Portfolio Manager comment Coeli Global Select March 2020

March saw a large market reaction owing to the spread of the coronavirus; essentially, all stock indices were down. Our global fund lost value and was down 11.57 percent, although this was 1.7 pp better than the benchmark. The fund’s performance for the first quarter was down 17.55 percent, which was 2 pp better versus the benchmark.

The largest positive contributions to the returns during March were from Teamviewer, Carel Industries, DSV Panalpina, and Amazon. The holdings that saw a weaker performance during the month were RBL Bank, Stone, Pagseguro, and Magazine de Luiza – our exposures in emerging countries. Despite the tough markets, we still held nine companies that reported positive returns during March, and some companies are even benefiting from the crisis. Examples include Teamviewer, which has increased its billing by 60 percent; Amazon, which is benefiting from all the “new” online trade and wants to hire 100,000 staff to handle this extra pressure; and Microsoft’s Teams (video conferencing) and Azure (data centre), which are growing robustly. We were due to travel to Brazil during the month for company visits but instead remained in Sweden and held the meetings via video. We note that Brazilians are also working from home during these coronavirus times.

Key market events and trends affecting performance

Europe and the US are now the epicentre of the coronavirus contagion and it is here the effects are now being felt most strongly. At the same, it isn’t all doom and gloom: information from China suggests that the situation there is improving, and the PMI recently jumped from a low 35.7 to a more normalised 52.0. This means that China has restarted its factories. In Europe and the US, governments and central banks are both working hard to save their countries’ economies. The central banks that have had the opportunity to reduce key interest rates have done so. Central banks have carried out large-scale bond purchases to intervene and revive the corporate bond market. Governments are using fiscal policy measures to keep companies afloat as much as they can. Unfortunately, unemployment will soar, but hopefully only temporarily. Taking an optimistic view, the situation should have improved towards the summer. We should all help to keep the economy flowing by continuing to live life as normally as possible to support companies.

Portfolio changes

The large stock market movements have given us the possibility to buy new companies and to optimise our equity fund further. During the month, we sold Brembo and Watsco. We replaced them with three new Special Situations stocks that we considered far too cheap. We added Nordea and Amazon, companies well known to most. We also bought Danish stock market darling DSV Panalpina on its good prospects.

The fund’s positioning

During March, we increased the Special Situations share of the fund by 7-8 percent as the market turbulence provided us with many interesting investment opportunities. Of the 20-something investment opportunities on our radar, we have chosen to take positions in those we believe will return most rapidly to pre-crisis levels. We believe we have a stellar portfolio of fantastic companies and if there is any time to own our Champions, it is now. Our assessment is that this recent downturn demonstrates the very attractive valuation of Coeli Global Select.

Coeli Global Select I-EUR

Performance in Share Class Currency1 MthYTD3 yrs*Since incep*
Coeli Global Select – I EUR-11.57%-17.55%8.18%47.78%

* the historic performance before 2018-06-30 is an estimated performance based on the R EUR share class adjusted for
the different Investment Management fee. It shall be noted that the adjusted historical performance can differ from the real
outcome and therefore shall only be seen as an indicator.

Andreas Brock, CFA

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 (%)


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