Portfolio Manager comment Coeli Global Select April 2019
April was another splendid month for us shareholders as we earned money on the solid increase in the stock markets. During the month Coeli Global Select (R EUR) rose 3.7 percent, which was 0.2 percent better than our benchmark index. Our fund had a good reporting season, our holdings beating expectations with rising share prices as a result. This was the third consecutive month that we beat our benchmark and we think there is still unleashed potential in the portfolio. The best contributions this month came from three US companies: United Rentals, Watsco and Microsoft. The three most negative contributors were a mixed bunch, the worst performers being Yes Bank, 3M and United Health.
Key market events and trends affecting performance
What dominated and steered the trends during April were the strong quarterly reports from many companies, along with the central banks confirming the picture of prudent rate increases. China, the world’s second-largest economy, also showed strength, with better macro indicators during the course of the month. The solid increase in the Chinese stock index also helps to support consumption in the country as the man on the street feels richer when stock portfolios increase in value. The US dollar is still strengthening against the euro and Swedish krona, among others – an effect of how robust the US economy is. We see a possible scenario where a too strong dollar can cause problems for US exports. This applies in particular to exports of goods to elsewhere in the world, rather than exports of services or software from the likes of Facebook, Google and Microsoft. We are not there yet, but ongoing dollar strengthening would make this a very likely scenario.
During April, we sold US financial services firm Broadridge and Argentinian bank Banco Macro. We replaced Broadridge with US payments company Total System Service (TSS). After bolstering the payments portion of our fund further with TSS, we think we have captured the best of this industry on the global stock markets.
The fund’s positioning
We manage our fund on a simple investment principal: if a company’s profits rise, so will its share price over time, and a rise in a stock price will increase our fund shareholders’ money. Our job is consequently to find quality companies with rising profits that also have strong balance sheets (which limits the downside when the stock market tumbles). The fund is full of such companies and although it has seen a strong start to the year, the future also looks promising. There is certain to be some volatility from time to time, but the portfolio of stocks we own is robust.
Coeli Global Select R-EUR
|Performance in Share Class Currency||1 Mth||YTD||3 yrs||Since incep|
|Coeli Global Select – R EUR||3.65%||17.58%||44.59%||54.34%|
DISCLAIMER. The information provided here does not constitute professional financial advice. 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. The key investor information document (KIID) and prospectus are available at www.coeli.se.