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

Nordic Corporate Bond Fund (Class I) advanced during June with 0.3 percent. Since year-end, the NAV per share has consequently increased by 2.51 percent. During June the corporate bond market performed well in both Europe and the Nordic region. Following the weak developments in May, investors’ risk appetite returned after the Federal Reserve together with the ECB signaled that monetary policy will focus on continued stimulus through interest rate cuts or maintained low policy rates.

The largest contributor in June was Telia, whose subordinated bonds appreciated 3 percent without any significant news being presented by the company. The strong performance is explained by falling European government bond yields and generally tighter credit spreads. The ever-lower interest rates in the euro area contributed significantly to the fund’s performance in June – the four main contributing holdings were all fixed-rate bonds in euro. The real estate company Kungsleden was also found high up on the winning list after the company received an official investment grade rating from Moody’s. In its report, Moody’s emphasizes that Kungsleden in recent years successfully has developed in line with its strategy and improved the quality of its property portfolio while maintaining a quite conservative financial risk profile.

On the negative side one primarily found the mobile operator Lebara, whose bonds fell sharply in value after the company once again exceeded the deadline for publishing revised annual accounts; in addition, the issuer announced that the interest payment for June would be delayed. In response to the issuer’s repeated breaches of the bond covenants, the bondholders have now initiated a procedure whereby the bond is accelerated and the share pledge will be enforced. The bondholders will thereby take ownership of the company after which a restructuring of the bond will be carried out, which will partly result in conversion to equity.

During the month, the fund participated in a new issue of bonds from the credit management company Intrum. Intrum has since the merger with Lindorff 2017 been a leader in its niche in most markets in Europe. In connection with the merger, the company’s leverage increased and has since remained at a relatively high level due to large investments. The company’s management is now guiding for a lower investment pace, which gives scope for the company’s credit profile to be strengthened. In addition, the fund invested in newly issued bonds from the consulting group ÅF Pöyry.

Akelius Residential left the portfolio at the end of the month, the bond was sold with good profit since the investment in March. Akelius has almost a quarter of its real estate portfolio in Berlin, where discussions are now underway to introduce restrictions on rent increases – something that, if implemented, could have significant negative effects on the properties’ market value. Icelandair left the portfolio when the company made an early redemption of what was outstanding in their bond loan. Lastly, the holding of bonds from Tele2 was divested as these were considered as fully valued.

During the month the American Federal Reserve decided to leave its main interest rate unchanged, with further communication that they foresee a rate cut in 2020. However, the market is of a different expectation with a cut as early as July already priced in, making the next Federal Reserve Board meeting highly interesting. S&P continued to show strength during the month with an increase in the index of 6.9 percent. With the first half of 2019 in the books, the S&P has showed a total increase of 17.4 percent. The last time the index started a year this strong was back in 1997.

As usual, it was an eventful month for U.S. President Trump, this time it started with removed threats of higher tariffs on Mexico. The two countries made an agreement on reduced flow of immigrants along the southwestern border. As well, Iran shot down an American drone which raised tensions in the Persian Gulf further. Lastly, at the G20 summit at the end of the month the U.S and China made an agreement to pause its trade dispute until further notice. It has been reported that a new round of negotiations will take place and that China will purchase additional agricultural products from the U.S. Some restrictions on the Chinese company Huawei will also be lifted and the introduction of new tariffs will be suspended.

In the Eurozone, ECB decided to keep interest rates unchanged, with further communication of its willingness to do whatever it takes to support the economy in the region. The Italian debt burden has once again come up for discussion, as the European Commission came out with a debt report noting that Italy’s public debt during 2018 violated the EU budget rules. Italy’s public debt reached 132 percent of GDP during 2018 and according to EU forecasts will reach 135 percent by 2020 with fear that the country’s budget deficit will exceed 3 percent of GDP next year. In an attempt to get the Italian government to revise its planned spending, the EU commission suspended its excessive deficit procedure.

Swedish inflation was reported somewhat higher at 2.1 percent for the month of May. The figure was spot on the Riksbank projections for the month.

The Nordic and European credit markets had a strong finish to the first half of the year with falling credit spreads during the month of June. Stibor 3-month fell once again below 0.0 percent and during the month the Swedish 10-year government bond was yielding below 0.0 percent. However, this was not for long, by the end of the month it was yielding above 0.0 percent once again. Long-term government bonds showed a positive trend with falling interest rates. Most notable was once again the German 10-year government bond, where the yield continued to fall and is now trading at -0.32 percent.

Coeli Nordic Corporate Bond Fund I-SEK

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Nordic Corporate Bond Fund – I SEK0.30%2.51%12.55%17.46%

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 17-22.09.474.0%

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 Larsson Vahlman

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 Larsson Vahlman 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.