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Portfolio Manager comment Coeli Global Select November 2019

November was a solid month and the fund’s value rose by 5.7 percent, beating our benchmark index by 2.1 percent. Our assessment is that the fund is well-allocated in the market – it is moving upwards when the stock market rises and holds up well when the market becomes turbulent. Both Vestas and Adobe had strong performances during the month, with the companies issuing good interim reports. On the other side, we find Yes Bank and Beijer Ref – the former awaiting its capital injection and the latter with nothing new to report.

As Fund Managers it was very special to see our fund reach its fifth birthday on November 28! Our goal over time is to create annual returns of 15 percent per year (measured in SEK), this implicitly means that the fund’s NAV should double every five years. As it is, the day the fund turned five the NAV was up 100.6 percent over those years (currency SEK). An almost eerily exact figure.

Key market events and trends affecting performance

The world is now moving into a state of equilibrium – things will neither become much better nor worse. The most important aspect is that consumption (which can account for 70-80 percent of an economy) remains healthy, keeping the cogs turning. Our view is that cyclical stocks will have a tough ride for a long period ahead. Consequently, we have increased our weightings in trends that look set to remain strong, such as cosmetics and health, digital payments, and sustainability. India, a country we visited last month, also looks promising for the next upcoming years.

Portfolio changes

Over the course of the month we sold Adler Real Estate, a Special Situations stock that unfortunately hasn’t worked for us despite its low valuation. Instead, we’ve used the money to invest in one of the most exciting engineering companies that we have met for a long time, namely Italy’s Carel, which produces control equipment for cooling and freezing systems. The company is based outside of Venice and is riding the compelling sustainability and environmental trend waves, much like Beijer Ref. You are welcome to read more about our meeting with the founders on our website: coeli.se/global.

The fund’s positioning

So far this year we’ve had 119 company interactions, with companies located in countries from Australia, Taiwan, India, and Turkey, to Europe, the US and Brazil. Our fund is packed with some of the world’s finest companies, so it is with great anticipation we gaze into the new year.

Coeli Global Select I-EUR

Performance in Share Class Currency1 MthYTD3 yrs*Since incep*
Coeli Global Select – I EUR5.72%30.68%42.29%75.95%
Benchmark3.65%27.13%34.99%58.86%

* 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 (%)
THERMO FISHER SCIENTIFIC4.9%
GLOBAL PAYMENTS INC-4.8%
ADOBE INC4.7%
SIKA LTD4.7%
ESTEE LAUDER CO -A-4.4%

 

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.