Portfolio Manager comment Coeli Nordic Corporate Bond Fund I-SEK April 2019

Nordic Corporate Bond Fund (Class I) advanced during April with 0.43 percent. Since year-end, the NAV per share has consequently increased by 1.87 percent. The Nordic corporate bond market remained strong in April with generally falling credit spreads. Continued inflows into corporate bond funds and increased risk appetite among investors provided support to both the secondary market and the new issues launched during the month.

The largest contributor in April was the Samhällsbyggnadsbolaget i Norden, whose bonds appreciated sharply after the company received official investment grade ratings from Fitch and S&P. During the month, Samhällsbyggnadsbolaget carried out several transactions that enabled the upgrade: a major sale of an office property, extensions of capital and fixed interest periods and issues of both new ordinary shares and deeply subordinated bonds.

A handsome return contribution also came from Dometic, even though the company reported slightly worse earnings than expected and negative organic growth for the first quarter. The real estate company Akelius Residential also belonged to the major contributors. The company’s report for the first quarter shows that the loan-to-value ratio is on the way down to 40 percent, an important part of the company’s ambition to achieve an improved rating.

On the negative side, among others, one primarily found the real estate developer Magnolia Bostad, whose bonds detracted after the company reported low business activity during the first quarter with no new rental housing projects being sold to customers. However, on the positive side it is noted that Magnolia states continued strong demand for projects and that zoning permission for approximately 1,300 homes have now gained legal force, which is encouraging for the coming quarters.

During the month, the fund participated in a new issue of deeply subordinated bonds from Länsförsäkringar Bank; in addition, exposure to the Norwegian credit management company B2 Holding was added. The two new holdings are expected to offer solid return opportunities and increase the average yield in the portfolio; as well, the companies’ operations show relatively low cyclical sensitivity. In order to balance the portfolio with respect to the two new holdings, bonds from the shipping company MPC Container were divested. The fund also actively traded in bonds from Samhällsbyggnadsbolaget and increased its exposure to the issuer through the newly issued hybrid bond.

At the beginning of the month, the International Monetary Fund (IMF) lowered its global economic growth forecast for 2019 to the lowest level since the financial crisis. The IMF’s forecast now stands at 3,3 percent for the global economy, down 0.2 percentage points from the previous estimate in January. IMF communicates that the two biggest risks to the global economy are, not unexpectedly, the UK’s exit from the EU and the trade conflict between the United States and China. Growth forecasts were also lowered for the EMU area to 1.3 percent for 2019, a decrease of 0.3 percentage points. However, the forecast for the Chinese economy was raised by 0.1 percentage point to 6.3 percent for the full year. From a Swedish perspective, the figures were slightly revised, Swedish GDP is now forecasted to grow by 1.2 percent in 2019, a reduction of 1 percentage point from the previous forecast in January.

From a central bank perspective, April was a relatively quiet month without any unexpected communication. The ECB reiterated the mantra with their willingness to keep interest rates at current levels as long as necessary to achieve a 2 percent inflation rate. As expected, The Swedish Riksbank kept the interest rate at -0.25 percent. The biggest news from the board was the decision to purchase government bonds for a nominal value of SEK 45 billion combined with communication that future rate hikes will happen in a somewhat slower pace than previously communicated. The board also repeated its intention to raise interest rates by the end of 2019 or beginning of 2020.

The Nordic and European credit markets continued to be strong with falling credit spreads during the month. Stibor 3-month, which exceeded 0 percent in March for the first time since 2015, fell back during the month and ended at -0.06 percent. Long-term government bonds showed a somewhat negative trend during the month with rising interest rates. The yield on the German, Norwegian, UK and US 10-year bonds all rose between 7-15 basis points with the Swedish 10-year bond as the exception where the yield fell by 3 basis points.

Coeli Nordic Corporate Bond Fund I-SEK

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Nordic Corporate Bond Fund – I SEK0.43%1.87%12.90%16.73%

Gustav Fransson

Portfolio Manager of Coeli Nordic Corporate Bond Fund

Alexander Larsson Vahlman

Senior Analyst

Fund Overview
Inception Date2014-06-18
Management Fee0.5 %
Performance FeeN/A
Risk category2 of 7
Top Holdings (%)
LANSBK 1.25% 16-
WHITE MOUNT FRN 17-22.09.474.4%

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

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Alexander Wahlman

Senior Analyst Coeli Likviditetsstrategi & Coeli Nordic Corporate Bond Fund

  • Worked at Coeli since 2018
  • Worked in the finance sector since 2014
  • MSc from Rotterdam School of Management and Bachelor from Mercyhurst University

Alexander Wahlman is Senior Analyst for the funds Coeli Likviditetstrategi and Coeli Nordic Corporate Bond Fund. Before Coeli, Alexander worked at Danske Bank with business funding and och business analysis.

Portfolio Manager Gustav Fransson

Gustav Fransson

Portfolio Manager Coeli Likviditetsstrategi & Nordic Corporate Bond Fund

  • At Coeli since 2009
  • More than 10 years in the industry

Gustav has more than 10 years’ experience from the financial industry from various roles within asset management and corporate banking. Prior to joining Coeli in 2008 he worked as a real estate finance analyst at Royal Bank of Scotland, Nordic Branch.

Coeli Henrik Milton

Henrik Milton

Portfolio Manager Global Select

  • At Coeli since 2016
  • More than 17 years in the industry
  • Master of Science in Finance from Lund University

Henrik Milton has extensive experience from analyzing equity and portfolio management. Previously, Henrik has worked as portfolio manager at Capinordic Asset Management responsible for the Global Opportunities fund and the BRICA fund until 2010. Both of the funds were given top ratings (five stars) by Morningstar.

