Before making any final investment decisions, please read the prospectus, its Annual Report, and the KID of the relevant Sub-Fund here
Likviditetsstrategi advanced by 0.57% during February. Since year-end, the NAV per share has consequently increased by 1.17%.
The expected interest rate cuts have been postponed by a few months in both the US and Europe. Inflation is certainly continuing its downward trend, but not at the pace that the market had hoped for at the beginning of the year. Despite this, risk appetite has been strong, and both equity and corporate bond markets have taken note of the long-term trend of falling interest rates, together with a robust US economy and some signs of recovery in Europe.
The month showed relatively little change in the fixed income market. Credit spreads continued to narrow in both the euro area and the Nordic countries. It is welcome to see that credit spreads on real estate companies have now come down significantly from their highest levels and that bond issuance in the sector have accelerated. Overall, we continue to have a positive environment for corporate bonds.
Among the month's biggest contributors were the insurance companies Alm Brand and Protector. Both companies reported strong numbers for 2023 with increased profitability due to improved underwriting results and higher returns on investments. The outlook for 2024 is assessed as good, Protector guides for continued high growth and Alm Brand expects extraction of additional synergies from completed acquisitions.
Bonds from real estate companies continued their strong trend from last month and provided good yield contributions during February as well. Balder presented a year-end report that lived up to expectations with moderately rising revenues and stable margins. After the report, Balder carried out a share issue where the proceeds were used to buy back subordinated bonds, which strengthens the company's credit quality.
The month's result was also positively affected by the completion of the recapitalization of Viaplay. Through a significant equity issue, the company is now, at least temporarily, without net debt and has credit facilities in place to be able to implement the strategic plan that aims to restore the company as a profitable Nordic player.
Rising interest rates had a minor negative impact on the result through falling prices for covered bonds with fixed coupons.
During the month, the fund participated in new issues from AFRY, Gjensidige and DNB Bank
Portfolio Manager of Coeli Likviditetsstrategi
Portfolio Manager of Coeli Likviditetsstrategi
| Inception Date | 2010-05-01 |
| Management Fee | 0 % |
| Performance Fee | Yes |
| Risk category | 2 of 7 |
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.