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Portfolio Manager comment Coeli Global Select May 2020

May was a good month for Coeli Global Select with a return of 5.12 percent, beating our benchmark index by 2.28 percentage points. Our total return for the year until end-May is -1.96 percent, coming in 6.12 percentage points above the benchmark.

A compelling mix of companies provided the highest returns for our fund during May. The best contributor was Beijer Ref. Funnily enough, the office of Beijer Ref’s CEO, Per Bertland, is just 150 metres from Coeli’s Malmö location. The next largest return was from Nvidia, which has demonstrated a striking development so far this year. The company is perfectly positioned with its gaming and data centre products. The third-best contributor was Carel, which operates in the same industry as Beijer Ref. In fourth place was Vonovia – a company we held a conference call with last week. The four worst contributors to returns were TSMC, HCA Healthcare, HDFC Bank, and Amazon. It is worth mentioning, however, that Amazon is our fund’s second-best performer since the turn of the year, so Jeff Bezos can be forgiven for the negative development in May.

Key market events and trends affecting performance

The economy is now starting to show “green shoots” and society is beginning to revert to normal, with an increasing number of people going back to their office workplace. In the cities we see how the traffic is becoming more congested again and how restaurants’ and cafes’ outdoor seating spaces are filling up with diners. Perhaps you have also seen airplanes in the sky. All these “normal” activities are helping to get society back on its feet again.

Other factors positively influencing the financial markets are the enormous stimuli from different countries’ central banks, which are of great importance in helping the economy rebound. The goal should be to save as many jobs as possible.

Portfolio changes

We made six changes to our portfolio during the month; selling three companies and replacing them with three others. Two of the companies we sold were “Special Situations” stocks: TeamViewer and DSV. We sold both with large profits. The third sale was IMCD, one of our “Champions” shares, which we divested to reduce our cyclical exposure.

Two of the new acquisitions are “Special Situations” and both are real estate companies that have taken a relatively harsh stock market beating this year: JM and Aroundtown. We estimate that each will have more than 50-75 percent upside in the coming 12 months. Our third new purchase was Zoetis, which operates in the animal health sector.

The fund’s positioning

During the month, we trimmed the proportion of our fund invested in “Special Situations” and these stocks now constitute about 5 percent of the total. The remainder is invested in our first-rate “Champions”. During the spring’s coronavirus outbreak, we have worked hard to further optimise our global fund with a robust portfolio for 2020 and into the future.

Coeli Global Select I-EUR

Performance in Share Class Currency1 MthYTD3 yrs*Since incep*
Coeli Global Select – I EUR5.12%-1.96%28.13%75.71%
Benchmark2.84%-8.08%17.84%48.30%

* 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.

* 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 (%)
VONOVIA SE /NAMEN4.5%
MICROSOFT CORP.4.3%
FISERV INC.4.3%
MASTERCARD INC. SHS-A-4.1%
GLOBAL PAYMENTS INC4.1%

 

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.