Portfolio Manager comment Coeli Likviditetsstrategi June 2024

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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 0.48% during June. Since year-end, the NAV per share has consequently increased by 3.41%. After the recovery of risky assets in May, we saw a mixed performance in June. In Europe, risk appetite was largely characterized by political turbulence in France. European equities fell by 1.3 percent and credit spreads widened. Credit spreads on European high yield bonds increased by 37 basis points to 359 basis points. On the other side of the Atlantic, the S&P 500 had a strong month, rising 3.5 percent, while high yield spreads were more or less unchanged at 309 basis points. Market yields rose during the month, partly driven by an increased likelihood of a new term with Trump in the White House.

The Nordic credit market has so far been spared from the turbulence in Europe, which has resulted in stable and slightly rising bond prices, but with very limited trading volumes in the secondary markets.

The month's positive performance was a product of positive development for the vast majority of the fund's holdings. The good market sentiment benefited all sectors, with a little extra boost to interest rate-sensitive industries such as real estate. Positive contributions to the result were seen from the insurance companies ALM Brand and SiriusPoint, which continued their positive trend. Among the real estate companies, good development was noted for bonds from Castellum and Balder in particular.

The Finnish insurance group Sampo presented a bid for Danish Topdanmark with the aim of buying the company out of the stock exchange. If the acquisition goes through, IF/Sampo will have a total market share in Denmark of approx. 21%. The bid follows Sampo's strategy of focusing on non-life insurance and streamlining the company's structure.

The lower market interest rates contributed to good development for fixed-rate bonds, where above all the fund's holdings of covered bonds rose in value.

During the month, the fund participated in an issue from the construction company PEAB, which issued new green three-year bonds. Despite a challenging outlook for construction, especially in housing production, PEAB is considered to have a favorable market position with a well-filled order book and a high proportion of sales directed at public customers such as authorities and municipalities.

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