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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 (I SEK), which is a share class reserved for institutional 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.
Coeli High Yield Opportunities (Class I) advanced by 0.55% during February. Since year-end, the NAV per share has subsequently increased by 0.89%. The positive sentiment in the stock markets weakened in February when software companies came under pressure as the rapid development in AI is expected to lead to lower demand. The leading indices in the US fell back while European stocks rose slightly. In the credit markets, the outcome was subdued with moderately rising spreads on both sides of the Atlantic.
The economic statistics from the US were mixed during the month, the labour market developed stronger than expected while inflation came in lower than analysts' forecasts. In addition, GDP growth for the fourth quarter was reported at a lower level than predicted. The same pattern was seen in Sweden, with lower growth than expected and inflation figures that once again came in lower than expected. The outcome led to rising expectations that the Riksbank may lower interest rates further during the year.
At the end of the month, Israel and the US began a coordinated bombing campaign against Iran, targeting strategic military installations and the leadership of the regime. Iran responded with attacks on Israel and several countries in the region and declared that the Strait of Hormuz is closed to shipping. The acts of war and the increased uncertainty in the region caused energy prices to rise sharply, which resulted in an abrupt break in the downward trend for longer market interest rates.
The month's results benefited from falling market interest rates, which contributed to positive value development for fixed-rate bonds in both SEK and EUR. Among individual holdings, the largest contribution came from Floatel International, which presented an annual report that showed that the company had significantly reduced its leverage in 2025. In conjunction with the report, a new contract for one of the company's four accommodation rigs was also reported, the outlook for 2026 is solid with good contract coverage for most of the rest of the year.
Among other reporting companies, very strong figures were noted for Hoist Finance with rising profits and higher return on equity. Hoist announced in connection with the report that it now meets the requirements to be regulated as an SDR company, which entails lower capital requirements and higher investment capacity.
A negative impact on the result came from Flora Food Group, whose bonds continue to trade with large price swings. In February, Flora announced that they had extended the maturity of parts of the group's bank loans by just over two years with a new maturity date in October 2030. We view the refinancing positively and the company now has no loan maturities for the next three years.
During the month, exposure to real estate companies increased through investments in new bonds from NP3 and DWI Properties. Bonds from, among others, CoreOrchestration and Flower Infrastructure, both first-time issuers, were added. As the US moved aircraft carriers towards the Middle East, a somewhat more cautious stance towards risk was taken, at the end of the month the fund's cash level was therefore higher than usual.
