Past performance

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.

This material is marketing communication

Before making any final investment decisionsplease read the prospectusits Annual Report, and the KID of the relevant Sub-Fund here

Print

Portfolio Manager comment BMC Global Select April 2024

The month of April saw a performance of -2.35%, in line with our benchmark index. Year-to-date, the fund is up 6.54%. We have now seen a large share of the first quarter’s reports and can reflect that everything is progressing according to expectations. Consumers are having a little trickier time in Europe, but the skies are clear in the US, despite interest rates being as high as they are. China appears to have stabilized, and given interest rate cuts on the cards, the real estate market should begin to settle down across the whole of Europe. The big AI and datacenter trends continue, and India is growing by leaps and bounds. In other words, all looks good from an economic viewpoint.

The best contributors to the fund in April were Alphabet, Watsco, and the Indian bank ICICI. They have in common that their reports were exceptionally strong. Profit per share for Alphabet, for example, grew by 62% y/y. At the other end of the scale were Stellantis, MSCI, and AMD, and again, their reports are the reason for their share price movements. We have already taken home some profits in Stellantis during the year, but it was still disappointing to see the share price drop after the CFO had indicated a somewhat lower margin than expected for the first half of the year, largely owing to a change in model but also because of the more challenging European vehicle markets. In the case of MSCI and AMD, company-specific factors were the cause of their weak share price developments. MSCI lost Credit Suisse as a customer when UBS acquired the company, which undermined the quarter, while we believe expectations for AMD were raised far too high ahead of the report. Of the fund’s 34 holdings, these three were the blips in Q1 reporting season, but there are still the 31 other companies that saw solid results.

Key market events and trends (what has influenced performance most?)

Solid interim reports from index heavyweights like Apple, Google, and Microsoft, and dialogue about coming interest rate cuts by the Fed affected the stock market during the month. The conflict between Iran and Israel also had an impact, as there was no major retaliation by Israel, which would have escalated the tension further. The market can take a breath of relief and instead focus on other macro data. Right now, full focus is trained on the US inflation and employment statistics to identify the slightest indication of future cuts in the US policy rate. The market has shifted from expecting several cuts over the course of the year to now anticipating one or two after the summer.

We saw a key positive datapoint from S&P Global, which owns the main rating (grade) for bonds. In its previous quarterly report, the company had the highest revenue growth in the rating business, implying that companies can now finance themselves with corporate bonds to a greater extent. This means that companies around the world can start seeing fewer problems with financing. A clear positive signal for the global economy.

Portfolio changes

During the month, we bought Synopsys, which chiefly provides software for chip design. We have already invested in sector companion Cadence, and now add Synopsys after the announcement of its acquisition of Ansys, which we believe holds potential to create value for shareholders over time. Synopsys sees robust demand for more advanced chips for AI, and with more hyper-scalers, such as Microsoft and Google, designing their own chips, there is a need for the software from both Synopsys and Cadence. We believe both Cadence and Synopsys offer great profit growth opportunities of 15% a year.
The fund’s positioning—our market expectations

Our portfolio of the World’s Finest Companies has seen a fine start to the year, and we are pleased with its performance so far. With a little tailwind from interest rate cuts, 2024 has all the ingredients for what could prove to be an excellent stock market year.

Our funds have new names 

Please note that from May 3, our funds Coeli Global Select and Coeli Global Small Cap Select have changed their names to BMC Global Select and BMC Global Small Cap Select. As we have communicated previously, Coeli Global AB have changed the name to Brock Milton Capital AB. A natural step in line with that name change, is also changing the name of the funds which has now taken place.

BMC Global Select

Performance in Share Class Currency Mth YTD 3 yrs Since incep
BMC Global Select – R EUR -2,35% 6,54% 29,05% 184,46%
Benchmark -2,30% 8,40% 27,67% 144,02%

Andreas Brock, CFA

Portfolio Manager Coeli Global Select

Henrik Milton

Portfolio Manager Coeli Global Select

Fund Overview
Inception Date 2014-11-28
Management Fee 1.4 %
Performance Fee Yes, 10%
Risk category 4 of 7
Top Holdings (%)
MARTIN MARIETTA MATERIALS 4,7%
WATSCO INC 4,6%
MASTERCARD INC 4,5%
S&P GLOBAL 4,2%
ALPHABET INC 4,1%

DISCLAIMER. This is a marketing communication.

Before making any final investment decisions, please refer to the prospectus of Coeli SICAV I, its Annual Report, and the KID of the relevant Sub-Fund. Relevant information documents are available in English at coeli.com. A summary of investor rights will be available at https://coeli.com/regulatory-information-coeli-asset-management-ab/.

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.