Past performance

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.

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Portfolio Manager comment Coeli Global Select April 2021

We want to begin by thanking all those of you who attended our fund evening on 4 May. We hope that the event was informative and provided you with some investment inspiration.

Coeli Global Select’s return for April was 1.60 percent, coming in 0.37 pp short of our benchmark index. The three best-performing of our holdings were NVIDIA, Zoetis, and Amazon. The companies with the worst performance during the month were Intel, Renault, and HDFC Bank. Overall, the results we’ve seen from our companies have been solid, with most reporting better than expected. Share price reactions were mixed, though, with some companies seeing rising stock prices on reporting day and others falling back. Among those with strong numbers were Apple and Amazon. Apple’s revenue growth landed at 53.6 percent for the year, propelled by the successful launch of the iPhone 12 and robust demand for its other products. The corresponding revenue growth for Amazon was 43.6 percent. Amazon, which today has more than 1.2 million employees, grew in both e-commerce and data centres. You can read more about Apple’s magnificent report here and learn more about our investment in Intel here (both in Swedish).

Key market events and trends

We have been pleased to see the impact of vaccines on the Covid-19 pandemic and the decline in the number of cases offering a helping hand to the stock markets. At the same time, the economic outlook is improving on many fronts. During April, US 10-year government bond interest rates were down 0.2 percent, moving in the stock market’s favour. We shall see whether this drop in interest rates proves only temporary since inflation figures for the US in March hopped up to 2.6 percent, their highest level for a year.

The serial shortage of semiconductors persists, and Intel and TSMC are running at full capacity to satisfy demand. TSMC has stated that the situation won’t improve until 2022 – something that benefits all our holdings operating in the semiconductor industry. A further sign that the market anticipates a recovery to normal economic conditions is that copper, aluminium, and iron ore prices are historically high. This affects the manufacturers using these metals as input materials due to the rising input costs, which can force higher prices on us consumers as a consequence.

Portfolio changes

We made no changes to our portfolio during April.

The fund’s positioning

Our fund offers a good balance between stable growth companies and their cheaper, cyclical counterparts. We highlight the decent upside in our Special Situations holdings: BAM, Renault, Traton, Carrier, and Intel. We like that the future prospects of these five are determined more by the actions of the companies themselves and their management and less by the general macro environment. These companies are trading at low P/E multiples for 2022 and substantial discounts to their competitors (BAM, Renault, and Traton trade at 7-4x P/E, Intel at 12x, and Carrier at about 18x). When these stock prices start to rise, they will contribute generously to returns.

Coeli Global Select R-EUR

Performance in Share Class Currency 1 Mth YTD 3 yrs Since incep
Coeli Global Select – R EUR 1.60% 6.48% 54.44% 120.42%
Benchmark 1.97% 10.94% 46.43% 91.13%

 

Andreas Brock, CFA

Portfolio Manager Coeli Global Select

Henrik Milton

Portfolio Manager Coeli Global Select

Fund Overview
Inception Date 2014-11-28
Management Fee 1.4 %
Performance Fee Yes, 10%
Risk category 6 of 7
Top Holdings (%)
MICROSOFT CORP. 4.4%
CARRIER GLOBAL CORPORATION 4.0%
HCA HEALTHCARE INC 3.9%
VONOVIA SE /NAMEN 3.8%
MASTERCARD INC. SHS-A- 3.8%

 

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.