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

Nordic Corporate Bond Fund (Class I) advanced during November with 0.25 percent. Since year-end, the NAV per share has consequently increased by 3.31 percent. Some macro statistics now indicates how the economic downturn will not necessarily be as severe as expected. In the Nordic region, there was high activity in the primary market with relatively many new issues. The market is supported by large inflows to corporate bond funds, among other things, the Swedish Securities Dealers Association reported inflows of more than SEK 5 billion during October, which is a record figure.

Among the month’s major contributors, one found Ocean Yield, which carried out an equity issue with the purpose of financing growth investments and strengthening the balance sheet. Thus, the company continues to expand its fleet with modern tonnage and the conditions for continued investments are stated to be attractive. In addition to this, Ocean Yield carried out an early refinancing of a bond loan with maturity in 2020, which gives an improved maturity profile on the company’s debts.

The consumer credit company 4Finance also made a positive return contribution after the company presented its quarterly report which showed lower net interest income, but profit before tax was stable thanks to lower costs. The solvency ratio was reported somewhat higher, thanks to a good liquidity situation, the company has continued to repurchase bonds maturing in 2022. The Norwegian credit management company B2 Holding was also found on the winners’ list after presenting a quarterly report without any negative surprises and with forecasts of how leverage will be reduced in the coming year.

On the negative side, one found Marine Harvest, whose bonds fell somewhat after the sector was pressed by a proposal for higher taxes for aquaculture companies in Norway. Bonds from Samhällsbyggnadsbolaget i Norden also came under pressure after the company presented a bid for the larger competitor Hemfosa. If the acquisition goes through it will result in a deterioration of Samhällsbyggnadsbolaget’s credit metrics, at least in the short term. There are clear benefits to this merger as a larger company is created, which can result in more efficient management and, in the long run, lower financing costs.

During the month, new investments were made in hybrid bonds from Heimstaden Bostad and secured bonds from United Camping. The Norwegian IT company Crayon, a global reseller and software consultant, was also added to the portfolio. Crayon is appreciated for its attractive position in a rapidly growing market favored by a strong digitalization trend. In addition, exposure to Ocean Yield was increased.

During the month of November, it was time for the newly appointed ECB chief Christine Lagarde to give her first monetary policy speech. Lagarde pointed out, like her predecessor, that the Eurozone needs a new policy mix, where fiscal policy needs to support monetary policy measures. Thus, ECB continues to insist that higher government spending and tax reliefs should apply to the Eurozone countries. Regarding financial data, the Eurozone PMI, which has been below 50 (the break point between growth and contraction) since February, was noted at 46.9 in November, which was higher than both the previous month and analysts’ estimates. Manufacturing activity in the Eurozone noted declining activity for the 10th consecutive month.

The US-China trade conflict entered a new phase when President Donald Trump signed the new Hong Kong bill. In short, the bill is aimed at supporting democracy and human rights in Hong Kong, as well as allowing the United States to impose sanctions on those who are considered guilty of violating those rights. Not unexpectedly, the US-China relationship seems to have worsened and the planned tariff hikes on December 15th are now approaching without new progress on a trade deal. On a slightly more positive note, the US private consumption is seeing continued growth. During the month third quarter GDP figures were revised upwards and figures for durable consumer goods showed the highest order figures since the trade war started last year.

Swedish GDP figures showed growth in the third quarter of 0.3 percent, compared to the second quarter, with analysts’ expectations at 0.2 percent. The main contributor was exports, which increased by 1.4 percent, net exports increased by 0.3 percent. Swedish household consumption increased by 0.4 percent during the quarter.

During the month, the Nordic and European credit markets had slightly falling credit spreads in the Investment grade and the high-yield segment. Stibor 3-month was noted at 0.06 percent at the end of the month, after being above 0.0 percent throughout November. The Swedish 10-year government bond was noted above 0.0 percent for the first time since July and was by the end of the month quoted at 0.0 percent. Most other 10-year government bonds showed a negative trend with higher interest rates, with the U.K’s 10-year government bond being the exception with a modest fall of 0,01 percentage points.

Coeli Nordic Corporate Bond Fund I-SEK

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Nordic Corporate Bond Fund – I SEK0.25%3.31%9.50%18.38%

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 (%)
PROTECTOR F FRN 17-31.03.472.4%
GJENSID FOR FRN 14-03.10.442.3%

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.