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

 

Nordic Corporate Bond Fund (Class R) advanced during July with 0.41percent. Since year-end, the NAV per share has consequently increased by 2.24. During the month the performance in the corporate bond market was relatively stable in both Europe and the Nordic region. However, towards the end of the month, volatility increased somewhat with slightly wider credit spreads mostly in the high yield segment. Investors’ risk appetite seems to be dampened by the fact that the US-China trade negotiations appear to have broken down and the US has once again announced increased tariffs.

The largest contributor in July was Magnolia Bostad after the company reported a couple of project sales and an increase in production, which should strengthen the company’s cash flow in the coming quarters. Bonds from Samhällsbyggnadsbolaget i Norden also made a significant contribution to the result. The company’s report for the second quarter showed a solid increase in both rental income and property management results. During 2019, SBB maintained a high level of activity in the transaction market, which resulted in the value of the property portfolio having grown by about 20 percent and amounted to approximately SEK 30 billion at the end of the year. New borrowing and refinancing have consistently taken place under improved conditions, which has significantly lowered the company’s borrowing costs.

On the negative side was the consumer credit company 4Finance, whose bonds continued to detract, but without any significant news from the company.

Few changes were made to the portfolio during the month since the activity was low in both the primary and secondary market. The holding of bonds from 4Finance and Magnolia Housing was increased. In addition, a maturity extension was carried out among the fund’s holdings of covered bonds from Swedbank Hypotek.

Developments in the financial markets in July were characterized by increasing uncertainty about the prospects for the US-China trade negotiations, the risk of a no deal Brexit and growing tensions in the Middle East.

In Europe most economic indicators continued to fall, still pointing to a weaker economy. During the month, the ECB opened for interest rate cuts and other stimulus measures later in the autumn. Weak statistics and the possibility of an even more expansionary monetary policy contributed to putting pressure on long-term government bond yields: the German 10-year government bond was traded at a low of -0.50 percent and the 30-year bonds were indicated below 0 percent. The yield on the Swedish 10-year government bond also fell and was noted at -0.20 percent at the end of the month.

In the US, the Federal Reserve chose to cut interest rates by 0.25 percent. The interest rate cut was expected, but communication from the Fed was less “dowish” than expected, after which short US government bond yields rose and the US dollar strengthened.

In July, the Riksbank announced that the repo rate and interest rate forecast will be left unchanged. The Riksbank thus continues to signal that an interest rate hike is likely towards the end of the current year or early next year. Inflation in Sweden was reported slightly lower than earlier this spring, in support of Riksbanken’s forecast, it is noted that underlying inflation, adjusted for energy prices, is rising slightly and is now just below the target of 2 percent. Growth in Sweden was reported slightly lower than expected, with an increase of 1.4 percent during the second quarter. The National Institute of Economic Research’s barometer indicator continues to fall, pointing to a slower pace of the economy in the coming quarters.

Coeli Nordic Corporate Bond Fund R-SEK

Performance in Share Class Currency1 MthYTD3 yrsSince incep
Coeli Nordic Corporate Bond Fund – R SEK0.41%2.65%10.46%15.06%

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% 16-20.09.233.9%
WHITE MOUNT FRN 17-22.09.473.7%
MARINE HARV FRN 18-12.06.233.6%
OCEAN YIELD FRN 18-25.05.233.5%
SHIP FIN IN FRN 19-04.06.243.1%

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 www.coeli.se.

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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.

Portfolio Manager 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.

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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 13 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.