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

Nordic Corporate Bond Fund (Class R) declined during September with 0.03 percent. Since year-end, the NAV per share has consequently increased by 3.08 percent. The positive trend in the corporate bond market continued in September with generally stable credit spreads in Europe. However, slightly rising long-term interest rates held back the return. In the Nordic submarket, the sentiment was strong with high activity in the primary market, where primarily real estate companies carried out new issues.

The largest contributor in September was PWT Holding, whose bonds developed positively after the company presented its quarterly report. Both sales development and margins improved marginally compared to the previous year. The company’s management was cautiously optimistic about the outlook for the rest of the year and continue to see improvement potential in the business. The ship leasing company Ship Finance also developed well as the company continued its growth journey through investments in three major tankers.

The largest negative impact on earnings was the credit management company Intrum, whose bonds fell in value after the company issued new bonds to refinance parts of the company’s bond loan with maturity in 2022. With the refinancing, Intrum has a more even maturity profile on its debt portfolio, which is positive; however, in the short term the increased supply of bonds leads to some price pressure. Similarly, the price trend for bonds from B2 Holding was weak. The company presented its quarterly report on the last of August, the contents of which were already largely known after the profit warning earlier in August. B2 now guides for a somewhat lower growth rate and states that the conditions for investing in overdue receivables continue to improve. Bonds from Melin Group continued to decline in value after the company’s quarterly report was released at the end of the previous month.

During the month, a new investment was made in bonds from Gjensidige Forsikring, a Norwegian insurance company. Gjensidige is the market leader in non-life insurance in Norway and has an advanced market position in Denmark as well. The company is very well-capitalized and has stable profitability. The investment expands the Fund’s exposure to cyclically insensitive companies. Moreover, a swap of subordinated bonds from Telia was carried out, where fixed-rate bonds in Euro were exchanged for an FRN in Swedish kronor. The exchange took place on favorable terms with a slightly higher spread while shortening the interest rate duration and expected maturity. At the end of the month, the portfolio consisted of 52 holdings from 49 different issuers.

Federal Reserve (Fed), lowered its benchmark interest rate in September by 25 basis points. Jerome Powell, chairman of the Fed, highlighted that the American economy, especially the consumer part, is still strong with low unemployment levels, but there are risks on the horizon. These risks come foremost from a weaker global economic outlook and accelerating trade wars, especially after the new round of tariffs between the U.S and China. Fed pointed out that in the case of continued weaker data points regarding the American economy, the central bank has room for aggressive maneuvering. Fed’s benchmark rate interval is now in the range of 1.75-2.0 percent. Equity indices initially traded down on the announcement, but later recovered the same day while government treasuries were unchanged, indicating the announcement was in line with investor expectations.

The European Central Bank (ECB), chose in line with Fed to lower its deposit rate by 0.10 percent to -0.50 percent, while also restarting its quantitative easing program. The program consists of monthly purchases of bonds by EUR 20bn with start in November. ECB also eased some of the terms on long-term loans for banks and introduced a new tiering system, with intention to increase lending margins for banks in the union. The retiring ECB chairman Draghi, scheduled to leave by end of October, commented that combined with monetary easing, the Euro area also needs fiscal policy changes, mainly in terms of lower taxes and higher government spending. A continued slowing global economy was also among risks for the region the ECB pointed out.

During the month, the Swedish central bank, Riksbanken, left the repo rate unchanged at -0.25 percent. Also, the bank once again repeated its position for a rate hike by the end of this year or early next year and stated, “low global interest rates and continued declining global economic sentiment means the interest rate is expected to be raised in a slower pace than previous projections”. In other words, Riksbanken lower its projections for coming quarters, but still sees a positive repo rate in the third quarter of 2020 at 0.04 percent (the previous forecast was at 0.14 percent). The Swedish inflation figures, CPIF, for August was noted at 1.3 percent, which was a decline from the previous month of 1.5 percent and a tad lower than consensus expectations.

The Nordic and European credit markets showed a somewhat mixed performance during the month. The investment grade segment of the market showed slightly increasing credit spreads, while the high yield segment initially showed falling credit spreads; however, in the latter parts of the month spreads were rising. Stibor 3-month once again fell through 0.0 percent and was trading at -0.07 percent by the end of the month. 10-year government bonds showed a negative trend with higher interest rates in all of our closest markets.



Coeli Nordic Corporate Bond Fund R-SEK

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Nordic Corporate Bond Fund – R SEK-0.03%3.08%8.81%15.53%

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 17-22.09.473.6%
IN JUSTITIA 3.5% 19-15.7.26 REGS3.5%

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.