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Portfolio Manager comment Coeli Global Select March 2019

The first quarter of the year has now reached its end and it is once again time to listen to what companies have to report about their markets. We believe that defensive sectors such as real estate, payment firms, healthcare providers and cosmetics companies will report “normal” growth, while cyclical and interest rate sensitive sectors such as capital goods and banks will show weaker results. The market has now come out of the phase of undervaluing equities and companies are beginning to appear normally valued. During March, our global fund was up 2.7 percent, which was 0.01 percentage points under our benchmark index. We scored a hat trick with Indian banks during March, when the three best contributors were RBL Bank, Yes Bank and HDFC Bank. The negative contributions for the month came from three of our “special situations”, all US firms: GMS, United Rentals and Axos Financials.

Among the good things that happened in March, one of our payment companies was the target of a bid. Fidelity National Information Services will take Worldpay off the stock exchange, buying it and merging it into Fidelity’s own organisation. Payment companies remain a strong theme in the fund; three companies in the payments field have contributed the most to our fund’s returns since the beginning of the year.

Key market events and trends affecting performance
A positive surprise for the stock markets was the strong Chinese PMI manufacturing indicator that made a strong rebound which shows increased activity among the Chinese companies.  The Shanghai stock market has been one of the best performing markets since the beginning of the year. Another theme that dominates the equity markets’ performance is low long-term bond yields. At present, the short-term US interest rate (2.5 percent) is at the same level as the 10-year US bond yield. In other words, the yield curve is totally flat – usually, the long-term yield lies above the short-term rate. This current situation means that the market doesn’t anticipate inflation. In practical terms, this will provide real assets such as real estate with good earnings from rental income and value increases, along with these companies being able to borrow money cheaply.

Portfolio changes
During March, we sold Worldpay following the bid on it and instead bought VISA, the world’s largest payment firm. We already own Mastercard, which together with VISA dominates the markets for debit and credit cards globally. Both companies have around the same growth prospects and similar business operations, and we anticipate VISA providing a solid contribution to the fund’s returns.

The fund’s positioning
Positioning in the fund is, in principle, unchanged from the previous month, meaning that we have some 20 percent of the fund in “special situations” and around 80 percent in “champions”. We will sell some of our “special situations” if they reach our predetermined targets prices. As interest rates for home loans have dropped in the US, the house building market there should see a rebound which will affect our special situation stocks most positively.

We would like to thank you for your trust in letting us investing your money! Now we are looking ahead to an interesting quarterly reporting season.

Coeli Global Select R-EUR

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Global Select – R EUR2.70%13.43%39.12%48.90%
Benchmark2.71%14.48%37.49%43.06%

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 (%)
AAK AB4.6%
MASTERCARD INC. SHS-A-4.6%
MICROSOFT CORP4.5%
AROUNDTOWN S.A.4.4%
THERMO FISHER SCIENTIFIC INC4.4%

 

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.