Coeli Frontier Markets wins prestigious Lipper Fund Award 2019
For the second year in a row Coeli Frontier Markets wins the very prestigious Lipper Fund Award from Refinitiv. The fund receives the award for best performance of all funds in its category over a three-year period.
James Bannan and Hans-Henrik Skov have managed the fund since inception and the fund’s performance is a result of their knowledge and experiences. Just as previous year, the fund wins the award in both the Nordic and the European region. The fund invests in equities in the frontier markets.
For more than three decades and in over 20 countries, the Lipper Fund Awards have honored funds and fund management firms that have excelled in providing consistently strong risk-adjusted performance relative to their peers. Refinitiv is one of the world’s largest providers of financial data.
Congratulations to everyone who have invested in Coeli Frontier Markets!
James Bannan, one of the fund managers, answers a few questions.
What is your spontaneous reaction to the award?
James: It’s great to get gratification that our investment strategy has historically produced good returns for our investors. However, we are more focused on ensuring long term capital appreciation going forward.
What does this type of awards mean in reality?
James: While we appreciate the recognition, the award does not change the way we approach our investment work.
What have you done to be so successful managing your fund?
James: We are long term holders of high-quality companies in nascent industries and markets. Long term capital appreciation will come from our companies producing superior earnings growth through the cycle. High quality companies tend to have higher returns on invested capital, which means financing this growth can be done internally, which is hugely beneficial for existing owners. Consistently applying this approach is the key to our success. In the short term there are times when momentum and flows work against you but in the long-term fundamentals will drive returns. Maintaining discipline is key.
What markets do you find most interesting for investments at the moment, and why?
James: We have been very positive about Vietnam from a long while now. The macro is really strong – there is 7% real GDP growth, export growth remains strong and FDI continues to pure in as manufacturing plants are relocated from northern Asia. Meanwhile our companies are generating earnings growth of 25% p.a. in USD and a ROE of 34% but are totally mispriced; trading at historical lows of 13 x trailing earnings.
We are also very positive about Georgia. Again, the macro is strong with real GDP growth in excess of 5%. Our companies generated over 20% earnings growth in 2018, compared to 2017, but trades at an unreasonable at 6 x earnings!