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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
Likviditetsstrategi advanced by 0.41% during October. Since year-end, the NAV per share has consequently increased by 4.03%. Despite increased geopolitical turmoil and a continued tough climate for risky assets, with falling stock markets and widening credit spreads, the US 10-year bond continued to rise and is at the time of writing just below 5%. The development of US long-term interest rates will thus continue to elude the market and affect global risk appetite. Concerns about large budget deficits and thus large borrowing needs have pushed up long-term market interest rates, despite falling inflation and a less hawkish US Federal Reserve.
Long-term market interest rates are still lower than short-term rates, which has historically been one of the better indicators of impending recession, but the U.S. economy remains strong with annual GDP growth of 4.9% for the last quarter. In other words, the protracted discussion about whether the U.S. economy will fall into a recession or whether there will be a more balanced decline in economic activity will most likely be a theme for next year as well.
From a Nordic perspective, there is a continued focus on the real estate sector in Sweden. The challenges in many real estate companies increase as the market prices in higher for longer. At the same time, wheat is beginning to separate from chaff, and the picture of what is happening in the sector is more divided. Companies that have strong owners who have ability to inject capital or companies that act more quickly by slimming down debt through property sales are now distinguishing themselves. Our exposure to the sector as a whole remains low relative to the market and the focus is on the larger real estate companies where there has already been a large price adjustment in bond prices.
Among the month's major contributors one primarily found covered bonds, which benefited from declining market rates in the three- to five-year segment. Technology consultant AFRY was found high on the list among positive contributors after the company reported a somewhat weaker result than expected, but where cash flow and the level of the order book were satisfactory. Bonds from Hoist Finance also developed positively after a strong report that showed good earnings improvement because of a completed restructuring program.
Some negative impact on the month's results came from the Norwegian investment company Aker Horizon, however without any significant news from the company.
During the month, bonds from the Danish transport company DFDS were added to the portfolio. Among the fund's existing positions, the holdings of bonds from Securitas and Sagax were increased. As part of the work to improve the credit quality of the fund's holdings, Ocean Yield left the portfolio.
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.