Catella innovates real estate index with Nasdaq ahead of double fund launch

Catella is busy preparing for double fund launch in early 2021 that seek to benefit from stable cash flows from property management companies listed on Swedish stock exchanges. "The index we have now launched consists of property-owning companies, not constructors," says Catella Fonder's CEO Freric Calles.

Fredric Calles, CEO of Catella Fonder. | Photo: PR Catella.

Sweden's Catella and Nasdaq have launched a new index based on the largest property management companies on the Stockholm Stock Exchange and First North Sweden. The company is also in the process of launching two real estate funds in early 2021, says Catella Fonder’s CEO Fredric Calles.

"Catella’s DNA is in real estate and property. Together with Catella Fund Management we are launching two new Nordic property funds around February-March. The index we have now launched consists of property-owning companies, not constructors, and the index fund we will later launch will follow it as close as possible," Calles tells AMWatch. 

"So far there have been no index funds focusing on Nordic real estate, so this will be something new in the market," he adds.

Through the new index, Catella wants to differentiate property management companies and their characteristics from construction companies and developers, says Carl Wingmark, Head of Property Advisory at Catella.

"The development for real estate-related shares at the Stockholm Stock Exchange has been strong in recent years, which is not least shown by the great interest in the overall stable cash flows in the sector," adds Wingmark in a statement.

In addition to the Nordic property index fund based on Nasdaq Catella Sweden Property Index, Catella will also launch a new systematic real estate fund, which will aim at beating the passive index. The fund will be called Catella Systematic Property Fund Active.

"So, we will have two different funds aimed at different investor types," Calles adds.

"In addition to generally increasing focus on property management companies, the index will also form the basis for a new index fund and a new systematic fund," says Johan Claesson, acting CEO of Catella AB.

Catella Fonder currently manages 13 funds and has assets under management totaling some SEK 1.8bn (EUR 177m).

Doomsday may be approaching for Nordic Long Short fund

In January 2019, AMWatch reported that Catella Fonder has made notable internal and structural reforms in managing its Nordic Long Short Equity fund since the fund recorded a negative return of -25.04 percent over the past twelve months ending September 2019.

Calles says the company is now making future plans for the fund, which today has a negative year to date return rate of -10.4 percent.

"It is actually a very small fund, where most assets under management are owned by a few investors. We are not happy with the performance, so we are looking at how to possibly change it and will come out with the details in the near future," Calles hints.

English Edit: Nielsine Nielsen

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