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Portfolio Manager comment Coeli Global Select June 2019

During June, most of the fund moved in the right direction apart from one factor: the ruling majority in Berlin proposed that rents in the city should not be raised for the coming five years. Rumours had circulated that the politicians would do something to appease those who protested earlier this year, but we had not anticipated that it would be something this drastic. We don’t think that the politicians will succeed in passing this into law, but the damage is already done, and we expect slower property price increases in Berlin as a result of this.

In the wake of what has happened in Berlin, our fund underperformed the benchmark during the month when it rose 2.9 percent, which was 1.8 percent worse than the index. The drop in German real estate stocks led to a negative impact of around a -1.5 percent.

Key market events and trends affecting performance

So so. That’s how we see the global market conditions ahead, with quite a long period with a relatively weak growth environment, where cyclical growth has vanished but the long-term trends remain intact. On the positive side, a global rate cut cycle has begun, which will create new demand for cyclical goods, but in general we won’t see a 2018-style party again for some time. In this environment it will be essential to only own stocks with enduring solid profit elements.

Portfolio changes

During June, we made a few changes to the German portion of our fund. The problems in the German real estate sector led us to sell Deutsche Wohnen, a share we had owned for more than four years and that had performed more than 100 percent. We still have in excess of 10 percent exposure to this sector, so it felt good to sell the stock exposed to the most political pressure. Following an upturn of plus 200 percent over three years we also sold payment firm Wirecard. Instead we invested the money from these two stocks in another German “champion” called Adidas – a brand everyone will recognise. After many decades of Nike’s dominance in the USA, Adidas has begun to take market share, creating both strong sales momentum and exceptional margin growth. The company is also growing rapidly in China, and during the first quarter of 2019 profit was up by 19 percent despite very tough comparables from the previous year. Its balance sheet is particularly robust, with almost EUR 1bn in net cash. In addition to Adidas, we also took an initial position in US tech company Adobe, whose products you certainly use every day when you read a pdf or work in Photoshop. We visited the company earlier in the year and after a follow-up discussion, we took a stake.

The fund’s positioning

The positioning of the fund is in principle unchanged from the previous month. Our portfolio of the world’s finest companies is well-placed in the market and we look forward to reporting season in a few weeks when our portfolio of “the world’s finest companies” again demonstrate their strong profit trends.

Coeli Global Select R-EUR

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Global Select – R EUR2.91%18.66%41.55%55.76%
Benchmark4.70%17.18%35.58%46.43%

Andreas Brock

Portfolio Manager Coeli Global Select

Henrik Milton

Portfolio Manager Coeli Global Select

Fund Overview
Inception Date2014-11-28
Management Fee1.4 %
Performance FeeYes, 10%
Risk category5 of 7
Top Holdings (%)
THERMO FISHER SCIENTIFIC4.6%
GLOBAL PAYMENTS INC4.6%
WATSCO INC4.4%
SIKA LTD4.4%
AROUNDTOWN S.A.4.2%

 

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.

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Alexander Larsson Vahlman

Senior Analyst Coeli Likviditetsstrategi & Coeli Nordic Corporate Bond Fund

  • Worked at Coeli since 2018
  • Worked in the finance sector since 2014
  • MSc from Rotterdam School of Management and Bachelor from Mercyhurst University

Alexander Larsson Vahlman is Senior Analyst for the funds Coeli Likviditetstrategi and Coeli Nordic Corporate Bond Fund. Before Coeli, Alexander worked at Danske Bank with business funding and och business analysis.

Portfolio Manager Gustav Fransson

Gustav Fransson

Portfolio Manager Coeli Likviditetsstrategi & Nordic Corporate Bond Fund

  • At Coeli since 2009
  • More than 10 years in the industry

Gustav has more than 10 years’ experience from the financial industry from various roles within asset management and corporate banking. Prior to joining Coeli in 2008 he worked as a real estate finance analyst at Royal Bank of Scotland, Nordic Branch.

