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Before making any final investment decisions, please read the prospectus, its Annual Report, and the KID of the relevant Sub-Fund here
Note that the information below describes the share class (R SEK), which is a share class reserved for private investors. Investments in other share classes generally have other conditions regarding, among other things, fees, which affects the share class’ return. The information below regarding returns therefore differs from the returns in other share classes.
Likviditetsstrategi advanced by 0.49% during April. Since year-end, the NAV per share has consequently increased by 2.32%. In April, for the first time this year, some volatility erupted in the markets. The increased turbulence in the credit market was primarily driven by the fact that inflation in the United States is not falling as many had hoped but has proved to be more persistent. Therefore, the US 10-year bond yield continued its upward journey to stand at 4.57 percent at the time of writing. The U.S. Federal Reserve emphasized during its latest meeting that inflation has also proven to be more persistent, but in any case, consider it unlikely that a rate hike is on the cards. The market is now pricing in a first rate cut in the US in December. On the positive side, it can be noted that many companies that have now reported have come in strongly, which underlines the resilience of the economy. If the positive sentiment is to be sustained, inflation in the US needs to soften in the period ahead.
In Europe, credit spreads initially rose and then fell back again. Credit spreads on high yield in Europe are currently at 312 basis points while spreads on investment grade are at 54bp. The investment climate in the Nordic corporate bond market continues to look upbeat, not least because there is a mark-up of about 200 basis points above European high yield bonds and about 50 basis points above for investment grade. The short duration, with a large proportion of floating rate notes in the Nordic region, is attractive in the current environment as companies pay high coupons while interest rate cuts are postponed. Given an uncertain world, we find most investment opportunities in the so-called crossover area, i.e. bonds with BBB/BB credit ratings.
Bonds from insurer SiriusPoint were once again the biggest contributor after posting a strong quarterly report at the end of the month. The underlying result improved compared to the previous year and the company's strategy shift continues to have positive effects. During the quarter, SiriusPoint carried out a refinancing of two bonds, which will significantly strengthen the company's solvency ratio. Strong development was also seen for the insurance companies ALM Brand and Gjensidige, the first-mentioned company reported a good profit improvement in the quarter and a raised forecast for 2024, while bonds from Gjensidige were supported by S&P confirming the company's credit rating.
Bonds from the Norwegian bank DNB rose in value after the company reported slightly falling interest income and relatively low credit losses. Nordic banks have, with some exceptions, generally delivered strong quarterly reports thanks to low credit losses and solid quality in the loan books.
Negative impact on the month's results was primarily seen from fixed-rate bonds, which fell somewhat in value as a result of rising market interest rates.
During the month, the fund participated in issues from the Danish bank Nykredit, which issued senior non preferred bonds. Holdings of bonds from Skanska and AFRY were slightly reduced.
Portfolio Manager of Coeli Likviditetsstrategi
Portfolio Manager of Coeli Likviditetsstrategi
| Inception Date | 2010-05-01 |
| Management Fee | 0 % |
| Performance Fee | Yes |
| Risk category | 2 of 7 |
DISCLAIMER. This is a marketing communication.
Before making any final investment decisions, please refer to the prospectus of Coeli SICAV I, its Annual Report, and the KID of the relevant Sub-Fund. Relevant information documents are available in English at coeli.com. A summary of investor rights will be available at https://coeli.com/regulatory-information-coeli-asset-management-ab/.
Past performance is not a guarantee of future returns. The price of the investment may go up or down and an investor may not get back the amount originally invested.
Please note that the management company of the fund may decide to terminate the arrangements made for the marketing of the fund in one or multiple jurisdictions in which there exists arrangements for marketing.