Portfolio Manager comment Coeli Global Select September 2021

September was something of a negative month for the fund, which was down 4.31 procent – short of our benchmark index by 2.13 pp. The largest positive contributions came from the Indian bank Kotak Mahindra and Sweden’s Fortnox, while the weakest performers were Swiss building materials manufacturer SIKA and Brazil’s Pagseguro. There is no common thread between the stocks that did well or otherwise, other than the stock market’s decline across the board.

At the many meetings we had with companies across Europe in September, we experienced great optimism and, above all, a greater desire to invest than typically seen before the coronavirus pandemic struck. In the coming years, we anticipate a greater share of investments in logistics and technology than before, owing to the clear impact the pandemic has had on the global economy.

Key market events and trends (what has influenced performance most?)

The stock markets are a little jittery at present in response to everything from rising interest rates in the US, the macroeconomic weakening in China, and the supply issues for a range of items from semiconductors to fuel for British petrol stations. In comparison with the pandemic that paralysed the world just a year and a half ago, we consider these problems quite manageable in general, and especially so for our companies. In the big picture, interest rates are low, many have experienced significant property value increases, and consumer willingness to spend remains high.

Portfolio changes

During September, we finalised our initial position in podcast platform Acast. If you’d like to know more about our meeting with Acast’s CFO, as well as our meetings with other companies around Sweden in recent weeks, you can find out more here (in Swedish): Finally, a week packed full of physical company meetings – Part 1 | Coeli

The fund’s positioning – our market expectations

The next reporting season kicks off in just a week, and we are excited to see what it brings. We view the periods between reporting seasons as the part of the journey when anything can happen. Still, when reporting season comes, that is when we really get to know what’s happening with our selection of great companies.