Portfolio Manager Henrik Milton

Henrik Milton

Portfolio Manager Global Select

  • At Coeli since 2016
  • More than 17 years in the industry
  • Master of Science in Finance from Lund University

Henrik Milton has extensive experience from analyzing equity and portfolio management. Previously, Henrik has worked as portfolio manager at Capinordic Asset Management responsible for the Global Opportunities fund and the BRICA fund until 2010. Both of the funds were given top ratings (five stars) by Morningstar.

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Andreas Brock, CFA

Portfolio Manager Coeli Global Select

  • At Coeli since 2014
  • More than 10 years in the industry
  • MBA at London Business School, Bachelor degree from Lund University and is a CFA Charter holder

Andreas has long experience of equity research and investments and invested globally during his time with Capital Group in London, but his formative years as an investor dates back to his days with ABB’s M&A department in China. Andreas is a CFA Charterholder.

Portfolio Manager James Bannan

James Bannan

Portfolio Manager Coeli Frontier Markets

  • At Coeli since 2017
  • More than 12 years in the industry
  • Chartered Accountant (CA) from the Institute of Chartered Accountants, Australia

James Bannan has been investing in Frontier Markets for over 10 years, including as co-lead at BankInvest’s global Frontier Markets listed equities funds from May 2011. Prior to that James lived in Ho Chi Minh City, Vietnam for 5 years, working for BankInvest’s Private Equity New Markets funds, which was rated as the best performing fund in Asia with 2006 – 2010 vintage by Prequin, generating returns of over 50%. Before his time in Vietnam, he worked with M&A at KPMG in Sydney and Copenhagen, where he completed several deals in several in Frontier Markets. In 2018 Coeli Frontier Markets was awarded the prestigious Thomson Reuters Lipper Fund Award for best fund in its category.

Portfolio Manager Hans-Henrik Skov

Hans-Henrik Skov

Portfolio Manager Coeli Frontier Markets

  • At Coeli since 2014
  • More than 12 years in the industry
  • Holds a Master of Science in Finance from Copenhagen Business School, graduating as top two of his class

Having managed listed equities in global Frontier Markets since May 2007, Hans-Henrik Skov has one of the longest experiences in this investment universe. He was at BankInvest Asset Management from May 2007 to February 2014, as co-lead on BankInvest’s Frontier Markets listed equities funds. Hans-Henrik previously worked at Barclays Capital and at JP Morgan, both in London. In 2018 Coeli Frontier Markets was awarded the prestigious Thomson Reuters Lipper Fund Award for best fund in its category.

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Namik Immelbäck

Portfolio Manager Coeli Altrua Makro

  • Joined Coeli in 2018
  • 12 years of experience in global macro investing
  • BSc London School of Economics, MSc Bocconi

Namik Immelbäck is portfolio manager of Coeli Altrua Macro and responsible for investment strategy and research. Over the last 12 years Namik has held various roles as economist, investment strategist and trader at well-known global macro hedge funds such as Comac Capital, Tudor and Millennium in London and New York.

Mikael Petersson

Portfolio Manager Coeli Absolute European Equity

  • Joined Coeli in 2018
  • More than 25 years of  experience in finance industry
  • BSc from Lunds University

Mikael Petersson is the responsible portfolio manager for Coeli Absolute European Equity and has many years of experience in portfolio management. Mikael has been an employee for some of the most successful hedgefund coorporations in Europe, such as Lansdowne Partners and Kairos Investment Management in London. He has also started his own business i Zug, where Coeli previously was an investor.

Erik Lundkvist

Portfolio Manager Strategy Funds and Coeli Balanced

  • At Coeli since 2004
  • More than 13 years in the industry
  • Erik holds a M.Sc. in Economics from Örebro University and CEFA from Stockholm School of Economics

Erik is responsible for Coeli Asset Management Solutions products and has 10 years of experience from asset management in roles such as Portfolio Manager, manager selector and economist.