Portfolio Manager comment Coeli Nordic Corporate Bond Fund R-SEK May 2019

Nordic Corporate Bond Fund (Class R) advanced during April with 0.28 percent. Since year-end, the NAV per share has consequently increased by 1.98 percent. The Nordic corporate bond market withstood the turbulence in the equity markets relatively well, with generally stable credit spreads. Activity in the primary market remained high with plenty of new issues and the appetite for new bonds seems to be strong.

The largest contributor in May was the cyber security consultancy SecureLink after the company received a purchase offer from the telecom operator Orange, which caused the bond price to rise about 9 percent. The entire holding was divested a few days after the news was released.

The property developer Magnolia Bostad also belonged to the major contributors. In May, the company announced a new joint venture with Heimstaden Bostad with the aim of developing about 800 apartments north of Stockholm. The production start is expected to take place in 2019 with completion scheduled for 2021. After a couple of quarters without any major projects being announced, it is reassuring that Magnolia now carries out a major transaction based on building rights in the company’s project portfolio. Bellman Group also provided a significant return contribution after the company’s quarterly report exceeded expectations. As a result of acquisitions, significant revenue growth and a doubled operating profit were reported.

On the negative side, one mainly found euro-denominated bonds from Akelius Residential, Telia and Dometic. The price decline for these bonds was not driven by any company-specific news, but rather explained by the fact that the euro market developed significantly weaker than the local Nordic corporate bond market.

During the month, the fund participated in a new issue of bonds from the ship leasing company Ship Finance. The bond is expected to offer good return opportunities thanks to a robust business model that provides extremely stable cash flows while the company is facing interesting growth opportunities. In addition, newly issued bonds from the telecom company Millicom were added to the portfolio and the holding of bonds from Norwegian Austevoll was increased. Bonds from the Samhällsbyggnadsbolaget with maturity in 2024 were sold in favor of a placement of bonds with a one-year longer maturity from the same issuer The holding of bonds from Icelandair was reduced when the company carried out a repurchase, the remaining holding is expected to be redeemed this summer.

May started off with an escalation of the trade war between the US and China with Trump’s threats of additional tariffs on Chinese goods. According to analysts, a trade agreement between the two countries was already accounted for and this set the tone on the market for the entire month. Hence, the S&P 500 fell by 6.6 percent, the second worst month of May since the 1960s. In mid-May, the trade agreement discussions fell through and new negotiations between senior diplomats are yet to be planned. At month-end, the US subsequently imposed tariffs of 25 percent on goods with equivalent value of USD 200 billion. China countered with increased tariffs on goods corresponding to a value of USD 60 billion.

Europe also had an eventful month with an EU election and continued Brexit problems. Theresa May’s proposal for a withdrawal agreement has been voted down by the British Parliament three times and in a fourth attempt May opened for a new referendum. This was the last straw for the Brexit supporters in her party Tories and meant the end of her period as the British Prime Minister. May will remain in her position until a new leader has been appointed, which is expected to occur in the end of summer. There is now an inherent risk that advocates of a no-deal Brexit advance their positions in the party.

The Italian party Lega, with leader Matteo Salvini, had a favorable result in the EU election. Salvini has promised in the elections to lower taxes in the country and try to transform the EU budget rules in order to lower unemployment in the country. Italy is already facing high government debt and had earlier this year issues with getting the state budget approved by the EU commission. Further budget discussions between the country and EU is to be expected from here on.

Swedish GDP rose by 2.6 percent in the first quarter of 2019 compared to the same quarter in 2018, which was higher than analyst estimates. However, Swedish domestic demand was slightly weakened with a decline in imports by 0.7 percent. It was primarily the household demand that decreased in the first quarter.

The Nordic and European credit markets showed rising credit spreads during the month, breaking the trend from prior months. Stibor 3-month rose once again to 0,0 percent during the month and long-term government bonds showed a positive trend with falling interest rates. Most notable is the German 10-year government bond, where the yield fell below zero and is now trading at -0.2 percent.

Coeli Nordic Corporate Bond Fund R-SEK

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Nordic Corporate Bond Fund – R SEK0.28%1.98%10.71%14.30%

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 17-22.09.474.1%

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.