science in Economy from Stockholm Univ, Master of
Science Economy from University of Pennsylvania and Post graduate studies in Macro Economy from
Princeton University.
Henrik and Klas has solid experience from post trade functions and have recently been
promoted to support Pehr and Ola in with the portfolio management, research and trade
execution.
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9. Facts Strategy Long Only
Investment Universe Nordic listed companies
Type UCITS III
Tracking error target 4-8%
Liquidity < 50%
Exposure Normal gross 95-103%
Benchmark NASDAQ OMX VINX Nordic Net Return
Concentration 25-35 long positions
Management Fee Min Investment 1,5%
100 SEK
Management Fee Min investment Max 0,8%, 20% Performance Fee
10 MSEK HWM: Eternal
Share classes Retail, Institutional, SEK, EUR, GBP
Subscription/Redemption Daily
Domicile Luxembourg
Performance dissemination Catella website & Swedish financial media,
Currency SEK
Inception date Q4 2010
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10. Appendix 1: Catella Nordic Tiger
Catella’s Risk Management has back tracked a portfolio of 38 holdings that qualifies in the universe of having
minimum of 20 percent revenue sales (Aug 2010) from emerging markets. The companies have in average 45%
revenue sales exposure against emerging market. Research received from third party: Bloomberg
200,00
Nordic Tiger
VINX Nordic Equity
100,00
Index
50,00
We have back tracked a market weighted (historical market weights) capped (<9%) Nordic portfolio against Nasdaq OMX
Nordic VINX Benchmark Net Return. (Nordic Equity Index capped <9%)
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11. Catella Nordic Tiger v.s. iShares MSCI EMI SEK
400,00
200,00
100,00
2003-04-11 2004-04-11 2005-04-11 2006-04-11 2007-04-11 2008-04-11 2009-04-11 2010-04-11
iShares MSCI Emerging Market Index SEK Catella Nordic Tiger *
Volatility since 2003-04-11
Ishares MSCI EMI SEK 33,48%
Catella Nordic Tiger Value Weighted 22,66%
Catella’s Risk Management has back tested a portfolio (20030411-20101219) of 45 holdings that qualifies in the universe of having
minimum of 20 percent revenue sales (Aug 2010) from emerging markets. The companies have in average more than 45% revenue
sales exposure against emerging market. The fund was launched 20101217. The data from 20101220 is based on Catella Nordic Tigers
net asset value. Research received from third party: Bloomberg
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12. Appendix 3: Catella Nordic Tiger – Top
performers 1 Month
Asset Name
DANISCO
AP MOLLERMAERSK B
SUBSEA 7 INC
NOKIA OYJ
ABB LTD
NKT (NORDISK KABEL)
NOVOZYMES A/SB
VESTAS WIND SYSTEM
MEDA A
AKER KVAERNER
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13. Appendix 3: Catella Nordic Tiger investment
univers– Overweight and underweight since 20th
Jan, 2010
ELEKTA ABB 2,00%
METSO OYJ (FIM10) 1,80%
NOVOZYMES A/SB 1,75%
OUTOKUMPU TECHNOLOGY 1,65%
SAAB AB B 1,58%
TGS NOPEC GEOPH.CO (NO 1,56%
AUTOLIV SDB 1,43%
TELENOR 1,31%
NOVONORDISK B 1,50%
TELIASONERA AB 1,89%
ERICSSON TEL. ABB 2,00%
AP MOLLERMAERSK B 2,66%
NOKIA OYJ 2,68%
ABB LTD 3,53%
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14. DISCLAIMER
This material has been prepared for professional investors. Catella Fondförvaltning AB when preparing this
presentation has not taken into account any one customer’s particular investment objectives, financial
resources or other relevant circumstances and the opinions and recommendations herein are not intended to
represent recommendations of particular investments to particular customers. All securities‘ transactions
involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political
developments and, in international transactions, currency risk. Due care and attention has been used in the
preparation of this forecast information. However, actual results may vary from their forecasts, and any
variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and
contingencies, many of which are outside the control of Catella Fondförvaltning AB.
Catella can not guarantee that the information contained herein is without fault or entirely accurate. The
information in this material is based on sources that Catella believes to be reliable. Catella can however not
guarantee that all information is correct. Furthermore, information and opinions may change without notice.
Catella is under no obligation to make amendments or changes to this publication if errors are found or
opinions or information change. Catella accepts no responsibility for the accuracy of its sources.
Catella is the owner of all works of authorship including, but not limited to, all design, text, sound recordings,
images and trademarks in this material unless otherwise explicitly stated. The use of Catellas material, works
or trademarks is forbidden without written consent except were otherwise expressly stated. Furthermore, it
is prohibited to publish material made or gathered by Catella without written consent.
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