Coeli Andreas Brock

Andreas Brock, CFA

Portfolio Manager Coeli Global Select

  • At Coeli since 2014
  • More than 10 years in the industry
  • MBA at London Business School, Bachelor degree from Lund University and is a CFA Charter holder

Andreas has long experience of equity research and investments and invested globally during his time with Capital Group in London, but his formative years as an investor dates back to his days with ABB’s M&A department in China. Andreas is a CFA Charterholder.

Portfolio Manager James Bannan

James Bannan

Portfolio Manager Coeli Frontier Markets

  • At Coeli since 2017
  • More than 12 years in the industry
  • Chartered Accountant (CA) from the Institute of Chartered Accountants, Australia

James Bannan has been investing in Frontier Markets for over 10 years, including as co-lead at BankInvest’s global Frontier Markets listed equities funds from May 2011. Prior to that James lived in Ho Chi Minh City, Vietnam for 5 years, working for BankInvest’s Private Equity New Markets funds, which was rated as the best performing fund in Asia with 2006 – 2010 vintage by Prequin, generating returns of over 50%. Before his time in Vietnam, he worked with M&A at KPMG in Sydney and Copenhagen, where he completed several deals in several in Frontier Markets. In 2018 Coeli Frontier Markets was awarded the prestigious Thomson Reuters Lipper Fund Award for best fund in its category.

Portfolio Manager Hans-Henrik Skov

Hans-Henrik Skov

Portfolio Manager Coeli Frontier Markets

  • At Coeli since 2014
  • More than 12 years in the industry
  • Holds a Master of Science in Finance from Copenhagen Business School, graduating as top two of his class

Having managed listed equities in global Frontier Markets since May 2007, Hans-Henrik Skov has one of the longest experiences in this investment universe. He was at BankInvest Asset Management from May 2007 to February 2014, as co-lead on BankInvest’s Frontier Markets listed equities funds. Hans-Henrik previously worked at Barclays Capital and at JP Morgan, both in London. In 2018 Coeli Frontier Markets was awarded the prestigious Thomson Reuters Lipper Fund Award for best fund in its category.

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Namik Immelbäck

Portfolio Manager Coeli Altrua Makro

  • Joined Coeli in 2018
  • 12 years of experience in global macro investing
  • BSc London School of Economics, MSc Bocconi

Namik Immelbäck is portfolio manager of Coeli Altrua Macro and responsible for investment strategy and research. Over the last 12 years Namik has held various roles as economist, investment strategist and trader at well-known global macro hedge funds such as Comac Capital, Tudor and Millennium in London and New York.

Mikael Petersson

Portfolio Manager Coeli Absolute European Equity

  • Joined Coeli in 2018
  • More than 25 years of  experience in finance industry
  • BSc from Lunds University

Mikael Petersson is the responsible portfolio manager for Coeli Absolute European Equity and has many years of experience in portfolio management. Mikael has been an employee for some of the most successful hedgefund coorporations in Europe, such as Lansdowne Partners and Kairos Investment Management in London. He has also started his own business i Zug, where Coeli previously was an investor.

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Erik Lundkvist

Portfolio Manager Strategy Funds

  • At Coeli since 2004
  • More than 15 years in the industry
  • Erik holds a M.Sc. in Economics from Örebro University and CEFA from Stockholm School of Economics

Erik is responsible for Coeli Asset Management Solutions products and has 10 years of experience from asset management in roles such as Portfolio Manager, manager selector and economist.

Joel Etzler

Portfolio Manager Coeli Energy Transition

  • Joined Coeli in 2019
  • More than 13 years of  experience in the industry
  • MSc from the Royal Institute of Technology

Joel Etzler is Portfolio Manager and Founder of the Coeli Energy Transition fund and has more than 13 years in the industry, with investment experience from both the public and private equity side. Etzler joined Kalvoy at Horizon Asset in London in 2012 and spent five years before that within Private Equity at Morgan Stanley. Etzler started his investment career within the technology sector at Swedbank Robur in Stockholm, 2006.

Vidar Kalvoy

Portfolio Manager Coeli Energy Transition

  • Joined Coeli in 2019
  • More than 20 years in the industry
  • MBA from IESE, MSc from Norwegian School of Economics and Business Adm.

Vidar Kalvoy is the lead Portfolio Manager and Founder of Coeli Energy Transition. He has more than 20 years’ experience from portfolio management and equity research. For nine years, he was responsible for the energy investments at Horizon Asset in London, a market neutral hedge fund. Kalvoy also has experience from energy investments at another hedge fund in London and equity research within the technology sector in Frankfurt and Oslo.

Stefan Åsbrink

Fund Manager Coeli Multi Asset

Stefan Åsbrink is the lead Portfolio Manager and Founder of Coeli Multi Asset. He has more than 20 years’ experience from portfolio management and 15 years as Head of Asset Management and CIO. Before Coeli Stefan had Manager of Hedge fund mandates and Global Cross Asset Allocation mandates at major Nordic firms such as SEB, Skandia and DNB. Stefan has a Bachelor in Financial Economics and Econometrics from Uppsala University, PhL. (half PhD) in Dynamic Macro/Top Down Analysis from Uppsala Universty and a PhD in Option valuation, Portfolio optimization and Risk control from Stockholm School of Economics.